ISLAMABAD: Pakistan and the Asian Development Bank have signed agreements for two major development projects. Officials confirmed the signing through the Economic Affairs Division on Tuesday.
The agreements aim to strengthen the power sector and improve institutional governance. As a result, Pakistan will receive substantial financial support for priority reforms.
ADB Commits $730 Million for Key Development Initiatives
According to an official spokesperson, ADB will provide Pakistan with $730 million in financing. This funding will support critical development initiatives across multiple sectors. Moreover, the assistance reflects continued confidence in Pakistan’s reform agenda. Officials described the financing as timely and strategically important.
Therefore, authorities expect visible progress in infrastructure and governance.
Second Power Transmission Project Secured at $330 Million
Alongside the main financing package, Pakistan finalized a $330 million Second Power Transmission Project.
The project focuses on strengthening the national electricity transmission network. Specifically, it will support the delivery of electricity from hydropower plants. Once completed, the system will transmit 2,300 megawatts of additional power. Consequently, officials expect improved grid reliability and reduced power losses.
Hydropower Integration to Boost Energy Stability
Hydropower remains a key pillar of Pakistan’s renewable energy strategy. However, limited transmission capacity has constrained its full utilization. This project will address those bottlenecks through targeted infrastructure upgrades. As a result, clean energy will reach consumers more efficiently.
Additionally, improved transmission will lower dependence on costly thermal generation.
$400 Million Program Targets SOE Transformation
Meanwhile, ADB approved a $400 million transformation program for state-owned enterprises.
The program aims to ensure effective implementation of the SOEs Act. It will also support related policies and institutional reforms. Officials said the initiative will enhance transparency and accountability.
Therefore, the government expects stronger financial performance from public enterprises.
ADB Praises Government Commitment to Reforms
ADB Country Director Ema Fan praised Pakistan’s commitment to the agreed initiatives. She highlighted proactive steps taken to improve energy infrastructure. She also acknowledged efforts to strengthen the institutional framework. According to ADB, sustained political will remains crucial for reform success.
Thus, continued cooperation between both sides will remain essential.
These agreements mark a significant milestone in Pakistan’s development agenda. They aim to modernize the power sector and improve service delivery. At the same time, governance reforms will reduce fiscal risks from SOEs.
Experts believe these steps can strengthen investor confidence. Ultimately, officials expect long-term benefits for economic stability and growth.
Strengthening Partnership Between Pakistan and ADB
The latest agreements reflect the deepening partnership between Pakistan and ADB. ADB has remained a key development partner for decades. Through continued support, Pakistan aims to address structural economic challenges.
Therefore, both sides reaffirmed their commitment to sustainable development. Future cooperation will likely focus on reforms, resilience, and inclusive growth.
