Project to help 500,000 people, protect farmland and restore forests as part of national climate resilience plans
An employee walks past the headquarters of the Asian Development Bank (ADB) in Manila. Photo: Reuters/File
The Asian Development Bank (ADB) has approved $540 million in financing for Pakistan. The funds will support state-owned enterprise reforms and strengthen disaster resilience in Sindh’s coastal belt, the lender said on Friday.
The package includes a $400 million performance-based loan for the Pakistan Public Enterprise Transformation Acceleration Program and a $140 million concessional loan for the Sindh Coastal Resilience Sector Project.
ADB Country Director for Pakistan Emma Fan said the reforms aim to rethink the governance and business performance of public sector enterprises. “Pakistan’s commercial public enterprises are essential to the economic stability and development of the country,” she noted, adding that the restructuring and commercialization of the National Highway Authority would be among the main priorities of the programme.
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The SOE program is the AfDB’s first results-based loan focused entirely on public sector management reform. Over the past five years, ADB has supported Pakistan’s efforts through policy actions, technical assistance and sectoral investments, helping to promulgate the Public Enterprises Act and Policy 2023, establish a central monitoring unit and introduce public service obligation agreements aligned with global standards.
The results-oriented model is expected to lead to improvements in corporate governance, institutional capacity, digitalization, road safety and financial sustainability. The AfDB also approved a $750,000 technical assistance grant to provide expertise and capacity building support for implementation.
The Sindh Coastal Resilience Sector project will focus on the underserved districts of Badin, Sujawal and Thatta, where communities face increasing risks of flooding, seawater intrusion and water scarcity.
The project is expected to benefit more than 500,000 people, protect 150,000 hectares of agricultural land and restore 22,000 hectares of forest, including mangroves and inland forests. It aligns with Pakistan’s National Flood Protection Plan IV, Sindh’s climate policies and ADB Strategy 2030 environment and resilience priorities.
The co-financing includes a $20 million grant and a $20 million concessional loan from the Green Climate Fund under the Community Resilience Partnership Program Investment Fund. Parallel support from the International Fund for Agricultural Development will complement livelihood development in the same districts.
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Key interventions include upgraded drainage and flood protection systems, restoration of mangrove ecosystems, nature-based solutions, improved modeling and monitoring tools, and community-led resilience plans. At least 25% of project funds will be allocated to women-led initiatives.
Key interventions include upgraded drainage and flood protection systems, restoration of mangrove ecosystems, nature-based solutions, improved modeling and monitoring tools, and community-led resilience plans, with at least 25% of project funds allocated to women-led initiatives.
Founded in 1966 and owned by 69 members, the ADB continues to support inclusive and sustainable development in Asia and the Pacific through innovative financing and partnerships.
