ISLAMABAD: Pakistan has secured two significant financing agreements totaling $730 million with the Asian Development Bank (ADB), the Ministry of Economic Affairs announced.
One of the deals involves a $330 million project for the Second Power Transmission Initiative, which aims to facilitate the transfer of up to 2,300 megawatts of electricity across the country. The other agreement, valued at $400 million, focuses on a transformation program for state-owned enterprises (SOEs), supporting the implementation of the SOE Act and related reforms.
The Secretary of Economic Affairs highlighted that the program will bolster efforts to improve the performance and governance of SOEs. Emma Fan, ADB’s Country Director for Pakistan, commended the government’s dedication to economic reforms, emphasizing that these initiatives will strengthen institutional capacity and promote sustainable growth.
ML-1 Railway Modernization Agreement Reached with ADB
In December 2025, Pakistan’s Federal Minister for Railways, Muhammad Hanif Abbasi, announced the finalization of an agreement with ADB for the ML-1 railway upgrade project. He described this as a major milestone in modernizing Pakistan’s rail infrastructure.
During a meeting in Islamabad with Defence Secretary Lieutenant General Muhammad Ali, Minister Abbasi emphasized that concrete steps are now underway to expedite the project’s completion. The meeting also included Secretary of the Power Division, Dr. Fakhar Alam Irfan, and Major General Farrukh Shehzad Rao, Director General of the National Logistics Cell.
Abbasi also revealed that Pakistan’s first “Safe and Smart” railway station has been established in Rawalpindi, equipped with a 24/7 AI-powered surveillance system with 184 advanced cameras, greatly enhancing security. As part of the country’s digitization efforts, a Rail Tag system has been introduced to enable real-time train and rolling stock tracking, aiming to improve transparency, safety, and operational efficiency.
