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Pakistan, ADB Sign $730 Million Deals for Transmission Upgrade and SOE Reform

The package links a 2,300 MW hydropower evacuation upgrade to an SOE governance push, with results riding on execution.

Overview

  • ADB Country Director Emma Fan and Economic Affairs Secretary Muhammad Humair Karim signed two agreements totaling $730 million, splitting $330 million for transmission and $400 million for an SOE transformation programme.
  • The transmission project is designed to evacuate 2,300 MW from upcoming hydropower plants, relieve overloaded lines, and strengthen grid resilience under contingency conditions.
  • The SOE programme targets compliance with the SOE Act 2023 and SOE Policy 2023 and initially prioritizes improvements at the National Highway Authority.
  • Officials pledged effective utilisation and timely completion, as ADB’s broader engagement this year included funding for distribution upgrades and a new IslamabadFaisalabad transmission link.
  • Separately, ADB and Sindh officials discussed a $2 billion multisector pipeline, while analysts warned that durable gains require tackling persistent SOE and power distribution inefficiencies.