ISLAMABAD: The federal government has notified the Public Procurement Rules 2026, introducing new measures aimed at improving transparency, competition and oversight in government procurement as Pakistan began discussions with the International Monetary Fund (IMF) for the release of around $1.2 billion.
The notification came two days before the deadline as questions remained over Pakistan’s compliance with a structural benchmark linked to amendments to the Sovereign Wealth Fund (SWF) Act.
The IMF staff mission, led by Iva Petrova, held discussions with officials from the Ministry of Finance, Federal Board of Revenue, Establishment Division and finance departments of Punjab and Khyber Pakhtunkhwa.
The IMF mission has been in Pakistan since September 23 after initially holding meetings in Karachi with the State Bank of Pakistan and other stakeholders.
The Sovereign Wealth Fund law is among the issues being discussed during the review. Pakistan remains behind schedule on a structural benchmark requiring amendments to the SWF Act to strengthen governance mechanisms and safeguards for seven state-owned enterprises.
The entities involved have an estimated asset portfolio of around $8 billion and include Oil and Gas Development Company Limited, Pakistan Petroleum Limited, Mari Petroleum, National Bank of Pakistan, Government Holdings, Pakistan Development Fund and the Neelum-Jhelum Hydropower project.
The proposed amendments are still awaiting parliamentary approval.
The Public Procurement Rules 2026 repeal the 2004 rules and have taken immediate effect. However, procurement cases initiated before their implementation will continue under the previous framework.
The new rules make the use of EPADS, the government’s electronic procurement platform, mandatory for federal procuring agencies. They also provide for dedicated procurement cells and introduce additional safeguards against conflicts of interest.
The framework includes third-party validation, evaluation procedures and pre-shipment inspections for large procurements.
The new framework allows procuring agencies to engage state-owned enterprises through direct contracting in specified circumstances, including urgent, time-sensitive or remotely located projects undertaken in the public interest.
The IMF has previously raised concerns over preferential treatment for state-owned enterprises in direct contracting.
Stronger Enforcement and Faster Procurement
The rules introduce blacklisting and cross-debarment mechanisms, along with independent grievance redressal committees and an appellate mechanism at the Public Procurement Regulatory Authority (PPRA).
They also identify violations such as deliberate procurement outside EPADS, tailor-made specifications, failure to establish required committees and breaches of prescribed evaluation procedures.
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PPRA Managing Director Hasnat Ahmed Qureshi said the new framework strengthens oversight across the procurement cycle, from planning and bidding to contract management and performance evaluation.
The rules also promote sustainable procurement and greater participation by small and medium-sized enterprises and marginalised groups.
