ISLAMABAD: Pakistan and the Asian Development Bank (ADB) have signed two major initiatives worth a combined $730 million aimed at strengthening the country’s power transmission network and accelerating reforms in the state-owned enterprises (SOEs) sector.
According to an official statement issued on Thursday, the second Power Transmission Strengthening Project involves financing of $330 million, while the Accelerating SOE Transformation Programme is valued at $400 million. The initiatives are designed to ease overloading of existing transmission lines, improve energy reliability and enhance operational efficiency in key public-sector entities.
At the start of this year, Pakistan and ADB had also signed an agreement for $200 million to support improvements in the country’s struggling power distribution system.
Secretary of the Ministry of Economic Affairs, Muhammad Humair Karim, welcomed ADB’s continued support, noting that the transmission project would enable the reliable evacuation of 2,300 megawatts from upcoming hydropower projects, reduce stress on existing infrastructure and improve the system’s resilience under contingency conditions.
He added that the SOE transformation programme would focus on improving operational efficiency, particularly within the National Highway Authority (NHA), while enhancing transparency, efficiency and long-term sustainability across state-owned enterprises nationwide.
ADB Country Director Emma Fan lauded Pakistan’s strong commitment to the initiatives, stressing the importance of the transmission project in reinforcing the national energy infrastructure. She also noted that the SOE reform programme comes at a critical time and will further strengthen Pakistan’s ongoing reform efforts.
Last month, ADB approved two loans totalling $330 million for Pakistan to construct a power transmission line from Islamabad to Faisalabad, a major industrial hub of Punjab.
