Introduction

The Public Procurement Regulatory Authority is an autonomous body endowed with the responsibility of prescribing regulations and procedures for public procurements by Federal Government owned public sector organizations with a view to improve governance, management, transparency, accountability and quality of public procurement of goods, works and services. It is also endowed with the responsibility of monitoring procurement by public sector agencies/organizations and has been delegated necessary powers under the Public Procurement Regulatory Authority Ordinance 2002. The Public Procurement Regulatory Authority (PPRA) was established when the Government of Pakistan promulgated PPRA Ordinance on 15th May, 2002. The first major assignment undertaken by PPRA was the review of existing procurement regulations and procedures of five public sector enterprises as well as their re-engineering and re-designing for transparent and efficient procurement procedures by these enterprises. The Ministry of Finance has implemented the Public Procurement Rules, 2004, initialed by the Authority and vetted by the Law Division, with effect from 8th June, 2004. The said rules provide a broad regulatory framework for transparent public sector procurements and are applicable to all public sector enterprises at federal level. Adherence to these Rules promises to introduce transparency as well as accountability in procurements in public sector. The year under review was actually the first year to introduce and apply a new system of procurement evolved with due consideration and in consultation with all stake holders to avoid any flaws leading to misuse of the rules for defeating the main objective of transparency. The PPRA has set up its own website which provides information relating to Public Procurement Regulatory Authority Ordinance 2002, Public Procurement Rules, 2004, Procurement regulations as well as public procurement opportunities. At present the Authority is also coordinating a big task of re-engineering of the out dated procurement manuals of 15 Public Sector entities which include CAA, NTC, NHA, Pakistan Steel Mills, PNSC Pak Railways, OGDCL, SSGCL, SNGPL, CDA, PIA, TIP, H.M.C, P.W.D and Utility Stores Corporation.

PPRA Functions (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 sub-section (1), the Authority may a) Monitor application of the laws, rules, regulations, policies and procedures in respect of, or relating to, procurement; b) 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; c) Recommend to the Federal Government revisions in or formulation of new laws, rules and policies in respect of or related to public procurement; d) Make regulations and lay down codes of ethics and procedures for public procurement, inspection or quality of goods, services and works; e) Monitor public procurement practices and make recommendations to improve governance, transparency, accountability and quality of public procurement; f) Monitor overall performance of procuring agencies and make recommendations for improvements in their institutional set up; g) Provide and coordinate assistance to procuring agencies for developing and improving their institutional framework and public procurement activities; h) Submit reports to the Government in respect of public procurement activities of procuring agencies; i) 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 j) Perform any other function assigned to it by the Federal Government or that is incidental or consequential to any of the aforesaid functions. PPRA Regulations 1. Short title and commencement. (1) These regulations may be called the Public Procurement Regulations, 2008. (2) They shall come into force at once. 2. Definitions (1) In these regulations, unless there is anything repugnant in the subject of context, (a) Ordinance means the Public Procurement Regulatory Authority Ordinance, 2002 (XXII of 2002); and (b) Rules means the Public Procurement Rules, 2004. (2) The expression used but not defined herein shall have the same meaning as are assigned to them in Ordinance and rules. 3. Bidding documents A Procuring agency when engaged in procurement of works, shall use the standard form of bidding documents prescribed by the Pakistan Engineering Council constituted under the Pakistan Engineering Council Act, 1975 (V of 1976). 4. Record to be kept.- A Procuring agency shall keep the following record of the procurement proceedings for at least five years from the date of completion of procurement of contract or rejection of all bids under rules 33 of the rules, namely:(a) Brief description of the goods or works to be procured or of the procurement need for which the procuring agency requested proposal or offers; (b) The names and addresses of suppliers or contractors that submitted bids, proposals, offers or quotations and name and address of supplier or contractor with whom the procurement contract is entered into and the contract price;

(c) The names and address of suppliers or contractor who were pre-qualified or selected and invited to submit bids or technical proposals; (d) Information related to the qualifications or disqualifications of suppliers or contractors who have submitted bids, proposals, offers or quotations; (e) The price or the basis for determining the price and a summary of the other terms and conditions of each bid, proposal, offer or quotation and procurement contract stipulated by the procuring agency; (f) Evaluation report prepared under rule 35 of the rules, along with any reservation and preference under rule 24 ibid; (g) In case of rejection of bids pursuant to rule 33 of the rules, its complete record; (h) In case of any other method of procurement except open compatative bidding which does not culminate in procurement contract, a statement to that effect and the reasons thereof; and (i) A summary of any requests for clarification of the pre-qualification or solicitation documents, the response thereto, as well as a summary of any modification to those documents. 5. Obtaining the record (1) After acceptance of the bids or, as the case may be, termination of the procurement proceedings without resulting in a contract, any person may, on request, obtain the records referred to in clauses (a) and (c) of regulation 4. (2) After acceptance of the bids or, as the case may be, termination of the procurement proceedings without resulting in a contract any person who submitted bids proposals, offers or quotations or applied for pre-qualification may obtain, on request, the records referred to in clauses (b), (d), (e), (f) and (g) of regulation 4. (3) The record referred to in regulation 4 may also be made available within a reasonable time to the Auditor General of Pakistan or any authorized officer of the Authority or the Federal Government.

6. No liability to suppliers etc. A procuring agency shall not be liable to suppliers or contractors for damages owing solely to a failure of keeping record of the procurement proceedings in accordance with these regulations. 7. Posting of contract awards on PPRAs Website. All procuring agencies whether within or outside Pakistan shall post Contract Awards over fifty million rupees on PPRAs website on the proformas as set out in Annexure-I and Annexure-II to these regulations. Provided that where any information is related to the award of a contract is of proprietary nature or where the procuring agency is convinced that such disclosure of information shall be against the public interest, it can withhold only such information from uploading on PPRAs website subject to the prior approval of the Public Procurement Regulatory Authority.

SECP Initiatives on CSR guidelines The SECP has published (CSR) corporate social responsibility Voluntary Guidelines 2013 for all companies that are interested in CSR activities. SECP expects that all companies may endeavor to adopt working models that complement the recommended guidelines with a focus of fair, transparent and responsible business practices. The objective of these guidelines is to promote development of a framework for CSR initiatives by all companies. The guidelines are voluntary in nature and corporations have been recommended to move beyond the provisions as indicated in the guidelines (where they consider it necessary). The deliberations of the voluntary guidelines are as follows: Companies should have a CSR policy approved by their BODs, in order to reflect their understanding and commitment to CSR activities. The company is directed for the formation of a CSR consultative committee supervised and managed by a CSR expert. The committee members should have an understanding and commitment for the implementation of CSR project. The terms of reference of the Consultative Committee are also mentioned. CSR Policy of a company should serves as a guide to its strategic plans shows the way for the systematic CSR management system and projects the route map for CSR initiative and it should also highlight the priority areas where CSR project is actively working, and are planning for the initiation. The policy is also expected to be implemented through a systematic structure that evaluates and reflects the progress of CSR goals. Specified resources should be earmarked for selected CSR initiatives the method of allocation or identified criteria should be decided in advance duly ratified by the board. The guideline also provides a Governance Benchmark in the form of a self-assessment table to facilitate management in the evaluation of their governance framework with respect to corporate social responsibility. Assessment and assurance can be made through an external party and it should be implemented in a systematic way and also need to be documented and characterized by defined procedures. Further, the companies are required to report concise and significant information regarding their CSR policy. CSR Report may prominently disclose the CSR objectives, working

models, implementation status, impact / achievements, risks, opportunities, challenges and working partners.