Pakistan has taken a major step toward strengthening its energy sector as the Asian Development Bank (ADB) signed two Memorandums of Understanding (MoUs) with the country for key development projects worth $730 million, officials confirmed on Wednesday.
According to the Economic Affairs Division, the agreements include a $330 million Second Power Transmission Project, designed to improve electricity delivery across the country. The project will help transmit around 2,300 megawatts of electricity generated from hydropower plants, reducing bottlenecks in the national grid and supporting more reliable power supply for consumers.
The second initiative, a $400 million transformation programme, focuses on improving governance in state owned enterprises (SOEs). The programme aims to ensure the effective implementation of the SOEs Act and related policies, helping public institutions operate more efficiently, transparently, and sustainably.
ADB Country Director Emma Fan welcomed the progress, praising the Government of Pakistan for its strong commitment to reform. She noted that these initiatives reflect proactive efforts to modernise the energy infrastructure and strengthen institutional frameworks critical for long-term economic stability.
Officials say the agreements represent an important milestone in Pakistan’s development journey, as improved power transmission and better managed state enterprises are expected to support economic growth, attract investment, and ease daily challenges faced by businesses and households alike.
The ADB has been a long-standing development partner of Pakistan, supporting projects in energy, infrastructure, and governance to promote inclusive and sustainable growth.
