By Abdul Ghani

Pakistan’s energy sector attracted significant foreign financing during the first seven months of the current fiscal year, with a number of power generation and transmission projects receiving disbursements from international development partners, according to official data.

The Ministry of Economic Affairs’ monthly report on foreign economic assistance shows that several major energy projects received external funding during July–January FY2025-26. These projects, supported by both multilateral lenders and bilateral partners, aim to strengthen electricity generation capacity and enhance power transmission infrastructure.

Among the largest energy-related disbursements recorded during the reporting period was financing for the Dasu Hydropower Project. According to the report, $21.57 million was disbursed for the project during July–January FY2025-26. The hydropower project is being implemented by the Water and Power Development Authority (WAPDA).

Another major energy project receiving foreign financing is the Tarbela Fourth Extension Hydropower Project. The report shows that $37.82 million was disbursed for the project during the seven-month period. The project is aimed at expanding hydropower generation capacity at the Tarbela Dam.

The report also indicates that financing continued for the Balakot Hydropower Development Project. Disbursements for the project reached $12.58 million during July–January FY2025-26. The project, located in Khyber Pakhtunkhwa, is intended to increase electricity generation through hydropower development.

Energy sector financing also included support for power transmission infrastructure. The Second Power Transmission Enhancement Investment Program received disbursements of $14.01 million during the reporting period. The program is being implemented by the National Transmission and Despatch Company (NTDC) to strengthen the country’s transmission network.

In addition, financing continued for the National Transmission Modernization Project, which received $24.00 million during July–January FY2025-26. The project focuses on upgrading transmission infrastructure to improve the reliability and efficiency of electricity delivery across the country.

The report further shows that funding was also provided for the Electric Distribution Efficiency Improvement Project. Disbursements for this initiative reached $4.76 million during the seven-month period. The project aims to improve electricity distribution systems and reduce losses in the power sector.

Another energy initiative receiving foreign financing during the reporting period is the Mohmand Dam Hydropower Project. According to the report, the project received disbursements totaling $6.35 million during July–January FY2025-26.

The data also shows financing for renewable and hydropower development initiatives supported by various international partners. These projects are part of broader efforts to strengthen Pakistan’s energy infrastructure and improve electricity supply across the country.

According to the report, project-related foreign assistance totaled $1,901.48 million during the July–January period. A portion of this financing was directed toward energy-related infrastructure projects, including hydropower generation and transmission system improvements.

The report indicates that these disbursements form part of ongoing cooperation between Pakistan and international development partners to support the country’s energy infrastructure development. The projects receiving financing during the period involve multiple executing agencies, including WAPDA and NTDC, and are being implemented in different regions of the country.

Credit: INP-WealthPk