Govt notifies new procurement rules with IMF team in town
• Changes retain certain exemptions for direct contracting with SOEs despite reservations • IMF delegation meets finance, tax officials amid uncertainty on sovereign wealth fund law ISLAMABAD: As question marks linger over the continuous breach of structural benchmarks regarding the sovereign wealth fund (SWF) law, the federal government on Monday notified new procurement rules two days ahead of…
The federal government has announced new procurement rules ahead of the deadline, coinciding with the International Monetary Fund's (IMF) arrival in Pakistan to discuss a $1.2 billion disbursement. The IMF team, led by Iva Petrova, has been meeting with officials from the finance ministry, Federal Board of Revenue, Establishment Division, and finance secretaries of Khyber Pakhtunkhwa and Punjab. The review talks began in Karachi with the State Bank of Pakistan and other stakeholders.
The Sovereign Wealth Fund (SWF) law is under scrutiny amid concerns over breaching structural benchmarks. The government has retained exemptions for direct contracting with state-owned enterprises (SOEs) while notifying new procurement rules to promote transparency and competition in public procurement. However, certain exemptions are granted for direct contracting with SOEs, including OGDCL, PPL, Mari Petroleum, National Bank of Pakistan, Govt Holdings, Pakistan Development Fund, and the Neelum-Jhelum Hydropower project.
Rule 32 of the new Public Procurement Rules 2026 permits a procuring agency to engage through the E-Pak Acquisition and Disposal System (EPADS) for direct contracting with SOEs in time-sensitive, scattered, remotely located, and public interest cases. The rules also allow for limiting bidding to national bidders or specific categories of national bidders, prohibiting participation by bidders from certain nationalities, and favoring domestic bidders for certain projects and locally produced goods.
The new rules, effective immediately, replace the Public Procurement Rules 2004 and mandate the use of EPADS for public procurement and disposal by federal procuring agencies. They establish dedicated procurement cells, discourage conflicts of interest through third-party validation, evaluation, and pre-shipment inspection, and introduce mechanisms for blacklisting, cross-debarment, and independent grievance redressal committees.
The rules also promote sustainable procurement, inclusiveness of SMEs and marginalized groups, and alignment with environmental policy.
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