Government studies fund to channel overseas Pakistani capital into $6.5 bn PPP pipeline
Pakistan aims to fast‑track 38 PPP projects worth $6.5 bn and is exploring an investment fund that would let overseas Pakistanis invest in infrastructure, signalling new financing avenues for transport, power and construction sectors.
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Desk Analysis
How This Affects the Exchange
Sector Effect
Positive · Buy bias
Transport, Power, Cement and Steel sectors stand to benefit from new PPP financing and diaspora investment fund, creating a Buy bias.
Sectors & Direction
Desk read
Desk call: Buy bias · Positively affected
- TransportPositively affected
- PowerPositively affected
- CementPositively affected
- SteelPositively affected
Companies
Mentions in This Briefing
Sectors: Transport, Power, Cement, Steel — Positive · Buy bias. PSX tickers: UBL, ISL. Transport, Power, Cement and Steel sectors stand to benefit from new PPP financing and diaspora investment fund, creating a Buy bias.
Full Story
Open on Business Recorder## Government pushes PPP pipeline forward
Federal Minister for Economic Affairs Ahad Cheema announced that Pakistan will accelerate the development of 38 public‑private partnership (PPP) projects valued at $6.5 bn across railways, highways, power, civic infrastructure and airports. The move seeks to tap private and overseas Pakistani capital to meet rising infrastructure financing needs.
## Proposed overseas‑Pakistani investment fund
Cheema directed authorities to design an investment fund or a similar mechanism that would allow overseas Pakistanis to invest in national infrastructure without having to set up or run businesses locally. The fund is expected to provide transparent, commercially attractive opportunities with clear safeguards and defined returns, channeling diaspora savings into productive assets such as railway and highway projects.
## High‑level review and next steps
During a high‑level meeting chaired by Cheema, officials reviewed the PPP pipeline and identified priority projects: - Railways: Feasibility study for the Lahore‑Rawalpindi section of the Main Line‑1 (ML‑1) under a PPP model, while the Karachi‑Rohri stretch continues to be financed with the Asian Development Bank. - Motorways: The Kharian‑Rawalpindi Motorway received approval from the Prime Minister’s Office, with a directive to complete technical preparations within three months. - Power: Advancement of the Advanced Metering Infrastructure (AMI) smart‑metering project through PPP to improve distribution company performance and support future DISCO privatisations. - Civic projects: The Gandhara Culture project and the expansion of Capital Hospital were earmarked for PPP assessment.
## Institutional coordination
The Public‑Private Partnership Authority (P3A), National Highway Authority (NHA), Capital Development Authority (CDA) and relevant ministries were instructed to accelerate technical and financial assessments, prepare bankable proposals and maintain regular high‑level reviews of the pipeline.
## Outlook
If implemented, the proposed fund could open a new source of financing for large‑scale infrastructure, potentially boosting activity for sectors such as transport, power generation, cement and steel, while offering overseas investors a structured, Shariah‑compliant avenue to participate in Pakistan’s development.
## Stakeholder comments
Advisor to the Prime Minister on Privatisation Muhammad Ali welcomed the proposal, urging a detailed examination to develop a workable investment framework.