Degree
Master of Business Administration Executive
Faculty / School
Faculty of Business Administration (FBA)
Year of Award
2012
Project Type
MBA Executive Research Project
Access Type
Restricted Access
Executive Summary
Pakistan has faced Infrastructure Deficit since its foundation. Despite eight (08) comprehensive Five (05) Years Plans and several efforts from Nationalization to Privatization, it has been unsuccessful to comprehend and cater this critical issue. The current macroeconomic situation of the country is to some extent calamitous. There is a long list of socioeconomic and political issues which are presently faced by Pakistan which pose hindrance to both Hard and Soft Infrastructure Development. Political and social instability, regional tensions, growing population, double digit inflation, unemployment, circular debts, huge fiscal and budget deficits, corruption, moral hazards, excessive Government borrowings, depleting currency, etc. are some of the most obvious challenges that the country is rrently facing. Government due to huge gaps and deficits in the budget are unable to undertake Welfare Projects. Infrastructure Development is essential for development and growth of any country. It is in direct correlation with economic stability and macroeconomic prosperity. Developed infrastructure also helps sustain economic growth. Pakistan as a country will not be able to sustain present GDP growth with current infrastructure. Lack of supporting Infrastructure also attributes to the in capabilities of the country to sustain growth in the past years as well. It must undertake robust and resilient efforts to develop and sustain its infrastructure. In light of Government's inability to Infrastructure Development to a comprehensive extent, the only way out for Pakistan is Infrastructure Development in coordination with Private Sector. The avenue of Public avenue for Pakistan. In late 1980s, the Government in light of large cu embark on to undertake Private Partnership is not a new investment gaps decided to embark upon Public Private Partnership to fund Infrastructure Projects. However, the progress and impact of such partnership is very low and insignificant. There are several reasons and inefficiencies which can be attributed to this less successful venture such as nature and plexity of Long Term Infrastructure Projects, Market variability. Financial and Capital Market in stability. Lack of Project Management Skill Set, Poorly developed IRS Market, Public Private Capacity Constraints and several others. There is a strong need to bring Political and Economic Stability thus providing an enabling environment for Foreign and Private Investors to take part in Infrastructure Development of the country. Based on these findings and identification of loopholes in the current Working and Procedural Model for effective Implementation of Public Private Partnership com system, a ndertake Welfare Projects has been developed. The model is well suited to the multilayered Structure of Pakistan and takes into consideration present socioeconomic situation of the country. The model accepts multiple variations in IF under PPP such as Build, Operate, Transfer (BOT), Build, (BOO), Design, Build, Finance, and Operate (DBFO), etc. There are two phases of the deals with identification and approval of the Infrastructure Project, Phase-02 deals to u Own, Operate model. Phase-01 and vigilant execution of the Project of Investment. The model ensures appropriate from Private Sector. The Private Sector based on their expertise is involved in with transparent level of representation early stages of Project Identification and Approval from competent authorities ensuring elimination of corruption and inducting operational efficiency. The model is also responsible for developing automated and centralized Risk Management System which acts as an Early Warning System to proactively deal with different risks arising during execution of the project. It also complements practical decision making based on filtering techniques. The model also suggests Credit Enhancement Techniques to increase participation of Financial Sector in Infrastructure Financing.
Pages
41
Link to Catalog Record
https://ils.iba.edu.pk/cgi-bin/koha/opac-detail.pl?biblionumber=54901
Recommended Citation
Javed, M. M. (2012). A critical study of infrastructure financing in Pakistan : (Unpublished graduate research project). Institute of Business Administration, Pakistan. Retrieved from https://ir.iba.edu.pk/research-projects-emba/523
The full text of this document is only accessible to authorized users.
