Pakistan Partners with ADB for Major Energy and SOE Reforms
In a significant move to bolster its energy infrastructure and improve the efficiency of state-owned enterprises (SOEs), Pakistan has recently signed agreements totaling $730 million with the Asian Development Bank (ADB). This partnership, formalized on December 25, includes the Second Power Transmission Strengthening Project, valued at $330 million, and the Accelerating SOE Transformation Programme, worth $400 million.
The power transmission project is set to play a crucial role in enhancing the national grid’s capability. It’s designed to manage the reliable evacuation of 2,300 megawatts of electricity from upcoming hydropower projects. The initiative aims not only to alleviate the overload on existing transmission lines but also to fortify the grid, ensuring stability during unforeseen circumstances.
Secretary of the Economic Affairs Division, Muhammad Humair Karim, emphasized the importance of these initiatives. He noted that the power transmission project would serve as the backbone of Pakistan’s future energy landscape. Meanwhile, the SOE Transformation Programme aims to ensure compliance with the SOE Act and Policy of 2023, enhancing transparency and operational efficiency—especially for critical entities like the National Highway Authority.
ADB’s Country Director for Pakistan, Emma Fan, echoed these sentiments, pointing out the vital role of these reforms in the broader context of the government’s ongoing efforts for economic revitalization. Both parties are committed to ensuring the effective use of the funds to guarantee the timely completion of these transformative projects.
With Pakistan aiming for a more sustainable and efficient energy landscape, the significance of these agreements cannot be overstated. They pave the way for a more resilient national grid and provide a framework for SOEs to operate more transparently and efficiently.
If you want to stay updated on the advancements in Pakistan’s energy and infrastructure sectors, connect with Pro21st for more insights. Your engagement can help foster a deeper understanding of how these initiatives shape the country’s future.
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