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Pakistan, ADB Sign $730 Million for Power Transmission and SOE Reforms

Effectiveness hinges on deeper distribution loss cuts alongside strict SOE enforcement.

Overview

  • At a December 25 ceremony, ADB Country Director Emma Fan and Economic Affairs Secretary Muhammad Humair Karim signed two agreements totaling $730 million.
  • $330 million will fund the Second Power Transmission Strengthening Project to evacuate 2,300 MW from new hydropower, ease overloaded lines, and bolster grid resilience.
  • $400 million will back the Accelerating SOE Transformation Programme to enforce the SOE Act and Policy 2023 with an initial focus on improving National Highway Authority performance.
  • Experts cited in local reports caution that the financing must be matched by tougher measures to reduce distribution losses and address SOE fiscal pressures.
  • The package builds on earlier ADB support for distribution upgrades and a newly approved Islamabad–Faisalabad line, while separate talks continue on a proposed $2 billion Sindh project pipeline.