The Outsourcing of Decisions
December 26, 2025
Pakistan has signed two major agreements with the Asian Development Bank (ADB) worth $730 million. The deals include a $330 million project to strengthen the national power grid and a $400 million programme to reform state-owned enterprises. Officials described the initiatives as vital for energy reliability and institutional efficiency.
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Pakistan and the Asian Development Bank (ADB) have finalized two agreements totaling $730 million, aimed at improving electricity transmission and reforming state-owned enterprises. The announcement was made Thursday, with the projects described as critical for the country’s energy and governance sectors.
Economic Affairs Secretary Muhammad Humair Karim said 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.” He noted that the reform programme would focus on improving efficiency in agencies such as the National Highway Authority.
“These initiatives are transformative in nature,” Karim emphasized, adding that they would strengthen the backbone of the national grid while enhancing transparency and sustainability across public institutions.
ADB Country Director Emma Fan commended Pakistan’s commitment, stating that the SOE reform programme “comes at a critical time in Pakistan, and it will further strengthen the reform efforts.”
Earlier this year, ADB provided $200 million to support power distribution upgrades, and last month approved $330 million for a transmission line connecting Islamabad and Faisalabad.
