Govt moves P3A under privatisation division in major PPP framework overhaul

The government has decided to shift the Public Private Partnership Authority (P3A) from the Planning Division to the Privatisation Division as part of a broader restructuring of Pakistan’s public-private partnership framework aimed at improving coordination, execution and institutional efficiency.

The decision was discussed in a high-level meeting chaired by Minister for Economic Affairs Ahad Cheema on Friday, where proposed amendments to the P3A law were reviewed with a focus on governance, transparency and project delivery mechanisms.

Officials said the restructuring is intended to strengthen alignment between institutions and enhance efficiency in handling PPP initiatives, in line with directives of Prime Minister Shehbaz Sharif.

The government had earlier formed a committee led by Ahad Cheema to consult stakeholders and design comprehensive reforms to improve monitoring, transparency and execution of PPP projects.

Under the proposed framework, the Cabinet Committee on Privatisation will be strengthened, while P3A’s focus will shift more toward implementation and execution of infrastructure projects.

The reforms also propose a structured project pipeline and formal bidding mechanism to improve planning and increase investor confidence in PPP projects.

Authorities further plan to involve business councils and chambers of commerce in identifying and developing future project pipelines to expand private sector participation.

A dedicated Project Development Facility is also being proposed to support preparation, structuring and execution of viable PPP projects.

In addition, the reforms aim to streamline access to critical inputs such as land, electricity and utilities to reduce delays in project implementation.

Officials said the overall objective is to create a more modern, transparent and investor-friendly PPP framework to support sustainable infrastructure development.

The meeting was attended by Adviser to the Prime Minister on Privatisation Muhammad Ali, the Privatisation Division secretary, Privatisation Commission officials, the Law and Justice secretary, and senior representatives of P3A.

Officials informed the meeting that P3A is currently handling projects worth over Rs600 billion in the execution phase, including major infrastructure schemes such as sections of the M-6 motorway, the Kharian-Sialkot and Kharian-Rawalpindi motorways, and the Capital Development Authority Hospital, along with several projects in the pipeline.

The reforms come amid ongoing resistance from some ministries over transferring greater project execution responsibility to private-sector-led PPP models, as public sector development financing continues to face constraints.