Pakistan has signed two financing agreements worth a combined $730 million with the Asian Development Bank (ADB), aimed at strengthening the country’s power transmission network and accelerating reforms in state-owned enterprises (SOEs), according to the Ministry of Economic Affairs.
Read More: Pakistan, ADB sign $730m deals for power infrastructure, SOE transformation
A spokesperson for the ministry said one of the agreements relates to the $330 million Second Power Transmission Project. The project is designed to enhance Pakistan’s electricity transmission capacity by enabling the transfer of up to 2,300 megawatts of power, helping to reduce bottlenecks in the national grid and improve overall system reliability. The initiative is expected to support growing energy demand and contribute to more efficient utilisation of power generation resources.
ADB today signed financing agreements for 2 transformative projects worth $730 million, boosting SOE reforms and energy infrastructure in Pakistan:
· $400M SOE Transformation Program
· $330M Power Transmission Strengthening ProjectThe agreements demonstrate ADB’s… pic.twitter.com/3kgpgnAdY3
— ADBPakistan (@PakistanADB) December 25, 2025
The second agreement, valued at $400 million, focuses on a transformation programme for state-owned enterprises. According to the Secretary of Economic Affairs, the programme will support the implementation of the SOE Act and related policy frameworks. The initiative aims to improve governance, transparency and institutional performance across public-sector entities, which have long been a burden on the national exchequer.
Asian Development Bank’s Country Director for Pakistan, Emma Fan, praised the government’s commitment to economic reforms. She said the programme would further strengthen efforts to restructure and reform state-owned enterprises, while helping improve service delivery and financial sustainability.
Separately, the government has also made progress on infrastructure development with ADB’s support. Earlier in December 2025, Federal Minister for Railways Muhammad Hanif Abbasi announced that an agreement for the Main Line-1 (ML-1) railway project had been finalised with the bank. He described the development as a major step towards modernising Pakistan’s rail network.
Read More: ADB, Sindh unveil $2 billion plan for sustainable growth
The minister added that Pakistan’s first Safe and Smart Railway Station has been established in Rawalpindi, equipped with a 24/7 artificial intelligence-based monitoring system and 184 surveillance cameras. He said additional digital initiatives, including the introduction of a Rail Tag system for real-time tracking of trains and rolling stock, were being implemented to enhance efficiency, transparency and security across the railway sector.