E-Gate project controversy: PMO may ask PAA to explain procurement transparency

ISLAMABAD: The Prime Minister’s Office (PMO) is set to seek an explanation from the Pakistan Airports Authority (PAA) over the controversy surrounding the proposed Automated Border Control (ABC) E-Gate Project, following fresh parliamentary scrutiny.

The issue came under review during a meeting of the Senate Standing Committee on Defence, which examined allegations related to the procurement process and referred to official correspondence from the Public Procurement Regulatory Authority (PPRA). The PPRA had cautioned that any contract awarded in violation of due process under the PPRA Rules, 2004, would be liable to cancellation.

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Transparency International Pakistan (TIP), in its recent communication with the PMO, stated that it had received a serious complaint regarding the alleged award of the Rs20 billion project to a specific company in violation of procurement rules.

The matter was discussed in detail during the Senate panel’s meeting held on June 30, 2026, following TIP’s allegations concerning the proposed E-Gate installations at Karachi, Lahore and Islamabad International Airports. According to the approved minutes, the Committee cited PPRA communications dated May 11, May 21 and June 3, 2026, copies of which had been shared with the Ministry of Defence. The communications reiterated that any contract awarded in violation of due process under Rule 42 of the PPRA Rules would be subject to cancellation.

Responding to the Committee, the Minister for Defence clarified that no contract had yet been awarded and that the procurement process remained under evaluation. He termed the reported project cost as speculative and maintained that, given the project’s integration with critical national border management systems, the procurement was being conducted strictly in accordance with the PPRA Rules, 2004.

The Committee directed that the award process must remain transparent and fully compliant with the PPRA framework, ensuring the selection of a technically sound and reputable firm offering competitive pricing and quality standards.

The parliamentary scrutiny follows a procurement process that has undergone significant changes over the past six years. The project was initially launched through an open international Request for Proposals (RFP) in 2020 for an integrated ABC solution, including E-Gates, Advance Passenger Information (API) and Passenger Name Record (PNR) systems. However, despite technical evaluations, the process did not culminate in a contract award.

In 2024, the PAA initiated a fresh Expression of Interest (EOI), shortlisted three firms, and subsequently engaged a German engineering consultant through a competitive process to develop the project’s technical framework. However, instead of issuing the final RFP to the shortlisted firms, the authority issued it exclusively to AXI Systems (Private) Limited under Rule 42(f) of the PPRA Rules.

This shift in procurement strategy prompted TIP to raise concerns regarding the application of Rule 42(f), transparency, publication of evaluation reports, and price competitiveness. PPRA subsequently sought procurement records from PAA through letters dated May 11, May 21 and June 3, 2026, noting that the requested information had not been provided.

Beyond the specific application of Rule 42(f), procurement experts note that the case also raises broader concerns related to transparency, fairness, value for money and open competition, as outlined in Rules 4, 7, 10, 20, 21 and 47 of the PPRA framework. Additionally, Rule 35 requires the publication of evaluation reports, while Rule 48 governs post-award disclosures at the appropriate stage.

The Senate Committee’s deliberations and PPRA’s correspondence have therefore intensified scrutiny over whether the procurement process, legal approvals and evaluation documentation will ultimately demonstrate compliance with these statutory requirements.

Until clarity emerges, the shift from a competitive procurement framework to a Rule 42(f)-based process is likely to remain a focal point of parliamentary, regulatory and public debate surrounding Pakistan’s E-Gate Project.

TIP has urged the Prime Minister to direct the PAA to proceed strictly through open, transparent and international competitive bidding under PPRA Rule 21, as originally envisaged in 2020 and 2024. It further stated that if violations are established, action should be taken against those responsible under the PPRA Ordinance, 2002, to deter future circumvention of procurement laws.

Copyright Business Recorder, 2026