The Government of Pakistan has limited public sector funding available to cater to the country’s overall public infrastructure requirements and related services. To bridge this gap, the Government made a policy decision to tap private sector investments and expertise. Following this policy decision of the Federal Government in 2006, Infrastructure Project Development Facility (IPDF) - a Section 42 company registered under the Companies Ordinance, 1984 (now Companies Act 2017) functioning under the aegis of the Ministry of Finance - was established to facilitate the implementing agencies in developing and structuring their infrastructure projects on a Public Private Partnership (P3) basis.
The mandate of IPDF was supported by “Pakistan Policy on Public Private Partnerships” that was initially approved in 2007 by the Economic Coordination Committee (ECC). This was replaced with a revised Policy that was approved by ECC on 26 January 2010. The mandate of IPDF was limited to the provision of transaction advisory services and capacity building of the implementing agencies. Till 2017, IPDF successfully developed, structured, helped procure and implemented four (4) mega projects worth approximately PKR 140 Billion.
With the promulgation of the Public Private Partnership Authority Act (No. VII), 2017, IPDF was converted into a Public Private Partnership Authority (the, “P3A”). IPDF’s assets, employees and liabilities were transferred to the newly established P3A with an improved and enhanced regulatory mandate as given in the Public Private Partnership Authority Act, 2017 (the, “P3A Act”). The provisions of the P3A Act and functions of P3A are limited and extended to Federal Government line ministries and their infrastructure projects.