Farooq Awan

Pakistan’s external development financing during FY26 continues to cover major energy generation and transmission projects, including hydropower expansion and power evacuation infrastructure, as reflected in the Foreign Economic Assistance Monthly Report for November 2025 issued by the Ministry of Economic Affairs.

The document lists the Tarbela 5th Extension Hydropower Project, with an installed capacity of 1,410 megawatts, among the large-scale energy projects included in the external assistance portfolio. The project is recorded under multilateral financing arrangements and is shown as an active initiative during the reporting period.

Alongside Tarbela 5th Extension, the report includes financing for power transmission and evacuation line projects designed to support the integration of new generation capacity into the national grid. These transmission projects are listed separately from generation projects and are categorised under the energy infrastructure sector.

The document records that several of these transmission initiatives are financed from multilateral development partners, with approved amounts and disbursement status reflected in the project tables. The projects are structured to facilitate power evacuation from hydropower plants and other generation sources.

In the hydropower segment, the report lists additional energy-related projects alongside Tarbela 5th Extension, indicating continued external financing support for electricity generation infrastructure. These projects are presented as part of Pakistan’s broader energy sector development portfolio during FY26.

The November 2025 report identifies the executing agencies and lenders associated with each energy project, ensuring clarity in the classification of financing arrangements. The projects are grouped under the energy sector, separate from transport, urban development and social sector initiatives.

The report further distinguishes between generation projects, such as hydropower plants, and transmission infrastructure, such as evacuation lines and grid-related works. This distinction is maintained consistently across the energy sector listings.

Overall, the listing of Tarbela 5th Extension and associated transmission projects in the November report reflects the continued role of externally financed energy initiatives in Pakistan’s development programme during FY26, as captured in the official monthly external assistance data.

Credit: INP-WealthPk