ADB approves loan to boost Pakistan’s infrastructure via PPPs

WEB DESK: The Asian Development Bank (ADB) has okayed a $250 million policy-based loan to Pakistan, aimed at fostering sustainable investments in infrastructure and services through public-private partnerships (PPPs).

This move is part of ADB’s broader initiative, the Promoting Sustainable Public–Private Partnerships Programme, which aims to support government policies that create an enabling environment for fiscally sustainable PPPs and drive inclusive economic growth.

ADB Director General for Central and West Asia, Yevgeniy Zhukov, highlighted the significance of the programme. “This initiative is a part of our comprehensive support package for public sector management, which seeks to balance Pakistan’s fiscal consolidation with its growth objectives,” Zhukov said.

“The programme will assist the Pakistani government in establishing a conducive environment for strategic, fiscally viable PPPs, thereby advancing the country’s development goals.”

The ADB’s statement from its headquarters in Manila emphasised that the programme underpins reforms to bolster the capacity for PPP infrastructure investments. These reforms aim to establish a robust and integrated legal and institutional framework for managing public investments and financial management of PPPs. “The programme supports the implementation of a unified PPP policy,” the statement read.

The reforms are designed to enhance efficient infrastructure planning and promote sustainable development practices in infrastructure projects. This includes incorporating climate risk assessments and gender considerations into project feasibility studies and PPP contracts.

“Mobilising private finance through PPPs is crucial for bridging the financing gap in public sector infrastructure projects,” noted ADB Economist Sana Masood. This programme will ensure that PPPs in Pakistan are correctly structured and effectively implemented to deliver greater efficiency, innovation, and value for money.

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