Telecom operators challenge procurement rule

The Telecom Operators Association (TOA) has asked the government to repeal Rule 42(f) of the Public Procurement Rules, 2004, which lets procuring agencies contract state-owned entities directly for certain time-sensitive work. Writing to Finance Minister Muhammad Aurangzeb, Planning Minister Ahsan Iqbal and IT Minister Shaza Fatima Khawaja, the body wants government-owned firms to bid alongside private companies instead. According to The Express Tribune, the rule was added through SRO 834(I)/2021 in June 2021.

The body places the dispute against a changing digital landscape, in which operators are branching into data centres, cloud platforms, AI and online services. Those ventures increasingly meet the demands of federal and provincial governments, so TOA says domestic market access is essential for sustaining investment and building local skills. It also contends that domestic rollouts give local firms the experience and credentials needed before they chase foreign clients, and it questions preferential procurement while the federal government pushes for wider private-sector involvement.

TOA also objects to direct awards that are later passed to private subcontractors, noting that Rule 42(f) bars private partners, joint ventures and subcontractors from taking part. The association contends that competitive tendering would offer a more transparent way to pick the firm that carries out the work. For telecom operators, the outcome bears on whether firms investing in new digital services can fairly compete for government demand.