PUNJAB SAFE MEDICAL SUPPLIES AUTHORITY ACT 2018
(Act II of 2018)
[15 February 2018]
An Act to
establish an Authority for procuring drugs and medical equipment and
providing them to the public health facilities in the Punjab
It is necessary to establish an Authority for
purposes of procuring quality drugs and medical equipment and for effective
administration for prompt and equitable distribution to the public health
facilities in the Punjab; and, for ancillary matters.
Be it enacted by the Provincial Assembly of
the Punjab as follows:
1. Short title, extent and commencement.–
(1) This Act may be cited as the Punjab Safe Medical Supplies Authority Act
(2) It extends to whole of the Punjab.
(3) It shall come into force on such date as
the Government may, by notification, specify and different dates may be so
specified for different areas and for different public health facilities.
In this Act:
(a) “Act” means the Punjab Safe Medical
Supplies Authority Act 2018;
(b) “Authority” means Punjab Safe
Medical Supplies Authority;
(c) “Chief Executive Officer” means the
Chief Executive Officer of the Authority;
(d) “contract’’ means an agreement
between the Authority and any other party for the procurement of goods and
(e) “drug” means any drugs including
tablets, syrups, injections, enemas, ointments, drops, creams, lotions,
intravenous drips, serum and vaccines being used in the health facilities
for any medical or surgical treatment;
means any biomedical apparatus or equipment and includes any other article
or machinery used in the health facilities;
(g) “Government” means Government of
(h) “health facility” means a first aid
post, dispensary, basic health unit, rural health center, tehsil
headquarters hospital, district headquarter
hospital (teaching and non-teaching), tertiary care hospital, children
hospital, cardiology, urology, kidney or oncology center, center for organ
transplant and any other health facility administered and managed by the
Government or the Federal Government;
means a member of the Authority and, unless the context otherwise provides,
includes the chairperson and the vice chairperson of the Authority;
means prescribed by rules or regulations;
means the procurement of goods or services or both for the health facilities
in accordance with the Punjab Procurement Rules 2014, and includes the goods
or services procured on the request in writing from a private health
facility or trust hospital;
means the regulations framed under the Act;
means the rules made under the Act;
mean the specifications of a drug or
equipment prescribed by the Authority;
premises” means any place for the storage of
drugs or equipment or both; and
vehicle” means the vehicle deployed for the transportation of drugs or
equipment or both.
3. The Authority.–
(1) The Government may, by notification in the official Gazette,
establish Punjab Medical Supplies Authority for carrying out the purposes of
(2) The Authority shall be a
body corporate, having perpetual succession and a common seal, with power to
enter into contracts and acquire or, subject to subsection (3), dispose of
property, and may by its name, sue or be sued.
(3) The Authority shall not dispose of
any immovable property without prior approval, in writing, of the
(4) The headquarters of the Authority shall
be at Lahore but the Authority may, with the prior approval of the
Government, establish its offices at such other place or places in the
Punjab as may be deemed necessary to accomplish the purposes of the Act.
4. Composition of the Authority.–
(1) The Authority shall consist of the chairperson who shall be
appointed by the Chief Minister and the following members:
members of Provincial Assembly of the Punjab to be nominated by the Speaker;
(b) Parliamentary Secretary for
Specialized Healthcare and Medical Education;
(c) Secretary to the Government,
Specialized Healthcare and Medical Education Department;
(d) Secretary to the Government, Primary
and Secondary Healthcare Department;
(e) Secretary to the Government,
(f) Secretary to the Government,
Industries Commerce and Investment Department;
renowned professors of pharmacology;
renowned biomedical or electrical engineer;
representative of Chamber of Commerce and Industry; and
(k) Chief Executive Officer
(2) The Government may, by
notification in the official Gazette, increase the membership of the
Authority if public interest so requires.
Government shall, for a term of three years, nominate the members, other
than ex officio members, but at least one female member shall be so
nominated against the categories mentioned in clauses (a), (g) and (h) of
(4) The Government may, at any
time, remove the chairperson or member, other than ex officio member.
(5) The chairperson or member may submit his
resignation to the Government.
(6) The Government may designate a member of
the Authority as vice chairperson of the Authority.
(7) The Vice Chairperson shall perform such
functions as may be prescribed or as the Authority may assign.
(8) No act or proceedings of the Authority
shall be invalid merely on the ground of the existence of any vacancy or
defect in the constitution of the Authority.
5. Disqualification of members.–
No person shall be appointed a member, or shall continue to be a member
(a) is or,
at any time, has been convicted of an offence involving moral turpitude;
(b) is or,
at any time, has been adjudicated as an insolvent;
(c) is found to be
of unsound mind; and
(d) has a
conflict of interest with the Authority and fails to disclose, in writing,
such conflict of interest to the Authority.
