The Asian Development Bank (ADB) has approved a $250 million loan to assist Pakistan in driving sustainable investments in infrastructure and public services through public-private partnerships (PPPs).
ADB’s Promoting Sustainable Public–Private Partnerships Program aims to support the implementation of government policies that create an enabling environment for fiscally affordable PPPs and promote inclusive economic growth.
“This program is part of our comprehensive support package for Pakistan’s public sector management, balancing the country’s fiscal consolidation and growth objectives,” said Yevgeniy Zhukov, ADB’s Director General for Central and West Asia.
The program will help the Government of Pakistan establish a conducive environment for strategic and fiscally sustainable PPPs, which will contribute to the country’s development goals.
The reforms supported by the program will increase the absorptive capacity of PPP infrastructure investments by strengthening the legal and institutional framework for public investment and financial management. It will also facilitate efficient infrastructure planning and promote sustainable development practices, such as climate risk screening and gender considerations in project assessments and PPP contracts.
“Mobilizing private finance through PPPs can help bridge the financing gap in public infrastructure projects, which is crucial,” said ADB Economist Sana Masood. “This program will ensure that PPPs in Pakistan are structured and implemented effectively to deliver greater efficiency, innovation, and value for money.”
The program is supported by a $700,000 technical assistance grant, and an additional $950,000 has been approved by ADB to support the identification of PPP pipeline, capacity building, and sector strategy development.
Since 1966, ADB has committed over $52 billion in public and private sector financing to promote inclusive economic growth and improve infrastructure, energy, transport, and social services in Pakistan. ADB remains committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while continuing its efforts to eradicate extreme poverty.
