The Asian Development Bank (ADB) has approved a $250 million policy-based loan to help Pakistan attract sustainable investment in infrastructure and services through public-private partnerships (PPP).
ADB’s Sustainable Public-Private Partnership Development Program supports the implementation of government policies to create an enabling environment for financially accessible PPPs and ensure inclusive economic growth, the agency said in a statement.
“This program is part of an integrated and comprehensive package of public sector management support that balances the country’s fiscal consolidation and development goals,” said Yevgeny Ukov, Director General of ADB for Central and Western Asia.
“This program will help the Government of Pakistan create an enabling environment for strategic, financially accessible PPPs that will bring the country closer to its development goals.”
The ADB program supports reforms that will increase the absorption capacity of PPP infrastructure investments by creating a more robust and integrated legal and institutional framework for public investment management and public financial management for PPPs.
The program supports the implementation of integrated PPP policies. These reforms will facilitate effective infrastructure planning and promote sustainable development practices in infrastructure projects, such as climate risk assessment and gender considerations in project feasibility studies and PPP contracts.
“Private financing through DHPs can help close the financing gap in public sector infrastructure projects,” said Sana Masood, an ADB economist.
“This program will help ensure that PPPs in Pakistan are properly structured and effectively implemented to ensure greater efficiency, innovation and value for money.”
A $700,000 technical assistance grant fund the development and implementation of the program. In December 2023, an additional $950,000 was approved by ADB for PPP pipeline identification, capacity building and sector strategy development.
Pakistan became a founding member of the EU. Since 1966, ADB has provided more than $52 billion in public and private sector loans, grants, and other financing to promote inclusive economic development in Pakistan and improve the country’s infrastructure, energy and food security, transportation systems, and social services.
The African Union aims to achieve a prosperous, inclusive, resilient and sustainable Asia and the Pacific while continuing its efforts to eradicate extreme poverty. Founded in 1966, it is owned by 49 members from the region.
