The Asian Development Bank has approved $540 million in financing to support Pakistan’s efforts to reform state-owned enterprises and enhance disaster resilience in Sindh’s coastal districts, the lender announced on Friday. The package comprises a $400 million results-based loan for the Accelerating SOE Transformation Programme and a $140 million concessional loan for the Sindh Coastal Resilience Sector Project.
ADB Country Director for Pakistan, Emma Fan, highlighted that the SOE reforms aim to overhaul governance, strengthen commercial performance, and improve operational efficiency across Pakistan’s public-sector enterprises. She noted that these entities play a central role in the country’s economic stability and development, adding that the restructuring and commercialisation of the National Highway Authority is among the programme’s key priorities.
The results-based loan marks ADB’s first project focused entirely on public sector management reform. Over the past five years, ADB has supported Pakistan through policy actions, technical assistance, and sectoral investments, including the enactment of the SOE Act and Policy in 2023, establishment of a central monitoring unit, and introduction of public service obligation agreements aligned with international best practices. The programme is expected to drive improvements in corporate governance, institutional capacity, digitalisation, road safety, and financial sustainability. A technical assistance grant of $750,000 will provide additional expertise and capacity-building support for implementation.
The Sindh Coastal Resilience Sector Project targets underserved districts including Badin, Sujawal, and Thatta, which are highly vulnerable to flooding, seawater intrusion, and water scarcity. The project aims to benefit over 500,000 residents, 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 emphasizing environmental sustainability and resilience.
Co-financing for the project 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 enhance livelihood development in the same districts.
Key project interventions include upgrades to drainage and flood protection systems, restoration of mangrove ecosystems, adoption of nature-based solutions, improved modelling and monitoring tools, and community-led resilience planning. At least 25 percent of the funds will be allocated to initiatives led by women, ensuring gender-inclusive benefits and empowerment.
Founded in 1966 and owned by 69 member countries, ADB continues to support inclusive and sustainable development across Asia and the Pacific. Through innovative financing solutions and strategic partnerships, ADB aims to help countries like Pakistan strengthen economic resilience, improve public sector efficiency, and address climate and disaster-related challenges.
This financing package represents a major step in Pakistan’s efforts to modernize state-owned enterprises and enhance adaptive capacity in climate-vulnerable regions, providing a structured, results-oriented approach that integrates governance reform with sustainable environmental interventions.
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