ADB approves $540 million for Pakistan's reform and climate-resilience projects
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The Asian Development Bank (ADB) has approved two major projects worth $540 million for Pakistan.
ISLAMABAD (Web Desk) – The Asian Development Bank (ADB) has approved $540 million for Pakistan to support key reforms in state-owned enterprises and strengthen climate resilience in the coastal areas of Sindh.
The package includes a $400 million, results-based loan for the SOE Transformation Program, aimed at fixing long-standing issues in Pakistan’s public sector entities, and a $140 million concessional loan for the Sindh Coastal Resilience Sector Project.
According to an official statement from ADB, the SOE reform program marks an important step toward improving corporate governance, operational efficiency, and financial sustainability of Pakistan’s government-run entities.
ADB’s Country Director for Pakistan, Emma Fan, said the program will play a vital role in enhancing the performance of commercial SOEs and supporting Pakistan’s overall economic stability. She added that priority will be given to restructuring large and complex entities such as the National Highway Authority, with a focus on making them operate more professionally and on commercial lines.
The bank noted that it has been supporting SOE reforms for several years, leading to key achievements such as the approval of the SOE Act and policy in 2023, creation of a central monitoring unit, and introduction of public service contracts. A results-based approach, it added, will further strengthen governance, digitalization, road safety, institutional capacity, and financial sustainability.
ADB has also approved $750,000 in technical assistance to help implement the reforms effectively, build capacity, and engage experts. The goal is to make public sector entities more competitive and resilient, unlock private-sector growth, and support Pakistan’s sustainable and inclusive economic development.
On the climate side, the Sindh Coastal Resilience Sector Project aims to protect vulnerable districts such as Badin, Sujawal, and Thatta from natural disasters. The project is expected to improve the lives of more than 500,000 people, safeguard 150,000 hectares of agricultural land, and restore 22,000 hectares of forests.
These initiatives align with Pakistan’s National Flood Protection Plan IV, Sindh’s climate policy, and ADB’s Strategy 2030. The project will also contribute to reducing greenhouse gas emissions, protecting biodiversity, and strengthening food security—part of ADB’s broader $40 billion global target for transforming food systems by 2030.
