Project to help 500,000 people, protect agricultural lands and restore forests within the framework of national climate resilience plans
A worker walks past the interior of the Asian Development Bank (ADB) headquarters in Manila. Photo: Reuters/ Archive
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 the Pakistan Public Enterprises Transformation Acceleration Program 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 the governance and business performance of public sector companies. “Pakistan’s state-owned commercial enterprises are critical to the country’s economic stability and development,” he said, adding that restructuring and commercialization of the National Highways Authority would be among the program’s key priorities.
Read: Floods versus economy: World Bank warns Pakistan’s FY26 growth at risk
The state-owned enterprise program is ADB’s first results-based loan focused exclusively 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 to enact the State-Owned Enterprises Act and Policy in 2023, establishing a central monitoring unit and introducing public service obligation agreements aligned with global standards.
The results-based model is expected to drive improvements in corporate governance, institutional capacity, digitalization, road safety and financial sustainability. ADB has also authorized a $750,000 technical assistance grant to provide expertise and capacity development support for implementation.
The Sindh Coastal Resilience Sector Project will focus on the neglected districts of Badin, Sujawal and Thatta, where communities face increasing risks of 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 forests, including mangroves and inland forests. It aligns with Pakistan’s IV National Flood Protection Plan, Sindh’s climate policies and ADB’s Strategy 2030 priorities on environment and resilience.
The 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.
Read more: ADB improves growth prospects for Pakistan
Key interventions include improvements to drainage and flood protection systems, restoration of mangrove ecosystems, nature-based solutions, improved modeling and monitoring tools, and community-led resilience plans. At least 25% of project funds will be allocated to women-led initiatives.
Key interventions include improvements to drainage and flood protection systems, restoration of mangrove ecosystems, nature-based solutions, improved modeling 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, the ADB continues to support inclusive and sustainable development in Asia and the Pacific through innovative finance and partnerships.
