“We have already started to give the reins of economic growth to the private sector.”- Muhammad Ali, Adviser to the Prime Minister on Privatization and Chairman Privatization Commission.
The Government today reaffirmed its commitment to increasing private sector participation in Pakistan’s economy through public-private partnerships (PPPs) and privatization, pursuing both as key instruments of economic growth and transformation.
The commitment was reiterated at the National Strategic Dialogue on PPPs and Privatization and Launch of the Pakistan PPP Monitor, held in Islamabad with the participation of Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb, Adviser to the Prime Minister on Privatization Muhammad Ali, ADB Vice President Yingming Yang, senior federal and provincial officials, development partners, financial institutions and representatives of the private sector and investment community.
The Government also expressed its appreciation to the Asian Development Bank for its longstanding partnership with Pakistan and for its continued support in strengthening the country’s PPP framework. The launch of the Pakistan PPP Monitor was welcomed as an important contribution to improving visibility of Pakistan’s PPP track record and pipeline for investors and other stakeholders.
Speaking at the event, Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb highlighted the Government’s focus on creating an environment that supports private investment, encourages business activity and enables greater private sector participation in economic development.
“The private sector must lead Pakistan’s next phase of growth. PPPs and privatization can help bring in investment, improve efficiency and create greater space for private sector participation. Our focus is on building a strong pipeline of investable opportunities and turning these opportunities into real investment and growth,” the Finance Minister said.
In his address, Adviser to the Prime Minister on Privatization Muhammad Ali said that Pakistan’s future infrastructure and development needs cannot be met by public spending alone and that the private sector must play a much larger role in financing, building and managing infrastructure and economic assets.
He stressed that PPPs and privatization are complementary, not competing, approaches. PPPs can bring private capital and expertise into infrastructure and public services, while privatization can bring private ownership or management into commercial enterprises where it can improve efficiency, investment and service delivery.
The Adviser also noted that PPPs, privatization and asset monetization can be used as different tools to bring private capital, management, technology and accountability into areas where the public sector cannot do everything itself.
“We have already started to give the reins of economic growth to the private sector. We need to continue on this path, complete our privatization agenda, significantly expand our PPP pipeline, and start completing projects to demonstrate that the Government means business,” the Adviser said.
ADB Vice President for South, Central and West Asia, Yingming Yang welcomed Pakistan’s efforts to strengthen private sector participation and expressed ADB’s commitment to continue the longstanding cooperation in promoting large scale participation of private sector. "Mobilizing private capital and expertise is essential. Well-structured PPPs can complement constrained public resources, bring private sector efficiency, support lifecycle maintenance, and improve services for citizens." said ADB's Vice President. In his address he also highlighted the importance of the Pakistan PPP Monitor in providing greater visibility of Pakistan’s PPP track record and pipeline. The Monitor brings together information on projects and investment activity, giving investors and other stakeholders a clearer picture of opportunities in Pakistan.
Pakistan has an established track record in PPPs. According to the Pakistan PPP Monitor, 154 PPP projects have reached financial close in Pakistan since the 1990s, representing investment of close to US$36 billion. The current federal PPP pipeline comprises 38 projects with an estimated value of approximately US$6.5 billion, covering sectors including roads, railways, aviation, healthcare and industrial infrastructure.
The Government is also advancing a 27-transaction privatization programme, including power distribution companies, major airports, insurance companies and specialised banks. Recent progress, including the privatization of PIA with management control, as well as ongoing work on power distribution companies and airport concessions, reflects the Government’s continued commitment to increasing private sector participation.
The dialogue also brought together representatives of the provincial PPP institutions, reflecting the importance of federal and provincial cooperation in expanding PPP opportunities and private investment across the country
The Government reiterated that Pakistan enters the next phase with an established institutional framework, a strong track record and a growing pipeline of opportunities. The focus will be on moving these opportunities towards successful transactions, expanding private sector participation and supporting sustained investment-led growth.
The National Strategic Dialogue and launch of the Pakistan PPP Monitor underline Pakistan’s commitment to PPPs and privatization as practical tools for mobilising private capital, improving efficiency and supporting the country’s future economic and infrastructure needs.
Spokesperson
Privatisation Commission
