The Asian Development Bank (ADB) has approved two financing packages totaling $540 million for Pakistan. The announcement comes after the World Bank cleared a separate $400 million loan for development projects.
Funding for SOE Reforms
Of the total, $400 million will support state-owned enterprise (SOE) reforms through a results-based facility. The program aims to improve governance, efficiency, and performance across Pakistan’s public entities.
The restructuring and commercialization of the National Highway Authority (NHA) remain a key priority under the program. ADB highlighted significant progress in SOE reforms over the past five years. The enactment of the SOE Act and policy in 2023 marked a major milestone.
Additionally, ADB will provide $750,000 in technical assistance to help implement the reforms effectively. These efforts are designed to enhance institutional efficiency and service delivery across Pakistan’s public sector.
Sindh Coastal Resilience Project
The second component is a $140 million concessional loan for the Sindh Coastal Resilience Sector Project. The project is expected to directly benefit approximately 500,000 people living along the coastal belt.
It aims to protect 150,000 hectares of agricultural land from flood risks and restore 22,000 hectares of forests. The initiative will also strengthen food security, biodiversity, and environmental sustainability in the region.
The project will receive co-financing from the Green Climate Fund, including a $20 million grant and a $20 million concessional loan. The collaboration ensures alignment with international climate and sustainability standards.
Strategic Alignment with Pakistan’s Development Agenda
ADB stated that the new financing supports Pakistan’s broader development priorities. Focus areas include climate resilience, institutional reform, and improved service delivery. Both initiatives are expected to enhance governance, protect vulnerable communities, and contribute to sustainable economic growth.
