The Government of Pakistan and the Asian Development Bank (ADB) have officially signed two landmark initiatives totaling $730 million. The agreements focus on critical infrastructure development and governance reforms through the “Second Power Transmission Strengthening Project” and the “Accelerating State-Owned Enterprise (SOE) Transformation Programme.”
ADB today signed financing agreements for 2 transformative projects worth $730 million, boosting reforms and infrastructure in Pakistan:
· $400M SOE Transformation Program
· $330M Power Transmission StrengtheningThe signed agreements show ADB’s enduring commitment… pic.twitter.com/pMPRm61a0v
— ADBPakistan (@PakistanADB) December 25, 2025
Breakdown of the $730 Million Initiatives
- Power Transmission Strengthening Project ($330 Million): Designed to fortify the national grid’s backbone, this project aims to relieve overloading on existing lines and ensure the reliable evacuation of 2,300 megawatts (MW) from upcoming hydropower projects. The initiative is set to enhance grid resilience under contingency conditions and secure the country’s energy future.
- Accelerating SOE Transformation Programme ($400 Million): This program aims to improve the operational efficiency, transparency, and sustainability of state-owned enterprises nationwide. A primary focus of this reform effort will be the National Highway Authority (NHA), seeking to modernize governance and financial management within the sector.
High-Level Remarks
During the signing ceremony, Secretary of the Ministry of Economic Affairs, Muhammad Humair Karim, expressed his appreciation for the Manila-based lender’s continued partnership.
“Both initiatives are transformative in nature,” said Secretary Karim. “The transmission project will strengthen the backbone of our national grid, while the SOE programme will enhance efficiency and sustainability across our state-owned enterprises, particularly the NHA.”
ADB Country Director Emma Fan reaffirmed the bank’s commitment to Pakistan’s economic stability. She noted that the SOE transformation programme comes at a “critical time” for the country and will provide much-needed momentum to Pakistan’s ongoing reform efforts.
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Context of Cooperation
These agreements follow a series of recent collaborations between Pakistan and the ADB, including:
- A $200 million agreement signed earlier this year to improve the power distribution system.
- A $330 million loan approved last month specifically for the construction of a new transmission line connecting Islamabad to the industrial hub of Faisalabad.
The combined efforts represent a multi-billion dollar commitment by the ADB to stabilize Pakistan’s energy sector and modernize its administrative infrastructure.
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