The government on Monday introduced "The Public Private Partnership Authority Bill, 2016" in the National Assembly for promoting domestic and foreign private investment in infrastructure and transparent and fair procurement process for economic development in the country. National Assembly Standing Committee on Cabinet Secretariat also presented its report on "The Special Economic Zones (Amendment) Bill, 2016" before the House.
Parliamentary Secretary for Finance Rana Muhammad Afzal Khan introduced "The Public Private Partnership Authority Bill, 2016" in the lower house of Parliament. According to the objectives of Bill, in order to achieve a high growth trajectory, Pakistan needs quick investments in development of infrastructure to bridge the gap in this critical area. The government alone cannot provide finances due to its own limitations therefore promotion of private sector investment in this area is critical.
The use of public private partnership (PPPs) is likely to become widespread in Pakistan, with an expected surge in PPP-financed projects in the near future. The federal government has so far been modest in utilising the PPP model in infrastructure investments, but the situation is likely to change in the near future as the present government embarks on an ambitious programme of large-scale investment projects.
Accordingly, with a view to promoting PPP model, it is proposed to enact the Public Private Partnership Authority Bill, 2016 that provides a regulatory framework to execute Public Private Partnerships in Pakistan so as to promote domestic and foreign private investment in infrastructure, set up transparent and efficient institutional arrangements for PPPs, and promote private sector participation in the economic development, among others through transparent and fair procurement processes and in particular: (i) ensuring that projects are consistent with national and sectoral strategies; (ii)ensuring value for money and budget affordability; (iii) assessment of fiscal risks; (iv)advise and facilitate the implementing agency to identify, develop, structure and procure the projects; (v) prescribe and receive fee and charges, (vi)ensure that Pubic Private Partnership Agreement is consistent with the provisions of this Bill and (vii)interact, collaborate and liaise with international agencies.
According to the report on Special Economic Zones (Amendment) Bill, 2016, the Special Economic Zones (SEZs) shall be within the customs territory of Pakistan and Zone Enterprises would be able to sell their products in domestic markets without payment of customs and other duties which will attract more foreign investors to establish their industries in SEZs specially under the China-Pakistan Economic Corridor (CPEC).
The amendments in the Act will make the SEZ regime more investment- and business-friendly and encourage development of SEZs in Pakistan. The investor-friendly law will encourage rapid industrialisation and economic activity in the country leading to job creation, technology transfer and development of industrial infrastructure.