The government has introduced a new monitoring framework to track financial risks associated with Public-Private Partnership (PPP) projects, fulfilling a commitment made to the International Monetary Fund (IMF), the Ministry of Finance sources said on Monday.
According to the document, emergency liabilities under PPP projects have exceeded Rs472 billion, with Sindh carrying the highest financial risk of over Rs335 billion. Federal and provincial governments will now submit biannual reports on PPP projects, including emergency liabilities totaling Rs368 billion and additional cost overruns of more than Rs150 billion.
The framework also identifies Rs104 billion in financial guarantees, and data from 36 PPP projects across the country has been compiled. The federal government alone faces Rs90.6 billion in financial pressure from PPP projects. Punjab’s PPP projects account for Rs26.5 billion of liabilities, while Sindh remains the province with the highest financial exposure. These estimates are provisional as of December 2025.
The Ministry of Finance noted that financial risks under PPP agreements are not immediately visible in the budget. The new framework will now include debt obligations, minimum revenue guarantees, interest rates, foreign exchange fluctuations, and cost escalations, helping the government mitigate potential fiscal shocks.
