2000年-世界发展银行全球_Pakistan___Country_Procurement_Assessment_Report_134页_6mb

Pakistan Country Procurement Assessment Report (CPAR) Summary

Overview

This report, titled "Pakistan Country Procurement Assessment Report (CPAR)", was prepared by a joint team of Pakistan government officials, World Bank staff, and internationally hired consultants. It provides a comprehensive assessment of Pakistan's procurement system, focusing on its legal and regulatory framework, procedures, and practices. The report highlights the need for reform to enhance efficiency, transparency, and competition in public procurement.

Core Content

Legal and Regulatory Framework

• Legal System: Pakistan's legal system is based on the 1973 Constitution and the British Common Law system. However, there is no specific federal or provincial law regulating public procurement.
• Procurement Rules: The "General Financial Rules" (1951, revised 1979) address procurement issues but are not comprehensive. They are essentially executive orders and can be amended or abolished by the relevant minister without legislative approval.
• Procurement Manuals: Provincial governments have their own purchase manuals, generally based on the federal model. These manuals lack clarity and transparency.
• Role of PEC: The Pakistan Engineering Council (PEC) plays a semi-official role in regulating the engineering profession, but its protectionist stance and dual role as both a professional body and a regulatory agency create conflicts of interest.
• Conflict of Rules: There is no legal provision that allows donor procurement rules to prevail over local rules in case of conflict, which can lead to inefficiencies and unfair practices.

Issues and Recommendations

• Issue 1: Confusing and outdated rules at federal and provincial levels lead to inefficient and corrupt procurement.
  • Recommendation: Enact a modern, transparent, and competitive public procurement law based on the UNCITRAL Model Law, and establish an independent regulatory agency.
• Issue 2: Protectionism and conflict of interest in PEC's responsibilities.
  • Recommendation: Remove PEC's public sector functions and limit its role to private-sector responsibilities.
• Issue 3: Lack of a mechanism for the speedy resolution of procurement grievances.
  • Recommendation: Introduce a speedy settlement mechanism for procurement disputes, which will later be incorporated into the public procurement law. Amend the 1940 Arbitration Act to require an odd number of arbitrators and majority voting for decisions.

Procedures and Practices

• Open Bidding: The procurement system generally follows open bidding procedures, including public advertising, registration of contractors, formal bidding, and awarding contracts to the lowest-price bidder.
• Mandatory Registration and Prequalification: These are long-standing practices that result in separate procedures for each department and agency. This limits competition and often leads to corruption and collusion.
• Price Negotiations: Post-bid price negotiations are common, even though they are not required by law. These negotiations are often used to pressure bidders into lowering prices, but they also create opportunities for corruption.
• Schedule of Rates (SOR): SORs are used to determine the cost parameters of contracts, but they are outdated and incomplete. This leads to disputes and inefficiencies, as they fail to cover all aspects of procurement.

Key Findings

• The procurement system is characterized by a lack of clarity, transparency, and competitiveness.
• Outdated and inconsistent rules contribute to inefficiencies and corruption.
• Mandatory registration and prequalification are barriers to open competition.
• Price negotiations after bid opening are often used to manipulate outcomes and invite corruption.
• The PEC's dual role as a regulatory body and a protectionist entity undermines fair competition and creates conflicts of interest.
• Arbitration procedures are not effective, with disputes taking years to resolve.

Recommendations

1. Enact a modern public procurement law based on international standards, such as the UNCITRAL Model Law.
2. Create an independent regulatory agency (PPRA) to oversee the procurement framework, focusing on policy, documentation, and rule development.
3. Eliminate mandatory registration and prequalification of bidders to promote open competition.
4. Abolish price negotiations after bid opening to prevent corruption.
5. Revise the Arbitration Act to ensure fair and efficient dispute resolution.
6. Restrict the PEC's role to private-sector responsibilities and remove its involvement in public procurement.

Conclusion

The CPAR highlights the urgent need for a comprehensive legal and institutional reform of Pakistan's procurement system. The current system is plagued by outdated rules, protectionist practices, and inefficiencies that hinder transparency and competition. The report recommends a modern, transparent, and competitive legal framework, along with the establishment of an independent regulatory body to ensure the effective implementation of procurement reforms.