Pakistan and the Asian Development Bank (ADB) on Thursday signed agreements worth $730 million for two key projects aimed at strengthening the power sector and advancing reforms of state-owned enterprises (SOEs), the Economic Affairs Division said.

According to an official spokesperson, the agreements include a $330 million Second Power Transmission Project, designed to improve the reliability of electricity transmission and enable the evacuation of up to 2,300 megawatts of hydropower.

The second agreement covers a $400 million SOE Transformation Programme, which aims to support effective implementation of the SOE Act and policy framework, improve governance and strengthen the financial sustainability of state-owned entities.

Officials said the power transmission project would help reduce system constraints and enhance grid stability, while the reform programme would underpin the government’s broader institutional and policy reforms.

ADB Country Director Emma Fan welcomed the agreements and praised the government of Pakistan’s strong commitment to the reform agenda and infrastructure upgrades.

The projects are part of Pakistan’s ongoing engagement with multilateral partners to address energy sector challenges and improve public-sector performance, officials said.