Public Procurement Regulatory Authority Ordinance, 2002
The Public Procurement
Regulatory Authority Ordinance, 2002
ORDINANCE NO. XXII OF 2002
An Ordinance to provide for
the establishment of Public Procurement Regulatory Authority for regulating
public procurement of goods, services and works in the public sector
WHEREAS it is expedient to
provide for the establishment of a Public Procurement Regulatory Authority for
regulating procurement of goods, services and works in the public sector and for
matters connected therewith or ancillary thereto;
AND WHEREAS the President is
satisfied that circumstances exist which render it necessary to take immediate
NOW, THEREFORE, in pursuance
of the Proclamation of Emergency of the fourteenth day of October, 1999, and the
Provisional Constitution Order No. 1 of 1999, read with the Provisional
Constitution (Amendment) Order No. 9 of 1999, and in exercise of all powers
enabling him in that behalf, the President of the Islamic Republic of Pakistan
is pleased to make and promulgate the following Ordinance:---
1. Short title, extent and
commencement.-(1) This Ordinance may be
called the Public Procurement Regulatory Authority Ordinance, 2002.
(2) It extends to the whole
(3) It shall come into force
2. Definitions. In this Ordinance, unless there is anything
repugnant in the subject or context,---
“Authority” means the Public Procurement Regulatory Authority established under
“Board” means the Board constituted under section 6;
“Chairperson” means the Chairperson of the Board;
“Fund” means the fund established under section 9;
“goods” means articles and objects of every kind and description including raw
materials, products, equipment, machinery, spares and commodities in any form
and includes services incidental to installation, transport, maintenance and
similar obligations related to the supply of goods if the value of these
services does not exceed the value of such goods;
“Managing Director” means the Managing Director appointed under section 8;
“member” means a member of the Authority;
“misprocurement” means public procurement in contravention of any provision of
this Ordinance, any rules, regulations, orders or instructions made thereunder
or any other law in respect of, or relating to, public procurement;
“prescribed” means prescribed by rules made under this Ordinance;
“procuring agency” means,---
any Ministry, Division, Department or any office of the Federal Government;
any authority, corporation, body or organization established by or under a
Federal law or which is owned or controlled by the Federal Government.
(k) “Public Fund” means the Federal Consolidated Fund
and the Public Account of the Federation and includes funds of enterprises which
are owned or controlled by the Federal Government.
“public procurement” means acquisition of goods, services or construction of any
works financed wholly or partly out of the Public Fund, unless excluded
otherwise by the Federal Government;
“regulations” means regulations made under this Ordinance;
“rules” means rules made under this Ordinance;
“service” means any object of procurement other than goods or works; and
“works” means any construction work consisting of erection, assembly, repair,
renovation or demolition of a building or structure or part thereof, such as
site preparation, excavation, installation of equipment or material and
decoration, finishing and includes incidental services such as drilling,
mapping, satellite photography,, seismic investigations and similar activities,
if the value of those services does not exceed that of the works themselves.
3. Establishment of
Authority.__(1) There is
hereby established an Authority to be called the Public Procurement Regulatory
Authority for carrying out the purposes of this Ordinance.
(2) The Authority shall be a
body corporate, having perpetual succession and a common seal, with powers
subject to the provisions of this Ordinance, to acquire and hold property, both
movable and immovable, and, sue and be sued by the name assigned to it by
(3) The headquarters of the
authority shall be at Islamabad and it may
establish its offices at such other place or places in
Pakistan as it may consider appropriate.
4. Power of the Federal
Government to issue directives. The
Federal Government tray; as and when it considers necessary, issue directives to
the Authority on matters of policy, and such directives shall be binding on the
5. Functions and powers of
the Authority.__(1) Subject
to other provisions of this Ordinance, the authority may take such measures and
exercise such powers as may be necessary for improving governance, management,
transparency, accountability and quality of public procurement of goods,
services and works in the public sector.
(2) Without prejudice to the
generality of the powers conferred by subsection (1), the Authority may,---
monitor application of the laws, rules, regulations, policies and procedures in
respect of or relating to, procurement;
monitor the implementation of and evaluate laws, rules, regulations, policies
and procedures in respect of, or relating to, inspection or quality of goods,
services and works and recommend reformulation thereof or revisions therein as
it deems necessary;
recommend to the Federal Government revisions in or formulation of new laws,
rules and policies in respect of or related to public procurement;
make regulations and lay down codes of ethics and procedure for public
procurement, inspection or quality of goods, services an works;
monitor public procurement practices and make recommendations to improve
governance, transparency, accountability and quality of public procurement;
monitor overall performance of procuring agencies and make recommendations for.
improvements in their institutional set up:
provide and coordinate assistance to procuring agencies for developing and
improving their institutional framework and public procurement activities;
submit reports to the Government in respect of public procurement activities of
call any functionary of procuring agencies to provide assistance in its
functions and call for any information from such agencies in pursuance of its
objectives and functions; and
perform any other function assigned to it by the Federal Government or that is
incidental or consequential to any of the aforesaid functions.
