ISLAMABAD: The Asian Development Bank (ADB) and the Government of Pakistan agreed to chart new ways to pursue more robust and inclusive ADB investments in Pakistan by scaling-up public-private partnerships (PPPs) to tap the private sector resources and to meet the country’s rising infrastructure development needs.
The agreement to this regard was developed in a 3-day ADB Country Programming and Public-Private Partnerships in Pakistan ‘ consultation workshop held at Bourbon, said a press release issued here on Monday.
The event was attended by over 100 delegates of senior government officials, leading economists, planners from federal and four provincial governments and ADB key staff.
Among others, it was to discuss the development opportunities and pipeline of projects as part of the ADB’s Country Operation Business Plan for the period of 2019 to 2021.
In her opening remarks Xiaohong Yang, ADB Country Director for Pakistan and Takeo Koike, Director at ADB’s Office of Public-Private Partnerships underscored ADB’s continued commitment to support Pakistan to achieve its key development goals outlined in the ADB-Pakistan country partnership strategy.
Ms. Yang urged for a closer coordination and consultation between ADB and partners to ensure for better and smarter investment programs to better respond to Pakistan’s evolving priorities. ADB reengages its operation in education and health sectors in addition to investments in energy, transport, agriculture and institutional reforms.
Patricia Seex, Head of Economic Growth Group at DFID, attended the inaugural session on ‘Public-Private Partnership in Pakistan’ and appreciated ADB and the government’s efforts to create the enabling environment and effective regulatory framework to promote PPPs at national and provincial levels to speed up the economic growth that is needed to cater the increasing number of labor force and to achieve middle income status.
Mohammad Jahanzeb Khan, Chairman, Planning and Development Board, Punjab and Agha Waqar Javed, Head of PPP Cell and Member PPP / Planning and Development Board of Punjab province reiterated Government’s commitment to work closely with ADB in delivering high quality development projects and programs.
They also briefed on reforms to improve regulatory and policy frameworks conducted by the government intended to encourage a greater private sector participation in the public-sector development programs with the federal and provincial governments.
Pakistan’s public investment in infrastructure have historically fell short of the estimated annual investment need of 7.6 percent of the country’s gross domestic product (GDP).
The country need to invest over $20 billion per year on the critical infrastructures. ADB is already providing $200 million loans ($100 million each) for projects supporting PPPs in Punjab and Sindh. The investment are to augment and assist the provincial government’s efforts to increase the commercial viability of projects, as well as mobilize more private sector participation in PPPs.
The loans also help for developing PPP projects across sectors, and improving the government’s ability to review, develop, and implement sustainable and fiscally responsible PPP projects.
The ADB loans are supplemented by the Government of the United Kingdom’s Department for International Development (DFID), through a $24 million grant and a $4 million technical assistance that are administered by ADB.
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