Islamabad: The Public-Private Partnership Authority (PPPA) has calculated the estimated corporate taxes and revenue share income by the government from four approved mega projects, according to news published on December 1.
As per the details, the PPPA shared that corporate taxes and revenue share income will amount to PKR 1,500 billion and PKR 850 billion over the life of concession contracts, which usually expands to 25 years and in some cases to 30 years. The senior officials of PPPA (whose names were not disclosed) mentioned that the transaction structures approved by the PPPA Board aimed at minimising the liabilities of the government instead of spreading them over long periods in order to avoid immediate cash outflow. As a result, the authority was able to save over PKR 80 billion.
Moreover, four approved mega projects are being executed on a public-private partnership model, at a total cost of PKR 637 billion. All these projects have the Viable Gap Fund (VGF) of PKR 122.94 billion. The projects include:
It is important to note that the KCR project is proposed to be taken under the China-Pakistan-Economic-Corridor (CPEC) framework. The revised PC-1 of the project has been approved by the Executive Committee of the National Economic Council (ECNEC) at the cost of PKR 292 billion.
Iqra holds BS in International Relations and is passionate about writing engaging content on trending real estate topics. When not working, she is either spending time with family, shopping, or discussing shows & movies.
