The two major projects aimed at improving electricity transmission and transforming public sector companies.

According to a statement from the Ministry of Economic Affairs, the agreements include $330 million for the Second Power Transmission Strengthening Project and $400 million for the Accelerating State-Owned Enterprise Transformation Program.

Ministry Secretary Muhammad Humair Karim thanked ADB for being a trusted development partner and supporting Pakistan in infrastructure and governance reforms.

He said the transmission project will help evacuate 2,300MW of electricity from upcoming hydropower projects. It will also reduce pressure on existing transmission lines and improve system reliability during emergencies.

Karim added that the SOE transformation program will strengthen compliance with the SOE Act 2023 and SOE Policy 2023. It will also improve efficiency, with special focus on the National Highway Authority.

He described both initiatives as transformative, saying the power project will secure Pakistan’s energy future, while SOE reforms will improve transparency, efficiency and long-term sustainability.

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ADB Country Director Emma Fan praised Pakistan’s strong commitment to the initiatives and highlighted the importance of strengthening the energy transmission network.

She said the SOE reform program comes at a critical time and will further support the government’s reform agenda.

Both sides reaffirmed their commitment to ensure effective use of funds and timely completion of the projects.

The funding brings relief to Pakistan’s power sector. Strong transmission reduces outages. SOE reforms may cut losses. Success now depends on proper implementation.