Pakistan needs $40bn for infrastructure development: ADB

ADB advises encouragement of private sector participation 

in infrastructure development due to limited public resources.

RAWALPINDI Pakistan’s physical infrastructure is inadequate in comparison with world standards and has been identified as one of the critical reasons holding back more rapid economic growth in the country.An assessment report on the private sector carried out by the Asian Development Bank stated that the infrastructure sector in the country consists of power, telecommunications, roads, ports, railways, air transport, urban infrastructure, information technology cyber parks, and industrial estates. The public sector has been the main provider of basic infrastructure in Pakistan. However, given the major unmet needs and limited fiscal space, the government’s capacity to address the infrastructure deficit is severely constrained. To augment limited public resources for infrastructure, private sector participation in infrastructure development has to be encouraged by creating the necessary enabling environment for increased private sector involvement. While Pakistan holds up generally well on infrastructure sector performance compared to other South Asian and low income countries, it is clearly way below the averages for the OECD countries. Pakistan’s electricity and power infrastructure has already come under major strain, and there is a danger that the infrastructure sector in its totality will become a major bottleneck for continued growth and development unless a well designed long-term strategy to enhance infrastructure investment and expand private sector participation in infrastructure development is evolved and implemented.