Pakistan and the Asian Development Bank (ADB) have signed financing agreements worth $730 million to strengthen the country’s power transmission infrastructure and accelerate reforms in state-owned enterprises (SOEs), according to the Economic Affairs Division.
The financing includes $330 million for the Second Power Transmission Strengthening Project and $400 million for the Accelerating State-Owned Enterprise Transformation Programme. The power transmission project is designed to enable the reliable evacuation of 2,300 megawatts of electricity from upcoming hydropower projects, reduce congestion on existing transmission lines, and improve the national grid’s resilience during contingencies.
Secretary of the Ministry of Economic Affairs Muhammad Humair Karim said the transmission investment would reinforce the backbone of Pakistan’s power system and contribute to long-term energy security. He also noted that the SOE Transformation Programme would support implementation of the SOE Act 2023 and the SOE Policy 2023, improving governance and operational efficiency across state-owned entities, with particular focus on the National Highway Authority.
ADB Country Director Emma Fan welcomed the agreements, describing the power transmission investment as critical to strengthening Pakistan’s energy infrastructure. She added that the SOE reform programme comes at a pivotal time and would support the government’s broader reform agenda.
Both Pakistan and ADB reaffirmed their commitment to ensuring effective use of the financing and timely completion of the projects.
