Pakistan has taken another significant step toward stabilising its economy and modernising critical infrastructure after signing two major financing agreements worth $730 million with the Asian Development Bank. The agreements, signed on Thursday, aim to strengthen the country’s power transmission system and accelerate long-delayed reforms in state-owned enterprises, areas seen as central to Pakistan’s long-term economic recovery.
According to officials, the financing package includes the Second Power Transmission Strengthening Project valued at $330 million and the Accelerating State-Owned Enterprise Transformation Programme amounting to $400 million. The deals were signed by the Ministry of Economic Affairs on behalf of the government, reinforcing Islamabad’s push to pair infrastructure upgrades with governance reforms.
Secretary Economic Affairs Muhammad Humair Karim described the initiatives as “transformative,” noting that the transmission project will allow the national grid to evacuate around 2,300 megawatts of electricity from upcoming hydropower projects. He said the project would also ease pressure on overloaded transmission lines and improve the system’s resilience during emergencies, helping Pakistan better integrate affordable and clean energy into its power mix.
Karim added that the SOE transformation programme would strengthen compliance with the SOE Act 2023 and the government’s broader SOE Policy, while improving operational efficiency across the sector. A key focus will be on reforming the National Highway Authority, long criticised for inefficiencies and financial losses. “The transmission project will secure Pakistan’s energy future, while the SOE programme will enhance transparency, efficiency and sustainability nationwide,” he said.
ADB Country Director Emma Fan echoed that sentiment, saying the power transmission project is vital for reinforcing Pakistan’s energy backbone at a time when demand is rising and clean energy capacity is expanding. She also stressed that SOE reforms come at a critical juncture and will support the government’s broader economic stabilisation agenda.
The agreements build on earlier cooperation between Pakistan and ADB. At the start of the year, the bank committed $200 million to improve the country’s struggling power distribution networks, and just last month approved additional loans to support a major transmission line linking Islamabad with Faisalabad, Punjab’s industrial hub.
Social media reaction to the latest deal has been largely positive, with analysts and energy experts calling it a necessary move to unlock hydropower potential and rein in losses from inefficient state firms. Many see the twin focus on energy infrastructure and governance reform as a signal that Pakistan is attempting deeper, more structural fixes rather than short-term relief.
