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Pakistan, ADB Sign $730m Power, SOE Reform Agreements
Pakistan and the Asian Development Bank have signed $730 million worth of agreements for power transmission strengthening and SOE reforms, aimed at easing grid congestion and improving efficiency.
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by Muhammad Hashir
2025-12-25
Pakistan, ADB Sign $730m Power, SOE Reform Agreements

Pakistan and the Asian Development Bank (ADB) have signed two major initiatives worth a combined $730 million to strengthen the country’s power transmission system and accelerate reforms in state-owned enterprises (SOEs), aimed at improving operational efficiency and infrastructure resilience.

According to a statement issued on Thursday, the recent agreements include the Second Power Transmission Strengthening Project valued at $330 million and the Accelerating SOE Transformation Programme worth $400 million. The initiatives are designed to reduce overloading of existing transmission lines and enhance governance and efficiency within key public sector entities.

Earlier this year, Pakistan and ADB had also signed an agreement providing $200 million in support to improve the country’s struggling power distribution network.

Ministry of Economic Affairs Secretary Muhammad Humair Karim appreciated the Manila-based lending agency’s continued support, noting that the transmission project would enable the reliable evacuation of 2,300 megawatts of electricity from upcoming hydropower projects, ease pressure on existing transmission lines and enhance system resilience during contingency situations.

He said the SOE transformation programme would significantly improve operational efficiency, with a particular focus on the National Highway Authority (NHA).

“These initiatives are transformative in nature,” Karim said, adding that the transmission project would strengthen the backbone of Pakistan’s national grid and help secure the country’s energy future, while the SOE reform programme would enhance transparency, efficiency and sustainability across state-owned enterprises.

ADB Country Director Emma Fan welcomed Pakistan’s strong commitment to the initiatives, highlighting the importance of the transmission project in reinforcing the country’s energy infrastructure.

She said the SOE transformation programme comes at a critical time for Pakistan and would further strengthen ongoing reform efforts.

Last month, ADB approved two additional loans amounting to $330 million for the construction of a power transmission line from Islamabad to Faisalabad, Punjab’s industrial hub, to further support the country’s energy sector.
Tagged:

ADB

PakistanEconomy

EnergySector

PowerTransmission
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