ISLAMABAD: The government has assured the International Monetary Fund (IMF) that it will introduce new public procurement rules by June 2026, ending preferential treatment for State-Owned Enterprises (SOEs) and promoting a level playing field in government contracts.
The revised rules, to be formally notified after federal cabinet approval, explicitly remove any advantages for SOEs in public procurement. Under the new framework, procurements exceeding Rs2 billion will require mandatory third-party evaluation, while contracts between Rs500 million and Rs2 billion will undergo third-party validation. Independent Grievance Redressal and Inspection Committees will also be formed, along with mandatory pre-shipment inspections of goods.
The Public Procurement Regulatory Authority (PPRA) will maintain a panel of independent experts to assist procuring agencies with bid evaluation, validation, inspections, and grievance redressal processes.
The reforms aim to improve transparency and efficiency by restricting direct contracting and mandating the use of the e-Government Procurement and Disposal System (EPADS) for all transactions within 12 months. EPADS will be rolled out across federal agencies and integrated with Public Sector Enterprises (PSEs), government departments, and key databases—including tax records, Nadra, and audit systems—by June 2027. Provincial governments will adopt the system subsequently, with nationwide integration expected by December 2028.
To strengthen oversight, Public Procurement Quarterly Monitoring Reports covering both development and non-development expenditures will be introduced. Standard Bidding Documents are being revised in line with global best practices and are expected to be finalised by June 2026. Dedicated Procurement Cells have already been established in 122 federal procuring agencies, ensuring proper implementation of the new rules.
Officials appointed to Procurement Cells will be required to obtain relevant certification. Under the PPRA Competency Framework, developed with World Bank support, specialized training programs including a Certificate in Procurement and a four-month Diploma in Procurement and Contract Management have been launched. Since July 2024, 2,205 individuals have completed training on the PPRA regulatory framework and EPADS.
The framework will be periodically updated to incorporate lessons learned and reflected in HR evaluations.For effective complaint resolution, PPRA has strengthened grievance procedures under the Redressal of Grievance Regulations 2021, with all decisions to be published on its website. The Monitoring and Evaluation Wing will handle complaints, gather procurement data, conduct investigations, and issue findings and corrective measures.
Further reforms under consideration include expanding EPADS capabilities, integrating procurement systems with tax, audit, and identity databases, applying advanced data analytics for risk-based audits, introducing automated red flags to detect collusion and price anomalies, and increasing transparency in grievance redress through public disclosure.
A PPRA official said the reforms began in August 2024 following 24 directives from the Prime Minister’s Office aimed at structurally improving the country’s procurement system.
While the IMF had highlighted weaknesses in the framework in its Governance and Corruption Diagnostic Assessment Report, the official clarified that these reforms are government-driven, not IMF-mandated.
