As such, an increase in the PPP based contracts or investments in PPP based contracts, reflects a greater level of economic freedom as these contracts increase the role of the private sector in traditionally public sector dominated areas.
The Government of Pakistan issued a comprehensive policy document on PPP titled Private Participation in Providing More and Better Public Services through Improved Infrastructure in 2007.
It stipulates objectives, implementation structure, viability gap funding, and project life cycle with respect to PPP contracts.
This document states that “many economically and socially worth projects lack the ability to raise the requisite revenues to ensure adequate returns for the investor risk.” The policy document further mentions the need of long gestation periods to ensure affordable tariff levels thus exposing the private sector to undue risk.
The NGOs have played a positive role in improving service quality at numerous schools across the country but obviously they lack the scale, which a commercial enterprise brings with it.
Public-Private Partnership represents a transition from an omnipresent government to a completely free private sector.
He engaged in good governance reforms, citizens-government liaison and policy research during a two year period at Planning Commission, Government of Pakistan.