ISLAMABAD: Pakistan’s current public-private partnership (PPP) pipeline of 38 projects worth around USD 6.5 billion needs to be significantly expanded to meet the country’s rapidly growing infrastructure requirements, Adviser to the Prime Minister on Privatisation and Chairman of the Privatisation Commission Muhammad Ali said on Friday.

Addressing the National Strategic Dialogue on Mobilising Private Capital through PPPs and Privatisation, organised by the Asian Development Bank (ADB), Muhammad Ali said Pakistan’s infrastructure needs could not be financed by the government alone, particularly given the country’s low savings rate of around 14 percent.

He said Pakistan’s population was projected to rise from around 230 million currently to approximately 390 million by 2050, with nearly 190 million people expected to live in urban centres.

“This increases the requirement in the urban infrastructure by roughly 100 percent,” he said, adding that Pakistan would need massive investment in hospitals, schools, energy and water infrastructure, railways, airports, ports and other basic services.

The Adviser stressed that PPPs and privatisation were critical instruments for future economic growth, as the private sector could bring not only capital but also management discipline, innovation, skilled human resources and technology.

He said Pakistan had already demonstrated its ability to execute PPP transactions, with around 154 projects worth approximately USD 36 billion having reached financial close since the 1990s.

According to the Pakistan PPP Monitor, the country’s PPP portfolio ranks among the top 14 in the developing world, while its ranking rises to the top 10 when measured against the size of the economy.

Muhammad Ali said the government had the necessary legal and regulatory framework, with the Federal PPP Authority Act enacted in 2017 and all four provinces having their own PPP laws and institutions.

He further said the Federal PPP Authority, branded as P3A, was being consolidated under the Privatisation Division to bring PPPs, asset monetisation and privatisation under one roof.

“This will simplify procedures, improve investor coordination and enhance efficiency,” he said.

The current federal PPP pipeline comprises 38 projects worth around USD 6.5 billion across roads, railways, hospitals, hospitality, aviation and industrial estates. However, the Adviser called for a much larger and more diversified pipeline to mobilise private capital at the scale required by the economy.

He also stressed the need to standardise legal and transaction documents across the five PPP authorities to accelerate project preparation and completion.

On privatisation, Muhammad Ali said the government was pursuing 27 transactions involving power distribution companies, airports, insurance companies and banks.

Referring to the privatisation of Pakistan International Airlines (PIA), he said the transaction demonstrated the government’s ability and commitment to undertake complex privatisation deals. Around Rs600 billion in legacy debt had been transferred to the holding company, while approximately USD 450 million in proceeds went into the entity for its revival.

He said the government was also working on the sale of nine power distribution assets, intending to go beyond privatisation to reform the power sector, introduce a competitive supply regime and develop the sector on modern lines.

“Companies established to earn should not continue consuming public money,” Muhammad Ali said, arguing that private-sector management could improve operational performance, reduce revenue leakage and deliver better services.

He called for stronger investor confidence and coordinated action by ministries and government institutions, saying all stakeholders needed to work towards the common objective of mobilising private capital for infrastructure and economic growth.TAHIR AMIN