Agreements cover a $330m Second Power Transmission project and $400m Accelerating SOE Transformation programme
Secretary Economic Affairs Division Muhammad Humair Karim and Asian Development Bank Country Director Emma Fan display signed documents following an agreement ceremony between Pakistan and ADB on December 25. Photo: PID
The government and the Asian Development Bank have signed agreements for two major projects worth a combined $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 valued at $330 million and the Accelerating State-Owned Enterprise (SOE) Transformation Programme worth $400 million.
The power transmission project aims to enable the reliable evacuation of 2,300 megawatts of electricity from upcoming hydropower projects. It is also expected to ease overloading on existing transmission lines and improve the resilience of the national grid under contingency conditions.
Read: Sindh’s unpaid power bills total up to Rs724m
Secretary Ministry of Economic Affairs Muhammad Humair Karim acknowledged 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 Programme 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 Secretary of Economic Affairs Division, Humair Karim, today signed two loan agreements totaling $730 million aimed to transform the country’s state-owned enterprises (SOEs), and enable the power transmission network to uptake… pic.twitter.com/OcV90XFMwH
— ADBPakistan (@PakistanADB) December 25, 2025
He described both initiatives as transformative, saying the energy project would enhance grid reliability, while the SOE programme would promote transparency, efficiency and sustainability across state-owned enterprises.
ADB Country Director Emma Fan welcomed the government’s commitment to the initiatives, highlighting the importance of the transmission project in strengthening energy infrastructure. She said the SOE Transformation Programme comes at a critical time and would further reinforce the government’s ongoing reform efforts.
Both sides reiterated their commitment to the effective utilisation of the financing to ensure the timely and successful completion of the two projects.
