The caretaker government is taking steps to breathe new life into the Pakistan Development Fund Ltd (PDFL), a state-owned entity with $1.5 billion earmarked for financing public sector development projects.
Initially funded by Saudi Arabia in 2014 to address foreign exchange challenges, PDFL has been largely inactive.
The Ministry of Finance is now in the process of hiring a CEO for PDFL, tasked with jumpstarting its operations, attracting foreign investments, and facilitating financing for strategically chosen projects in the country.
PDFL, initially focused on setting up LNG-based power plants, has been granted non-banking financing company (NBFC) status, allowing it to engage in various financial services related to investment, asset management, corporate finance, money market activities, and capital market activities.
The CEO, appointed for an initial three-year term, will be pivotal in developing and implementing PDFL’s corporate strategy, overseeing project selections, and engaging with international lenders and private sector stakeholders.
This initiative aligns with the government’s broader strategy to streamline infrastructure financing and public-private partnerships.
In tandem with these efforts, the government recently issued guidelines on Fiscal Commitments and Contingent Liabilities (FCCL) for federal PPP projects. These guidelines aim to enhance the quality and cost-effectiveness of public infrastructure, manage long-term fiscal costs, and ensure fiscal sustainability throughout the project lifespan.
The focus is on optimizing the benefits of private sector participation while achieving long-term infrastructure development goals.
This comprehensive approach underscores the government’s commitment to revitalizing dormant financial entities and ensuring transparent, sustainable development in the country.
