As part of its efforts to encourage sustainable investments in infrastructure and services, Asia’s Development Bank (ADB) approved a $250 million loan to Pakistan to help the country drive sustainable investments through public-private partnerships (PPPs).
According to a statement released by the Asian Development Bank (ADB), the Promoting Sustainable Public–Private Partnerships Program provides support for the implementation of government policies designed to create a favorable environment for fiscally affordable public–private partnerships as well as encourage inclusive economic growth.
“This program is part of our extensive and integrated package of support for public sector management in Central and West Asia, which aims to balance economic growth objectives in the country with the fiscal consolidation efforts,” commented ADB Director General Yevgeniy Zhukov.
The program aims to provide the Government of Pakistan with the necessary information and tools to promote a conducive environment that will be conducive to short- and long-term public-private partnerships that will allow Pakistan to achieve its development goals in a timely manner.
With the assistance of ADB, it is intended to achieve reforms that will increase the ability of PPP infrastructure investments to absorb additional funding by establishing a legal framework and institutional framework that is more robust and integrated for the public sector to manage public investments and public finance for PPP infrastructure projects.
In order to implement an integrated PPP policy, the program supports the implementation of this policy. By implementing these reforms, we will be able to facilitate more efficient planning for infrastructure projects, as well as promote sustainable development practices, such as screening climate risks in project feasibility assessments and gender considerations in PPP contracts, enhancing the efficiency and effectiveness of infrastructure projects.
Using PPPs as a tool for mobilizing private finance for public sector infrastructure projects can be of tremendous value in bridging the financing gap – and this is essential for the success of these projects,” said ADB Economist Sana Masood.
This will be an excellent program for improving the efficacy, innovation, and value for money of Pakistan’s Public-Private Partnerships by ensuring they are structured correctly and implemented effectively.
As part of the preparation and implementation of the program, a grant of $700,000 is being provided for technical assistance. It was announced in December 2023 that a further $950,000 would be approved by ADB for supporting the identification and development of PPP pipelines, capacity building efforts, and sector strategy development.
As one of the founding members of the ADB, Pakistan was one of the founding members of the organization. There are over $52 billion invested by the ADB in Pakistan through loans, grants, and other forms of financing in the public and private sectors in order to promote inclusive economic growth and improve infrastructure, energy security, food security, transport networks, and social services throughout the country.
As part of its efforts to eradicate extreme poverty in Asia and the Pacific, the Asian Development Bank is committed to improving social inclusion, resilience, and sustainability in the region. Founded in 1966, it consists of 68 members, 49 of which are from the region, and is owned by 68 of them.
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