ISLAMABAD - Pakistan and Asian Development Bank (ADB) have signed the $250 million Promoting Sustainable Public–Private Partnerships Programme Loan to help Pakistan drive sustainable investments in infrastructure and services through Public-Private partnerships (PPPs).
Dr Kazim Niaz, Secretary Ministry of Economic Affairs, and Yong Ye, Country Director, ADB, signed the $250 million Promoting Sustainable Public–Private Partnerships Programme Loan. The program’s core objective is to strengthen the governance framework and enabling environment for public–private partnerships (PPPs) at the federal government level, by strengthening the: (i) policy, legal and institutional frameworks for Public Investment Management (PIM) and Public Financial Management (PFM) for PPPs; and (ii) national and sectoral infrastructure planning and PPP project preparation.
Dr. Kazim Niaz thanked ADB for its continued support for Pakistan’s critical development needs and rehabilitation efforts in post-flood context. The program loans support the government’s reform agenda, balance of payment (BOP), and contribute to the macroeconomic stability of the country. Dr Kazim Niaz stated that the program would go a long way in realization of the Prime Minister’s vision of greater involvement of the private sector in the development process. Yong Ye underscored the importance of a conducive enabling environment to foster strategic and fiscally affordable PPPs in Pakistan.
ADB’s program supports reforms that will increase the absorptive capacity of PPP infrastructure investments by creating a more robust and integrated legal and institutional framework for public investment management and public financial management for PPPs. The program supports implementation of an integrated PPP policy. The reforms will facilitate efficient infrastructure planning and promote sustainable development practices in infrastructure projects, such as climate risk screening and gender considerations in project feasibility assessments and PPP contracts.
A $700,000 technical assistance grant is financing the program’s preparation and implementation. In December 2023, an additional $950,000 was approved by ADB to support PPP pipeline identification, capacity building, and sector strategy development.