Balochistan has enormous potential for economic growth

QUETTA – Balochistan has enormous potential for economic growth and socio-economic development. The government of Balochistan (GoB) is committed to realizing this potential and putting the province on the path to sustainable development. The private sector has an essential role to play in the pursuit of the aforementioned objective, in particular with regard to the creation, maintenance and operation of public infrastructure and equipment.

To encourage, facilitate and regulate the engagement of private sector infrastructure, service delivery and public benefit projects, the GoB enacted a new business-friendly legal and regulatory framework. After an extensive process of consultations with relevant departments and experts at provincial and national levels, the GoB developed and approved Balochistan’s first-ever public-private partnership (PPP) policy 2021 and adopted legislation which was notified under the name of Balochistan. Public-Private Partnerships Act 2021 (Act).

The technical work on the development of the new PPP framework was led by the Strategic Planning and Reform Unit (SPRC) of the Planning and Development Department of the GoB. In addition, financial support for the development of the framework has been provided by the Multi-Donor Trust Fund (MDTF), which is administered by the World Bank and executed through the Governance and Policy Project.

The new PPP framework provides for the provision of administrative, financial and in-kind support to private parties for the implementation of a project in PPP mode in the province. Notable supportive measures include the creation of a ‘Sustainability Gap Fund’, the right to use government land or infrastructure, expedited provision of public services, exemption from provincial taxes and provision provincial guarantees in the event of major projects. The framework also provides for a dispute resolution mechanism in accordance with Pakistan’s legal framework. Finally, the GoB has authorized private parties to initiate, prepare and submit proposals for consideration and implementation in PPP mode, known as “unsolicited proposals”.

Hafiz Abdul Basit, ACS (Dev), P&DD, welcomed the guests to the PPP policy launch event. Elaborating on the provincial PPP framework, he informed that the initiative would stimulate collaboration of all stakeholders and address key areas needed to strengthen private sector participation.

Hafiz Abdul Basit appreciated the support of all partners.

Dr Noor Muhammad, MD – PPP Unit, Mr. Rafiullah Kakar, Director – SPRC, and Mr. Faraz A. Syed, Financial Advisor – SPRC, briefed and briefed participants on various aspects of the provincial business-friendly PPP framework. They clarified that the PPP framework is designed to protect investor rights and allows for a long-term balanced partnership with an identified risk-sharing mechanism. Various forms of government support and facilitation offered to the private sector were also discussed, which can lead to greater efficiency for the private sector.

Keynote speakers, Khalid Sheikh, MD – PPP Unit, Sindh, and Mr. Amjad Ali, CEO, PPPA, Punjab, reiterated the importance of involving the private sector in PPP initiatives and the success stories created in their provinces in fashion. PPP in several sectors such as education, health, energy, special economic zones, roads and communication, and other areas.

Guest of honor, Zahoor Ahmed Buledi, hoped that the enactment of a new business-friendly PPP framework will help encourage and strengthen private sector participation and investment in the province. He pointed out that there are significant investment opportunities for the private sector in Balochistan, including mining, sea salt extraction, fishing, organic farming, renewable energy, animal husbandry and processing. livestock. In addition, there were opportunities for the private sector to improve service delivery in social sectors such as health and education. The Honorable Minister thanked the participants for having embellished the event with the hope of a solid collaboration with all stakeholders in PPP projects.

The PPP policy launch event was the first step towards bringing all stakeholders together. The event brought together leading consulting firms, notable financial institutions, legal brotherhoods and leading local and national business groups.

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