The federal government has assured the International Monetary Fund that a comprehensive overhaul of public procurement regulations will be completed by June 2026, with new rules designed to end preferential treatment for State-Owned Enterprises (SOEs) and introduce stricter transparency safeguards.
Officials familiar with the discussions said the commitment was shared during ongoing policy engagements with the IMF as part of broader governance and structural reform measures.
New Rules to End SOE Preference
After receiving approval from the federal cabinet, the revised procurement framework will be formally notified, replacing existing regulations. The draft rules remove special concessions previously available to SOEs, ensuring equal competition among public and private sector bidders in government contracts.
Authorities say the objective is to create a level playing field, curb inefficiencies, and promote merit-based procurement decisions.
Stricter Oversight for Large Contracts
Under the proposed framework, contracts exceeding Rs2 billion will require mandatory third-party evaluation. For procurements valued between Rs500 million and Rs2 billion, third-party validation will be compulsory.
In addition, independent Grievance Redressal Committees and Inspection Committees will be established to strengthen accountability. Pre-shipment inspections of goods by independent assessors will also become mandatory to prevent quality and pricing discrepancies.
The Public Procurement Regulatory Authority (PPRA) will maintain a panel of certified independent experts to support procuring agencies in bid evaluation, contract validation, inspections, and grievance handling.
Digital Shift Through EPADS
A key component of the reform package is the nationwide rollout of the e-Government Procurement and Disposal System (EPADS). The government plans to implement EPADS across all federal ministries and agencies within 12 months, making electronic procurement mandatory.
The system will be integrated with public sector enterprises, tax records, audit databases, and the National Database and Registration Authority to improve data verification and reduce fraud risks. Full federal-level integration is targeted by June 2027.
Provincial governments will subsequently adopt EPADS, with nationwide integration expected to be completed by December 2028.
Officials said the digital platform will restrict direct contracting, automate compliance checks, and enhance transparency through real-time monitoring of procurement activities.
Quarterly Monitoring and Global Standards
To strengthen oversight, the government will introduce Public Procurement Quarterly Monitoring Reports covering both development and non-development spending.
Standard Bidding Documents are also being revised to align with international best practices and are expected to be finalised by mid-2026.
On PPRA’s recommendation, dedicated Procurement Cells have been established within federal agencies to professionalise procurement functions. So far, 122 agencies have set up such units.
Capacity Building and Certification
As part of efforts to professionalise procurement management, officials appointed to Procurement Cells will be required to obtain relevant certification under the PPRA Competency Framework, developed with technical support from the World Bank.
Specialised training programmes — including a Certificate in Procurement and a four-month Diploma in Procurement and Contract Management — have been launched. Since July 2024, more than 2,200 officials have undergone training on the PPRA regulatory regime and EPADS operations.
Periodic updates to the competency framework will incorporate lessons learned and be reflected in performance evaluations.
Stronger Complaint Mechanism
For dispute resolution, PPRA has operationalised procedures under the “Redressal of Grievance Regulations 2021.” All grievance decisions will be publicly available on the regulator’s website to enhance transparency.
The Monitoring and Evaluation (M&E) Wing has been empowered to receive complaints, collect procurement data, conduct investigations, and issue findings along with advisory or corrective measures.
Advanced Reforms Under Consideration
PPRA is also considering advanced data analytics tools for risk-based audits, automated red-flag systems to detect potential collusion and price manipulation, and further integration of SOE procurement into the EPADS framework.
Officials said these measures aim to transform Pakistan’s procurement regime into a transparent, technology-driven system aligned with international governance standards.
A PPRA representative clarified that the reform drive began in August 2024 after the Prime Minister’s Office issued 24 directives for structural improvements in public procurement. While the IMF has highlighted governance weaknesses in its Governance and Corruption Diagnostic Assessment, the official maintained that the reforms were initiated domestically rather than imposed externally.
