ADB approves $540m for Pakistan’s SOE reforms, Sindh coastal resilience

December 12, 2025 (MLN):  The Asian Development Bank (ADB) has approved two major projects worth a combined $540m to support Pakistan’s state-owned enterprise (SOE) reforms and strengthen climate resilience in Sindh’s coastal districts.

The financing package includes a $400m results-based loan for the Accelerating SOE Transformation Program, aimed at tackling longstanding governance and performance challenges within Pakistan’s public enterprises, said a press release issued.

It marks ADB’s first results-based loan dedicated solely to public sector management reform in the country.

“The SOE reform program seeks to improve governance and optimize the performance of Pakistan’s commercial SOEs, which are vital for the country’s economic stability and development,” said ADB Country Director for Pakistan Emma Fan.

She noted that the initiative will prioritize restructuring and commercialization of the National Highway Authority, one of Pakistan’s largest and most complex SOEs.

ADB has supported Pakistan’s reform agenda for several years, contributing to major achievements such as the passage of the SOE Act and Policy in 2023, establishment of a central monitoring unit, and the introduction of public service obligation agreements aligned with global best practices.

The results-based approach is expected to drive improvements in institutional capacity, digitalization, road safety, and financial sustainability. A complementary technical assistance grant of $750,000 will further support implementation.

In addition, ADB has approved a $140m concessional loan for the Sindh Coastal Resilience Sector Project, targeting the disaster-prone districts of Badin, Sujawal, and Thatta.

The initiative aims to protect more than 500,000 people, safeguard 150,000 hectares of farmland, and restore 22,000 hectares of forest.

Aligned with national and provincial climate policies, the project is expected to curb greenhouse gas emissions, enhance biodiversity, and boost food security. It also contributes to ADB’s broader goal of mobilizing $40 bn for food systems transformation by 2030.

The Green Climate Fund is co-financing the effort through a $20m grant and a $20m concessional loan.

“The coastal communities in Sindh are increasingly vulnerable to severe natural hazards,” Ms. Fan said. “This project will protect livelihoods, strengthen food security, and empower women to play a central role in resilience planning and implementation.”

Implemented by the Sindh Irrigation Department and the Sindh Forest and Wildlife Department, the project will combine water infrastructure upgrades, nature-based solutions, and improved coastal management.

Community-based resilience planning will be central, with at least 25% of funds dedicated to initiatives led or implemented by women.

The project also complements financing from the International Fund for Agricultural Development, which is supporting livelihoods in the same districts.

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