Agreements cover a $330m Second Power Transmission project and $400m Accelerating SOE Transformation program
Economic Affairs Secretary Muhammad Humair Karim and Asian Development Bank Country Director Emma Fan display signed documents after an agreement ceremony between Pakistan and ADB on December 25. Photo: PID
The government and the Asian Development Bank have signed agreements on 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 Accelerating State-Owned Enterprise (SOE) Transformation Program worth $400 million.
The energy transmission project aims to enable the reliable evacuation of 2,300 megawatts of electricity from future hydropower projects. It is also expected to ease congestion on existing transmission lines and improve the resilience of the national grid during emergency conditions.
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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 Program will support compliance with the SOE Act, 2023, and SOE Policy 2023, while improving operational efficiency with a particular focus on the National Highway Authority.
ADB Country Director for Pakistan Emma Fan and Minister of Economic Affairs Humair Karim today signed two loan agreements totaling $730 million aimed at transforming the country’s state-owned enterprises (SOEs) and enabling the electricity transmission network to absorb… pic.twitter.com/OcV90XFMwH
— ADBPakistan (@PakistanADB) 25 December 2025
He described both initiatives as transformative, saying the energy project would increase grid reliability, while the SOE program would promote transparency, efficiency and sustainability across state-owned enterprises.
ADB Country Director Emma Fan welcomed the government’s commitment to the initiatives and highlighted the importance of the transmission project in strengthening the energy infrastructure. She said the SOE Transformation Program comes at a critical time and will further reinforce the government’s ongoing reform efforts.
Both sides reiterated their commitment to efficient utilization of the funding to ensure timely and successful completion of the two projects.
