Islamabad, December 12,2025: The Asian Development Bank (ADB) has approved $540 million in financing for Pakistan to advance state-owned enterprise (SOE) reforms and boost climate resilience in Sindh’s coastal belt, the lender announced on Friday.
The package includes a $400 million results-based loan for the Accelerating SOE Transformation Programme and a $140 million concessional loan for the Sindh Coastal Resilience Sector Project.
ADB Country Director for Pakistan Emma Fan said the reforms aim to overhaul governance and commercial performance across public-sector enterprises. “Pakistan’s commercial SOEs are central to the country’s economic stability and development,” she noted, adding that the restructuring and commercialisation of the National Highway Authority (NHA) will be among the programme’s key priorities.
The SOE programme is ADB’s first-ever results-based loan focused entirely on public sector management reform. Over the past five years, ADB has supported Pakistan’s reform efforts through policy actions, technical assistance, and sectoral investments—helping enact the SOE Act and Policy (2023), establish a central monitoring unit, and introduce global-standard public service obligation agreements.
The new results-based model is expected to strengthen corporate governance, institutional capacity, digitalisation, road safety, and financial sustainability of SOEs. ADB has also approved a $750,000 technical assistance grant to provide expert guidance and capacity-building support for implementation.
The Sindh Coastal Resilience Sector Project, meanwhile, will target the underserved districts of Badin, Sujawal, and Thatta, where communities face rising risks from coastal flooding, seawater intrusion, and water scarcity.
The project is expected to benefit more than 500,000 people, protect 150,000 hectares of agricultural land, and restore 22,000 hectares of forests, including mangroves and inland woodlands. It aligns with Pakistan’s National Flood Protection Plan IV, Sindh’s climate strategies, and ADB’s Strategy 2030 priorities on environmental sustainability and resilience.
Co-financing for the project includes a $20 million grant and a $20 million concessional loan from the Green Climate Fund under the Community Resilience Partnership Program Investment Fund. Additional parallel support from the International Fund for Agricultural Development (IFAD) will complement livelihood development in the same districts.
Key interventions include improvements in drainage and flood protection infrastructure, restoration of mangrove ecosystems, adoption of nature-based solutions, deployment of improved modelling and monitoring tools, and community-led resilience planning. At least 25% of project funds are earmarked for women-led initiatives.
Founded in 1966 and owned by 69 members, ADB continues to support inclusive and sustainable development across Asia and the Pacific through innovative finance and strategic partnerships.
