Cabinet gives green light for public-private partnership policy

ISLAMABAD:

The government has adopted the Federal Public-Private Partnership Policy to pave the way for an enabling and conducive investment environment with private sector involvement.

The policy aims to establish a comprehensive regulatory framework to instill confidence and attract both domestic and international private investors to implement development projects in the country.

The policy was recently tabled at a cabinet meeting seeking formal approval.

The Cabinet was informed that the Ministry of Planning, Development and Special Initiatives had been tasked, among other things, with continuously assessing the economic situation, coordinating economic policies and preparing plans for the economic and social development of Pakistan in accordance with the Rules of Business. 1973.

The Ministry of Planning informed the Cabinet of its awareness of the macroeconomic conditions and the lack of budget support for development projects. As a result, the Ministry has taken the initiative to formulate the Federal Public-Private Partnership Policy (Federal P3 Policy) to create an enabling and conducive investment environment.

In addition, Cabinet was informed of the distribution of the draft federal P3 policy to relevant stakeholders for consultation and comment.

An advisory workshop was also held on December 23, 2023, with the participation of representatives from 13 different ministries and divisions.

The feedback received from various entities including the Department of Finance, Department of Commerce, Ministry of Communications/National Highway Authority, Ministry of National Food Security and Research, Ministry of Aviation, Ministry of Railways, Ministry of Petroleum and the Ministry of Maritime Affairs, was evaluated. for revision of the draft policy.

The final version of the federal P3 policy, as presented by the Ministry of Planning, emphasized that a supportive, competitive and transparent regulatory regime would be put in place to enhance investor confidence in undertaking development projects under public-private partnerships ( PPP) to increase. It was noted that the policy was aligned with the provisions of the Public-Private Partnership Authority Act, 2017 and its regulations.

Furthermore, it was emphasized that the policy would be continually reviewed and adapted 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 at the meeting, where all ministries and departments were asked to propose projects under the PPP mode.

The cabinet approved the Federal Public-Private Partnership Policy. Moreover, in accordance with Article 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 tasked to submit its report within two weeks, would consist of the Minister of Planning, Development and Special Initiatives, the Minister of Petroleum and Water Resources and the Minister of Maritime Affairs. It was decided that the ministries and departments would prepare project plans under the PPP mode.

Published in The Express Tribune, May 7^e2024.

Like it Company on Facebook, follow @TribuneBiz on Twitter to stay informed and join the conversation.