Govt introduces new procurement rules as IMF review gets underway

The IMF delegation has been in Pakistan since September 23 and initially held meetings in Karachi with the State Bank of Pakistan and other relevant stakeholders. The review is also examining Pakistan’s progress on the Sovereign Wealth Fund (SWF) law, which remains a pending structural benchmark.

The government has yet to secure parliamentary approval for amendments aimed at introducing governance safeguards for seven state-owned enterprises with assets estimated at around $8 billion. Under the new procurement framework, the government has made the use of the E-Pak Acquisition and Disposal System (EPADS) mandatory for federal public procurement and disposal processes.

The rules permit direct contracting with state-owned enterprises in specific circumstances, including urgent, time-sensitive or remotely located projects undertaken in the public interest. They also allow authorities, under specified conditions, to restrict bidding to Pakistani companies or particular categories of domestic bidders and provide preferences for locally produced goods and services.

The Public Procurement Regulatory Authority (PPRA) said the new rules came into force immediately, while procurement processes initiated before their implementation will continue under the 2004 rules. The framework also introduces dedicated procurement cells, third-party validation and evaluation mechanisms, and pre-shipment inspections for major procurements to improve transparency and reduce conflicts of interest.

The rules further provide for blacklisting and cross-debarment of non-compliant bidders, along with independent grievance redressal committees and an appellate mechanism., the framework also allows alternative procurement methods, including shopping, negotiated tendering and gallop tendering, subject to prescribed conditions.

The rules seek to speed up procurement by reducing response and standstill periods while also promoting sustainable procurement and greater participation of small and medium-sized enterprises and marginalised groups. PPRA Managing Director Hasnat Ahmed Qureshi said the new framework strengthens oversight across the entire procurement cycle, from planning and bidding to contract management, performance assessment and completion.