• ADB okays $540m for two Sindh projects
• WB commits $400m for Punjab’s schemes

ISLAMABAD: The Asian Development Bank (ADB) and the World Bank on Friday approved a total of $940 million to Pakistan for reforms in the state-owned entities (SOEs), water sector and safely managed water, sanitation and basic hygiene services.

Of the total, the Manila-based ADB will be providing about $540m in loan and grant while the Washington-based World Bank will be extending $400m.

The ADB said its board of directors approved two projects totalling $540m to accelerate SOE reforms in Pakistan and enhance disaster resilience in the coastal districts of Sindh. The financing comprises a $400m results-based loan for National Highway Authority (NHA) under the Accelerating SOE Transformation Programme and $140m concessional loan for Sindh Coastal Resilience Sector Project.

“The SOE reform programme for Pakistan seeks to improve governance and optimise the performance of Pakistan’s commercial SOEs, which are vital for the country’s economic stability and development,” said ADB Country Director for Pakistan Emma Fan.

“The programme will also prioritise restructuring and commercialisation of the NHA, one of the largest and most complex entities within Pakistan’s SOE portfolio.” The programme is ADB’s first results-based loan exclusively dedicated to public sector management reform. The bank has been a long-standing partner in supporting Pakistan’s SOE reforms through sector investments, policy operations, and technical assistance.

Substantial progress has been achieved over the past five years with ADB’s support, including the enactment of the SOE Act and SOE Policy in 2023, the establishment of a central monitoring unit, and the introduction of public service obligation agreements aligned with international best practices.

The results-based approach is aimed to facilitate improved corporate governance and drive advancements in institutional capacity, digitalisation, road safety, and financial sustainability. ADB has also approved a complementary technical assistance grant of $750,000 to provide expertise and capacity-building support, ensuring effective implementation of reforms.

The Sindh Coastal Resilience Sector Project aims to strengthen disaster resilience in the vulnerable and underserved districts of Badin, Sujawal, and Thatta.

The project is expected to improve the lives of over 500,000 people, safeguard 150,000 hectares of agricultural land, and restore 22,000 hectares of forest in Pakistan. These outcomes align with Pakistan’s National Flood Protection Plan IV, Sindh Climate Change Policy, and ADB’s Strategy 2030 priorities on environment and resilience.

The project will help reduce greenhouse gas emissions, enhance biodiversity, and improve food security, supporting ADB’s ambition to mobilise $40bn for food systems transformation by 2030. The project is co-financed by a $20m grant and a $20m concessional loan from the Green Climate Fund through the Community Resilience Partnership Programme Investment Fund, administered by ADB for the region.

“The coastal communities in Sindh are increasingly vulnerable to severe natural hazards, including flooding, saltwater intrusion, and water scarcity. This project will protect livelihoods, strengthen food security, and empower women to play a central role in resilience planning and implementation,” said Ms Fan.

The project, implemented by the Sindh Irrigation Department and the Sindh Forest and Wildlife Department, will integrate resilient water resources infrastructure, nature-based solutions, and improved coastal management. Key investments include upgrading drainage and flood protection systems, restoring mangrove and inland forests, and strengthening monitoring and modeling capacity to support future resilience investments.

Water, sanitation services

Separately, the World Bank said its board of executive directors approved $400m in financing for a new project that will provide safely managed water, sanitation and basic hygiene services, and help improve the institutional and financial performance of local urban administration in Punjab province.

The Punjab Inclusive Cities Programme will support the improvement and rehabilitation of water supply networks, sewerage systems, and wastewater treatment plants, provide storm water drainage, and enhance the capacity of local governments to sustainably deliver services and increase revenues in 16 secondary cities in Punjab. The programme will also support the improved performance of solid waste management systems in Punjab, including for sanitary disposal of waste.

It aims to deliver improved water, sanitation, hygiene and drainage services to approximately 4.5m people and improved solid waste management services to an additional 2m people. The programme will help reduce healthcare costs by lowering waterborne disease, lower child stunting rates, and strengthen the capacity of urban local governments to deliver sustainable services.

Published in Dawn, December 13th, 2025