Pakistan, ADB sign two key initiatives worth $730m in power, state-owned enterprises sector
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Pakistan and the Asian Development Bank (ADB) signed two major initiatives — a power transmission strengthening project and an accelerating state-owned enterprise (SOE) transformation programme — totalling $730 million that would relieve overloading of existing transmission lines and improve operational efficiency.
At the beginning of this year, Pakistan and ADB signed an agreement to provide $200 million in support to the country’s ailing power distribution system through network improvement.
In the recent agreement, the second power transmission strengthening project amounts to $330m, while the accelerating SOE transformation programme is worth $400m, according to a statement issued on Thursday.
Ministry of Economic Affairs Secretary Muhammad Humair Karim appreciated the Manila-based lending agency’s role and its continued support in advancing critical infrastructure and governance reforms, the statement said.
He highlighted that the transmission project would “enable reliable evacuation of 2,300 megawatt from upcoming hydropower projects, relieve overloading of existing transmission lines and enhance resilience under contingency conditions“.
Karim added that the SOE transformation programme would improve “operational efficiency, particularly focusing on the National Highway Authority (NHA)”.
The secretary emphasised that “both initiatives are transformative in nature as the transmission project will secure Pakistan’s energy future by strengthening the backbone of the national grid, whereas the SOE programme will enhance transparency, efficiency and sustainability of state-owned enterprises nationwide”.
ADB Country Director Emma Fan appreciated Pakistan’s strong commitment to the initiatives, emphasising the significance of the transmission project in strengthening energy infrastructure.
Fan highlighted that “the significance of the SOEs transformation programme comes at a critical time in Pakistan, and it will further strengthen the reform efforts” of Pakistan.
Last month, ADB approved two loans totalling $330 million for Pakistan to build a transmission line from Islamabad to Faisalabad, the industrial hub of Punjab.