CHAPTER - III
MANAGEMENT AND ADMINISTRATION
OF THE AUTHORITY
General directions and administration of the Authority and its affairs shall
vest in a Board which may exercise all powers, perform all functions and do all
acts end things which may be exercised, performed or done by the Authority.
(2) The Board shall consist
of the following Members, namely:---
(1) Secretary, Finance
(2) Secretary, Ministry of
Industries and Production Member
(3) Secretary, Defence
Production Division Member
(4) Secretary, Ministry of
Water and Power Member
(5) Secretary, Ministry of
Housing and Works Member
(6) Secretary, Ministry of
(7) Three Members from
private sector to be
nominated by the Federal
(8) Managing Director
(3) The Managing Director
shall act as Secretary to the Board
(4) A member appointed from
the private sector shall hold office for a period of three years and shall be
entitled to such terms and conditions as the Federal Government may determine.
(5) A member from the private
sector may, by writing in his hand addressed to the Federal Government, resign
(6) A casual vacancy in the
office of a private sector member shall be filled by appointment of another
member from the private sector for the residue of the terms of his predecessor.
7. Meeting of the Board.__(1)
The meeting of .the Board shall be presided over by the Chairperson or, in his
absence the member elected by the members, shall preside at the meeting of the
(2) Five members shall
constitute a quorum for a meeting of the Board requiring a decision by the
(3) The meeting of the Board
shall be held at such times, places and in such manner as may be prescribed by
(4) The members shall have
reasonable notice of the rime and place of the meeting and matters on which a
decision by the Board shall be taken in such meeting.
(5) The decision of the Board
shall be taken by the majority of its members present and, in case of a tie, the
member presiding a meeting shall have a casting vote.
(6) All orders, determination
and decision of the Board shall be taken in writing and shall be signed by the
8. Managing Director.__(1)
The Federal Government shall select and appoint a whole-time Managing Director
to serve as member of the Board and shall be responsible for day to day
administration of the Authority for such period and on such terms and conditions
as the Federal Government may determine.
(2) The Managing Director
shall be appointed for three years and he shall be eligible for re-appointment
but his total tenure shall in no case shall be appointed or continue as Managing
Director, if he,---
has been convicted of an offence involving moral turpitude;
has been removed from service for misconduct;
has been adjudicated as insolvent; .
is incapable of discharging his duties by reasons of physical or mental
incapacity and has been so declared by a Medical .Board appointed by the Federal
fail to disclose any conflict of interest at or within the time provided for
such disclosure by or under this Ordinance or contravene any of the provisions
of this Ordinance.
(4) The Managing Director
may, at any time, resign his office by writing under his hand addressed to the
(5) The Managing Director
shall be paid such salary arid allowances as the Federal Government may
determine but his salary and allowances shall not be varied to his disadvantage
during his term of office.
(6) The Managing Director
shall not, during the term of his office, engage himself to any other service,
business, vocation or employment nor shall he before the expiration of one year
thereof enter into, employment or accept any advisory or consult relationship
with any person engaged in public procurement activity:
Provided that where the
Managing Director is a Government servant there shall be no such restrictions on
his employment after he has retired or transferred from the post of Managing
Director and where he is from private sector he shall not have any direct or
indirect financial interest or have any connection with any company engaged in
public procurement activity for so long as he holds office and for a period of
one year thereafter,---
(7) The Managing Director
shall have power and responsibility to,---
exercise administrative control over the personnel of the Authority.
exercise in respect of the Authority, such other management, financial powers as
deemed appropriate by the Authority.
submit the annual budget proposals of the Authority to the Board;
prepare the annual report of the Authority for the Board and the Federal
exercise such powers as the Board may delegate to him; and
act on behalf of the Authority, in any emergency, subject to the obligation to
report such action to the Board at its next meeting and to seek the Board's
ratification of any action so taken.
There is hereby established a Fund to be known as the Public Procurement
Regulatory Authority Fund which shall vest in the Authority and shall be
utilized by the Authority to meet the charges in connection with its functions
under this Ordinance.
(2) To the credit of the
Public Procurement Authority, a fund shall be placed comprising,---
such sums as -the Federal Government may, from time to time, allocate to it in
the annual budget;
income from investment by the Authority; and
all other sums or properties which may in any manner become payable to, or vest
in, the Authority in respect of any matter.
(3) The Authority, while
performing its functions and exercising its powers under the Ordinance, shall
exercise highest sense of prudence as far as expenditures are concerned.
