The Government of Pakistan has signed agreements with the Asian Development Bank (ADB) for two major initiatives totalling USD 730 million, aimed at reinforcing the nation’s power transmission infrastructure and reforming its state-owned enterprises.
According to information today, the financial package comprises a USD 330 million loan for the Second Power Transmission Strengthening Project and a separate USD 400 million facility for the Accelerating State-Owned Enterprise (SOE) Transformation Programme.
Muhammad Humair Karim, Secretary of the Ministry of Economic Affairs said the transmission project is crucial for evacuating 2,300 megawatts from forthcoming hydropower plants. The initiative is expected to alleviate pressure on overloaded transmission lines and improve the grid”s resilience during emergencies.
The SOE Transformation Programme will concentrate on bolstering governance and operational efficiency, with a particular focus on the National Highway Authority (NHA). Mr. Karim noted that the programme aims to enhance compliance with the SOE Act and Policy of 2023, promoting greater transparency and sustainability across government-owned entities.
Emma Fan, the ADB’s Country Director, commended the government’s commitment to the reforms. She described the SOE programme as particularly significant, stating it arrives at a “critical time” for the country and will reinforce the government”s reform agenda.
Both government and ADB representatives expressed a mutual commitment to ensuring the funds are utilised effectively for the timely and successful completion of the two projects.