Web Desk

ISLAMABAD: The Asian Development Bank (ADB) has approved two projects worth $540 million to support state-owned enterprise (SOE) reforms in Pakistan and strengthen disaster resilience in Sindh&rsquo;s coastal districts, state-run APP reported on Friday.&nbsp;The financing includes a $400 million results-based loan for the Accelerating SOE Transformation Program and a $140 million concessional loan for the Sindh Coastal Resilience Sector Project, according to an ADB press release received here. ADB Country Director for Pakistan Emma Fan said the SOE reform program aims to improve governance and commercial performance of Pakistan&rsquo;s SOEs, which are critical for economic stability and development. She said the program will also focus on restructuring and commercialization of the National Highway Authority, one of the largest entities in Pakistan&rsquo;s SOE portfolio. The initiative marks ADB&rsquo;s first results-based loan dedicated solely to public sector management reform. Over the past five years, ADB has supported Pakistan&rsquo;s SOE reforms, including enactment of the SOE Act and SOE Policy in 2023 and the establishment of a central monitoring unit. ADB has also approved a $750,000 technical assistance grant to support capacity building and effective implementation of the reforms. Sindh coastal resilience projectMeanwhile, the Sindh Coastal Resilience Sector Project aims to enhance disaster resilience in the coastal districts of Badin, Sujawal and Thatta. 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, in line with Pakistan&rsquo;s National Flood Protection Plan IV and Sindh Climate Change Policy. The project is co-financed by a $20 million grant and a $20 million concessional loan from the Green Climate Fund, administered by ADB.&nbsp;ADB said the project will focus on flood protection, improved drainage systems, restoration of mangroves and forests, and community-based resilience planning, with at least 25 percent of funds allocated to women-led initiatives.

People evacuating from a flood-struck area. — AFP/File

Economy

The Asian Development Bank approves $540 million for Pakistan to support state-owned enterprise reforms and boost disaster resilience in Sindh’s coastal districts, benefiting over 500,000 people.

ADB approves $540M Pakistan SOE reforms, Sindh coastal resilience projects

ISLAMABAD: The Asian Development Bank (ADB) has approved $381 million in financing for three major development projects in Pakistan&rsquo;s Punjab province, targeting agriculture, education, and health reforms, an official statement said Saturday. The funding aims to accelerate economic growth and improve public services in Pakistan&rsquo;s most populous province, which generates more than half of the country&rsquo;s economic output. ADB Country Director for Pakistan Emma Fan said the package will deliver transformative benefits. &ldquo;Investing in education, health, and agricultural mechanization will play a transformative role in driving the growth of Punjab, a vital pillar of Pakistan&rsquo;s economy,&rdquo; she said.&nbsp;&ldquo;These strategic investments will modernize agriculture, enhance human capital, and significantly improve livelihoods for millions of people across Punjab.&rdquo; A $120 million concessional loan and a $4 million grant will fund the Punjab Climate-Resilient and Low-Carbon Agriculture Mechanization Project. The initiative is expected to benefit 220,000 rural farm households by modernizing farming practices, strengthening climate resilience, and promoting low-carbon technologies. Punjab produces 75% of Pakistan&rsquo;s wheat, 69% of its rice, and 91% of its maize. However, outdated machinery contributes to significant crop losses, while crop residue burning exacerbates air pollution. The ADB-backed project will deploy modern machinery, including rice harvesters, and provide skills training for 15,000 women, creating new employment opportunities. To enhance human capital, ADB has approved $107 million for the Responsive, Ready, and Resilient STEM Secondary Education in Punjab Program, comprising a $100 million concessional loan and a $7 million grant. The initiative will modernize secondary education with an emphasis on inclusive Science, Technology, Engineering, and Mathematics (STEM) learning. Implemented by the Punjab School Education Department, the program aims to expand access to quality education for students across the province. The bank has also approved a $150 million concessional loan for the Punjab Nursing and Health Workforce Reform Program to address a critical shortage of qualified nurses in Pakistan. The program will modernize nursing education, introduce disaster-resilient training facilities, and strengthen workforce governance. Three centers of excellence will be established in Lahore, Multan, and Rawalpindi, featuring advanced simulation labs, digital learning platforms, and gender-responsive hostels. &ldquo;By expanding opportunities for women in the health sector, the program aims to significantly improve health service delivery across Punjab and support employment opportunities abroad,&rdquo; Fan said. Broader development partnershipsSeparately, Pakistan and the ADB signed agreements totaling $61.8 million for development projects in connectivity, urban transport, and water management, according to Pakistan&rsquo;s Press Information Department. These include the Karachi-Rohri section of Main Line-I ($10 million), Quetta Bus Rapid Transit ($3.8 million), and the Balochistan Water Resources Development Sector Project ($48 million). The economic affairs ministry expressed appreciation for ADB&rsquo;s role as a trusted development partner. &ldquo;These projects will significantly contribute to Pakistan&rsquo;s long-term economic growth, address urban infrastructure needs, and enhance agricultural productivity in Balochistan,&rdquo; the ministry said in a press release.

