This report analyzes Pakistan's procurement system, and presents an extensive set of recommendations for strengthening same. It reviews the legal, and regulatory framework, as well as the mandatory registration and/or pre-qualification of suppliers, and contractors, and negotiation practices, and, analyzes bidding document issues for recommendation. Human resources development, auditing practices, and anti-corruption measures are features assessed, in order to be improved to conform with good, and efficient procurement practice. Among its major findings, the report stipulates that the country's procurement practices are governed by a set of outdated rules, and regulations, the application of which is aggravated by growing procedures, which deviate competition for government business, through widespread latitude in the application (or disregard) of rules, and procedures. And, in theory, the advanced, pre-determined selection practice in the bidding process, and setting cost parameters according to a Schedule of Rates (SOR), has proven harmful, a practice which not only excludes outside firms, but produces cost estimates so low as to deter bids, leaving the field to insiders. Recommendations include a prompt enactment of transparent public procurement legislation; creation of an independent regulatory agency to develop a procurement framework, confined to policy, and development of rules; abolishment of anti-competitive practices; and, amendment of the Arbitration Act (1940), to ensure a majority vote arbitration.
