ISLAMABAD (MNN): Pakistan and the Asian Development Bank have signed two major agreements worth a combined $730 million to strengthen the country’s power transmission network and accelerate reforms in state-owned enterprises, aimed at easing pressure on existing transmission lines and improving operational efficiency.
According to a statement issued on Thursday, the agreements include a second power transmission strengthening project valued at $330 million and an accelerating state-owned enterprise transformation programme worth $400 million.
Earlier this year, Pakistan and the Manila-based lender had also signed a separate $200 million agreement to support improvements in the country’s struggling power distribution system through network upgrades.
Secretary of the Ministry of Economic Affairs Muhammad Humair Karim acknowledged ADB’s continued support for Pakistan, particularly in advancing critical infrastructure development and governance reforms.
He said the power transmission project would enable the reliable evacuation of 2,300 megawatts of electricity from upcoming hydropower projects, reduce overloading of existing transmission lines and enhance system resilience during emergency conditions.
Karim added that the SOE transformation programme would help improve operational efficiency, with a special focus on reforms in the National Highway Authority.
He stressed that both initiatives were transformative, noting that the transmission project would strengthen the backbone of the national grid and secure Pakistan’s energy future, while the SOE programme would promote transparency, efficiency and long-term sustainability across state-owned enterprises.
ADB Country Director Emma Fan welcomed Pakistan’s strong commitment to the projects and highlighted the importance of the transmission initiative in reinforcing the country’s energy infrastructure.
She also said the SOE reform programme comes at a crucial time for Pakistan and would further strengthen ongoing reform efforts.
Last month, the ADB approved two additional loans worth $330 million for the construction of a transmission line linking Islamabad with Faisalabad, Punjab’s main industrial centre.
