Novo PAC: Transformative Investment for Brazil's Future

On 11th August, President Luiz Inácio Lula da Silva unveiled the New Growth Acceleration Programme or Novo PAC (Programa de Aceleração do Crescimento) at a ceremony in Rio de Janeiro's historic Municipal Theatre.

With an investment of USD 347 billion, Novo PAC emerges as an ambitious initiative by the Brazilian Federal Government to advance economic, social and urban infrastructure, with a commitment to sustainable growth and the green transition, encompassing the period 2023-26 and beyond.

This programme draws funding from varied sources, with USD 76 billion coming from Brazil's General Budget, USD 126 billion from the private sector, USD 71 billion from state-owned companies, and USD 74 billion from alternative financing. The investment coming from the private sector may also present promising opportunities for international investors seeking to participate in this initiative.

Nine axes of progress across the nation
Novo PAC focuses on nine key areas across all Brazilian states:
1. Efficient & Sustainable Transportation
2. Sustainable & Resilient Cities
3. Healthcare
4. Energy Security & Transition
5. Education, Science & Technology
6. Access to Water
7. Digital Inclusion & Connectivity
8. Inclusive Social Infrastructure
9. Innovation for the Defence Industry

Job creation
Novo PAC not only promises infrastructural development but also envisions the creation of 2.5 million direct jobs and 1.5 million indirect jobs, reinforcing the foundation for economic prosperity.

Institutional measures
Strengthening the backbone of these investment endeavours are the Institutional Measures: normative, management, and planning acts designed to enhance the efficiency of the state. These measures aim to reduce bureaucracy, instil planning capacity, and empower the state in its role of fostering growth.

At its core, Novo PAC is a strategic initiative with the primary goal of enhancing the competitiveness of Brazil's economy. Striking a balance between ambition and efficiency, this programme will not only shape the nation's infrastructure but also pave the way for a dynamic and resilient future for Brazil.

For more detailed information about Novo PAC, please click here