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Public Procurement Experience of

Pakistan
(2ND South Asian Regional Public Procurement Conference)

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 Banks 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Outdated rules and regulations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,
regulatory agency
3.

professionally

staffed,

independent

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

Performance of PPRA

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

205

Performance of PPRA

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

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.

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