In the H1-2020 period, Pakistan became one of the five countries with the most investment commitments. The new study published by the World Bank titled Private Investment in Infrastructure (PPI) 2020 Half Year Report revealed this.
According to the survey, with $1.9 billion in investment commitments, accounting for 0.69 percent of GDP, Pakistan had the fourth-highest investment commitments, a new entrant to the top five nations this year.
This can be attributed to the financial closure of the Thar Block-I Coal-Fired Power Plant, which during this time span was the only project to achieve financial closure in the region, the report said.
The only two megaprojects to achieve financial closure in the first half of 2020 were the Thar power plant and the pipeline in Mexico.
South Asia, led by Pakistan ($1.9 billion), India ($1.8 billion), and Bangladesh ($1.2 billion), was the region with the second-highest H1 2020 investment level ($4.9 billion). China has been an active supporter of infrastructure in recent years, accelerating the slow progress of major infrastructure projects in South Asia, especially in Pakistan and Bangladesh. Nevertheless, levels of investment saw a 33 percent decline from the levels of the first half-year of 2019.
In the first half of 2020, due to a $1.9 billion mega coal power project with 1,329 megawatts (MW) capacity, Pakistan became one of the five countries with the most investment. Under the umbrella of the China-Pakistan Economic Corridor, the coal power project was established (CPEC). It is part of the Government of Pakistan’s initiative to boost energy security and to reduce the average cost of producing electricity through the transition from oil to coal.
China stayed in the top five investment commitments, but dropped from first to third position, with $2.9 billion in investment commitments, representing 0.02% of the gross domestic product. This is a decline from the first half of 2019, when 0.13 percent of GDP was accounted for by PPI investment levels.
The highest investment commitments were in Mexico, which, in the first half of 2019, was not in the top five nations. It accounted for an expenditure of $4.1 billion, equal to 0.32 percent of its GDP.
The increased amount of investment can be attributed to the financial closure of $4 billion worth of the Current Burgos, Cactus, and Isthmus Corridor Pipelines. Brazil preceded Mexico, accounting for 0.19 percent of GDP, with investment commitments of US$3.5 billion.
Finally, with 0.06 percent of GDP, India had the fifth-highest investment commitments. These five countries together attracted US$14.1 billion in the first half of 2020, representing 64 percent of PPI investments in EMDEs.
