Telecom sector urges govt to scrap direct G2G contracting rule

The Telecom Operators Association has asked the government to scrap a public procurement clause that lets state-owned entities win government contracts directly, according to Mettis Global. In a letter to Finance Minister Muhammad Aurangzeb and two other ministers, the body argued that the 2021 rule is crowding out private players and weakening innovation. Its members include Jazz, Naya Tel, PTCL, Telenor, Transworld and Ufone.

Under the provision, agencies can award time-sensitive work to state entities without competitive bidding, provided the work is performed in-house without private partners or subcontractors. Where several state bodies qualify, agencies must run limited tendering among them and check that prices are reasonable. The association said state-owned bodies have multiplied at federal and provincial levels, and many have won IT and telecom projects through direct awards over the past five years.

The letter also warned that private operators, which have put billions of rupees into infrastructure, are being squeezed out. It added that heavy government borrowing pushes banks toward sovereign lending, tightening credit for small and medium enterprises. The association further alleged that some state entities hand projects to preferred private contractors without competitive bidding. It cited public remarks by Prime Minister Shehbaz Sharif that the state should not be in business, and urged state firms to bid on equal footing with private companies.