Project Preparation as Catalyst for More Transformative Investment

The path to resilient, inclusive, and sustainable cities in Pakistan begins with robust project preparation. Photo credit: ADB.

Share on:           

Published:

Project preparation is critical for embedding gender and climate considerations, stakeholder engagement, and capacity building.

Introduction

Rapid urbanization and population growth in Pakistan are straining infrastructure and services, especially in major cities where urban populations are heavily concentrated. The Global Infrastructure Outlook estimates an infrastructure investment gap of approximately $125 billion between 2016 and 2040 across energy, transport, water, and other key sectors. The persistent deficit contributes to a loss of 4%-6% of Pakistan’s gross domestic product, ranking it 105th out of 141 countries in physical infrastructure.

The Cities Development Initiative for Asia (CDIA), a project preparation facility managed by the Asian Development Bank (ADB), has supported 12 Pakistani cities in developing bankable and sustainable infrastructure projects. Its monitoring visit in January 2025 underscored project preparation as a critical entry point for integrating gender and climate considerations, engaging stakeholders, strengthening institutions, and managing risks—laying the foundation for transformative urban development and empowering cities as engines of economic growth.

Ingredients of Successful Project Preparation

To enhance infrastructure and provide vital urban services, CDIA has assisted the Government of Pakistan in conducting six project preparation studies across 12 major cities since 2009. In January 2025, a monitoring visit was undertaken to evaluate the progress, outcomes, and effectiveness of these initiatives, yielding valuable insights into project preparation from the following interventions: (i) Punjab Intermediate Cities Investment Improvement Project (PICIIP I) in 2015–2016; (ii) Khyber Pakhtunkhwa Inclusive Urban Growth Program (KPCIP) in 2017; (iii) Peshawar Urban Transport in 2013–2014; and (iv) Islamabad Bus Rapid Transit in 2012.

From the four interventions, key insights were drawn to inform future programming.

  • City development plans are essential foundations of project preparation, ensuring strategic alignment, efficient use of limited resources, and long-term impact. 

    In the Peshawar BRT project, the government leveraged its long‑term public transport strategy and action plan to mobilize financing while guiding sequenced urban transport investments. Similarly, when project preparation studies for KPCIP and PICIIP‑I began with city development plans and medium‑term infrastructure investment programs, this helped avoid piecemeal solutions and established a coherent pipeline of priority investments. Shahid Mehmood, Deputy Commissioner of Sahiwal City, highlighted how CDIA’s pre-feasibility study, including the integrated cities development strategy and climate risk and vulnerability assessment, proved highly useful in preparing and securing approval for the city’s sectoral master plans.
     
  • Stakeholder engagement and consultation significantly improve project acceptance and outcomes. 

    The $128 million KPCIP investment for Mardan, Peshawar, and Abbottabad was shaped through city visioning exercises involving government agencies, the private sector, and civil society, resulting in solutions tailored to diverse local conditions. Early engagement with existing transporters during project preparation was particularly important, leading to the establishment of the Bus Industry Restructuring Program linked to the Peshawar BRT. According to Syed Murtaza Asghar Bukhari, Chief Executive Officer of TransPeshawar Company, this early collaboration helped reduce resistance among stakeholders and improve long-term project acceptance.
     
  • Embedding gender considerations into project design strengthened inclusiveness and social equity. 

    Gender teams were mobilized, and action plans were developed to guide awareness‑raising on gender and WASH in Abbottabad, Mardan, Peshawar, Sahiwal, and Sialkot. Women participating in these activities used project-supported water committees to raise broader concerns related to education, health, and livelihoods. Designed with pro‑poor objectives, the Peshawar BRT reduced transport costs and improved access to employment, with women now accounting for 30% of passengers, compared with minimal use prior to the system. As Mohammad Imran Khan, General Manager for Operations of TransPeshawar, emphasized, women’s voice, access to services, and mobility must be deliberately built into the design of urban development projects.
     
  • Climate-responsive planning and infrastructure development also enhance urban resilience. 

    Under PICIIP‑I, climate and vulnerability assessments supported the integration of climate actions across project components. In Islamabad and Peshawar, shifts from private vehicles to public transport are improving environmental outcomes, while solid waste management interventions in Abbottabad are expected to deliver similar benefits.
     
  • Institutional arrangements must be addressed early in project preparation, alongside capacity-building measures. 

