The Economic Advisory Council has suggested the government to provide legal cover to public-private partnership and make this concept a reality to help private sector make maximum investment for development projects. Sources said the council proposed invoking of law to cover public-private partnership in a meeting chaired by Prime Minister Syed Yusuf Raza Gilnai, recently.
It quoted Sialkot Airport project as a ready reference and suggested the government to make it a role model for public-private partnership. The World Bank is working closely with the government on public-private partnership. It strongly believes that instead of relying on the public sector resources for funding social sector development projects, the government should encourage it to secure maximum investment to build up much-needed infrastructure and other mega projects.
The visiting World Bank delegation spoke to the policy makers on public-private partnership concept at length during different meetings with the government officials. The Infrastructure Projects Development Framework, a subsidiary of the World Bank, will play the role of a facilitator and technical support provider to make public-private partnership a success in Pakistan.
The EAC also suggested rationalisation of Public Sector Development Programme to make sure that the private sector does its job of providing sufficient funds for social sector development projects. The council was of the view that the government should invoke the law before forthcoming budget and if not possible due to time constraints, the President should promulgate an ordinance.
The public-private partnership concept is a success in several countries. For public-private partnership, the government will provide land or other immovable assets for equity and leave the job of generating funds and other practical work to the private sector.
This concept can give a lasting solution to Pakistan's problem such as paucity of funds for mega projects. So far PSDP is the only tool available with the government for public sector development. The new regime will provide it an additional source for raising the money and spend it on public sector development projects.