ABS & Co advised Habib Rafiq Engineering (Private) Limited (“HRL”), in relation to a landmark Joint Venture Agreement executed with the Prime Institute of Health Sciences (“PIHS”). This strategic collaboration establishes a comprehensive framework for the operation of advanced healthcare facilities and the phased rollout of allied health sciences education within Capital Smart City.
Acting as legal counsel, our role involved the detailed structuring of an integrated operating model that balances FDH’s asset ownership with PIHS’s clinical and academic autonomy. The assignment required a structured review of risk allocation, regulatory compliance, and long-term institutional stability within the Pakistani legal landscape. Our analysis focused on several critical pillars of the collaboration including operational control and asset protection to define the transition of the Smart City Hospital, Smart Institute of Rehabilitation Medicine, and Smart Medical Clinic to PIHS management. We ensured that all underlying land and infrastructure remain vested in FDH-HRL throughout the term.
The JV Agreement establishes a clear trajectory for academic implementation, targeting an expansion from an initial student intake to approximately 500 through 700 students by September 2027. We also structured a sophisticated revenue sharing model that includes an initial two-year grace period followed by graduated escalations in gross revenue sharing reaching fifteen percent by 2034. Governance is managed through a Joint Steering Committee designed to ensure strategic alignment and institutional coordination without infringing upon day-to-day clinical or academic independence.
Furthermore, we calibrated a thirty-three-year term with a dedicated ten-year Stability Period to protect initial investments, alongside clear protocols for performance reviews and fair value buyouts. Particular care was taken to address branding rights, intellectual property protection for PIHS’s institutional value, and the provision of discounted healthcare services for FDH-HRL employees. We also ensured robust dispute resolution mechanisms, designating Islamabad as the seat for any required arbitration under the Arbitration Act, 1940.
The execution of this JV Agreement represents a significant milestone in enhancing healthcare delivery and professional education standards in the region. Engagements of this nature underscore the necessity of legal precision in large-scale developments, where the alignment of private sector expertise and infrastructure determines the long-term success of emerging urban ecosystems.
The ABS & Co team included Partner Sarjeel Mowahid and Associates Kanzal Abbas, Khawaja Abdullah, and Aitzaz Ahsan.
