ISLAMABAD: The government has decided to introduce amendments in the law to the Public Private Partnership Authority (P3A), proposing that the Authority would exit the domain of Planning Division and fall under the jurisdiction of Privatisation Division.
The P3A Act was enacted in Pakistan in 2017. The law established the P3A to facilitate public-private partnership projects, replacing the earlier Infrastructure Project Development Facility (IPDF), but it failed to muster up the private sector to contribute to development projects. There are several reasons behind this failure, but salaries, perks and privileges provided to its officials and staff were more than its actual investment from the private sector. According to an official statement, Federal Minister for Economic Affairs Ahad Cheema chaired a meeting to review and deliberate upon key reforms proposed in the Public Private Partnership Authority (P3A) law, aimed at improving governance, transparency, efficiency and implementation mechanisms for Public Private Partnership (PPP) projects in Pakistan.
During the meeting, Federal Minister for Economic Affairs Ahad Cheema highlighted the government’s commitment to introducing constructive and forward-looking reforms that would strengthen institutional performance and ensure greater transparency and accountability in PPP projects. He acknowledged the proposed amendments to the P3A law and appreciated the efforts being undertaken to improve the overall framework governing public-private partnerships in the country.
The meeting was informed that under the proposed reforms, the Cabinet Committee on Privatisation will be more strengthened, while P3A will also focus on implementation and execution of projects. It was further discussed that in line with the directions of the prime minister, the P3A will fall under the domain of Privatisation Division instead of the Planning Division in order to ensure better coordination, institutional alignment and improved efficiency in handling PPP initiatives.
The proposed changes also include the development of a structured project pipeline and bidding mechanism to improve project planning and investor confidence. The new mechanism also encourages the role of business councils and chambers in the development of project pipelines.
Furthermore, a dedicated Project Development Facility is proposed to be established to support the preparation and execution of viable PPP projects. The participants were also informed that the reforms aim to strengthen troubleshooting mechanisms, enhance monitoring systems and reinforce the advisory role relating to PPP projects for improved oversight and efficiency.
The proposed amendments further focus on streamlining access to land, electricity and other utility facilities required for PPP initiatives, thereby facilitating smoother and faster project implementation.
