PPAF is sponsored by the Government of Pakistan and was launched as a public / private partnership for delivery of resources and implementation of development projects at the grassroots level.

The idea was to create a private-sector entity that assists the government yet remains completely autonomous, independent and fully protected. PPAF is thus registered as a not for profit company under the Companies Act of 1984 and retains minority representation of the GoP on its Board of Directors (2 nominees represent the Ministry of Finance and Ministry of Economic Affairs). The Government has provided an endowment fund to PPAF worth Rs. 1 billion.