In a strategic move to bolster economic growth and address fiscal constraints, Pakistan is increasingly embracing Public-Private Partnerships (PPPs) to drive infrastructure development. This shift aims to leverage private sector expertise and investment to enhance public service delivery across various sectors.
The government’s commitment is evident in the establishment of a robust pipeline of PPP projects valued at approximately Rs 2.5 trillion, ready for implementation. Notably, the Islamabad International Airport is set to be the first project realized under this framework, marking a significant milestone in the nation’s infrastructure journey. Business Recorder
To facilitate this transition, Pakistan has implemented various PPP models, including Build-Operate-Transfer (BOT), Build-Own-Operate-Transfer (BOOT), and Design-Build-Finance-Operate-Transfer (DBFOT). These models have enabled private investment across sectors like transportation, energy, healthcare, and education. Riaabarker Gillette
International financial institutions are also supporting Pakistan’s PPP initiatives. The Asian Development Bank (ADB) approved a $250 million policy-based loan to help the government drive sustainable investments in infrastructure and services through PPPs. ADB+1SIFC+1
This strategic pivot towards PPPs reflects Pakistan’s dedication to fostering a more balanced, private-sector-driven growth model, aiming to enhance infrastructure development while mitigating the burden on public finances.