    In Peshawar, CDIA supported enabling legislation and the establishment of the Khyber Pakhtunkhwa Urban Mobility Authority and the TransPeshawar Company, providing clearer accountability and continuity for system operations and upgrades. According to Mohammad Imran Khan of TransPeshawar, clear institutional ownership proved as important as financing in sustaining urban investments.
     
  • More sustainable funding models, particularly for operation and maintenance, must be identified early on to reduce reliance on subsidies.

    Finally, sustainable funding models, particularly for operation and maintenance, need to be identified early to reduce reliance on subsidies. Weak cost recovery and heavy dependence on provincial budgets continue to undermine financial sustainability. Financing approaches that support adequate maintenance are essential to avoid premature asset deterioration and costly rehabilitation cycles.
     

Taken together, these lessons highlight that effective project preparation in Pakistan must go beyond technical design to address deeper social, institutional, and political‑economy realities. This includes early and sustained community engagement in a male‑dominated context, where women’s mobility, voice, and access to services cannot be assumed, as well as upstream diagnostics that recognize informality in service provision and the central role of existing operators. Clarity on institutional authority across provincial and city levels, sensitivity to local political and security conditions, and realistic approaches to cost recovery are critical to avoid stalled implementation and fiscal stress. Embedding these considerations early strengthens project legitimacy, reduces resistance, and helps ensure that urban investments are durable, inclusive, and better suited to Pakistan’s complex urban environment.

Implications

CDIA’s experience shows that project preparation is not just about technical viability but about embedding the foundations of sustainable development from the outset. When infrastructure is grounded in sound planning and shaped through early stakeholder engagement, it moves beyond engineering solutions to become responsive, needs‑based investment. Integrating social inclusion, gender equity, climate resilience, institutional strengthening, and risk management early on helps ensure projects deliver lasting impact. Treating project preparation as a strategic investment is essential for building cities that are more livable, resilient, and inclusive, and for ensuring that development benefits endure well beyond construction.

Lara Arjan
Lara Arjan, Senior Urban Development Specialist, Water and Urban Development Sector Office, Sectors Department 2, Asian Development Bank

Lara Arjan is an urban planner with over 25 years of experience in program design, management, monitoring, and evaluation. Lara holds two master’s degrees—one in Environmental Sciences and one in Urban and Regional Planning and Development. She has worked with national, multilateral, local governments, the private sector, and NGOs. Prior to joining ADB, Lara worked as a senior urban planner for the City of Edmonton, Canada. At ADB, she managed the Cities Development Initiative for Asia Trust Fund from 2019 to 2025.

Follow Lara Arjan on

Brian Capati
Urban Development and Climate Resilience Specialist (Consultant), Water and Urban Development Sector Office, Sectors Department 2, Asian Development Bank

Brian Capati has over 2 decades of experience in engineering and development. Since joining the Cities Development Initiative for Asia (CDIA) in 2014, he has led 28 project preparation studies across 11 countries in Asia and the Pacific, covering water supply and sanitation, flood and drainage, solid waste management, and urban renewal.

Cities Development Initiative for Asia (CDIA)

Cities Development Initiative for Asia (CDIA) is a multi-donor trust fund managed by the Asian Development Bank. As a project preparation facility, it helps secondary cities in Asia and the Pacific prepare bankable and sustainable infrastructure investments. It receives funding support from the governments of Austria, Germany, the Republic of Korea, Spain, and Switzerland.

Asian Development Bank (ADB)

The Asian Development Bank is a leading multilateral development bank supporting sustainable, inclusive, and resilient growth across Asia and the Pacific. Working with its members and partners to solve complex challenges together, ADB harnesses innovative financial tools and strategic partnerships to transform lives, build quality infrastructure, and safeguard our planet. Founded in 1966, ADB is owned by 69 members—49 from the region.

Follow Asian Development Bank (ADB) on
Leave your question or comment in the section below:
Disclaimer

The views expressed on this website are those of the authors and do not necessarily reflect the views and policies of the Asian Development Bank (ADB) or its Board of Governors or the governments they represent. ADB does not guarantee the accuracy of the data included in this publication and accepts no responsibility for any consequence of their use. By making any designation of or reference to a particular territory or geographic area, or by using the term “country” in this document, ADB does not intend to make any judgments as to the legal or other status of any territory or area.