Pakistan and the Asian Development Bank have signed financing agreements worth $730 million for two projects aimed at strengthening the national power transmission system and accelerating reforms in state owned enterprises, the Economic Affairs Division said on Tuesday.
The agreements cover the Second Power Transmission Strengthening Project, valued at $330 million, and the $400 million Accelerating State Owned Enterprise Transformation Programme.
Officials said the transmission project will facilitate the reliable evacuation of 2,300 megawatts of electricity from upcoming hydropower projects. It is also expected to reduce overloading on existing transmission lines and enhance the resilience of the national grid under contingency conditions.
Secretary Ministry of Economic Affairs Muhammad Humair Karim acknowledged ADB’s role as a key development partner and said the project would help reinforce the backbone of the national grid, contributing to long term energy security.
On the reform side, Karim said the SOE Transformation Programme would support implementation of the SOE Act 2023 and the SOE Policy 2023, while improving efficiency and governance across state owned enterprises, with a particular focus on the National Highway Authority.
ADB Country Director Emma Fan welcomed the government’s commitment, saying the transmission investment was critical for strengthening Pakistan’s energy infrastructure. She added that the SOE programme comes at a crucial stage and would further support the government’s ongoing reform efforts.
Both sides reiterated their commitment to ensuring effective utilisation of the financing and timely completion of the two projects.
