PPPs are supported as a means to address on-going infrastructure challenges, including severe energy shortages and transportation inefficiencies that hinder economic development. The Government set up its PPP program in the power generation sector in the early 1990s and more than twenty IPP deals have been signed since then. Recently an Alternate Energy Development Board (AEDB) has been set up to promote IPPs in the Renewable Energy sector and several wind and solar power projects have been drafted since then. Both the National Ports Authority (NPA) and the National Highway Authority (NHA) are responsible for PPPs in their respective areas. They each have two PPPs in the operational stages now.

In 2006, the Ministry of Finance set up the Infrastructure Project Development Facility (IPDF) to develop policy and promote implementation in all tiers of the Government. The PPP Policy of 2007, revised in 2010, facilitates PPPs across all infrastructure sectors and at both federal and provincial level. This directly led to the setting up of PPP programs in the provinces of Sindh and Punjab. Sindh approved its PPP legislation in 2009 and Punjab in 2014. A Sindh PPP Unit has been set up in the provincial Finance Department, while Punjab’s PPP Unit is located in the Planning Department.  As of 2015, Sindh has closed 14 PPP deals while Punjab has brought 4 deals to financial closure. There is no specific PPP law at the federal level, but PPP Policy provided a regulatory framework in combination with the laws on concessions and other forms of investment, as well as the sector-specific National Power Policy of 2013. The IPDF is in the process of drafting a PPP bill to bring the legal framework into line with international best practice.

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