Pakistan may benefit from ADB’s $70 billion power and digital initiative

Pakistan’s power sector could find relief under a $70 billion regional energy and digital initiative unveiled by the Asian Development Bank, which aims to expand cross-border electricity trade through interconnected grids, according to a news report. 

The plan, unveiled at the bank’s annual meeting, includes $50 billion for a Pan-Asia Power Grid Initiative and $20 billion for the Asia-Pacific Digital Highway project. The programme aims to connect energy systems, expand electricity trade and improve broadband access across Asia and the Pacific by 2035.

ADB said the initiative would integrate national and subregional power systems, enabling renewable energy to move across borders while using digital infrastructure to support efficiency and growth.

For Pakistan, officials said the proposal could offer a potential solution to its power sector imbalance, where surplus generation capacity coexists with supply shortages due to transmission constraints and fuel issues.

Pakistan’s power demand drops to around 9,000–10,000 megawatts during the day due to solar usage but rises above 29,000 megawatts during peak hours. Total connected capacity exceeds 36,000 megawatts and rises beyond 58,000 megawatts when off-grid and net-metered solar systems are included.

Despite this capacity, consumers continue to face load shedding, reflecting inefficiencies in transmission and distribution.

Under the grid initiative, the ADB plans to support development of cross-border transmission lines, substations, energy storage systems and grid digitalisation, along with renewable energy projects linked to electricity trade.

By 2035, the programme aims to integrate around 20 gigawatts of renewable energy, build 22,000 circuit kilometres of transmission lines, expand electricity access to 200 million people and reduce regional power sector emissions by 15%.

ADB said it expects to finance about half of the energy initiative from its own resources, with the remainder to be raised through co-financing, including private sector investment.

The digital component will focus on fibre-optic networks, subsea cables, satellite links and regional data centres to support AI-driven growth and connectivity.

ADB President Masato Kanda said energy and digital access would shape the region’s future, adding that linking power grids and digital networks could reduce costs and expand access to services.

Officials said the initiative represents a shift towards a regional approach to energy cooperation, building on existing frameworks such as the South Asia Subregional Economic Cooperation programme and other regional grid projects.