Title: Public Procurement Experience of Pakistan (2ND South Asian Regional Public Procurement Conference)
1Public Procurement Experience of Pakistan (2ND
South Asian Regional Public Procurement
Conference)
- By
- Alam Zeb Khan
- (Director General)
- Public Procurement Regulatory Authority
2 Sequence of Presentation
- Need for Procurement Reforms in Pakistan
- Public Procurement Legal Framework of Pakistan
- Performance of PPRA since its establishment
- Capacity Building Initiatives of PPRA
- Reforms Agenda of PPRA
3- Need for Procurement Reforms in Pakistan
4Need for Procurement Reforms in Pakistan
- Previous Procurement Regimes
- General Financial Rules (1951/1979) (Stores etc)
- Purchase Manual of Deptt of Supplies and
Disposals - Delegation of Powers to Ministries (Overlapping)
- Autonomous Bodies had their own Rules
- Various Circulars of Ministry of Finance
5Need for Procurement Reforms in Pakistan
- World Banks Study of 1997-98
- In 1997 98, the World Bank auditors reviewed
4524 contracts and found deficiencies in 3700
contracts.
6Need for Procurement Reforms in Pakistan
- Findings of W.B CPA Report 2000
- Outdated rules and regulations
- Public procurement suffered from inefficiency,
and poor management. - Inadequately trained and poorly paid public
sector procurement professionals - Complicated and non-transparent procurement
procedures discouraged sound planning, thorough
evaluation
7Need for Procurement Reforms in Pakistan
- Word Bank Recommendations
- Enacting a public procurement law based on
UNCITRAL Model Law - Creating a small, professionally staffed,
independent regulatory agency - The regulatory body to be mainly confined to
policy, documentation, development of rules, etc. - Not to involve in line clearance functions for
award of contracts
8- Public Procurement Legal Framework of Pakistan
-
9Public Procurement Legal Framework of Pakistan
- Pakistan is a Federation consisting of the four
federating units in addition to two other
regions - Punjab
- Sindh,
- Khyber Pakhtunkhwa
- Balochistan
- Azad Jammu and Kashmir
- Gilgit-Baltistan
10Public Procurement Legal Framework of Pakistan
- PPRA Ordinance 2002
- Public Procurement Rules 2004
- Following Four Regulations issued so far
- PPRA Regulations 2008
- PPRA Regulation 2009
- Consultancy Services Regulations 2010
- PPRA Regulation 2011
11Public Procurement legal Framework of Pakistan
- Composition of the PPRA Board
- Secretary, Finance Division (Chairperson)
- Secretary, Ministry of Industries and Production
- (3) Secretary, Defence Production Division
- (4) Secretary, Ministry of Water and Power
- (5) Secretary, Ministry of Housing and Works
- (6) Secretary, Ministry of Communications
- (7) Three Members from private sector
- (8) Managing Director
12Public procurement legal framework of Pakistan
- PPRA Ordinance 2002 and the Public procurement
Rules 2004 are applicable to all procuring
agencies of the Federal Government. - Open Competitive Bidding is the principle/default
method of procurement - All procurements above the minimum threshold of
Rs. 100000 (about US1000) are advertised.
13 14Performance of PPRA
- Administrative setup of PPRA
- PPRA is a very lean organization
- Total number of employees is 50
- 8 officers, and 42 staff
- Total budget for current year is Rs. 43M
15Performance of PPRA
173755 tenders monitored/uploaded on PPRA
website during the Financial Years 2004-2013
Financial Year Organizations Tender Uploaded Average Daily Tenders PP Rules Violations Violations
2004-05 255 11905 32 11311 95.01
2005-06 274 17124 47 12782 74.64
2006-07 293 20226 55 13657 67.52
2007-08 295 17078 47 9917 58.07
2008-09 290 17913 49 4720 26.35
2009-10 350 18404 50 3883 21.10
2010-11 385 20880 57 2738 13.11
2011-12 582 24104 66 2506 10.40
2012-13 677 26121 71 5721 21.90
Total 3401 173755 474 67235 38.70
16Performance of PPRA
17Performance of PPRA
18Performance of PPRA
- Uploading of PP Rules Violations on PPRA website
started in May 2012. - Compliance of PP Rules has increased from 1 in
May 2012 to 10 at the moment . - Procurement Plans of 205 Procurement Agencies
have been uploaded during the current financial
year as against 9 last year.
2012 2013
9 205
19 Performance of PPRA
20- Capacity Building Initiatives of PPRA
21Capacity Building Initiatives of PPRA
- Training of the Government officials in
procurement started in 2006 under a 3 years World
Bank Capacity Building Project. - In 2009, PPRA training activities were formalized
through the establishment of National Institute
of Procurement (NIP) - Presently PPRA imparting training through its own
resources.
22Capacity Building Initiatives of PPRA
- 4501 Officials trained in Public Procurement
during the Financial Years 2006-2013.
Financial Year Training Programmes No. Participants
2006-07 22 807
2007-08 33 977
2008-09 32 881
2009-10 35 762
2010-11 19 343
2011-12 19 326
2012-13 22 405
Total 182 4501
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25Capacity building initiatives of PPRA
- Learning Management System
- Present training capacity of PPRA is 480 per year
- Through development of LMS PPRA will be able to
train around 3000 persons per annum, through
online/virtual system
26Challenges Faced By PPRA
- Shortage of office space.
- Shortage of Human Resource.
- Capacity Building of Human Resource.
- Lack of power to take action on PP Rules
Violations. - Budgetary constraints
27 28Reforms Agenda of PPRA
- Advisory Group on Public Procurement (AGPP)
- Preparation of National Procurement Strategy
2013-16 - Revision and improvement of Public Procurement
- Rules, 2004
- Improvement and / or preparation of Public
Procurement Regulations
29Reforms Agenda of PPRA
- Review of the SBD for Civil Works
- Preparation of SBDs for Goods
- Preparation of SBDs for Services
- Procurement Code of Ethic
30Reforms Agenda of PPRA
- Establishment of PPRA Monitoring and Evaluation
System - Revamping of the PPRA website
- Development of HR-Pay Role Module
- Accounting Software developed
31Reforms Agenda of PPRA
- The PPRA Service Regulations 2013 approved by the
PPRA Board on 30th September, 2013 - Market based Pay Package approved by the PPRA
Board, subject to fulfilment of certain
formalities. - For financial autonomy, PPRA Financial
Regulations/Accounting Procedure at a very
advanced stage.
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