By Dr. Asim J. Abro, Deputy Director (Monitoring & Evaluation) at the Public Procurement Regulatory Authority (PPRA)
Pakistan’s push toward digitized economy has taken a significant leap forward with the rollout of the e-procurement system called e-Pak Acquisition and Disposal System (ePADS). Launched in 2023 by the federal Public Procurement Regulatory Authority (PPRA), under the auspice of World Bank, the platform has emerged as a transformative force in public procurement. While provinces retain their own autonomy under the 18th Constitutional Amendment, they have been provided a flexible “shadow” version of the system, enabling them to adapt ePADS in line with their respective regulatory frameworks.
The first year of implementation was understandably transitional. Systems were evolving, capacity building was underway, and adoption across procuring entities was gradual. However, by 2024–25, the federal government achieved a major milestone: full rollout of e-procurement across ministries and departments. For the first time, policymakers now have access to a consolidated dataset around 16,000 procurements conducted through open competitive bidding and nearly 500,000 transactions made through alternative methods across the country. This raises an important question: how can this data be leveraged not merely for regulatory oversight, but as a strategic instrument for economic transformation and industrial development?
This question becomes even more relevant when viewed against Pakistan’s broader business environment. According to the latest Business Ready (B-READY) Report 2024 published by World Bank, Pakistan ranks in the lower tier globally, falling in the 4th quintile overall. While the country performs relatively better in regulatory design (3rd quintile), it lags in public service delivery and operational efficiency. The message is clear, Pakistan does not suffer from a lack of rules, but from gaps in implementation, coordination, and service quality.
Herein lies the untapped potential of procurement data. Traditionally, procurement systems have been used to ensure compliance, transparency, and adherence to rules. These functions remain essential. However, in a modern digital economy, procurement data can serve a far broader purpose, informing industrial policy, guiding investment decisions, and strengthening domestic production.
Developed countries with advanced procurement systems increasingly use this data to analyse purchasing patterns, identify high-demand goods, and assess the financial scale of government consumption. Pakistan now has the opportunity to move forward in leaps and bounds. By analyzing procurement trends, including the types of goods and services being procured, the quantities involved, and the associated costs, the government can identify import-intensive sectors and formulate targeted policies aimed at strengthening domestic production and reducing reliance on imports. This, in turn, opens the door for targeted industrial collaboration.
Targeted industrial linkage programs between government procurement agencies and domestic manufacturers are crucial. Where procurement data reveals persistent imports of specific products, the government may collaborate with local industries to encourage domestic manufacturing through tax incentives, technology support, preferential financing, and capacity-building initiatives. This would support import substitution and strengthen local supply chains.
From a private sector perspective, several reforms can be introduced to maximize the economic and industrial potential of the ePADS and transform public procurement into a driver of competitiveness and economic growth. Development of procurement intelligence and market analytics framework would empower private sector to access aggregated, non-sensitive procurement trends. By publishing sector-wise demand forecasts, recurring procurement categories, benchmark prices, and long-term government consumption patterns, businesses can make informed investment and production decisions. Access to such information would enable industries to identify emerging demand areas and align production capacities accordingly. The private sector may further benefit from predictable procurement planning and multi-year procurement pipelines. Publishing annual and medium-term procurement plans would enable businesses to forecast demand, optimize inventory, plan investments, and expand production capacity with greater confidence. Predictability reduces market uncertainty and encourages long-term industrial investment. Reforms should focus on strengthening local content and value-addition policies in a balanced manner. Rather than imposing restrictive protectionist measures, procurement policies may gradually encourage domestic value addition, technology transfer, and local sourcing where competitive domestic capacity exists. This can stimulate industrial upgrading while maintaining procurement efficiency and competition.
Payment efficiency and effective contract management system must ensure quality of the deliverable and timely payments. Delayed payments are considered one of the major bottlenecks, reputable firms are reluctant to participate in public contracts. Integration of ePADS with treasury and financial management systems, similar to practices observed in Albania, can improve payment predictability and enhance business confidence in government contracting.
The government may establish a public-private procurement advisory forum comprising regulators, industry representatives, SMEs, chambers of commerce, and procurement professionals to regularly review procurement data trends, identify sectoral bottlenecks, and propose policy interventions. Such institutionalized dialogue would strengthen coordination between public procurement policy and industrial development objectives.
The benefits extend beyond macroeconomic stability. Increased local production creates jobs, stimulates business activity, and fosters innovation. It also provides small and medium enterprises with opportunities to integrate into public supply chains, thereby broadening the base of economic participation. Collectively, these initiatives can help transform public procurement from a compliance-oriented administrative process into a strategic economic instrument that promotes domestic industry, enhances competitiveness, stimulates innovation, expands SME participation, and contributes to sustainable economic growth in Pakistan.
About the author:
Dr. Asim J. Abro is serving as Deputy Director (Monitoring & Evaluation) at the Public Procurement Regulatory Authority (PPRA), with more than two decades of professional experience in public procurement, supply chain management, governance reforms, and development management. He has played a key role in the design and implementation of Pakistan’s e-Procurement System (ePADS) and regularly contributes analytical writings on procurement, economic policy, and public sector governance. He can be reached as [email protected].
