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The Government will soon launch a new initiative to promote public private
partnership to generate investment in infrastructure in the country. Dr. Abdul
Hafeez Shaikh Federal Minister for Privatisation and Investment stated this
while presiding over a meeting to review the Public Private Infrastructure
Financing Facility proposed under the aegis of the Asian Development Bank here
today.
The Minister said that the public sector had been the main provider of basic
infrastructure in Pakistan. However, paucity of resources limits the
Government's capacity to meet growing infrastructure needs of the country
while the existing infrastructure was largely inadequate to satisfy the needs
of economic development as well as the demand arising from population growth,
he stated.
Dr. Hafeez Shaikh said that in order to augment limited public resources for
infrastructure, Government would facilitate private sector participation by
creating an enabling environment for its participation thereby increasing the
provision of infrastructure to promote economic growth and reduce poverty. He
directed the Secretary BOI to develop tools BOT rules of the game for the
public-private sector to proceed further in this regard.
The meeting discussed the modalities at Federal and Provincial governments
level for establishing enabling environment and providing long-term financial
debts. Dr. Hafeez Shaikh highlighted the electricity, gas, toll roads,
irrigation, water sewerage systems, provincial highways and other areas for
such facility. Mr. Umar Ahmed Ghumman Minister for State for Privatisation &
Investment gave his views regarding the Regulatory bodies and stressed upon
the effective role to be played by SME sector. Mr. Daniyal Aziz Chairman NRB
appreciated the efforts for building bridge between public and private sector
and detailed the possible execution of the project through local government
setup.
The meeting was attended amongst others by the Minister of State for
Privatisation and Investment, Mr. Umar A. Ghumman, Chairman, National
Reconstruction Bureau, Mr. Daniyal Aziz, Secretary, Privatisation Commission
Mr. Salim Gul Shaikh, Country Director, Asian Development Bank, Mr. Marshuk
Ali Khan, Secretary, BOI Mr. Jahangir Bashar, senior representatives from
Ministry of Finance, Cabinet Division, Ministry of Water & Power, Ministry of
Communications, NHA, provincial governments, Ministry of Privatisation and
Asian Development Bank.
The Asian Development Bank has indicated its willingness to provide possible
financing amounting to up to US $500 million and also guarantees to mitigate
risks in the infrastructure projects. ADB had earlier provided technical
assistance for the assessment of options and design of appropriate mechanisms
for facilitating private sector participation (PSP) in infrastructure projects
in Pakistan. This included design of project development facilities (PDF's)
and capacity building at the provincial and local levels to facilitate private
sector participation in infrastructure projects.
The execution agency for the technical assistance is the Privatisation
Commission. The ADB has offered the financing facility for promoting private
sector investment in infrastructure for FY 2005. The offer of the ADB is
currently under review by the Government. A decision on the modalities of its
implementation is expected shortly.