Islamabad, December 25, 2025 — Pakistan and the Asian Development Bank (ADB) on Thursday signed financing agreements worth USD 730 million to support two landmark initiatives aimed at strengthening the country’s power infrastructure and accelerating reforms in state-owned enterprises (SOEs).
According to a press release issued by the Ministry of Economic Affairs, 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.
Speaking at the signing ceremony, Muhammad Humair Karim, Secretary, Ministry of Economic Affairs, appreciated ADB’s continued partnership with Pakistan, describing the bank as a trusted development partner supporting critical infrastructure development and governance reforms. He noted that the power transmission project will play a vital role in enabling the reliable evacuation of 2,300 megawatts (MW) from upcoming hydropower projects, easing congestion on existing transmission lines, and improving the system’s resilience under contingency conditions.
Highlighting the importance of institutional reforms, the secretary said the SOE Transformation Program will strengthen compliance with the SOE Act, 2023 and SOE Policy, 2023, while enhancing operational efficiency across public sector entities. He added that the program places particular emphasis on improving governance and performance at the National Highway Authority (NHA).
Karim emphasized that both initiatives are transformative in nature, stating that the transmission project will secure Pakistan’s energy future by reinforcing the backbone of the national grid, while the SOE program will improve transparency, efficiency, and long-term sustainability of state-owned enterprises nationwide.
Ms. Emma Fan, ADB Country Director for Pakistan, also welcomed the agreements and praised the government’s strong commitment to reform. She underlined the strategic importance of the power transmission project in strengthening Pakistan’s energy infrastructure and noted that the SOE Transformation Program comes at a critical time, reinforcing the government’s broader reform agenda.
Both sides reaffirmed their commitment to ensuring the effective and timely utilization of the financing for the successful completion of the two initiatives, which are expected to contribute significantly to Pakistan’s economic stability and long-term development.