PPRA board accords approval: MoU signed in compliance with IMF’s conditions

ISLAMABAD: The Board of Public Procurement Regulatory Authority (PPRA) has approved signing of Memorandum of Understanding (MoU) between PPRA, FBR, SECP, NADRA and PEC in compliance with IMF’s conditions aimed at developing linkages between e-procurement system with respect to beneficial ownership, companies’ registration, tax and national ID’s verification, well informed sources told Business Recorder. This issue came under discussion at recent meeting of PPRA Board, wherein different proposals were accorded approval.

Managing Director PPRA stated that Finance Division in its letter of February 12, 2022 submitted that the 6th review of IMF’s RFF programme has been successfully completed. The Memorandum of Economic and Financial Policies (MEFP) provides the following structural benchmark: PPRA to issue regulations to require collection for publication of beneficial ownership information from companies which are awarded contracts of Rs50 million and above by the end of March 2022.

The required regulations are being drafted and will be presented before the PPRA Board for approval in its forthcoming meeting.

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Managing Director further explained that other actions relevant to PPRA are as follows: (i) PPRA to pilot an e-procurement system linked with beneficial ownership, tax and national ID registries by the end of June, 2022; and (ii) PPRA and SECP to enter into an agreement enabling PPRA access to beneficial ownership information of companies bidding for public contracts.

Managing Director PPRA apprised that the e-procurement project is at a momentous stage. Meetings were held with NADRA, SECP, FBR, and Pakistan Engineering Council (PEC) to develop linkages between e-procurement system with respect to beneficial ownership, companies’ registration, tax and national ID verification.

Managing Director further maintained that PPRA will meet deadline of actions i.e. e-procurement mechanism by the end June 2022. With regard to progress on action like agreement between SECP and PPRA, he apprised the Board that draft MoU prepared by the Authority would be signed between both public sector organisations. Hence, the PPRA Board may approve the signing of the MoU with NADRA, SECP, FBR and PEC.

After thorough deliberations, the Board decided that PPRA may sign MoU with NADRA, SECP, FBR and PEC in compliance with the requirement of IMF’s Extended Fund Facility to meet the stipulated structural benchmarks and other actions within the given timeline.

Copyright Business Recorder, 2022