ISLAMABAD, Nov 28: Prime Minister Shaukat Aziz on Tuesday urged the public and private sectors to build synergies and go hand-in-hand to meet the enormous development challenges facing the country.

He was inaugurating a two-day public-private partnership forum on "Integrating Resources for Development", which also marked the formal launching of Infrastructure Project Development Facility (IPDF) that will help identify viable projects for private investment.

Describing the private sector as an engine of growth, the prime minister said its involvement in infrastructure development was of vital importance for sustainable and accelerated economic growth. He observed that the fusion of the public and the private sector can bring a tangible difference to the lives of the people.

He was of the view that the development of human capital and infrastructure improvement and expansion were the two major prerequisites of sustained economic growth.

He said the Medium Term Development Framework (2005-2010) of the government underlines the importance of improving the quality and coverage of vital physical infrastructure such as power and water supply as well as transport and logistics chain.

Referring to the state of infrastructure, he said there were significant gaps to be bridged. "We have to expand the coverage and outreach of essential services such as gas, electricity, municipal services and telecommunications to our entire population," he remarked.

He said there was a need to improve the operational efficiency of key sectors such as power and transport. “Upgrading the entire supply chain is so critical to improving productivity and competitiveness. Above all, we have to ensure food, energy and water security for a growing population," he added.

He said one of the major strategic initiatives in the field of infrastructure development was the National Trade Corridor linking Pakistan's major ports in the south with its major cities and trade routes to the north. The ports, roads and railways along this corridor handle 95 per cent of external trade and 65 per cent of total land freight.

He said that serving regions that account for 80-85 per cent of the country's GDP, this initiative will significantly reduce the time and cost of moving goods and thereby improve the competitiveness of the industry.

He said it was estimated that modernisation of this corridor alone will require investment of about $1 billion per year over the medium term.

He stressed that public-private partnerships can play a key role in mobilising resources and improving efficiencies through managerial expertise, new technology, better project design and implementation, and judicious use of resources.

"Our own experience so far has been quite encouraging. Past efforts to attract private investment, especially in the power and telecom sectors, have contributed to meeting the infrastructure gaps," he pointed out.

Adviser to the prime minister on Finance, Dr Salman Shah in his welcome address highlighted the objectives of the IPPF and said this programme will help the nation to revolutionalise the infrastructure in the country and bring an era of progress and prosperity.

Country Director of Asian Development Bank Peter Feldon and Country Director of World Bank John Wall appreciated the structural reforms being carried out by the government.