TI-P raises concerns over violations of PPRA rules
MUSHTAQ GHUMMAN
ISLAMABAD: The Transparency International Pakistan (TI-P) has raised serious concerns over alleged violations of Public Procurement Regulatory Authority (PPRA) Rules 2004 in the award of contracts related to Pakistan’s recent sovereign financing transactions, urging the Ministry of Finance to investigate the matter.
In a letter addressed to Federal Minister for Finance and Revenue Muhammad Aurangzeb, the TI-P highlighted complaints regarding the appointment of international underwriters, financial advisers, and bookrunners for major financing arrangements, including a syndicated loan, Eurobond, and Panda Bond.
According to the complaint, the Ministry of Finance awarded mandates to commercial banks without following an open and competitive procurement process. The document noted that a USD 1 billion syndicated term finance facility issued in June 2025 was arranged by HBL without competitive bidding, with estimated fees ranging between USD 10 million and USD 20 million.
Similarly, in the case of the USD 750 million Eurobond issued in April 2026, Standard Chartered was appointed as the sole bookrunner without a transparent selection process, with underwriting fees estimated between USD 7.5 million and USD 15 million. The Panda Bond issued in May 2026 also reportedly involved HBL as financial adviser, with associated fees ranging from USD 5 million to USD 10 million.
The total financial exposure across these transactions has been estimated between USD 22 million and USD 45 million, all payable from public funds.
The TI-P observed that no public record of tender notices, requests for proposals (RFPs), bid evaluations, or contract awards was made available, which, if true, would constitute a violation of PPRA Rules requiring transparency and competitive procurement.
After reviewing the allegations, the TI-P stated that they appear to be prima facie credible. The organization emphasised that the appointment of financial advisers and related entities for sovereign transactions clearly falls within the ambit of PPRA Rules 2004, which mandate fairness, openness, and competition in public procurement.
The anti-corruption watchdog further noted that if the claims are substantiated, the procurements may be classified as “mis-procurement” under PPRA Rule 50. However, it acknowledged that the Ministry of Finance has, in other instances, followed proper procedures, including issuing an RFP in April 2026 for engaging international underwriters and bookrunners under its GMTN and Sukuk programmes.
The TI-P has called on the finance minister to thoroughly examine the allegations and take appropriate action if any violations are confirmed. The organization reiterated its role as a whistleblower advocating transparency and the rule of law, rather than as a complainant.
The letter also underscored the constitutional right to access information under Article 19-A, stressing that transparency in public financial dealings is essential to curb corruption and ensure accountability in governance.
