Pakistan telecom industry urges end to direct state-owned contracts

Pakistan’s telecommunications and technology industry has called on the federal government to abolish procurement rules that allow direct government-to-government (G2G) contracts for state-owned enterprises.

Industry bodies, including the Pakistan Telecommunication Access Providers Association (PTAPA) and the Telecom Operators Association (TOA), have formally petitioned Finance Minister Muhammad Aurangzeb, Planning Minister Ahsan Iqbal, and IT Minister Shaza Fatima Khawaja. They are specifically seeking the repeal of Clause 42(f) of the Public Procurement Rules 2004, which permits agencies to award contracts directly to state entities for projects deemed in the public interest.

Industry representatives warn that this practice bypasses competitive bidding, creating an unfair advantage for state-owned companies. They argue that such arrangements discourage private investment in critical infrastructure like fiber networks, data centers, and artificial intelligence. The associations cautioned that continuing this trend could lead to more inefficient, loss-making state organizations that rely on government subsidies, similar to the financial struggles of Pakistan International Airlines (PIA).