Pakistan seeks to expand PPP pipeline to meet infrastructure needs

Muhammad Ali, Adviser to the Prime Minister on Privatisation and Chairman of the Privatisation Commission, stated that Pakistan must significantly expand its public-private partnership (PPP) pipeline to meet rising infrastructure demands. Speaking at a National Strategic Dialogue organized by the Asian Development Bank, Ali noted that the current federal PPP pipeline of 38 projects, valued at approximately $6.5 billion, is insufficient for the country's future needs.

With Pakistan's population projected to grow from 230 million to 390 million by 2050, urban infrastructure requirements are expected to increase by roughly 100%. This growth necessitates massive investments in hospitals, schools, energy, water, railways, airports, and ports. Ali emphasized that the government cannot finance these requirements alone, citing a national savings rate of approximately 14%, which is significantly lower than rates in China or Vietnam.

Ali argued that PPPs and privatization are essential for economic growth, as the private sector provides capital, management expertise, innovation, and technology. He noted that since the 1990s, approximately 154 PPP projects worth $36 billion have reached financial close, placing Pakistan's PPP portfolio among the top in the developing world relative to its economy.