Key Takeaways
- The federal government has replaced the 2004 public procurement framework with new rules.
- Digital procurement is now mandatory under the new framework.
- The rules aim to strengthen oversight and introduce mechanisms for third-party validation.
The federal government has introduced new procurement rules, replacing the 2004 framework, as part of ongoing discussions with the International Monetary Fund (IMF) over a $1.2 billion disbursement.
The new Public Procurement Rules 2026 mandate the use of the E-Pak Acquisition and Disposal System (EPADS) for all public procurement and disposal processes, according to the government.
The rules also require procuring agencies to establish dedicated procurement cells and introduce third-party validation and evaluation for large procurements, enhancing transparency and accountability.
Under the new framework, federal procuring agencies can directly contract state-owned entities through EPADS for certain works and services, including consultancy services, when they are time-sensitive, scattered, remotely located, or in the public interest.
Where multiple eligible state-owned entities can perform the work, competition between them through limited tendering will be required, ensuring fair competition.
The framework allows limited subcontracting in specialized project components, with such work capped at 40 percent of the total work assigned to the state-owned entity, while requiring the entity to otherwise perform the work through its own resources.
The rules also provide for the blacklisting and cross debarment of bidders, suppliers, and contractors for specified violations, with bans extending up to 10 years in cases involving corrupt or fraudulent practices.
For larger procurements, the rules introduce additional checks, with bid evaluation committees handling procurements valued at up to Rs. 2 billion, while those above that threshold undergo third-party validation and evaluation involving members from outside the procuring agency.
The new framework allows alternative procurement methods, including shopping, negotiated tendering, and gallop tendering, subject to specified conditions, promoting flexibility and efficiency.
The Public Procurement Regulatory Authority states that the new rules, made under the PPRA Ordinance 2002, are effective immediately.
