Transfer notified: P3A goes to Privatization Division
The government has transferred the Public Private Partnership Authority (P3A) to the Privatization Division to boost private sector involvement in infrastructure and streamline project approvals, aiming for more efficient development.
- The transfer of P3A to the Privatization Division.
- P3A's mandate to promote private investment in public infrastructure.
- Streamlined approval processes for Public Private Partnership projects.
ISLAMABAD: The government has notified the transfer of the administrative control of the Public Private Partnership Authority (P3A) from the Planning, Development and Special Initiatives Division to the Privatization Division.
The decision to shift the P3A from the Ministry of Planning and Development to the Ministry of Privatisation is aimed at strengthening the Cabinet Committee on Privatisation (CCoP) to attract greater private sector participation in infrastructure and development projects.
Under the Public Private Partnership Authority Act of 2017, the primary objective of P3A is to provide an enabling legal and regulatory framework for developing, executing, and implementing P3 transactions, thereby promoting private sector investment towards building public infrastructure and the provision of related services.
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P3A has the mandate to facilitate federal implementing agencies in developing, structuring, and procuring their infrastructure projects on a P3 basis.
In addition, the Board of P3A is empowered to approve such P3 transactions that are projected to provide Value for Money (VFM) solutions in the public sector while retaining a bankable financial structure for the private sector.
To further simplify and streamline P3 project development, appraisal, and approval processes, as envisaged under the P3A Act, the federal government promulgated the P3A (Amendment) Ordinance, 2020 (“P3A Ordinance”). Under the P3A Ordinance, the P3A will undertake only ‘Qualified’ projects as defined in the P3A Ordinance. A project that falls outside the ambit of a ‘Qualified’ project will be undertaken by the Implementing Agency with the approval of its Principal Accounting Officer.
Further, all projects that are undertaken by the Implementing Agency will not undergo the approval process of P3A. In accordance with the P3A Ordinance, the approval process is streamlined, thereby enabling the Board of P3A to make quick decisions.
In accordance with the mandate of P3A, P3A will continue to facilitate and advise Implementing Agencies in developing, structuring, procuring, and implementing their P3A projects, even if they are not ‘Qualified’ projects.
Furthermore, to enable the government to pursue its development goals more aggressively, the Ordinance also provides for the private sector to submit Unsolicited Proposals (USPs) to P3A/IAs for projects that have not been identified/conceptualized by the government but may have the potential to be implemented on a P3 basis through creating a win-win solution for both the public and the private sectors.
Copyright Business Recorder, 2026
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