Pakistan has signed two financing agreements with the Asian Development Bank (ADB) worth a total of $730 million, the Ministry of Economic Affairs confirmed.
One of the agreements, valued at $330 million, is for the Second Power Transmission Project, which will support the transmission of up to 2,300 megawatts of electricity. The second agreement, worth $400 million, focuses on a transformation program for state-owned enterprises (SOEs).
The Secretary of Economic Affairs said the program will help implement the SOE Act and related policies. ADB’s Country Director for Pakistan, Emma Fan, commended the government’s commitment to economic reforms, stating that the program would strengthen efforts to reform SOEs and improve institutional performance.
Earlier in December 2025, Federal Minister for Pakistan Railways Muhammad Hanif Abbasi announced that an agreement for the ML-1 project had been finalized with the Asian Development Bank (ADB), calling it a significant step toward modernizing the country’s rail network.
Speaking at a meeting in Islamabad with Defence Secretary Lieutenant General Muhammad Ali, Minister Hanif Abbasi said concrete measures were now being taken to complete the project as soon as possible. The meeting was also attended by Secretary Power Division Dr. Fakhar Alam Irfan and Director General of the National Logistics Cell, Major General Farrukh Shehzad Rao.
The minister highlighted that Pakistan’s first Safe and Smart Railway Station has been inaugurated in Rawalpindi, equipped with a 24/7 AI-based monitoring system and 184 modern surveillance cameras, greatly enhancing security and monitoring.
As part of a wider digitization initiative, he added that a Rail Tag system has been introduced to allow real-time tracking of trains and rolling stock, aiming to improve transparency and operational efficiency.
