Pakistan plans 38 PPP projects worth $6.5bn, pushes ahead with 27 privatisations
Government seeks private investment in roads, railways, aviation and healthcare as fiscal constraints limit public-sector financing
Pakistan plans to bring 38 federal projects worth around $6.5 billion to the market under public-private partnerships while advancing the privatisation of 27 state-owned assets, officials said on Friday.
The PPP pipeline covers roads, railways, aviation, healthcare and industrial infrastructure, while the privatisation programme includes power distribution companies, major airports, insurance companies and specialised banks.
Officials disclosed the plans at the National Strategic Dialogue on PPPs and Privatisation in Islamabad, where the Pakistan PPP Monitor was launched.
Pakistan has completed 154 PPP transactions involving investment of nearly $36 billion since the 1990s, according to the monitor.
Finance Minister Muhammad Aurangzeb said private businesses would have to lead the country’s next phase of economic growth, with the government focusing on preparing viable projects that could attract investment.
He said PPPs and privatisation could mobilise capital, improve efficiency and reduce the burden on the public sector.
Adviser to the Prime Minister on Privatisation Muhammad Ali said the government could not finance and manage Pakistan’s future infrastructure requirements through public expenditure alone.
He said PPPs could attract private capital and technical expertise for infrastructure and public services, while privatisation could transfer the ownership or management of commercial entities to investors capable of improving their performance.
Asset monetisation could also be used to introduce private financing, technology and accountability into sectors where the state lacked sufficient resources, he added.
Muhammad Ali called for the completion of the government’s privatisation agenda and an expansion of the PPP pipeline, saying successful transactions were needed to demonstrate progress to investors.
Asian Development Bank Vice President for South, Central and West Asia Yingming Yang said well-designed PPPs could supplement limited public resources, improve services and ensure the long-term maintenance of infrastructure.
He reaffirmed the ADB’s support for Pakistan’s efforts to increase private sector participation in development projects.
The dialogue was attended by federal and provincial officials, development partners, financial institutions, investors and private-sector representatives.
tribune.com.pk
