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Pakistan, ADB Seal $730 Million Deals for Power Grid Upgrades and SOE Reforms

The package ties urgent transmission expansion for new hydropower to enforcement of 2023 state‑owned enterprise reforms.

Overview

  • Pakistan and ADB signed financing agreements for a $330 million Second Power Transmission Strengthening Project and a $400 million Accelerating SOE Transformation Program, according to the Economic Affairs Division.
  • The transmission investment is expected to evacuate up to 2,300 MW from upcoming hydropower projects, ease overloading on existing lines, and improve grid resilience under contingencies.
  • The SOE program will reinforce compliance with the SOE Act 2023 and SOE Policy 2023, with particular emphasis on improving the National Highway Authority’s efficiency and transparency.
  • ADB Country Director Emma Fan and Economic Affairs Secretary Muhammad Humair Karim formalized the agreements and said both sides are committed to effective, timely implementation.
  • Separately, ADB and Sindh officials discussed a proposed $2 billion provincial pipeline across education, health, transport, housing, skills development, and coastal resilience, including projects to strengthen secondary education and the nursing workforce.