Pakistan offers $96.2bn investment opportunity for private sector: Report

• The report highlights that with economic growth slowing in recent years and population expanding swiftly, it is vital that private sector contributes.
• Investment of around $99.3 billion is needed in Pakistan's power sector between now and 2030.

Need for private investment is intensifying in Pakistan and in a bid to increase it, the country offers an estimated $96.2 billion private-sector investment opportunity to meet its United Nations Sustainable Development Goals (SDGs).

As per the newly released report titled Opportunity2030: The Standard Chartered SDG Investment Map, Pakistan needs investment across SDGs 6, 7 and 9, with the greatest opportunity in power, followed by digital infrastructure.

“With economic growth slowing in recent years, and the population expanding swiftly, it is vital that private sector contributes the finance needed to support a strong level of infrastructure development,” said the report.

Here is the list of potential investment venues in Pakistan:

Investment in Power sector

With 29 percent of Pakistan’s population without access to electricity, investment of around $99.3 billion is needed in the power sector between now and 2030 to meet rising demand and achieve universal access, with a private sector investment opportunity of around USD44.7 billion. This investment is needed to improve power infrastructure and to address inefficiencies in the energy sector.

Investment opportunity in digital infrastructure

Substantial investment in infrastructure – particularly digital infrastructure – is also needed for Pakistan to make progress towards SDG 9 and to ensure that the country is globally competitive. Currently, it is lagging behind, with a digital access rate – comprising mobile phone subscription rates and internet connectivity levels – of just over a quarter (27 per cent).

To reach universal digital access by 2030 will require an estimated investment of $56.6 billion, with a private-sector contribution of $34.0 billion.

Investment opportunity in transport sector

As per the report, Pakistan’s Logistics Performance Index (LPI) infrastructure score is relatively low at just 2.2 (out of 5), placing it 121st in the world. To improve this score significantly by 2030 will require an estimated $38.5 billion investment, with a $13.5 billion private-sector investment opportunity.

Investment potential in water and sanitation

Pakistan also needs investment in the water sector, which will help it achieve SDG 6. Currently, 24 per cent of the population does not have access to clean water and sanitation services.

Addressing this gap will require around $40.1 billion between now and 2030, with around $4.0 billion of private-sector investment.