1. Public Procurement Regulatory Authority
Public Procurement Experience of Pakistan (2ND South Asian Regional Public Procurement Conference) By
Alam Zeb Khan
(Director General)
Public Procurement Regulatory Authority

2. Sequence of Presentation
Need for Procurement Reforms in Pakistan
Public Procurement Legal Framework of Pakistan
Performance of PPRA since its establishment
Capacity Building Initiatives of PPRA
Reforms Agenda of PPRA

3. Need for Procurement Reforms in Pakistan

4. Need for Procurement Reforms in Pakistan
Previous Procurement Regimes
General Financial Rules (1951/1979) (Stores etc)
Purchase Manual of Deptt of Supplies and Disposals
Delegation of Powers to Ministries (Overlapping)
Autonomous Bodies had their own Rules
Various Circulars of Ministry of Finance

5. Need for Procurement Reforms in Pakistan
World Bank’s Study of In 1997 – 98, the World Bank auditors reviewed 4524 contracts and found deficiencies in 3700 contracts.

6. Need for Procurement Reforms in Pakistan
Findings of W.B CPA Report 2000
Outdated rules and regulations
Public procurement suffered from inefficiency, and poor management.
Inadequately trained and poorly paid public sector procurement professionals
Complicated and non-transparent procurement procedures discouraged sound planning, thorough evaluation
Inadequate record keeping and restrictive bidding

7. Need for Procurement Reforms in Pakistan
Word Bank Recommendations
Enacting a public procurement law based on UNCITRAL Model Law;
Creating a small, professionally staffed, independent regulatory agency
The regulatory body to be mainly confined to policy, documentation, development of rules, etc.
Not to involve in line clearance functions for award of contracts

8. Public Procurement Legal Framework of Pakistan

9. Public Procurement Legal Framework of Pakistan
Pakistan is a Federation consisting of the four federating units; in addition to two other regions:
Punjab
Sindh,
Khyber Pakhtunkhwa
Balochistan
Azad Jammu and Kashmir
Gilgit-Baltistan

10. Public Procurement Legal Framework of Pakistan
PPRA Ordinance 2002
Public Procurement Rules 2004
Following Four Regulations issued so far:
PPRA Regulations 2008
PPRA Regulation 2009
Consultancy Services Regulations 2010
PPRA Regulation 2011

11. Public Procurement legal Framework of Pakistan
Composition of the PPRA Board:
Secretary, Finance Division (Chairperson)
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

12. 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 (about US$1000) are advertised.

13. Performance of PPRA

14. 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

15. Performance of PPRA
tenders monitored/uploaded on PPRA website during the Financial Years
Financial Year
Organizations
Tender Uploaded
Average Daily Tenders
PP Rules Violations
% Violations
255
11905 32
11311
95.01
274
17124 47
12782
74.64
293
20226 55
13657
67.52
295
17078
9917
58.07
290
17913 49
4720
26.35
350
18404 50
3883
21.10
385
20880 57
2738
13.11
582
24104 66
2506
10.40
677
26121 71
5721
21.90
Total
3401
173755
474
67235
38.70

16. Performance of PPRA

17. Performance of PPRA

18. 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

19. Performance of PPRA

20. Capacity Building Initiatives of PPRA

21. 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.

22. Capacity Building Initiatives of PPRA
4501 Officials trained in Public Procurement during the Financial Years
Financial Year
Training Programmes
No. Participants 22
807 33
977 32
881 35
762 19
343
326
405
Total
182
4501

25. 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

26. 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

27. Reforms Agenda of PPRA

28. Reforms Agenda of PPRA Advisory Group on Public Procurement (AGPP)
Preparation of National Procurement Strategy
Revision and improvement of Public Procurement
Rules, 2004
Improvement and / or preparation of Public Procurement Regulations

29. 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

30. Establishment of PPRA Monitoring and Evaluation System
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

31. 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.

32. Thanks