ISLAMABAD: Pakistan and the Asian Development Bank (ADB) on Thursday signed two financing agreements worth $730 million to support power transmission upgrades and reforms of state-owned enterprises (SOEs).
The agreements include the Second Power Transmission Strengthening Project valued at $330 million and the Accelerating State-Owned Enterprise Transformation Programme worth $400 million, state media reported on Thursday.
Speaking at the signing ceremony, Secretary Ministry of Economic Affairs Muhammad Humair Karim highlighted that the Transmission Project will facilitate the reliable evacuation of 2,300 megawatts of electricity from upcoming hydropower projects.
The project is expected to reduce overloading on existing transmission lines and enhance grid resilience under contingency conditions.
He further noted that the SOE Transformation Programme will focus on improving operational efficiency, particularly targeting the National Highway Authority, and ensuring better governance and performance of state-owned enterprises.
ADB Country Director Emma Fan praised the government’s strong commitment to these initiatives, emphasising the importance of the Transmission Project in reinforcing Pakistan’s energy infrastructure.
Both sides expressed their commitment to the effective use of financing to ensure the successful and timely completion of the projects, underscoring their role in Pakistan’s long-term economic growth and infrastructure development.
Earlier this year, Pakistan and the Asian Development Bank signed an agreement to provide $200 million to support the country’s power distribution system through network upgrades and improvements.
Last month, the Asian Development Bank approved two loans totaling $330 million to finance the construction of a transmission line connecting Islamabad to Faisalabad, Punjab’s industrial hub.
According to ADB, the investments will resolve long-standing constraints in the country’s north-south power corridor and allow the transfer of up to 3,200 megawatts of hydropower from northern stations.