6. Functions of the Authority.–
(1) The Authority may perform such functions and exercise such powers as may
be necessary for carrying out the purposes of the Act.
(2) Without prejudice to the generality of
the functions and powers under subsection (1), the Authority shall:
quality drugs and equipment at competitive rates for the health facilities;
the standards, procedures, processes and guidelines under the Act with
respect to the procurement of drugs and equipment for the health facilities;
the formularies and specifications of equipment for various categories of
or cause to be conducted researches relevant to its functions under the Act;
the firms, sole agents or authorized dealers for the procurement of drugs
standards and procedures for the storage and supply of drugs and equipment
and ensure that the drugs are stored under the prescribed storage
premises and ware houses for drug storage as per best international
practices or obtain such storage facilities from private sector;
guidelines for proper storage and disbursement of the drugs in a health
timely supply of drugs and equipment to each category of the health
an annual calendar for the procurement of drugs and equipment; and
such other functions as may be incidental to the functions mentioned above
or as the Government may assign or as may be prescribed by rules.
(3) The Authority shall exercise its
functions, as far as possible, in accordance with the well-established
international best practices, scientific principles and procedures.
7. Categorization of storage premises.–
(1) The Authority shall, by regulations:
storage premises for the storage of drugs or equipment or both; and
the standards and procedures, based on established scientific principles and
international best practices for the storage and transportation of drugs and
(2) The Authority shall issue a certificate
for every storage premises and transportation vehicle in the prescribed
(3) The certificate issued under subsection
(2) shall be displayed at a conspicuous place of the storage premises or, as
the case may be, the transportation vehicle.
8. Business and Scientific Board.–
(1) The Authority shall establish a Business and Scientific Board,
consisting of the following:
(a) Chief Executive Officer;
(b) one member possessing the
prescribed qualification in pharmacy and having five years’ experience of
working in an organization established for determining standards and quality
(c) one member possessing the
prescribed qualification in biomedical or electrical engineering and having
five years’ experience of working in an organization established for
scientific or industrial research on biomedical and allied equipment;
(d) one member possessing the prescribed
qualification in pharmacology and having five years’ experience of working
in a public sector medical college or medical university;
(e) one renowned
surgeon or physician;
renowned businessman having experience in the procurement of drugs and
experts in procurement.
(2) The Chief Executive Officer shall
be the convener of the Board.
(3) The Board
may co-opt any other member from the relevant industry.
(4) The Authority shall determine the terms
and conditions of the members of the Board, other than ex-officio
(5) The Authority may refer any matter
relating to procurement to the Board for recommendations.
(6) The Board may make recommendations to the
Authority with respect to the standards, products, procedures, processes and
guidelines in relation to any technical aspects of procurement.
(7) The Authority may, after recording
reasons, refer the recommendations to the Board for reconsideration either
generally or any particular aspect of the recommendations.
(8) The Board shall reconsider the case and
shall again submit its recommendations and the Authority shall act
9. Chief Executive Officer.–
(1) Subject to the general supervision and control of the Authority, the
administration and management of the affairs of the Authority shall vest in
the Chief Executive Officer.
(2) The Chief Executive Officer shall have
such qualifications, experience, age and other requirements, shall receive
such salary and allowances, and be subject to such conditions of service as
may be prescribed by rules, and until so prescribed, as the Government, on
the recommendations of the Authority, may determine.
(3) The Chief Minister shall appoint the
Chief Executive Officer.
(4) The Chief Executive Officer shall be the
whole time officer of the Authority and shall exercise such powers and
perform such functions as may be prescribed or as the Authority may
10. Employees, etc.–
(1) The Authority may, on such terms and conditions as may be prescribed by
regulations, appoint advisors, consultants, experts or other administrative
and technical personnel necessary for the discharge of its functions under
(2) The Government may, with the
concurrence of the Authority, transfer the services of any of its employees
to the Authority.
(3) The Authority may, with the
concurrence of the employee and the Government, absorb the services of the
employee into its service on the terms and conditions as are acceptable to
the employee and approved by the Government.
(4) The terms and conditions of the
service of an employee transferred from the Government shall not be less
favourable than those in his parent department.
(1) The Authority may constitute standing or special committees by such
nomenclature as it deems necessary and assign functions to each such
(2) The committee may consist of the
members and such other persons as may be necessary.
