Pakistan’s federal development budget covers barely a quarter of what the country needs for roads, hospitals, water schemes and power projects — and a bill now before a National Assembly committee aims to close that gap by bringing private investors in more easily.
What happened?
The Privatisation Commission (Amendment) Bill, 2026, now before the National Assembly Standing Committee, proposes merging the Public Private Partnership Authority (P3A) into the Privatisation Commission, creating a single body called the Privatisation and Public Private Partnership Commission. The bill would repeal the P3A Act, 2017, and place privatisation and partnership deals under one board and one approval framework.
Key details
- This year’s federal development budget is Rs1.126 trillion, against a stated need of Rs4.1 trillion — a gap of around Rs3 trillion, according to the Privatisation Commission.
- The new commission would run on “one window, one law and one accountable board”, replacing two boards, two approval processes and two sets of advisers.
- Its board would have 11 to 15 members serving three-year terms, including 8 to 12 independent members, at least one PPP expert and at least two women.
- Four non-lapsable funds are proposed — privatisation, public contribution, viability gap and PPP project development — so unspent money carries over instead of lapsing.
- Every project would get a fixed deadline and a dedicated team, and PPP agreements would become public documents.
- A Risk Management Unit in the Finance Division would review every financial promise the state makes about a PPP before approval. Pakistan’s PPP contingent liabilities already exceed Rs472 billion.
- The bill was introduced in Parliament on October 22, 2026, after the Cabinet ratified the proposal on October 18.
- Ongoing projects would not stall, the Commission said, and P3A staff would be retained for six months and then reassigned or released under their contract terms.
- The bill also proposes legal protection for current and former officials for actions taken in good faith, as reported by Dawn.
What it means for people in Pakistan
For ordinary Pakistanis, the change is about better-kept public services: private partners would have to meet performance standards written into their contracts, which make upkeep and service quality legal obligations. New projects would also create construction and operating jobs, and a simpler single-window route could help local companies take part, not just large foreign investors. The test will be whether contracts are sound and the new checks on state promises are genuinely enforced.
Source: https://tribune.com.pk/story/2639197/private-investors-can-fill-rs3tr-development-gap?amp=1
