Ayesha Saba

There has been a notable endorsement of the public-private partnership (PPP) mechanism by Pakistani policymakers in recent years for enhancing the country’s economic health, but concerted efforts and comprehensive planning have yet to be made for a substantive impact. Talking about the newfound thrust behind the PPP mechanism, Saba Siraj, spokesperson for Public-Private Partnership Authority (P3A), told WealthPK that Pakistan has offered strong support for PPP at the federal and provincial levels. “As a result, the provincial governments have taken the primary responsibility of developing and implementing their own PPP policies and legislation.” She added that the governments of Punjab, Sindh and Khyber Pakhtunkhwa have taken key initiatives with respect to their individual PPP jurisdictions, including energy, urban management, transportation infrastructure, and environmental conservation. “P3A is currently working on various mega projects to be launched by the National Highways Authority and Pakistan Railways under the PPP mechanism,” she said.

“We consistently collaborate with private entities to advance the government's development agenda by mobilising capital from the private sector.” However, Saba Siraj cautioned that as the PPP model in Pakistan is still in the early stages of development, it requires time to evolve and reach maturity. “There is a firm belief that the PPP model holds the potential to yield significant benefits in the long-run.” “The anticipated benefits include easing fiscal pressures on the government, ensuring adequate regulatory supervision, and providing a robust legal and economic framework for development activities,” she opined. Zafarul Hassan, joint chief economist at the Ministry of Planning, Development and Special Initiatives, told WealthPK that Pakistan’s economy has been suffering from short periods of booms and busts. “The cyclical growth has proved to be a major hurdle in the long-term aim of becoming a middle-income country.” He pointed out that political stability and consistent policies are essential for fostering investor confidence.

“Frequent changes in government and policies deter private sector participation, hindering the success of PPP initiatives.” “PPP presents a promising avenue for Pakistan's infrastructure development. However, the journey is not without challenges. Addressing regulatory complexities, ensuring policy consistency, and building the necessary skills and capacities are imperative for unlocking the full potential of PPPs,” he said. Hassan added that as Pakistan navigates the path of PPP implementation, a collaborative effort between the public and private sectors along with sustained commitment to addressing challenges would pave the way for a more resilient and prosperous future. Recently, caretaker Minister for Planning Development & Special Initiatives Mohammad Sami Saeed chaired the 32nd meeting of the Board of Directors of P3A, where discussions centered around fortifying the sustainable PPP regime for driving economic growth. The minister was briefed on the commitment of P3A to achieving excellence in governance, and collaborating with the private sector for greater benefits of the nation.

Credit: INP-WealthPk