The government has approved the Federal Public-Private Partnership Policy to clear the way for an enabling and conducive investment environment with involvement of the private sector.
The policy is aimed at establishing a comprehensive regulatory framework to instill confidence and attract both domestic and international private investors for executing development projects in the country.
The policy was tabled in a recent meeting of the cabinet for seeking its formal approval.
The cabinet was briefed that the Ministry of Planning, Development and Special Initiatives had been tasked, among other responsibilities, with continuously evaluating the economic situation, coordinating economic policies and preparing plans for economic and social development of Pakistan in accordance with the Rules of Business, 1973.
The planning ministry informed the cabinet about its awareness of the macroeconomic conditions and the lack of budgetary support for development projects. Consequently, the ministry initiated the formulation of the Federal Public-Private Partnership Policy (Federal P3 Policy) to establish an enabling and conducive investment environment.
Furthermore, the cabinet was updated on the circulation of the draft Federal P3 Policy to relevant stakeholders for consultation and comments.
A consultative workshop was also held on December 23, 2023, in which representatives of 13 different ministries and divisions participated.
The feedback received from various entities, including the Finance Division, Commerce Division, Ministry of Communications/National Highway Authority, Ministry of National Food Security and Research, Ministry of Aviation, Ministry of Railways, Ministry of Petroleum and Ministry of Maritime Affairs, was evaluated for revising the draft policy.
Final version of the Federal P3 Policy, as presented by the Ministry of Planning, highlighted that a supportive, competitive and transparent regulatory regime would be established to enhance investor confidence in undertaking development projects under the public-private partnership (PPP) mode. It was noted that the policy was aligned with provisions of the Public-Private Partnership Authority Act, 2017 and its associated regulations.
Additionally, it was emphasised that the policy would undergo a continuous review and amendments to remain relevant to the economic conditions and needs of the time.
The government’s obligations under the Paris Agreement to facilitate and engage the private sector were also highlighted in the meeting, where all the ministries and divisions were asked to propose projects under the PPP mode.
The cabinet approved the Federal Public-Private Partnership Policy. Furthermore, in accordance with Rule 17(3) of the Rules of Business, 1973, it constituted a committee to further improve the Federal P3 Policy and its implementation mechanism.
The committee, which was directed to submit its report within two weeks, would comprise the minister for planning, development and special initiatives, minister for petroleum and water resources and minister for maritime affairs It was decided that the ministries and divisions would draw up project plans under the PPP mode.
Published in The Express Tribune, May 7th, 2024.
Like Business on Facebook, follow @TribuneBiz on Twitter to stay informed and join in the conversation.
COMMENTS
Comments are moderated and generally will be posted if they are on-topic and not abusive.
For more information, please see our Comments FAQ