Public Private Partnerships in Pakistan

In Pakistan, the power generation sector, a de-facto federal responsibility by virtue of the national integration of power transmission infrastructure, has been developed under PPP arrangements for a number of years. This has occurred under a regulatory policy that guarantees a rate of return on private partner’s investments in power generation, plus an upside to reward efficiency. In this sense, PPPs have already enabled power generation outcomes that fiscal resources would simply not have been able to reproduce, even though the levels of equity reward to independent power producers locked in the long-term power purchase agreements awarded to date can and have been questioned.