ADB approves $540m for Pakistan’s SOE reforms, coastal resilience

The Asian Development Bank (ADB) has approved $540 million in financing for Pakistan. The funds will support reforms in state-owned enterprises (SOEs) and strengthen disaster resilience in Sindh’s coastal belt, the lender announced on Friday.

The package includes a $400 million results-based loan for Pakistan’s Accelerating SOE Transformation Programme and a $140 million concessional loan for the Sindh Coastal Resilience Sector Project.

ADB Country Director for Pakistan Emma Fan said the reforms aim to overhaul governance and commercial performance across public-sector enterprises. “Pakistan’s commercial SOEs are central to the country’s economic stability and development,” she noted, adding that the restructuring and commercialisation of the National Highway Authority would be among the programme’s key priorities.

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The SOE programme is ADB’s first results-based loan focused entirely on public sector management reform. Over the past five years, ADB has supported Pakistan’s efforts through policy actions, technical assistance, and sectoral investments, helping enact the SOE Act and Policy in 2023, set up a central monitoring unit, and introduce public service obligation agreements aligned with global standards.

The results-based model is expected to drive improvements in corporate governance, institutional capacity, digitalisation, road safety, and financial sustainability. ADB has also cleared a $750,000 technical assistance grant to provide expertise and capacity-building support for implementation.

The Sindh Coastal Resilience Sector Project will focus on the underserved districts of Badin, Sujawal, and Thatta, where communities face increasing risks from flooding, seawater intrusion, and water scarcity.

The project is expected to benefit more than 500,000 people, protect 150,000 hectares of agricultural land, and restore 22,000 hectares of forest, including mangroves and inland woodlands. It aligns with Pakistan’s National Flood Protection Plan IV, Sindh’s climate policies, and ADB’s Strategy 2030 priorities on environment and resilience.

Co-financing includes a $20 million grant and a $20 million concessional loan from the Green Climate Fund under the Community Resilience Partnership Program Investment Fund. Parallel support from the International Fund for Agricultural Development will complement livelihood development in the same districts.

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Key interventions include upgrades to drainage and flood protection systems, restoration of mangrove ecosystems, nature-based solutions, improved modelling and monitoring tools, and community-led resilience plans. At least 25% of project funds will be allocated to women-led initiatives.

Key interventions include upgrades to drainage and flood protection systems, restoration of mangrove ecosystems, nature-based solutions, improved modelling and monitoring tools, and community-led resilience plans—with at least 25% of project funds allocated to women-led initiatives.

Founded in 1966 and owned by 69 members, ADB continues to support inclusive and sustainable development across Asia and the Pacific through innovative finance and partnerships.