The federal government on Monday notified the Public Procurement Rules 2026, two days before the deadline, as Pakistan began discussions with the International Monetary Fund (IMF) for the release of $1.2 billion.
The move comes amid concerns over delays in meeting structural benchmarks linked to the country’s Sovereign Wealth Fund (SWF) law.
Sources said the IMF staff mission, led by Iva Petrova, held meetings with officials from the Finance Ministry, Federal Board of Revenue (FBR), Establishment Division and finance departments of Khyber Pakhtunkhwa and Punjab.
The IMF mission arrived in Pakistan on September 23 and initially held meetings in Karachi with the State Bank of Pakistan and other stakeholders. Formal review discussions normally begin with a meeting with the finance minister, who is currently abroad as part of the prime minister’s delegation attending the UN General Assembly.
The Sovereign Wealth Fund law is also part of the ongoing discussions. Pakistan remains behind schedule on a structural benchmark requiring amendments to the Sovereign Wealth Fund Act to introduce governance mechanisms and safeguards for seven state-owned enterprises, involving an asset portfolio estimated at around $8 billion.
The entities include Oil and Gas Development Company Limited (OGDCL), Pakistan Petroleum Limited (PPL), Mari Petroleum, National Bank of Pakistan, Government Holdings, Pakistan Development Fund and the Neelum-Jhelum Hydropower Project. Proposed amendments to the law are still awaiting parliamentary approval.
Under the newly notified Public Procurement Rules 2026, the government aims to improve transparency and competition in public procurement while retaining certain exemptions for direct contracting with state-owned enterprises (SOEs) and allowing restrictions on bidding in specific circumstances.
The new rules allow procuring agencies to use the E-Pak Acquisition and Disposal System (EPADS) for direct contracting with SOEs for works and services that are time-sensitive, geographically dispersed, remotely located or considered to be in the public interest or required urgently. SOEs will not be permitted to subcontract such contracts.
The framework also allows authorities, under specified conditions, to restrict bidding to national bidders or particular categories of domestic bidders. Participation by bidders from certain nationalities may also be restricted, while preference can be given to locally produced, mined, extracted or grown goods for certain projects.
The Public Procurement Regulatory Authority (PPRA) said the 2026 rules replace the Public Procurement Rules 2004 and have taken immediate effect. Procurement cases initiated before the new rules came into force will continue to be governed by the previous framework.
Use of EPADS has been made mandatory for federal public procurement and disposal activities. The rules also provide for dedicated procurement cells and introduce safeguards against conflicts of interest through third-party validation, evaluation and pre-shipment inspection for major procurements.
The enforcement framework has also been strengthened through provisions for blacklisting and cross-debarment. Independent grievance redressal committees, along with an appellate mechanism at PPRA, have been introduced to address material deviations and cases of mis-procurement.
These include deliberately bypassing EPADS, failing to establish required committees, preparing tailor-made specifications, violating advertising and response-time requirements and not following prescribed evaluation criteria.
The rules also permit alternative procurement methods, including gallop tendering, shopping and negotiated tendering, subject to specified conditions. Measures have been introduced to shorten response times, reduce standstill periods and streamline tender processing to facilitate faster contract awards.
The framework further promotes sustainable procurement, encourages greater participation by small and medium-sized enterprises (SMEs) and marginalised groups, and seeks to align procurement practices with environmental policies.
PPRA Managing Director Hasnat Ahmed Qureshi said the new framework strengthens oversight across the procurement cycle, covering planning, bidding, contract management, performance evaluation and contract closure.
