The government of Pakistan has taken an important step to expand public-private partnerships (PPP) for major developmental projects, aiming to accelerate national infrastructure schemes efficiently, transparently and sustainably. The decision intends to leverage private sector investment and expertise while maintaining fiscal discipline.
In a significant move, the federal government has decided to extend the scope of the Public-Private Partnership (PPP) model across various infrastructure development projects. This strategy will address critical infrastructure needs in Pakistan while ensuring financial responsibility and sustainability. The partnership model is aimed at swiftly and effectively implementing national development initiatives.
The decision was formally announced during the 39th meeting of the Board of Directors of the Public-Private Partnership Authority (P3A), presided over by Federal Minister for Planning and Development, Professor Ahsan Iqbal in Islamabad. Emphasizing the importance of the PPP framework, Minister Ahsan Iqbal highlighted how private sector capital and expertise enable timely completion, improved transparency, and financial sustainability of public projects.
During the meeting, approval was granted to vital initiatives, including the appointment of an international financial institution as a transaction advisor to Islamabad’s Water and Sewerage Project under the Capital Development Authority (CDA). This move will help develop an environmentally sustainable urban infrastructure system, enhancing quality of life in the capital city.
Additionally, the board gave conditional approval—subject to concurrence from the Finance Division—to an upgraded financial framework for the Sialkot-Kharian Motorway project. Stretching approximately 69 kilometers with six lanes, this industrial corridor will link central Punjab to major trade networks via the M-12 motorway, significantly boosting regional economic connectivity.
Another substantial approval was given to the 117.6-kilometer Kharian-Rawalpindi Motorway project, to be constructed under the Build-Operate-Transfer (BOT) model at an estimated cost of Rs. 202.61 billion. Included in the project’s investment is Rs. 40 billion from Viability Gap Funding (VGF), ensuring the project’s financial feasibility. This motorway is expected to notably reduce travel time, strengthen trade, and improve transportation efficiency between vital commercial regions of Punjab.
The meeting was attended by senior officials representing the Planning Commission, Finance Division, National Highway Authority (NHA), Capital Development Authority (CDA), as well as private members of the board, further demonstrating broad-based government-private sector commitment to the critical development agenda.
