ISLAMABAD: The Asian Development Bank (ADB) has approved a $250 million financing to support Pakistan in driving sustainable investments in infrastructure and services through public-private partnerships (PPPs).
According to a press release, ADB’s Promoting Sustainable Public–Private Partnerships Program aims to implement government policies that create an environment conducive to fiscally responsible PPPs, fostering inclusive economic growth.
“This program is part of our comprehensive and integrated package of public sector management support that balances the country’s fiscal consolidation and growth objectives,” said Yevgeniy Zhukov, ADB Director General for Central and West Asia. “It will help the Government of Pakistan create an environment favorable to strategic, fiscally sustainable PPPs, advancing the country’s development goals.”
ADB’s program backs reforms to enhance the absorptive capacity of PPP infrastructure investments by establishing a stronger legal and institutional framework for public investment and financial management in PPPs.
The program supports an integrated PPP policy, promoting efficient infrastructure planning and sustainable development practices, including climate risk screening and gender considerations in project feasibility assessments and PPP contracts.
“Mobilizing private finance through PPPs is crucial for bridging the financing gap in public sector infrastructure projects,” said ADB Economist Sana Masood. She emphasized that the program would ensure PPPs in Pakistan are structured properly and implemented effectively to deliver greater efficiency, innovation, and value for money.
A $700,000 technical assistance grant is funding the program’s preparation and implementation. In December 2023, ADB approved an additional $950,000 to support PPP pipeline identification, capacity building, and sector strategy development.
Pakistan, a founding member of ADB, has received over $52 billion in public and private sector loans, grants, and other financing from ADB since 1966.
The funds have promoted inclusive economic growth and improved the country’s infrastructure, energy and food security, transport networks, and social services.
