Pakistan, ADB sign $730m power and SOE reform deal

December 26, 2025 (MLN): The Government of Pakistan and the Asian Development Bank (ADB) have signed two major financing agreements worth a combined $730 million aimed at strengthening the country’s power infrastructure and accelerating reforms in state-owned enterprises (SOEs).

The agreements include the Second Power Transmission Strengthening Project, valued at $330 million, and the Accelerating State-Owned Enterprise Transformation Program, amounting to $400 million.

Speaking at the signing ceremony, Muhammad Humair Karim, Secretary of the Ministry of Economic Affairs, thanked ADB for its continued support as a key development partner, said a press release issued.

He said the power transmission project will enable the reliable evacuation of 2,300 megawatts of electricity from upcoming hydropower projects, ease congestion on existing transmission lines, and enhance the national grid’s resilience under contingency conditions.

He added that the SOE Transformation Program will improve compliance with the SOE Act 2023 and SOE Policy 2023, while boosting operational efficiency across state-owned enterprises, with a particular focus on reforms at the National Highway Authority (NHA).

Describing both initiatives as transformative, the secretary said the transmission project would help secure Pakistan’s energy future, while the SOE program would promote transparency, efficiency, and long-term sustainability in public sector entities.

Ms. Emma Fan, ADB Country Director for Pakistan, commended the government’s strong commitment to the initiatives.

She highlighted the importance of the power transmission project in strengthening Pakistan’s energy infrastructure and noted that the SOE Transformation Program comes at a critical time, reinforcing the government’s ongoing reform agenda.

Both sides reaffirmed their commitment to ensuring the effective utilization of funds and the timely and successful implementation of the two initiatives.

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