The Ministry of Finance has unveiled Pakistan’s first-ever Fiscal Risk Monitoring Framework (FRMF) to track contingent liabilities from Public–Private Partnership (PPP) projects. The framework aims to provide a clear picture of the government’s financial exposure arising from PPP contracts at both federal and provincial levels. According to the Ministry, total fiscal exposure linked to PPPs currently stands at around Rs. 472.3 billion, which includes Rs. 368.3 billion in contingent liabilities and Rs. 104 billion in funded financial guarantees as of December 2025. The new framework, developed by the Debt Management Office (DMO), introduces a uniform system for identifying, measuring and reporting both direct and contingent liabilities. These liabilities, which include obligations like minimum revenue guarantees, interest rate adjustments and termination payments, may not immediately appear in government budgets but could materialize later. The disclosure covers 36 qualified PPP projects across the federal government and all four provinces. Sindh accounts for the largest share at Rs. 335.6 billion, followed by the federal government at Rs. 90.6 billion and Punjab at Rs. 26.5 billion. The FRMF requires PPP units at federal and provincial levels to submit bi-annual reports detailing direct and contingent liabilities. The framework introduces a simple probability-based system- Low, Medium or High to assess the likelihood of each contingent liability being triggered, ensuring transparency and accountability. Officials say the framework will help reduce unexpected fiscal shocks and improve medium-term financial planning. A National PPP Liabilities Dashboard is also being planned to provide an overview of project-wise, provincial and sectoral exposures.