Pakistan introduces new public procurement rules during IMF talks — Dawn
Pakistan’s federal government has introduced new public procurement rules amid negotiations with the International Monetary Fund on the disbursement of $1.2 billion. As Dawn reports, the Public Procurement Rules 2026 took effect immediately and replaced rules that had been in force since 2004.
The new provisions mandate the use of the digital EPADS system for procurement and disposal of assets by federal procuring agencies. The rules also require the establishment of specialized procurement units and provide for independent review, evaluation and pre-shipment inspection of major procurements.
Exceptions for state-owned companies
At the same time, the rules retain the possibility of concluding direct contracts with state-owned enterprises. Under Rule 32, a procuring agency may administer direct contracting through EPADS for works, services and consultancy services if they are time-sensitive, scattered, located in remote areas and in the public interest, or in cases of urgent need. State-owned companies may not subcontract such contracts.
Authorities may also, in certain cases, restrict participation in tenders to national bidders only or to specified categories of national companies. The rules allow preference to be given to local suppliers and goods manufactured, mined or grown in the country. The IMF had expressed reservations about the preferential regime for direct contracting with state-owned enterprises.
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Negotiations with the IMF
An IMF mission led by Iva Petrova is holding meetings with representatives of Pakistan’s Ministry of Finance, the Federal Board of Revenue, the Establishment Division, as well as finance secretaries of the provinces of Khyber Pakhtunkhwa and Punjab. Before this, the delegation was in Karachi, where it met with representatives of the State Bank of Pakistan and other parties.
Among the topics of the negotiations are amendments to the law on the sovereign wealth fund. Pakistan failed to meet the IMF’s end-March 2026 structural benchmark on introducing governance mechanisms and safeguards for seven state-owned enterprises with an asset portfolio of about $8 billion. The relevant legislative amendments are still awaiting parliamentary approval.
The 2026 rules also provide for blacklisting and mutual debarment mechanisms for procurement participants, independent complaint review committees and an appeals mechanism at the PPRA. Separately, the document aims to shorten tender procedures, support small businesses and incorporate environmental policy into procurement.
