The Asian Development Bank (ADB) has given the green light for a $250 million policy-based loan aimed at aiding Pakistan in fostering sustainable investments in infrastructure and services through public-private partnerships (PPPs).
The ADB’s Promoting Sustainable Public–Private Partnerships Program is designed to support the implementation of government policies that facilitate fiscally viable PPPs and encourage inclusive economic growth. A press release highlighted that the program is part of a broader initiative to provide comprehensive support for public sector management, aligning with Pakistan’s objectives of fiscal consolidation and growth.
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Yevgeniy Zhukov, ADB Director General for Central and West Asia, emphasized the program’s role in creating an environment conducive to strategic, financially viable PPPs, thereby advancing Pakistan’s development goals.
The program aims to enhance the absorptive capacity of PPP infrastructure investments by strengthening the legal and institutional framework for public investment management and public financial management. It also supports the implementation of an integrated PPP policy to streamline infrastructure planning and promote sustainable development practices.
ADB Economist Sana Masood emphasized the importance of mobilizing private finance through PPPs to address the financing gap in public sector infrastructure projects. Masood highlighted the program’s role in ensuring the effective structuring and implementation of PPPs in Pakistan, fostering efficiency, innovation, and value for money.
To support the program’s preparation and implementation, a $700,000 technical assistance grant has been allocated, with an additional $950,000 approved by ADB in December 2023 to support PPP pipeline identification, capacity building, and sector strategy development.
