Pakistan government and the Asian Development Bank (ADB) signed on Thursday two loan agreements totaling $730 million aimed to “transform the country’s state-owned enterprises (SOEs), and enable the power transmission network to uptake affordable and clean energy”, the ADB said in a statement.
Pakistan’s Ministry of Economic Affairs said they signed two major initiatives with the ADB: i) the Second Power Transmission Strengthening Project amounting to $330 million, and ii) the Accelerating State-Owned Enterprise (SOE) Transformation Programme amounting to $400 million.
“The signed agreements show ADB’s enduring commitment to supporting sustainable and inclusive economic growth in Pakistan,” the bank said in a post on X.
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Muhammad Humair Karim, Secretary, Ministry of Economic Affairs, expressed appreciation for ADB’s support to Pakistan in advancing infrastructure and governance reforms.
He highlighted that the Transmission Project would enable evacuation of 2,300 megawatts (MW) from upcoming hydropower projects, relieve overloading of existing transmission lines, and enhance resilience under contingency conditions.
Karim added that the SOE Transformation Programme would strengthen compliance with the SOE Act, 2023 and SOE Policy 2023, besides improving operational efficiency, particularly focusing on the National Highway Authority (NHA).
“Both initiatives are transformative in nature as the Transmission Project will secure Pakistan’s energy future by strengthening the backbone of the national grid whereas the SOE Programme will enhance transparency, efficiency and sustainability of state-owned enterprises nationwide,” the secretary emphasised.
Meanwhile, Emma Fan, Country Director, ADB, emphasised upon significance of the Transmission Project in strengthening energy infrastructure.
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“Besides, she highlighted that significance of SOEs Transformation Programme comes at a critical time in Pakistan and it will further strengthen the reform efforts of Government of Pakistan,” the ministry statement said. “Both sides expressed their commitment to effectively utilise the financing for successful and timely completion of the two initiatives.”
