PPP projects worth USD6.5bn need massive expansion: adviser

Business Recorder reported that Muhammad Ali, Adviser to the Prime Minister on Privatisation, told a National Strategic Dialogue organised by the Asian Development Bank that the current partnership pipeline must grow sharply. The federal pipeline stands at 38 schemes, totalling about USD 6.5 billion, which he said falls short of the needs of a rapidly expanding economy. He argued that the state cannot fund these needs alone, given national savings of only 14 percent.

He projected that the population will grow from roughly 230 million at present to around 390 million by 2050, with close to 190 million residents in cities. He said this would raise the need for urban infrastructure by about 100 percent, and that the country must fund hospitals, classrooms, power and water systems, railways, airports and ports on a massive scale.

He added that 27 transactions are under way across power distribution companies, airports, insurance companies and banks. Citing the Pakistan International Airlines sale, he said Rs600 billion in legacy debt was moved to the holding company, while about USD 450 million went into the entity for its revival. He also noted that the Federal PPP Authority, known as P3A, is being consolidated under the Privatisation Division to bring partnerships and privatisation under one roof.