Prime Minister Shaukat Aziz on Thursday approved in principle the proposed Public-Private Partnership Policy to promote and facilitate infrastructure projects involving private investment and management.
The Prime Minister was chairing a high level meeting to review the proposed Public Private Partnership Policy at the Prime Minister House. Shaukat Aziz said that a strong economy has created an ideal climate for investment in Pakistan.
According to a handout from the PM House, Aziz said reform agenda initiated by the government has been widely acclaimed by the multi-lateral institutions and the investors' community.
The robust economic backdrop, he added, presents a strong case for investments in the infrastructure of the country. The Prime Minister said that Public-Private Partnership is an important economic reform policy tool for generating growth and for bridging the gap between the supply and demand of infrastructure in the country.
He said that the programme is part of the economic and structural reforms agenda of the government. Along with deregulation and good governance, he added, it seeks to enhance the growth and productivity of Pakistan's economy by harnessing the private sector as its engine of growth.
Economic growth, he said, is the most potent tool for fighting poverty as it stimulates employment, which is necessary to reduce poverty. Shaukat said that the government recognises the importance of improving and expanding of infrastructure services to sustain economic and social development in the country.
He said that improved quality and service coverage in power and water supply, sewerage treatment, transport and logistics are vital for Pakistan's economy and the livelihood of its people. The PM said that government has taken lot of initiatives for infra-structural development and this paradigm of change has to continue.
Since the economy is growing, various types of investments have to be encouraged of which public-private partnership is one of the most viable options being adopted by the government, he added.
The Prime Minister said that a combination of policy reforms, institutional support, incentives and financing modalities is required to encourage private sector participation in financing, constructing and managing infra-structure projects.
The meeting also approved the establishment of viability gap fund to help low income group to get services at affordable rates through targeted subsidies. Aijaz Ahmad Chief Executive Officer of Infrastructure Policy Development Facility (IPDF) in his presentation highlighted the salient features of the policy.
He informed the meeting that IPDF would act as a focal point for implementation of the government's programme to promote and facilitate the closing of transactions involving private investments and management of public infrastructure. Specially, in the unregulated sectors including transport and logistics, urban mass transit, municipal services, health, education, low cost housing, power and energy sectors at the provincial and municipal levels.
The meeting was also informed that one billion dollar investment would be brought into the infrastructure through public-private partnership per annum.
The meeting was informed that IPDF is a catalyst to increase the number and volume of public infrastructure transactions that provide value for money for the beneficiaries of the facility, while assuring that private sector providers are able to earn adequate returns for quality services.
The meeting was also informed that through transactions and facilitation of policy-making, IPDF also supports the creation of an enabling policy environment and provide hands on knowledge transfer, specially, to institutions at the local government level. The meeting was attended by the Advisor to the Prime Minister on Finance, Dr Salman Shah and other high officials.
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