PPRA Rules Overhaul Planned with World Bank’s Expert Advice

The federal government of Pakistan is preparing to revamp the Public Procurement Regulatory Authority (PPRA) Rules, following the recommendations of the World Bank and an international procurement consultant, Peter Trepte. This decision stems from concerns that the current rules are complex, ambiguous, and lack transparency, as discussed in the 81st PPRA Board meeting on September 26, 2024, chaired by the Finance Secretary.

According to sources, Trepte’s preliminary review, conducted under the Methodology for Assessment of Procurement Systems (MAPS) framework, acknowledged that while the PPRA rules are aligned with international standards, they require further clarity. Trepte emphasized the need to address ambiguities in procurement roles and responsibilities, especially regarding planning, bid evaluation, and contract management. He also highlighted the absence of a dedicated procurement cell within agencies, which hampers accountability and efficiency.

The review also explored the prospect of third-party validation (TPV) in procurement processes. While Trepte noted that additional layers of evaluation might not resolve existing challenges, he stressed the importance of clear accountability and transparency. He recommended focusing on assigning defined responsibilities within agencies, rather than relying solely on external assessments.

During the meeting, the issue of grievance redressal was also addressed. Trepte suggested involving independent individuals in the process to enhance bidder confidence, given the perception that the Authority lacks impartiality. The discussion further revolved around the potential for a simplified grievance redressal mechanism, with some board members advocating for a single-tiered system to expedite resolutions.

Additionally, concerns about inconsistent blacklisting and debarment procedures across federal and provincial levels were raised. Trepte proposed centralizing these processes under the Authority to ensure uniformity and minimize discrepancies.

In light of these recommendations, the Board resolved that rather than amending existing rules, a completely new procurement regulatory framework should be developed. The World Bank will collaborate with a local lawyer to draft the updated regulations, ensuring a more transparent and accountable procurement system for Pakistan.