Telecom association seeks end to government-to-government contracting under amended procurement rules

Dr Shahid Farooq, president of the Pakistan Telecommunication Access Providers Association, wants direct government-to-government contracting under the Public Procurement Rules abolished. According to Dawn, he argues that the practice is discouraging investment and new ideas among technology and telecom firms. The body represents 26 members, including Cybernet, nayatel, PTCL and Wateen.

Writing to Finance Minister Muhammad Aurangzeb, Planning Minister Prof Ahsan Iqbal and IT and Telecom Minister Shaza Fatima Khawaja, the association asked the government to scrap that provision. Clause 42(f), inserted into the Public Procurement Rules 2004 through SRO 834(I)/2021, lets state-owned enterprises and government-owned organisations award deals straight to other state bodies. The association argues that such firms should compete for government-funded projects on the same footing as private companies. Since the amendment, existing state firms have been strengthened and dozens of new ones set up, and over the last five years these have won many IT and telecom projects without competitive bidding.

The association contends that private operators have been squeezed out, while preferred contractors gain exemptions, licences and implicit guarantees that rivals cannot match. It also says subcontracting after such awards bypasses transparency and accountability. Citing PIA, Steel Mills and Discos, it warned that most such entities eventually fail and turn into a strain on the economy.