TAHIR AMIN
ISLAMABAD: The federal government has notified the Public Procurement Rules, 2026, replacing the Public Procurement Rules, 2004, with immediate effect, introducing a revamped framework centred on digital procurement, third-party oversight, tighter transparency requirements and expanded alternative procurement methods.
The rules introduce additional scrutiny for high-value procurements. A Bid Evaluation Committee will handle procurements valued up to Rs2 billion, while procurements above Rs500 million and up to Rs2 billion will additionally undergo third-party validation. For procurements exceeding Rs2 billion, an External Bid Evaluation Committee with at least two-thirds of its members from outside the procuring agency will conduct bid opening and evaluation. Under the new framework, all federal public procurement to be conducted through the E-Pak Acquisition and Disposal System (EPADS), while procurement agencies will also be required to publish annual procurement plans on EPADS and the website of the Public Procurement Regulatory Authority (PPRA).
The rules establish Procurement Cells within procuring agencies, comprising officers with relevant qualifications, experience and accreditation. These cells will be responsible for planning, market analysis, preparation of bidding documents, publication of procurement notices, management of procurement records and contract administration.
The new rules, approved by the Federal Cabinet, were notified by the Cabinet Division on September 28 and forwarded to the Printing Corporation of Pakistan Press for publication in the official gazette. Publication requirements have also been expanded. Procurements exceeding Rs200,000 are required to be published on EPADS and the PPRA website, while opportunities exceeding Rs5 million must additionally be advertised in print media, principally in at least two national dailies—one English and one Urdu.
The minimum response period has been set at 10 days for national competitive bidding and 20 days for international competitive bidding. A shorter five-day response period applies to the newly specified “gallop tendering” method for procurements between Rs700,000 and Rs2 million. The rules also permit shopping without quotations for procurements below Rs200,000 and request-for-quotation procurement above Rs200,000 but below Rs700,000, subject to specified conditions. Other alternative methods include direct contracting, negotiated tendering, force account, and direct contracting with state-owned entities.
The government has also introduced provisions for framework agreements, allowing procuring agencies to meet recurring requirements through open and closed frameworks. Open framework agreements may run for up to three years, while closed framework agreements may not exceed one year.
For greater transparency, bid openings for procurements exceeding Rs500 million in goods and services and Rs1 billion in works are to be live-broadcast through national media, websites or digital channels.
The rules allow bid security of up to five percent for procurements up to Rs250 million and up to two percent for procurements above that threshold. Performance guarantees, where required, may not exceed 10 percent of the contract value.
The new framework also strengthens provisions relating to blacklisting. Depending on the nature of the violation, blacklisting may extend up to 10 years for corrupt and fraudulent practices, up to five years for knowingly submitting false or misleading eligibility information, and six months for specified contractual or bidding-related violations.
Procurement records are required to be retained for at least five years. Once a contract has been awarded, documents relating to bid evaluation and contract award are to be made public on EPADS, subject to specified exceptions for proprietary information and public interest.
The rules also establish a strengthened grievance mechanism, with complaints to be handled by grievance committees constituted from outside the procuring agency. Appeals against grievance decisions may be filed before an Appellate Committee of PPRA.
Procurement proceedings initiated before the commencement of the 2026 rules will continue to be governed by the Public Procurement Rules, 2004. The 2004 rules stand repealed for proceedings falling under the new framework. Made under Section 26 of the PPRA Ordinance, 2002, the new rules have come into immediate effect; procurement cases initiated prior to the commencement of the new rules will continue under the 2004 framework, while all new processes will be governed by the Public Procurement Rules, 2026.
Managing Director, Public Procurement Regulatory Authority (PPRA), Hasnat Ahmed Qureshi, said that the Public Procurement Rules, 2026 provide a modern regulatory framework designed to strengthen transparency, competition, accountability, efficiency and value for money in public procurement. He said the new Rules introduce a range of measures to strengthen oversight throughout the procurement cycle, from procurement planning and bidding to contract management, performance evaluation and closure.
The emphasis on digital procurement, independent oversight, open disclosure and clear accountability mechanisms will strengthen public confidence in the procurement process and contribute to better management of public resources, he hoped.
