Pakistan, ADB sign $730 million financing for power grid, SOE reforms

Pakistan and the Asian Development Bank (ADB) on Thursday signed two financing initiatives worth a combined $730 million, aimed at strengthening the country’s power transmission network and accelerating reforms in state-owned enterprises, the government said.

The agreements cover the Second Power Transmission Strengthening Project, valued at $330 million, and the Accelerating State-Owned Enterprise (SOE) Transformation Program, amounting to $400 million, according to the Ministry of Economic Affairs.

Speaking at the signing ceremony, Muhammad Humair Karim, Secretary at the Ministry of Economic Affairs, described ADB as a trusted development partner and thanked the bank for its continued support to Pakistan in advancing key infrastructure and governance reforms.

He said the power transmission project would enable the reliable evacuation of 2,300 megawatts of electricity from upcoming hydropower projects, ease overloading on existing transmission lines and enhance the system’s resilience under contingency conditions.

Karim said the SOE transformation program would strengthen compliance with the SOE Act, 2023 and SOE Policy, 2023, while improving operational efficiency across state-owned enterprises, with a particular focus on the National Highway Authority (NHA).

He described both initiatives as transformative, saying the transmission project would help secure Pakistan’s energy future by strengthening the backbone of the national power grid, while the SOE program would improve transparency, efficiency and long-term sustainability of state-owned enterprises nationwide.

Emma Fan, ADB’s Country Director for Pakistan, welcomed the government’s commitment to the two initiatives, highlighting the importance of the power transmission project in reinforcing the country’s energy infrastructure.

She said the SOE transformation program comes at a critical time for Pakistan and would further support the government’s ongoing reform efforts.

Both sides reaffirmed their commitment to ensuring the effective utilization of the financing and the timely and successful completion of the two initiatives.