ISLAMABAD: The government has decided that the Public Private Partnership Authority (P3A) will fall under the Privatisation Division instead of the Planning Division to “ensure better coordination, institutional alignment, and improved efficiency in handling public-private partnership (PPP) initiatives”.

According to an official handout, Minister for Economic Affairs Ahad Cheema presided over a high-level meeting on Friday to review key reforms proposed to the P3A law, aimed at “improving governance, transparency, efficiency, and implementation mechanisms of PPP projects in Pakistan”.

Prime Minister Shehbaz Sharif had constituted a committee led by Economic Affairs Minister Ahad Cheema to hold stakeholder consultations and work out comprehensive P3A reforms aimed at ensuring transparency, strong monitoring, and efficient implementation of PPP projects.

During the meeting, the minister emphasised 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, the handout said.

The statement added that the meeting reviewed the proposed amendments to the P3A law aimed at improving the overall framework governing PPPs in the country.

“The meeting was informed that under the proposed reforms, the Cabinet Committee on Privatisation will be strengthened, while the P3A will also focus on the implementation and execution of projects,” it stated.

It was further discussed that, “in line with the directions of Prime Minister Shehbaz Sharif, the P3A will fall under the Privatisation Division instead of the Planning Division to ensure better coordination, institutional alignment, and improved efficiency in handling PPP initiatives,” the statement said.

It maintained that the proposed changes would also include the development of a structured project pipeline and bidding mechanism to improve project planning and investor confidence.

“The new mechanism will also encourage the role of business councils and chambers in the development of project pipelines,” it said.

Furthermore, the handout said that a dedicated Project Development Facility was proposed to be established to support the preparation and execution of viable PPP projects.

“The meeting was 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.”

Per the statement, the proposed amendments would further focus on streamlining access to land, electricity, and other utility facilities required for PPP initiatives, thereby facilitating smoother and faster project implementation.

“It was also agreed to create a modern, transparent, and investor-friendly PPP framework that supports sustainable economic development and encourages greater private sector participation in national development projects,” it said.

The meeting was attended by Advisor to the Prime Minister on Privatisation Muhammad Ali, Privatisation Division Secretary Hammad Shamimi, Privatisation Commission Secretary Usman Akhtar Bajwa, Law and Justice Secretary Raja Naeem Akbar and senior officials of P3A, who briefed the meeting on the proposed legal and structural amendments under consideration.

At present, P3A’s portfolio involves projects worth over Rs600 billion in the execution phase.

Some of the prominent projects include two major sections of M-6 being implemented in the private sector, as well as the Kharian-Sialkot and Kharian-Rawalpindi motorways, the Capital Development Authority Hospital, and a long list of projects in the pipeline.

However, various ministries have been resisting giving up control of projects for implementation through private sector investment, while the Public Sector Development Programme struggles to meet development needs.