ISLAMABAD: The Asian Development Bank (ADB) approved a $250 million policy-based loan on Wednesday to support Pakistan in fostering sustainable investments in infrastructure and services through public-private partnerships (PPPs). This loan is part of ADB’s Promoting Sustainable Public–Private Partnerships Programme, which aims to create a conducive environment for fiscally responsible PPPs and promote inclusive economic growth.
“This programme is part of our comprehensive and integrated package of public sector management support that balances the country’s fiscal consolidation and growth objectives,” stated Yevgeniy Zhukov, ADB Director General for Central and West Asia. He emphasized that the programme will help Pakistan create an environment conducive to strategic PPPs that align with the country’s development goals.
The programme includes reforms to enhance the absorptive capacity of PPP infrastructure investments by establishing a stronger legal and institutional framework for public investment and financial management in PPPs. These reforms will support efficient infrastructure planning and promote sustainable development practices, including climate risk screening and gender considerations in project assessments and contracts.
ADB Economist Sana Masood highlighted the importance of mobilizing private finance through PPPs to bridge the financing gap in public sector infrastructure projects. The programme aims to ensure that PPPs in Pakistan are structured and implemented effectively to deliver greater efficiency, innovation, and value for money.
Additionally, a $700,000 technical assistance grant is financing the programme’s preparation and implementation. In December 2023, ADB approved an additional $950,000 to support PPP pipeline identification, capacity building, and sector strategy development.
