On 28 September 2026, Pakistan’s federal government issued the Public Procurement Rules 2026 through a Gazette notification, replacing the framework that had governed procurement since 2004. The new rules entered into force immediately, but procurement cases already initiated will remain subject to the 2004 rules.
The government issued the notification two days before an International Monetary Fund (IMF) deadline and on the opening day of talks over a US$1.2 billion disbursement, while an IMF mission carries out the fourth review of Pakistan’s loan program.
The official account links the rules to the Prime Minister’s Digital Pakistan vision. The Public Procurement Regulatory Authority (PPRA) has also stated that its reform effort originated domestically in August 2024.
However, despite the IMF’s insistence on removing preferential treatment for state-owned entities (SOEs), the new framework still allows procuring agencies to award contracts to those entities without competitive bidding.
Changes Under the 2026 Rules
The first change concerns digital procurement. Federal agencies must now use the E-Pak Acquisition and Disposal System (EPADS) for procurement and disposal, with deliberate procurement outside the system classified as mis-procurement.
That classification also extends to tailor-made specifications, the failure to establish prescribed committees, and deviations from the evaluation criteria stated for a procurement.
Each agency must also create a Procurement Cell staffed by officers accredited by PPRA. For large procurements, the framework introduces third-party validation, evaluation, and pre-shipment inspection.
Where a procurement exceeds Rs2 billion, a committee that includes external members drawn from a PPRA-maintained pool must open and evaluate the bids.
The rules also revise supplier blacklisting. Suppliers may be blacklisted for up to 10 years for corrupt or fraudulent practices, up to five years for knowingly providing false eligibility information or withholding it, and six months for failing to perform a contract.
Quwa Pro
See Where Emerging Defence Markets are Moving
Quwa Pro goes beyond tracking programs and equipment by explaining the policies, incentives, industry dynamics, and competitive pressures shaping South Asia's defence markets.
Subscribe Already a subscriber?Sign in
