Govt notifies new procurement rules with IMF team in town

The Pakistani government has notified new procurement rules ahead of the deadline, coinciding with the start of talks between officials and the International Monetary Fund (IMF) over a $1.2 billion disbursement. The IMF delegation, led by Iva Petrova, has been in Pakistan since September 23, engaging with various stakeholders including the finance ministry, Federal Board of Revenue, and the Establishment Division.

The new Public Procurement Rules 2026 aim to enhance transparency and competition in public procurement while maintaining exemptions for direct contracting with certain state-owned enterprises (SOEs). These exemptions were a point of contention for the IMF, which expressed reservations about preferential treatment for SOEs. Rule 32 of the new rules allows for direct contracting in specific cases, such as time-sensitive or urgent procurements, but limits bidding to national firms and prohibits participation from certain nationalities.

The rules mandate the use of the E-Pak Acquisition and Disposal System (EPADS) for managing procurement processes, introduce dedicated procurement cells, and establish mechanisms to prevent conflicts of interest. They also enhance enforcement through blacklisting, cross-debarment, and independent grievance redressal committees. The rules promote sustainable procurement, encourage SMEs and marginalized groups, and align with environmental policies.

The Sovereign Wealth Fund law, part of the discussions with the IMF, is currently awaiting parliamentary approval. The amendments, which involve SOEs with an asset portfolio of about $8 billion, are not yet in effect. The IMF team's visit follows an end-March 2026 structural benchmark that the government has been struggling to meet.