In the world of public procurement, transparency, accountability, and efficiency are keys.
In Pakistan, the Public Procurement Regulatory Authority (PPRA), established under the PPRA Ordinance of 2002, has made significant strides in revolutionizing procurement through the introduction of digital solutions, culminating in the E-Pak Acquisition and Disposal System (E-PADS). This system marks a pivotal step in modernizing public procurement, enhancing efficiency, and ensuring fairness.
This step dates back to 2022, when World Bank introduced the Program-for-Results (PforR) financing instrument to support complex programmes aimed at delivering sustainable results.
This instrument underscored the need for using a country’s own institutions and processes, linking disbursement of funds to the achievement of specific programme outcomes.
In line with these goals, PPRA developed new Standard Bidding Documents (SBDs) for acquisition of goods, consultancy and non-consulting services, IT Services, pharmaceuticals as well as for pre-qualification of suppliers and bidders. These documents aim to provide detailed price breakdowns, covering elements like taxes, freight charges, and duties, reducing ambiguities that previously plagued public tenders.
The introduction of these SBDs was a key step toward enhancing transparency. In the past, bidders often submitted vague pricing in terms of lump sum pricing, making it difficult for procuring agencies to assess the true cost of goods and services.
The new SBDs required detailed itemized pricing, allowing agencies to obtain a clearer picture of costs. Furthermore, the documents are required to be uploaded on the PPRA and Procuring agency’s websites, making them easily accessible to vendors and resultantly increasing competition.
In the late 2023, PPRA introduced E-PADS, a fully digital platform that allows for electronic bidding and submission. E-PADS has simplified procurement by enabling vendors to download tender documents, submit bids online, and receive real-time updates.
This has widened vendor participation and increased competition, with as many as 20 bids being received for a single Request for Quotation (RFQ) where previously it was hard to get three quotes against single RFQ.
As of September 2024, PPRA has conducted around 700 training sessions for around 10,000 participants across various procurement levels to facilitate the use of E-PADS.
This training has ensured that stakeholders, including federal and provincial agencies, are equipped to utilize the system effectively. E-PADS has facilitated a large volume of procurement activities, covering thousands of petty purchases, RFQs, and competitive bids.
This digital system has made procurement more transparent, efficient, and accessible for both vendors and public agencies, significantly enhancing the overall process.
The system has several key features, including encrypted tender submission, e-evaluation, a grievance-redressal system, and an e-payment process. It ensures transparency at every stage, automatically locking submissions after deadlines to prevent any post-deadline alterations.
This has significantly reduced corruption risks and increased fairness in procurement. PPRA has also linked this online tendering system with newspaper publication segment that is currently being undertaken by Press Information Department (PID). It will enable procuring agency to select the newspapers as well as desired location for wide publication thereby reducing the burden of PID and reducing the time it takes for the procurement ads to be advertised in the newspapers.
Despite these successes, challenges remain, particularly in transitioning auditors accustomed to paper-based systems. However, PPRA’s efforts, supported by the National Information Technology Board (NITB) and the Punjab Information Technology Board (PITB), are making this transition smoother.
Legal amendments, including clauses to reduce monopolies and mandate the disclosure of beneficial ownership, have also contributed to improving procurement practices.
PPRA’s reforms, including the introduction of an Alternate Dispute Resolution (ADR) mechanism, reduced dispute resolution times from 18 months to 70 days. These advancements have paved the way for a more transparent and efficient procurement system, which has been widely recognized by the World Bank.
Looking forward, PPRA’s ongoing efforts to train stakeholders and refine the system will ensure that the benefits of E-PADS are sustained. The system not only promotes transparency but also aligns with sustainable development goals by supporting eco-friendly, paperless processes. The success of E-PADS demonstrates that technological innovation can transform public sector procurement, making it more transparent, efficient, and inclusive for all participants.
Copyright Business Recorder, 2024
The writer is a procurement specialist in a public sector organization
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