Project to help 500,000 people, protect farmland, restore forests under national climate resilience plans
A worker walks past inside the Asian Development Bank (ADB) headquarters in Manila. Photo: Reuters/ File
The Asian Development Bank (ADB) has approved $540 million in financing for Pakistan. The funds will support reforms in state-owned enterprises (SOEs) and strengthen disaster resilience in Sindh’s coastal belt, the lender announced on Friday.
The package includes a $400 million performance-based loan for Pakistan’s Accelerating SOE Transformation Program and a $140 million loan for the Sindh Coastal Resilience Sector Project.
ADB Country Director for Pakistan Emma Fan said the reforms aim to overhaul governance and commercial performance across public enterprises. “Pakistan’s commercial SOEs are central to the country’s economic stability and development,” she noted, adding that the restructuring and commercialization of the National Highway Authority would be among the program’s key priorities.
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The SOE program is ADB’s first performance-based loan that focuses exclusively on public sector management reform. Over the past five years, ADB has supported Pakistan’s efforts through policy initiatives, technical assistance and sector investments, helping to adopt the SOE Act and Policy by 2023, establish a central monitoring unit and introduce public service obligation agreements in line with global standards.
The results-based model is expected to drive improvements in corporate governance, institutional capacity, digitalisation, road safety and financial sustainability. ADB has also approved a technical assistance grant of $750,000 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 from floods, 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 interior forests. It is in line with Pakistan’s National Flood Plan IV, Sindh’s climate policies and ADB’s Strategy 2030 priorities on environment and resilience.
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 upgrades to 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 the project funds will be allocated to women-led initiatives.
Key interventions include upgrades to 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, ADB continues to support inclusive and sustainable development across Asia and the Pacific through innovative financing and partnerships.
