ADB signs pacts with Pakistan for two projects worth $730 million

The Asian Development Bank (ADB) inked financing pacts worth $730 million with Pakistan on Thursday to bolster the nation’s energy infrastructure and advance public-sector institutional reforms.

Economic Affairs Division Secretary Muhammad Humair Karim and ADB Country Director Emma Fan formalized the agreements during a signing ceremony held in Islamabad.

The partnerships comprise two flagship initiatives: A $330 million Second Power Transmission Strengthening Project and a $400 million Accelerating State-Owned Enterprise (SOE) Transformation Programme, confirmed an official statement from the Economic Affairs Division.

Karim acknowledged ADB’s longstanding partnership with Pakistan, emphasizing the bank’s pivotal role in supporting infrastructure development and governance modernization. He detailed the transmission project’s strategic impact, noting it will:

• Facilitate power evacuation for 2,300 MW from upcoming hydropower facilities
• Address overcapacity risks in existing transmission networks
• Strengthen grid resilience during operational disruptions

Regarding the SOE initiative, the secretary highlighted its alignment with Pakistan’s SOE Act (2023) and National SOE Policy (2023). The program aims to:

• Enhance legal and policy compliance across state entities
• Drive operational efficiency improvements, particularly within the National Highway Authority (NHA)

Published on December 26, 2025