12. Recovery of dues.– Any sum
due to the Authority from any person under the Act, shall be recoverable as
arrears of land revenue under the Punjab Land Revenue Act, 1967 (XVII of
13. Delegation of powers.–
The Authority may delegate any of its functions to the chairperson,
vice-chairperson, a member, Chief Executive Officer, committee or an
employee of the Authority, except the following functions:
amendment or repeal of regulations;
(b) approval of
annual budget of the Authority;
and decision on the audit reports;
(d) approval of
policies, standards, procedures and guidelines for the discharge of
functions by the Authority;
(e) approval of
the annual reports; and
of the committees and filling a vacancy in a committee.
(1) There shall be a Fund to be known as Punjab Safe Medical Supplies
(2) The Fund shall vest in the Authority and
shall be utilized by the Authority to meet its expenses including the
payment of salaries and other remuneration to the members, officers,
employees, experts, advisers and consultants.
(3) The Fund shall consist of:
(a) loan and
grant by the Government or the Federal Government or from any other source;
charges and other moneys received by the Authority;
from lease or sale of the property; and
(d) all other
sums received by the Authority.
(4) The Authority shall
not incur any loan without prior approval of the Government.
(5) The Authority shall
frugally meet all its expenses from the Fund.
15. Fees and charges.–
The Authority may, with the prior approval of the Government, impose fees
and charges for the services it renders.
(1) The Chief Executive Officer shall prepare the budget of the Authority
for each financial year commencing on first day of July of a year and ending
on thirtieth day of June of the succeeding year.
(2) The Chief Executive Officer shall place
the budget for approval before the Authority at least ninety days prior to
the commencement of a financial year.
(3) After the Authority has approved the
Budget, the Chief Executive Officer shall submit the budget to the
Government for sanction at least sixty days prior to the commencement of a
The Authority shall maintain proper accounts and other relevant records and
prepare annual statement of accounts in such form and manner as may be
18. Bank accounts.–
The Authority may open and maintain its accounts at such scheduled banks as
may be prescribed, and until so prescribed, as the Authority may determine.
(1) The Auditor General of Pakistan shall conduct audit of the accounts of
(2) In addition to the audit under subsection
(1), the Authority may appoint a firm of chartered accountants placed in
category ‘A’ by State Bank of Pakistan, for the annual audit of the accounts
of the Authority.
(3) The auditors appointed under subsection
(2) shall submit the report to the Authority and the Government and the
Authority shall take such action and make such decisions as may be necessary
in the light of the audit report or as directed by the Government.
20. Annual performance report.–
(1) The Authority shall prepare and forward to the Government by 30 October
each year, the annual performance report.
(2) The report shall consist of:
statement of accounts and audit reports of the Authority;
comprehensive statement of the work and activities of the preceding
financial year and its proposed projects and schemes; and
other matters as may be prescribed or as the Authority may consider
appropriate or as the Government may direct.
(3) The Government may, after considering the
report, issue such directions to the Authority as may be necessary for
carrying out the purposes of the Act and the Authority shall implement such
21. Monitoring and evaluation.– (1) The
Government may, at least once in a year, conduct or cause to be conducted,
the performance audit of the Authority to assess and evaluate the
performance of the Authority in accomplishing the objectives of the Act.
(2) The Government shall evaluate the report
and shall issue such directions to the Authority as may be necessary and the
Authority shall implement the directions.
22. Employees to be public servants.–
The chairperson, vice chairperson, Chief Executive Officer, members,
officers and other personnel of the Authority, acting or purporting to act
in pursuance of any of the provisions of this Act, shall be deemed to be
public servants within the meaning of section 21 of the Pakistan Penal Code,
1860 (XLV of 1860).
No suit, prosecution or other legal proceedings shall lie against the
Authority, the chairperson, vice chairperson, member, officer, servant,
expert or consultant of the Authority in respect of anything done or
intended to be done in good faith under the Act.
24. Administrative penalty.–
(1) A person who fails to display the certificate issued to him under
section 7 of the Act or removes the certificate or tempers with or defaces
or mutilates the certificate in any manner whatsoever shall be guilty of an
offence and may, in the prescribed manner, be awarded administrative penalty
which may extend to five hundred thousand rupees but which shall not be less
than twenty five thousand rupees.
(2) In case the offence under
subsection (1) is repeated, the maximum administrative penalty of rupees
five hundred thousand shall be awarded and, in addition, the competent
authority may, in the prescribed manner, decide to nullify the contractual
arrangement with such person and cancel the licence
or permit issued to him.
(3) Any person aggrieved by a final order
under subsection (1) or subsection (2) may, within thirty days of the
receipt of order, submit a representation to the appellate committee
constituted by the Authority and the decision of that committee shall be
The Government may make rules for carrying out the purposes of this Act.
Subject to this Act and the rules, the Authority may, by notification,
frame regulations to give effect to the provisions of the Act.