Pakistan and the Asian Development Bank (ADB) on Thursday signed financing agreements for two major initiatives involving a combined amount of USD 730 million, aimed at strengthening Pakistan’s power infrastructure and advancing reforms in the public sector.
The agreements cover the Second Power Transmission Strengthening Project, with financing of USD 330 million, and the Accelerating State-Owned Enterprise (SOE) Transformation Program, amounting to USD 400 million, according to a press release issued by Ministry of Economic Affairs.
Speaking on the occasion, Ministry of Economic Affairs, Muhammad Humair Karim, Secretary expressed appreciation for ADB’s role as a trusted development partner and its continued support to Pakistan in advancing critical infrastructure and governance reforms.
He highlighted that the transmission project will enable reliable evacuation of 2,300 MW from upcoming hydropower projects, relieve overloading of existing transmission lines and enhance resilience under contingency conditions.
He added that the SOE transformation program will strengthen compliance with the SOE Act, 2023 and SOE Policy 2023, besides improving operational efficiency, particularly focusing on the National Highway Authority (NHA).
The secretary emphasized that 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 Program will enhance transparency, efficiency sustainability of state-owned enterprises nationwide.
Ms Emma Fan, Country Director, ADB, expressed appreciation for the government of Pakistan’s strong commitment to these initiatives. She emphasized upon significance of the transmission project in strengthening energy infrastructure. Besides, she highlighted that significance of SOEs transformation program comes at a critical time in Pakistan and it will further strengthen the reform efforts of the government.
Both sides expressed their commitment to effectively utilize the financing for successful and timely completion of the two initiatives.