Pakistan and the Asian Development Bank (ADB) on Thursday signed financing agreements for two major initiatives totaling $730 million, aimed at strengthening Pakistan’s power infrastructure and advancing reforms in the public sector.
For the Second Power Transmission Strengthening Project, the ADB has accorded financing of $330 million, while the Accelerating State-Owned Enterprise (SOE) Transformation Program has been allocated $400 million, according to a statement issued by the Ministry of Economic Affairs.
Expressing appreciation for the ADB’s role as a trusted development partner, Economic Affairs Secretary Muhammad Humair Karim noted the lender’s continued support to Pakistan in advancing critical infrastructure and governance reforms. He highlighted that the transmission project would enable reliable evacuation of 2,300MW from upcoming hydropower projects, relieve overloading of existing transmission lines and enhance resilience under contingency conditions.
According to Karim, the SOE transformation program would strengthen compliance with the SOE Act, 2023 and SOE Policy 2023, besides improving operational efficiency, particularly focusing on the National Highway Authority. He stressed both initiatives are transformative in nature as the transmission project would secure Pakistan’s energy future by strengthening the backbone of the national grid, while the SOE Program would enhance transparency, efficiency and sustainability of state-owned enterprises nationwide.
ADB Country Director Emma Fan expressed appreciation for the Government of Pakistan’s strong commitment to these initiatives. She emphasized the significance of the transmission project in strengthening energy infrastructure and highlighted that the SOE transformation program came at a critical time in Pakistan and would further strengthen the reform efforts of the government.
Both sides expressed their commitment to effectively utilize the financing for successful and timely completion of the two initiatives.