The Asian Development Bank approved $381 million for Punjab’s agriculture, education, and health reforms, while also funding $61.8 million in development projects in Sindh and Balochistan.

Pakistan’s Punjab secures $381 million ADB investment for public services

ISLAMABAD: The Asian Development Bank (ADB) has revised downward South Asia&rsquo;s economic growth outlook for 2025, projecting the region&rsquo;s GDP to expand by 5.9 percent, down from earlier estimates, mainly due to the expected impact of US tariff hikes. Growth is forecast to pick up slightly to 6.0 percent in 2026. According to the Asian Development Outlook September 2025, India faces the steepest tariff increases among developing Asian economies, prompting a downgrade in its growth forecast to 6.5 percent for FY2025, from 6.7 percent in April.<div class="fr-embed"><div class="twitter-tweet twitter-tweet-rendered" style="display: flex; max-width: 550px; width: 100%; margin-top: 10px; margin-bottom: 10px;"><iframe id="twitter-widget-0" scrolling="no" frameborder="0" allowtransparency="true" allowfullscreen="true" title="X Post" src="https://platform.twitter.com/embed/Tweet.html?dnt=false&embedId=twitter-widget-0&features=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%3D%3D&frame=false&hideCard=false&hideThread=false&id=1974048904183529641&lang=en&origin=https%3A%2F%2Fmain.d1wrm1qseko1cp.amplifyapp.com%2Fdashboard%2F&sessionId=a3dc7417e63b247519ad498fedce9e960a070e32&theme=light&widgetsVersion=2615f7e52b7e0%3A1702314776716&width=550px" style="position: static; visibility: visible; width: 550px; height: 369px; display: block; flex-grow: 1;" data-tweet-id="1974048904183529641"></iframe></div></div>The United States imposed a 25 percent reciprocal tariff on Indian exports from August 7, with a further increase to 50 percent later that month, which is expected to hit key export sectors such as textiles, jewelry, and chemicals. Afghanistan&rsquo;s growth projections have been reduced to 1.8 percent in FY2025 and 1.7 percent in FY2026 amid declining aid and fiscal constraints, while Bhutan&rsquo;s outlook has also been lowered to 8.1 percent due to delays in a major hydroelectric power project. For Pakistan, the FY2026 growth outlook remains unchanged, with the country slightly exceeding expectations in FY2025. Bangladesh and Nepal are expected to face slower growth next year, affected by US tariffs and domestic political instability respectively. The ADB report also noted easing inflation across South Asia, thanks to improved agricultural output and favorable weather conditions. The inflation forecast for 2025 has been lowered to 3.7 percent, down by 1.2 percentage points from April, though it is expected to rise to 4.7 percent in 2026 due to normalizing food prices and currency depreciation in some countries.

Business

Growth is likely to pick up slightly to 6.0 percent in 2026, the bank says.

Articles tagged with "Asian Development Bank"

ADB approves $540M Pakistan SOE reforms, Sindh coastal resilience projects

Pakistan’s Punjab secures $381 million ADB investment for public services

ADB forecasts South Asia’s GDP to slow down in 2025