10. Expenditure to be
charged on the Fund. The Fund shall be
expended for the purpose of,---
paying any expenditure lawfully incurred by -the Authority, relating to
remuneration of its members, employees, advisers, and consultants of the
Authority; including provident fund contributions, superannuating allowances or
gratuities, legal fees and costs as well as other fees and costs;
paying any other expenses, costs or expenditure properly incurred or accepted by
the Authority in the performance of its functions or the exercise of its powers
under this Ordinance;
purchasing or hiring equipment, machinery and any other work and undertakings in
the performance of its functions or the exercise of its powers under this
repaying any financial accommodation received; and
generally, paying any expenses for carrying into effect the provisions of this
11. Power to obtain
finances and receive grants. The
Authority may from time to time and with the approval of the Federal Government,
accept grants from entities both domestic and international, including
multilateral agencies for meeting any of its obligations or performing of any of
12. Investment. The Authority may invest its surplus funds in
accordance with the instructions of the Federal Government.
13. Budget and accounts.
The Authority shall cause its accounts
to be maintained properly and in respect of each financial year submit for
approval of the Federal Government by such date and in such form as may be
specified by the Federal Government a statement showing the estimated receipts
and current expenditure and the sums to be required from the Government during
the next financial year.
14. Maintenance of
accounts. The Authority shall cause
proper accounts to be kept and shall after the end of each financial year cause
to be prepared for that financial year a statement of accounts of the Authority
which shall include a balance sheet and an account of receipt and expenditure.
The accounts of the Authority, shall be audited every year by the
Auditor-General of Pakistan.
CHAPTER V.—REGULATORY AND
The Authority may call for any information required by it for carrying out the
purposes of this Ordinance, from any person or any institution in public
procurement activities and any such person or institution shall provide the
required information called by the Authority.
(2) The Authority shall
furnish to the Federal Government information with respect to the policies and
procedures it is pursuing proposes to pursue in the performance of any of its
functions under Ordinance as the Federal Government may, from time to time
17. Annual report.
Within one hundred and twenty days from the end of each financial year, the
Authority shall cause a report to be prepared on its activities including
inquiries and investigations made by the Authority under this Ordinance during
that financial year and release to the public after it has been seen by the
18. Appointment of
officers and staff, etc.(1) The
Authority may, from time to time and within its resources, appoint such
officers, servants, advisers, consultants and experts as it may consider
necessary for performance of its functions.
(2) The Authority shall by
regulations prescribe the procedure for appointment of its officers, servants,
advisers, consultants and experts and. the terms and conditions of their
19. Members, officers,
etc. to be public servants. The
Chairperson, members, director-general, officers, servants, advisers,
consultants and experts of the Authority shall, when acting or purporting to act
in pursuance of any of the provisions of this Ordinance or the rules and
regulations made thereunder, be deemed to be public servants within the meaning
of section 21 of the Pakistan Penal Code (Act XLV of 1860).
20. Delegation. The Authority may, by such conditions and
limitations as it may deem fit to impose, delegate any of its functions or
powers to the Managing Director, or one or more members or any of its officers
except the power to,---
approve audited accounts;
recommend exemption under section 21; and
make or repeal regulation made under this Ordinance.
21. Powers to exempt.
The Authority may, for reasons to be
recorded in writing; recommend to the Federal Government that the procurement of
an object or class of objects in the national interest be exempted from the
operation of this Ordinance or any rule or regulation made thereunder or any
other law regulating public procurement and the Federal Government on such
recommendations shall exempt the aforesaid objects or class of objects from the
operation of the laws and rules and regulations made thereunder.
22. Validity of
proceedings. No act or proceedings of
the Authority or the Board, shall be invalid by reason only of the existence of
a vacancy in, or defect in the constitution of, the Authority or the Board.
23. Indemnity. No suit, prosecution, or other legal proceedings
shall lie against the Authority, the Board, the Chairperson or any member,
officer, servants, advisers or consultants of the Authority in respect of
anything in good faith done or intended to be done under this Ordinance or the
rules and regulations made thereunder.
24. Common seal.-(1)
The Authority shall have a common seal and such seal shall be kept by the
Managing Director or such other person as the Chairperson may authorize.
(2) The seal shall be
authenticated in the same manner as may be prescribed by regulation and any
document purported to be sealed with the seal so authenticated shall be
receivable as evidence of the particular stated in the document.
25. Winding up. No provision of law relating to winding up of
bodies corporate shall apply to the Authority and the Authority shall not be
wound up except by the orders of the Federal Government in the same manner as
the Federal Government may direct.
26. Power of the Federal
Government to make rules. The Federal
Government may, by notification in the official Gazette, make rules for carrying
out the purposes of this Ordinance.
27. Power of the Authority
to make regulations. The Authority may
make regulations, not inconsistent with the provisions of this Ordinance and the
rules made thereunder, for carrying out the purposes of this Ordinance.