Pakistan, ADB Sign $730M Power & State Enterprise Initiatives
Pakistan Secures $730 Million from ADB for Power & SOE Reforms
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Pakistan and the Asian Progress Bank (ADB) have formalized two significant agreements totaling $730 million, aimed at bolstering the nation’s power transmission infrastructure and accelerating reforms within state-owned enterprises (SOEs). These initiatives are expected to address critical infrastructure gaps and enhance operational efficiency.
Power Transmission Strengthening
The second power transmission strengthening project, valued at $330 million, will facilitate the reliable evacuation of 2,300 megawatts from upcoming hydropower projects. According to a statement released on Thursday, this project will also alleviate overloading on existing transmission lines and improve grid resilience during unforeseen events. Last month, the ADB approved two loans totaling $330 million specifically for constructing a transmission line connecting Islamabad to Faisalabad, a key industrial hub in Punjab.
Earlier this year, Pakistan and the ADB signed an agreement for $200 million to support improvements to Pakistan’s power distribution network.
Accelerating SOE Change
The accelerating SOE transformation program, worth $400 million, will focus on enhancing operational efficiency, with a particular emphasis on the National Highway Authority (NHA). Ministry of Economic Affairs Secretary Muhammad humair Karim stated that the programme aims to increase transparency, efficiency, and sustainability across state-owned enterprises nationwide.
ADB Country Director Emma Fan emphasized the program’s timing, noting it will further strengthen ongoing reform efforts in Pakistan.
ADB’s Continued Support
Muhammad Humair Karim, Secretary of the ministry of Economic Affairs, expressed thankfulness for the ADB’s ongoing support in advancing critical infrastructure and governance reforms. He highlighted the transformative nature of both initiatives, stating the transmission project will secure Pakistan’s energy future while the SOE program will improve the performance of state-owned enterprises.
Fan also acknowledged Pakistan’s strong commitment to these initiatives and underscored the importance of strengthening the country’s energy infrastructure.