Islamabad, December 25,2025: Pakistan and the Asian Development Bank (ADB) have signed two major initiatives—a power transmission strengthening project and an accelerating state-owned enterprise (SOE) transformation programme—worth a combined $730 million, aimed at easing pressure on the national grid and improving the operational efficiency of state-owned entities.
According to a statement issued on Thursday, the second power transmission strengthening project will receive $330 million, while the accelerating SOE transformation programme is valued at $400 million.
Earlier this year, Pakistan and the Manila-based lending agency had also signed an agreement for $200 million to support improvements in the country’s ailing power distribution system through network upgrades.
Ministry of Economic Affairs Secretary Muhammad Humair Karim welcomed ADB’s continued support, saying the financing would help advance critical infrastructure development and governance reforms. He said the transmission project would enable the reliable evacuation of 2,300 megawatts of electricity from upcoming hydropower projects, relieve overloading of existing transmission lines, and enhance system resilience under contingency conditions.
Karim added that the SOE transformation programme would improve operational efficiency, with a particular focus on the National Highway Authority (NHA). He described both initiatives as transformative, noting that the transmission project would help secure Pakistan’s energy future by strengthening the backbone of the national grid, while the SOE reform programme would enhance transparency, efficiency, and sustainability across state-owned enterprises.
ADB Country Director Emma Fan also appreciated Pakistan’s strong commitment to the initiatives, underscoring the importance of the transmission project in reinforcing the country’s energy infrastructure. She said the SOE transformation programme comes at a critical time for Pakistan and would further strengthen ongoing reform efforts.
Last month, the ADB approved two additional loans totalling $330 million for Pakistan to construct a high-capacity transmission line between Islamabad and Faisalabad, Punjab’s major industrial hub.
