• Asian Development Bank plans $50bn for power, $20bn for digital infrastructure
• Project will link grids, boost power trading, improve broadband, develop AI-ready communities across Asia, the Pacific
• Pakistani official hails potential ‘win-win solution’; urges cautious examination

ISLAMABAD: Pakistan, grappling with a paradox of surplus power generation and persistent electricity shortages, may benefit from an artificial intelligence-based cross-border electricity trade in the Asian region under a $70 billion initiative, the Asian Development Bank (ADB) announced on Sunday.

The initiative, unveiled at the ADB’s annual meeting, aims to forge a more connected and technologically advanced Asia by strengthening power grid links, boosting cross-border electricity trade and increasing broadband access through AI-driven smart infrastructure.

The plan is divided into two major components: $50bn for a new PanAsia Power Grid Initiative and $20bn for the Asia-Pacific Digital Highway project.

The Manila-based lending agency said it “will back $70bn in new energy and digital infrastructure initiatives by 2035, aiming to connect power grids, expand cross-border electricity trade, and improve broadband access across Asia and the Pacific,” during the inaugural session of its May 3-6 meeting in Samarkand.

“Energy and digital access will define the region’s future,” ADB President Masato Kanda said in an announcement released by the bank.

“These two initiatives build the systems Asia and the Pacific need to grow, compete, and connect. By linking power grids and digital networks across borders, we can lower costs, expand opportunity, and bring reliable power and digital access to

hundreds of millions of people.”

For Pakistan, which continues to face the complex challenge of electricity shortages despite having surplus generation capacity, the Pan-Asia Power Grid Initiative could offer a pathway to stability.

A government official, speaking to Dawn, suggested that the regional cooperation facilitated by the multilateral lender could provide a much-needed solution, although he cautioned it was too early to reach a definitive conclusion.

Pakistan sits at the crossroads of surplus generation capacity, a fluctuating demand curve and recurring supply shortages, the official said, adding that with regional cooperation facilitated by an international multilateral and digitally synchronised by AI-driven smart infrastructure, the plan could be a “win-win solution for all”.

The official declined to comment on the record, noting the initiative had just been announced and would require detailed examination on technical, financial and diplomatic grounds once it passed through official channels.

The country’s energy paradox is stark: daytime demand drops to an average of 9,000-10,000 megawatts (MW), largely due to significant penetration of private solar systems.

However, peak demand can surge beyond 29,000 MW, straining a grid with a connected generation capacity exceeding 36,000 MW. When including off-grid, hybrid and net-metered solar systems, the country’s total installed capacity climbs beyond 58,000 MW.

Despite this, consumers frequently endure long hours of electricity loadshedding, often due to fuel shortages and transmission constraints.

Pan-Asia Power Grid Initiative

The ADB detailed how its energy initiative would directly address such regional challenges.

“The Pan-Asia Power Grid Initiative will connect national and subregional power systems so renewable energy can flow across borders, while the Asia-Pacific Digital Highway will help close the digital infrastructure gap and enable the region to benefit from AI-driven growth,” the ADB said.

Under this $50bn plan, the ADB will collaborate with governments, utilities, the private sector and development partners to mobilise the funds by 2035 for cross-border power infrastructure capable of unlocking renewable energy at scale.

The initiative’s focus will be on transmission and grid integration, which includes cross-border lines, substations, energy storage, and grid digitalisation. It will also support power generation projects linked directly to electricity trade, such as renewable energy export facilities, regional renewable hubs, and hybrid generation-storage plants.

By 2035, the ADB aims for the project to achieve several key targets: integrating about 20 gigawatts of renewable energy across borders, connecting 22,000 circuit-kilometres of transmission lines, improving energy access for 200 million people, creating 840,000 jobs and cutting regional power sector emissions by 15 per cent.

Financing for the ambitious project is expected to come from the ADB’s own resources for about half of the $50bn total, with the remainder to be raised through co-financing, including from the private sector.

An additional fund of up to $10m in technical assistance will support efforts to align regulations, adopt common technical standards and prepare feasibility studies for major projects.

This initiative signifies a strategic shift from country-to-country energy links to a more comprehensive, regional approach to power trade.

It builds on existing frameworks, including the South Asia Subregional Economic Cooperation program, the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation grid interconnection planning, the ASEAN Power Grid and the Central Asia Regional Economic Cooperation Energy Strategy 2030.

Asia-Pacific Digital Highway

Complementing the energy grid is the $20bn Asia-Pacific Digital Highway, designed to mobilise financing by 2035 for digital corridors, data infrastructure and the development of AI-ready economies.

Investments will center on connected infrastructure, including terrestrial and subsea fiber networks, satellite links, and regional data centers. The ADB will also provide critical policy and regulatory support, particularly on cybersecurity risk management, and will invest in skill-building programs to strengthen digital and AI readiness across the region.

The digital highway aims to provide first-time broadband access to 200m people and faster, more reliable digital connectivity for another 450m by 2035. It is also expected to cut connectivity costs in remote and landlocked areas by about 40pc and help create 4m jobs.

The ADB expects to finance $15bn of the $20bn initiative from its own resources and raise the remaining $5bn through co-financing.

To spearhead the effort, a new Centre for AI Innovation and Development will be established in Seoul. Backed by a $20m contribution from the South Korean government, the centre will promote responsible and inclusive AI adoption and help train about 3m people in digital and AI-related skills by 2035.

ADB is a leading multilateral development bank supporting sustainable, inclusive, and resilient growth across Asia and the Pacific. Working with its members and partners to solve complex challenges together, ADB harnesses innovative financial tools and strategic partnerships to transform lives, build quality infrastructure, and safeguard our planet. Founded in 1966, ADB is owned by 69 members—50 from the region.

Published in Dawn, May 4th, 2026