Pakistan Secures $730m Under ADB Financing Accord to Upgrade Power Grid and SOEs
Pakistan has taken a major step toward economic stability and energy security.
The country signed a new ADB financing accord worth $730 million on Thursday. The agreement supports power upgrades and public enterprise reform. The deal includes two large initiatives with long term national impact.
One focuses on electricity transmission, while the other targets governance reform. As a result, both energy delivery and institutional performance should improve. Officials described the move as timely and forward looking. It also reflects continued trust between Pakistan and its development partners.
Power Transmission Gets a Strong Boost
A large share of the funding will modernize electricity transmission systems. The project will help carry 2,300 megawatts from new hydropower plants. Therefore, power losses and outages should be reduced over time.
The upgrades will also ease pressure on aging transmission lines. In addition, the network will perform better during emergencies. This improvement supports future clean energy integration. A stronger grid backbone means better supply for homes and businesses. It also helps stabilize industries that rely on uninterrupted electricity.
State Enterprises Enter a Reform Phase
The second initiative targets reforms in government owned entities. It strengthens compliance with recently approved governance laws. As a result, transparency and accountability should increase.
Special focus will remain on improving highway operations. Better management can reduce costs and improve service delivery.
This approach supports long term fiscal sustainability. Officials believe these reforms can rebuild public trust. They also align with broader economic restructuring goals.
Shared Commitment to Delivery
Senior officials praised the partnership behind the ADB financing accord. They highlighted strong cooperation and shared reform priorities. Both sides stressed timely and effective fund use. Development representatives welcomed Pakistan’s reform momentum.
They noted the importance of infrastructure at this critical stage. Successful execution remains the top priority. Overall, the agreement signals confidence in Pakistan’s reform direction.
If implemented well, it could deliver lasting national benefits.
