Public Procurement Experience of
Pakistan
(2ND South Asian Regional Public Procurement Conference)
By
Alam Zeb Khan
(Director General)
Public Procurement Regulatory Authority
Sequence of Presentation
1. Need for Procurement Reforms in Pakistan
2. Public Procurement Legal Framework of Pakistan
3. Performance of PPRA since its establishment
4. Capacity Building Initiatives of PPRA
5. Reforms Agenda of PPRA
Need for Procurement Reforms
in Pakistan
Need for Procurement Reforms in
Pakistan
Previous Procurement Regimes
1. General Financial Rules (1951/1979) (Stores etc)
2. Purchase Manual of Deptt of Supplies and Disposals
3. Delegation of Powers to Ministries (Overlapping)
4. Autonomous Bodies had their own Rules
5. Various Circulars of Ministry of Finance
Need for Procurement Reforms in
Pakistan
World Bank’s Study of 1997-98
In 1997 – 98, the World Bank auditors reviewed 4524
contracts and found deficiencies in 3700 contracts.
Need for Procurement Reforms in
Pakistan
Findings of W.B CPA Report 2000
1.Outdated rules and regulations
2.Public procurement suffered from inefficiency, and poor
management.
3.Inadequately trained and poorly paid public sector
procurement professionals
4.Complicated and non-transparent procurement procedures
discouraged sound planning, thorough evaluation
Need for Procurement Reforms in
Pakistan
Word Bank Recommendations
1. Enacting a public procurement law based on
UNCITRAL Model Law;
2. Creating a small, professionally staffed, independent
regulatory agency
3. The regulatory body to be mainly confined to
policy, documentation, development of rules, etc.
4. Not to involve in line clearance functions for award
of contracts
Public Procurement Legal
Framework of Pakistan
Public Procurement Legal Framework of
Pakistan
• Pakistan is a Federation consisting of the four
federating units; in addition to two other regions:
1. Punjab
2. Sindh,
3. Khyber Pakhtunkhwa
4. Balochistan
5. Azad Jammu and Kashmir
6. Gilgit-Baltistan
Public Procurement Legal
Framework of Pakistan
• PPRA Ordinance 2002
• Public Procurement Rules 2004
• Following Four Regulations issued so far:
1.PPRA Regulations 2008
2.PPRA Regulation 2009
3.Consultancy Services Regulations 2010
4.PPRA Regulation 2011
Public Procurement legal
Framework of Pakistan
Composition of the PPRA Board:
(1) Secretary, Finance Division (Chairperson)
(2) Secretary, Ministry of Industries and Production
(3) Secretary, Defence Production Division
(4) Secretary, Ministry of Water and Power
(5) Secretary, Ministry of Housing and Works
(6) Secretary, Ministry of Communications
(7) Three Members from private sector
(8) Managing Director
Public procurement legal framework
of Pakistan
• PPRA Ordinance 2002 and the Public procurement
Rules 2004 are applicable to all procuring agencies of
the Federal Government.
• Open Competitive Bidding is the principle/default
method of procurement
• All procurements above the minimum threshold of
Rs. 100000 (about US$1000) are advertised.
Performance of PPRA
Performance of PPRA
Administrative setup of PPRA
• PPRA is a very lean organization
• Total number of employees is 50
• 8 officers, and 42 staff
• Total budget for current year is Rs. 43M
Performance of PPRA
173755 tenders monitored/uploaded on PPRA website during the
Financial Years 2004-2013
Financial
Organizations
Year
Tender
Uploaded
Average
Daily
Tenders
PP Rules
Violations
% Violations
2004-05
255
11905
32
11311
95.01
2005-06
274
17124
47
12782
74.64
2006-07
293
20226
55
13657
67.52
2007-08
295
17078
47
9917
58.07
2008-09
290
17913
49
4720
26.35
2009-10
350
18404
50
3883
21.10
2010-11
385
20880
57
2738
13.11
2011-12
582
24104
66
2506
10.40
2012-13
677
26121
71
5721
21.90
Total
3401
173755
474
67235
38.70
Performance of PPRA
Tender Notices Uploaded
2004-05 to 2012-13
30000
25000
20000
15000
10000
5000
0
Performance of PPRA
PP Rule Violations
2004-05 to 2012-13
14000
12000
10000
8000
6000
4000
2000
0
2004-05
2005-06
2006-07
2007-08
2008-09
2009-10
2010-11
2011-12
2012-13
Performance of PPRA
• Uploading of PP Rules Violations on PPRA website
started in May 2012.
• Compliance of PP Rules has increased from 1% in
May 2012 to 10% at the moment .
• Procurement Plans of 205 Procurement Agencies have
been uploaded during the current financial year as
against 9 last year.
2012
2013
9
205
Performance of PPRA
Complaints Lodged with PPRA
250
200
150
100
50
0
2010-11
2011-12
2012-13
Capacity Building Initiatives of
PPRA
Capacity Building Initiatives of PPRA
• Training of the Government officials in procurement
started in 2006 under a 3 years World Bank Capacity
Building Project.
• In 2009, PPRA training activities were formalized
through the establishment of National Institute of
Procurement (NIP)
• Presently PPRA imparting training through its own
resources.
Capacity Building Initiatives of PPRA
• 4501 Officials trained in Public Procurement during
the Financial Years 2006-2013.
Financial Year
2006-07
2007-08
2008-09
2009-10
2010-11
2011-12
2012-13
Total
Training
Programmes
22
33
32
35
19
19
22
182
No. Participants
807
977
881
762
343
326
405
4501
Training Programmes
35
30
25
20
15
10
5
0
2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13
No. of Participants
1000
900
800
700
600
500
400
300
200
100
0
2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13
Capacity building initiatives of PPRA
Learning Management System
• Present training capacity of PPRA is 480 per year
• Through development of LMS PPRA will be able to
train around 3000 persons per annum, through
online/virtual system
Challenges Faced By PPRA
• Shortage of office space.
• Shortage of Human Resource.
• Capacity Building of Human Resource.
• Lack of power to take action on PP Rules
Violations.
• Budgetary constraints
Reforms Agenda of PPRA
Reforms Agenda of PPRA
• Advisory Group on Public Procurement (AGPP)
• Preparation of National Procurement Strategy 2013-16
• Revision and improvement of Public Procurement
Rules, 2004
• Improvement and / or preparation of Public Procurement
Regulations
Reforms Agenda of PPRA
• Review of the SBD for Civil Works
• Preparation of SBDs for Goods
• Preparation of SBDs for Services
• Procurement Code of Ethic
Reforms Agenda of PPRA
• Establishment of PPRA Monitoring and
Evaluation System
• Revamping of the PPRA website
• Development of HR-Pay Role Module
• Accounting Software developed
Reforms Agenda of PPRA
• The PPRA Service Regulations 2013 approved by the
PPRA Board on 30th September, 2013
• Market based Pay Package approved by the PPRA
Board, subject to fulfilment of certain formalities.
• For financial autonomy,
PPRA Financial
Regulations/Accounting Procedure at a very
advanced stage.
Thanks