Pakistan has renewed its drive to mobilise private capital through public-private partnerships and privatisation as fiscal constraints limit the government’s ability to fund infrastructure.
The government outlined its strategy at the National Strategic Dialogue on PPPs and Privatisation in Islamabad. Officials also launched the Pakistan PPP Monitor to give investors clearer information about completed and proposed projects.
Finance Minister Senator Muhammad Aurangzeb, Privatisation Adviser Muhammad Ali and Asian Development Bank Vice President Yingming Yang attended the event. Senior federal and provincial officials, financial institutions, development partners and private investors also participated.
Private Sector to Lead Growth
Aurangzeb said the government wants to create conditions that encourage business activity and private investment.
“The private sector must lead Pakistan’s next phase of growth. PPPs and privatisation can help bring in investment, improve efficiency and create greater space for private sector participation. Our focus is on building a strong pipeline of investable opportunities and turning these opportunities into real investment and growth,” the finance minister said.
Muhammad Ali said public spending alone cannot meet Pakistan’s future development and infrastructure needs. The private sector must assume a larger role in financing, constructing and managing economic assets, he added.
He described PPPs and privatisation as complementary tools. PPPs can introduce private capital and expertise into infrastructure and public services. Privatisation can improve ownership, management, investment and service delivery in commercial enterprises.
PPP Projects Attract Nearly $36 Billion
The Pakistan PPP Monitor shows that 154 projects have reached financial close since the 1990s. These projects represent investment of nearly $36 billion.
Pakistan’s current federal PPP pipeline contains 38 projects worth about $6.5 billion. The projects cover roads, railways, aviation, healthcare and industrial infrastructure.
The monitor consolidates information on Pakistan’s PPP record, investment activity and upcoming opportunities. The government expects it to improve transparency and help investors assess the market.
ADB’s Yang said: “Mobilizing private capital and expertise is essential. Well-structured PPPs can complement constrained public resources, bring private sector efficiency, support lifecycle maintenance, and improve services for citizens.”
Pakistan’s federal PPP framework operates under the Public Private Partnership Authority Act, 2017, which Parliament amended in 2021. Provincial governments also maintain their own PPP laws and institutions.
Government Advances 27 Privatisation Transactions
The government is pursuing a 27-transaction privatisation programme involving power distribution companies, major airports, insurance companies and specialised banks.
Officials cited the privatisation of Pakistan International Airlines with management control as evidence of progress. The government transferred PIACL’s management control to the investor consortium after completing the first financial closing in June 2026.
Authorities also continue work on power distribution companies and airport concessions.
“We have already started to give the reins of economic growth to the private sector. We need to continue on this path, complete our privatisation agenda, significantly expand our PPP pipeline, and start completing projects to demonstrate that the Government means business,” Muhammad Ali said.
Privatisation Commission Secretary Usman Bajwa pledged to maintain momentum through better coordination, transparency and a predictable interface for investors.
The participation of provincial PPP institutions also highlighted the need for federal-provincial cooperation. The government said its immediate priority involves converting the growing project pipeline into completed, investment-backed transactions.
