The agreements cover a second $330 million power transmission project and a $400 million state-owned enterprise transformation acceleration program.
Economic Affairs Division Secretary Muhammad Humair Karim and Asian Development Bank Country Director Emma Fan present signed documents following an agreement ceremony between Pakistan and the ADB on December 25. Photo: PID
The government and the Asian Development Bank have signed agreements for two major projects worth a total of $730 million to support Pakistan’s energy infrastructure and institutional reforms.
According to the Economic Affairs Division, the agreements include the Second Power Transmission Strengthening Project worth $330 million and the State-Owned Enterprise (SOE) Transformation Acceleration Program worth $400 million.
The power transmission project aims to enable the reliable evacuation of 2,300 megawatts of electricity from upcoming hydroelectric projects. It is also expected to alleviate overloading of existing transmission lines and improve the resilience of the national grid in the event of an emergency.
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Secretary, Ministry of Economic Affairs, Muhammad Humair Karim, recognized the ADB’s role as a key development partner and said the transmission project would help secure Pakistan’s energy future by strengthening the backbone of the national grid.
He added that the SOE Transformation Program would support compliance with the SOE Act, 2023 and the SOE Policy, 2023, while improving operational efficiency, with a particular focus on the National Highway Authority.
ADB Country Director for Pakistan, Emma Fan, and Economic Affairs Division Secretary, Humair Karim, today signed two loan agreements totaling $730 million aimed at transforming the country’s state-owned enterprises and enabling the power transmission network to take… pic.twitter.com/OcV90XFMwH
– ADBPakistan (@PakistanADB) December 25, 2025
He described both initiatives as transformational, saying the energy project would improve grid reliability, while the public enterprise program would promote transparency, efficiency and sustainability within public enterprises.
AfDB Country Director Emma Fan welcomed the government’s commitment to the initiatives, highlighting the importance of the transport project in strengthening energy infrastructure. She said the state-owned enterprise transformation program comes at a critical time and would further strengthen the government’s ongoing reform efforts.
Both parties reiterated their commitment to effectively use the funding to ensure the timely and successful completion of the two projects.
