Pakistan, ADB Sign $730 Million Deals to Strengthen Power and Reform State Firms

Pakistan has signed two major agreements worth $730 million with the Asian Development Bank (ADB), marking a steady step toward improving the country’s power system and fixing long standing issues in state-owned enterprises.

According to officials from the Economic Affairs Division, one of the agreements covers the Second Power Transmission Project, valued at $330 million.

This project is designed to ease pressure on the national grid and allow the smooth transfer of up to 2,300 megawatts of electricity. In simple terms, it will help move power more reliably from where it is produced to where it is needed.

The second agreement focuses on a State-Owned Enterprises (SOEs) Transformation Program, with a financing size of $400 million. The program aims to bring order, clarity, and discipline to government run companies by ensuring effective implementation of the SOE Act and related policies.

Officials said the reforms are meant to improve management, reduce losses, and make these institutions more transparent and accountable. The goal is not quick fixes, but lasting change that supports economic stability.

ADB’s Country Director Emma Fan praised the federal government’s strong commitment to reform. She noted that the SOE transformation program would add real momentum to Pakistan’s broader reform agenda and help build institutions that can stand on their own feet.

With these agreements, Pakistan and ADB have signaled a shared resolve: to strengthen infrastructure, clean up governance, and lay down a more reliable foundation for future growth.