ADB proposes $130 million project to digitise power distribution network across five Discos

The Asian Development Bank (ADB) has proposed a $130 million loan-financed project to strengthen Pakistan's power distribution network through the deployment of advanced digital technologies across five electricity distribution companies (Discos).

According to a news report, the proposed Second Power Distribution Strengthening Project (PDSP-II) will introduce Asset Performance Management Systems (APMS), Advanced Metering Infrastructure (AMI), and data management platforms to improve operational efficiency, reliability and climate resilience.

The project, which received concept clearance on March 9, 2026, is currently at the proposed stage, with ADB's fact-finding mission scheduled from June 1 to June 30, 2026.

Under the initiative, ADB plans to extend interventions to Peshawar Electric Supply Company (PESCO), Hazara Electric Supply Company (HAZECO) and Quetta Electric Supply Company (QESCO), while expanding coverage in Lahore Electric Supply Company (LESCO) and Sukkur Electric Power Company (SEPCO).

According to ADB, Pakistan's power sector continues to face high technical and commercial losses, weak revenue recovery, poor asset utilisation and limited digital visibility across distribution networks.

The lender said the project is expected to improve network monitoring, enable predictive maintenance, reduce losses, improve outage response times, strengthen billing integrity and support efforts to reduce circular debt.

ADB added that the project's objective is to improve operational efficiency, reliability and climate resilience of participating Discos while supporting broader reforms in Pakistan's power sector.