Pakistan has signed two major financing agreements worth $730 million with the Asian Development Bank (ADB) to strengthen the country’s power transmission system and accelerate reforms in state-owned enterprises (SOEs).
The agreements were finalised in Islamabad and are aimed at improving energy reliability and institutional efficiency, two areas considered critical for Pakistan’s long-term economic stability.
Key Projects Covered Under the Agreement
According to the Economic Affairs Division, the financing package includes:
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$330 million for the Second Power Transmission Strengthening Project
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$400 million for the Accelerating SOE Transformation Programme
Both initiatives are designed to support structural reforms and infrastructure upgrades across key sectors.
Strengthening Pakistan’s Power Transmission Network
The power transmission project will help Pakistan safely evacuate around 2,300 megawatts of electricity from upcoming hydropower projects. Officials say it will also reduce pressure on existing transmission lines and improve the overall resilience of the national grid, especially during emergencies.
Secretary of the Ministry of Economic Affairs Muhammad Humair Karim said the project would strengthen the backbone of Pakistan’s energy system and play an important role in securing the country’s future power needs.
Accelerating State-Owned Enterprise Reforms
The SOE Transformation Programme focuses on improving governance, transparency and operational efficiency in state-owned entities. The initiative supports the implementation of the SOE Act 2023 and SOE Policy 2023, with special attention on improving performance at organisations such as the National Highway Authority.
Officials believe the reforms will help reduce financial losses, improve service delivery and ensure long-term sustainability of public sector institutions.
ADB Reaffirms Support for Pakistan
ADB Country Director Emma Fan welcomed Pakistan’s commitment to strengthening its energy infrastructure and advancing institutional reforms. She said the power transmission project would enhance energy security, while SOE reforms come at a crucial time for improving economic governance.
Both sides stressed the importance of effective utilisation of funds and timely completion of the projects to achieve maximum impact.
Why This Agreement Matters
Experts say the $730 million package reflects growing international confidence in Pakistan’s reform agenda. By improving grid reliability and reforming state-owned enterprises, the government aims to reduce inefficiencies, attract investment and support sustainable economic growth.
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