The Government of Pakistan has decided to significantly enhance the role of Public-Private Partnerships (PPPs) to accelerate critical national development projects. Under this framework, the private sector would be actively engaged to efficiently address infrastructure gaps while maintaining fiscal discipline and transparency.
This decision was announced at the 39th meeting of the Board of Directors of the Public-Private Partnership Authority (P3A), chaired by Federal Minister for Planning and Development, Professor Ahsan Iqbal in Islamabad. Highlighting the importance of the PPP model, Minister Iqbal emphasized that integrating private sector investment and expertise into national projects would not only ensure timely completion but also strengthen accountability and financial sustainability.
During the meeting, several key infrastructure projects were approved, which are set to significantly benefit the country’s socio-economic growth:
1) Islamabad Water and Sewerage Project
The board approved the hiring of an international financial institution as transaction advisor for the project, which will be executed by the Capital Development Authority (CDA). This project aims to establish an environmentally sustainable water and sewerage infrastructure system and enhance overall urban facilities in the capital city.
2) Sialkot–Kharian Motorway (69 km, Six-Lane Highway)
The board approved a newly structured financing model for this strategically important industrial corridor project, revised at the direction of the Special Investment Facilitation Council (SIFC), pending conditional clearance from the Finance Division. This motorway will provide critical industrial connectivity by linking central Punjab communities through the M-12 motorway, boosting regional economic activity.
3) Kharian–Rawalpindi Motorway (117.6 km, New Project)
With a total projected cost of Rs. 202.61 billion and incorporating Rs. 40 billion from Viability Gap Funding (VGF), the board approved the Kharian-Rawalpindi Motorway under the Build-Operate-Transfer (BOT) model. The project aims at significantly cutting down travel time and substantially improving the trade and transport network across Punjab.
Senior officials from the Planning Commission, Finance Division, National Highway Authority (NHA), Capital Development Authority (CDA), and private sector board members actively participated in the meeting, demonstrating the broader institutional and stakeholder commitment toward advancing Pakistan’s infrastructure capabilities.
