The Asian Development Bank (ADB) has approved two projects totaling $540 million to support reforms in Pakistan’s state-owned enterprises and to strengthen disaster resilience in the coastal districts of Sindh.
The package includes a $400 million results-based loan for the SOE Transformation Program and a $140 million concessional loan for the Sindh Coastal Resilience Sector Project.
According to an ADB statement, the SOE reform program marks a significant step toward addressing longstanding issues of corporate governance and performance in Pakistan’s state-owned enterprises.
ADB’s Country Director for Pakistan, Emma Fan, said the program will play a vital role in improving the performance of Pakistan’s commercial SOEs and contributing to the country’s economic stability.
She explained that restructuring and commercializing large, complex entities such as the National Highway Authority will be prioritized. This is ADB’s first fully results-based loan dedicated to public sector administrative reform in Pakistan.
ADB has also approved $750,000 in supplementary technical assistance to provide expert support and capacity building for effective implementation of the reforms. These measures aim to make SOEs more competitive and resilient, promote private sector growth, and support Pakistan’s sustainable and inclusive economic development.
Meanwhile, the Sindh Coastal Resilience Sector Project aims to strengthen the ability of vulnerable and underdeveloped coastal districts, such as Badin, Sujawal, and Thatta, to withstand natural disasters.
The initiative is expected to improve the lives of more than 500,000 people, protect 150,000 hectares of agricultural land, and help restore 22,000 hectares of forests.
