Telecom industry seeks abolition of G2G contracting under PPRA rules

Business Recorder reports that the Telecom Operators Association (TOA) wants the direct government-to-government (G2G) contracting provision in the Public Procurement Rules, 2004 scrapped. The association argues that the route is squeezing private firms out of IT, telecom and digital services projects. Its letter, addressed to Finance Minister Muhammad Aurangzeb, Planning Minister Ahsan Iqbal and IT and Telecom Minister Shaza Fatima Khawaja, asks for Clause 42(f) to be repealed.

Following the 2021 amendment, dozens of new state-owned entities were set up, and many IT and telecom contracts went to them over five years without tendering. TOA alleges that state-owned firms have subcontracted such projects to favoured private companies, which it says could bypass transparency and accountability rules. The association further warns of weaker competition, slower innovation and fewer job opportunities for young graduates.

TOA wants state-owned firms to bid for government-funded projects alongside private companies, pointing to the Prime Minister's view that government should not run businesses. It notes that telecom and technology firms have committed Rs billions to networks and services over the past two decades. The association frames the change as serving the national interest more broadly.