Govt toughens procurement rules

The Express Tribune reported that Pakistan and the IMF disagree over two clauses in a draft public procurement framework: direct contracts to state-owned enterprises (SOEs) and limits on negotiated deals. The lender permits such awards only in exceptional cases, with the circumstances disclosed. Still, the government has drafted tougher rules aimed at closing a major source of corruption, having missed a June deadline for the new PPRA Rules 2026.

Under the draft, a firm or its owners, beneficial owners and directors would be disqualified from government bids if they face litigation that could result in insolvency or conviction. Federal secretaries and heads of departments would be made explicitly accountable for contract awards. Procurements above Rs700,000 would go through competitive bidding, with third-party validation for bids from Rs500 million to Rs2 billion and an external evaluation committee for bids above Rs2 billion.

The IMF wants direct awards routed through E-PADS, with the body doing the work using only its own resources and no private partner, joint venture or sub-contractor. Sub-contracting of specialised components would be capped at 40%, and exceeding that would count as material deviation. The government accepted these conditions but proposed relaxing the 40% limit, with the PPRA empowered to modify financial thresholds over time. The draft also omits public disclosure of such determinations, though CCLC can still alter it before cabinet review.