ADB okays $540M for SOE reforms, coastal development in Pakistan

The Asian Development Bank (ADB) has approved two projects worth $540 million to accelerate state-owned enterprise (SOE) reforms in Pakistan and enhance disaster resilience in the coastal districts of Sindh.

The financing comprises a $400 million loan for the Accelerating SOE Transformation Program for Pakistan and a $140 million concessional loan for the Sindh Coastal Resilience Sector Project.

The SOE reform program marks a significant milestone in Pakistan’s efforts to tackle critical challenges in corporate governance and commercial performance within its SOEs.

“The SOE reform program for Pakistan seeks to improve governance and optimize the performance of Pakistan’s commercial SOEs, which are vital for the country’s economic stability and development,” said ADB Country Director for Pakistan Emma Fan.

“The program will also prioritize restructuring and commercialization of the National Highway Authority, one of the largest and most complex entities within Pakistan’s SOE portfolio.”

The program is ADB’s first results-based loan exclusively dedicated to public sector management reform.

ADB has also approved a complementary technical assistance grant of $750,000 to provide expertise and capacity-building support, ensuring effective implementation of reforms. These efforts aim to foster a competitive and resilient public sector, stimulate private sector development, and contribute to Pakistan’s long-term, inclusive economic growth.

The Sindh Coastal Resilience Sector Project aims to strengthen disaster resilience in the vulnerable and underserved districts of Badin, Sujawal, and Thatta.

The project is set to improve the lives of over 500,000 people, safeguard 150,000 hectares of agricultural land, and restore 22,000 hectares of forest in Pakistan.

These outcomes align with Pakistan’s National Flood Protection Plan IV, Sindh Climate Change Policy, and ADB’s Strategy 2030 priorities on environment and resilience. The project will help reduce greenhouse gas emissions, enhance biodiversity, and improve food security, supporting ADB’s ambition to mobilize $40 billion for food systems transformation by 2030.

The project is co-financed by a $20 million grant and a $20 million concessional loan from the Green Climate Fund through the Community Resilience Partnership Program Investment Fund, administered by ADB.

The project, implemented by the Sindh Irrigation Department and the Sindh Forest and Wildlife Department, will integrate resilient water resources infrastructure, nature-based solutions, and improved coastal management.

Key investments include upgrading drainage and flood protection systems, restoring mangrove and inland forests, and strengthening monitoring and modeling capacity to support future resilience investments. The project complements parallel financing from the International Fund for Agricultural Development, which supports livelihood development in the same districts.