The Asian Development Bank (ADB) has approved a $250 million loan, a significant boost for Pakistan, to accelerate sustainable investments in infrastructure and services through public-private partnerships (PPPs). As the institution stated, this move is part of ADB’s Promoting Sustainable Public–Private Partnerships Program, which is designed to bolster the implementation of government policies, create a favourable environment for fiscally affordable PPPs, and foster inclusive economic growth.
ADB’s Director General for Central and West Asia, Yevgeniy Zhukov, underlines the strategic nature of the program, which is a comprehensive package of public sector management support. The program is meticulously designed to balance Pakistan’s fiscal consolidation and growth objectives, aiming to help the Government of Pakistan establish an environment conducive to strategic, fiscally affordable PPPs, thereby propelling the country towards its development goals.
The program will focus on reforming PPP infrastructure investments by enhancing absorptive capacity and creating a robust legal and institutional framework for public investment management and public financial management for PPPs. It will also support the implementation of an integrated PPP policy to facilitate efficient infrastructure planning and promote sustainable development practices in infrastructure projects.
ADB Economist Sana Masood underscores the crucial role of mobilizing private finance through PPPs in bridging the financing gap in public sector infrastructure projects. The program is dedicated to ensuring that PPPs in Pakistan are structured correctly and implemented effectively, with the aim of delivering enhanced efficiency, innovation, and value for money, thereby instilling confidence in the financial sustainability of the projects.
To support the program’s preparation and implementation, a $700,000 technical assistance grant has been provided. Additionally, in December 2023, an additional $950,000 was approved by ADB to aid in PPP pipeline identification, capacity building, and sector strategy development.
Since Pakistan’s inception as a founding member of ADB, the institution has committed over $52 billion in public and private sector loans, grants, and other forms of financing to promote inclusive economic growth and improve the country’s infrastructure, energy and food security, transport networks, and social services.
The program’s approval signifies ADB’s commitment to achieving prosperous, inclusive, resilient, and sustainable development for Asia and the Pacific while continuing efforts to eradicate extreme poverty. With 68 members, including 49 from the region, ADB remains committed to supporting Pakistan’s sustainable development goals and fostering economic growth and stability in the region.
