From Crisis to Opportunity : PPPs as the Catalyst for Pakistan's Economic Recovery

Muhammad A. Dr.Iftikhar Mehboob Salman Qaisrani Foundation Public Private Partnership Unit, Government of Sindh Public Private Partnership Authority NUST Professional Development Centre (PDC) National Highway Authority Capital Development Authority (CDA) Pakistan Railways

Introduction

Any solution to an economic crunch needs an in-depth analysis leading to the root cause of the issue. Resolving Pakistan’s Economic Crunch must be foreseen in the strategic context that while the global economy expands at 4.4% and India surges at 7.2%, Pakistan's stagnant growth demands immediate action as Pakistan's GDP has shrunk by $34 billion in just one year.

We need a bold new approach. This decline in Country's Economic Growth has forced us to opt for IMF loan resulting to follow the IMF approved Policies, ending up into massive devaluation of Pak-Rupee, record increase in Inflation and Interest rates & some erratic and un-explainable behavior of Pakistan Stock Exchange under ever deepening economic recession, with a glaring example of extraordinary challenges such as the Federal Government net income is PKR. 7,000 billion after provincial allocations, whereas the debt servicing liability alone is PKR. 8,000 billion forcing the Federal Government to borrow PKR. 1,000 billion to meet this obligation, in addition to this the Operational cost is PKR. 700 billion, Pensions PKR. 800 billion, Subsidies PKR 1,200 billion, Defense PKR. 1,800 billion and development budget is only PKR. 950 billion less than what it was five years ago.? Current situation needs Revamping of Economic Policies (‘REP’). The basis of REP can be:

• Debt-Free Growth: Prioritizing investments that stimulate domestic production over debt-driven projects.
• Strategic Asset Management: Optimizing key economic assets through corporatization & public private partnership, not privatization.
• Infrastructure & Service Development: Leveraging Public-Private Partnerships (PPP) for sustainable infrastructure and service sector growth.

Problems with existing Paradigm of Development

The debt-driven projects are not an aid or grant it’s a loan which ultimately the tax payers of Pakistan have to pay, the terms and condition of the investment must be dissected thoroughly so that the follies of 90’s investments in IPP are not repeated. Moreover, the implementation cost and the procedure of implementation must be financially analyzed, the glaring example is the Loan extended for the construction of Multan-Sukkur Motorway approved in 2014 implemented in 2016 & project completed in 2019 at an exaggeratedly high cost that is PKR. 1 billion plus per-lane Km after loan repayment.

Corporatization, Privatization and Public Private Partnerships (PPPs)

We have to logically gauge whether we are in a position to pay for the anticipated targeted foreign investment profit reimbursement in USD under present circumstances or in upcoming extrapolated economic conditions, whether presently are we fulfilling our obligations regarding payments due in USD timely, all in the context of?? present and forecasted Foreign Exchange Reserves, hence to put the key economic assets such as PIA, Steel Mills, Pakistan Railway, Power distribution Companies, OGDCL, PSO, NHA and Mineral Sector for Privatization with a hope that Foreign Investment will bail us out is totally a false assumption. The only answer is Corporatization of lucrative assets and Public Private Partnership for other key economical assets, encouraging local investors & Expatriate Pakistanis to invest in their motherland.

PPPs : Solution for ills

All PPP transactions must be backed by strong, effective, and implementable Regulatory & Legal framework in line with Best International Practices as defined by World Association for PPP Professionals- WAPPP, which ensures Contract enforcement, transparent Procurement process and fair Dispute Resolution as also outlined in Dispute Resolution Board Foundation- DRBF and aligned with Environmental, Social & Governance- ESG Principals for Sustainable Investment supporting realistically designed Sustainable Development Goals-SDG’s, Effective

Public-Private Partnerships are the key to unlocking Pakistan's economic potential. Let's embrace the future and build a thriving economy, together, with a mission to take Pakistan’s Economy to a double-digit growth! All this and much more thrilling events awaits in the upcoming international standard workshop conducted by leading experts on the subject by Salman Qaisrani Foundation , Muhammad A. and Dr.Iftikhar Mehboob

“Resolving Pakistan’s Economic Crunch! PPP workshop for 21st, Century.” At PDC-NUST Islamabad from 23rd, July to 26th, July with a basic concept of Public First -PPPs with an effort to introduce some rare concepts of Economics of Climate Change, Impact on economy due to Mental health Issues & Global Economy & Uncertainties.

Career Opportunity for Future

Build and upgrade your career in PPP the future life line of Pakistan and developing / developed economies, with an opportunity to move through the virtual lifecycle of implemented PPP projects. with the best combination of Client and Concessionaire as Workshop Facilitators, the true leaders who can be gauged as the Pioneers of successful PPP- Projects in recent past.