This document summarizes the presentation on public procurement in Balochistan, Pakistan. It discusses the current procurement practices and shortcomings of the existing purchase manual. It then outlines the structure of the presentation, which will cover the Balochistan Public Procurement Rules 2014 in two parts and discuss its implementation. The document also defines a regulatory authority and outlines its roles in regulating economic activities and developing standards. It argues that a public procurement authority is needed to address issues like outdated rules, lack of services procurement, and corruption. It provides an overview of procurement mechanisms historically used in Balochistan.

1. WORKSHOP BY (ASP), RSPN
Balochistan, Quetta
Mahfooz Ali Khan

2. Scheme of Presentations
Scheme of my presentation will be as following:-
 Current practices in regulating procurements in Balochistan
 Shortcoming of Purchase Manual and Scope of Current Public
Procurement
 Balochistan Public Procurement Rules 2014 Part-I
 Balochistan Public Procurement Rules 2014 Part-II
 Operations/Implementation of Balochistan Public Procurement
Rules 2014

3. What is a Regulatory Authority
Definition
A regulatory authority is an agency designated or otherwise
recognized by a government that regulates an
activity/business in the public interest.
 It oversees use of public goods and regulates commercial
activities, monitors conduct of the stakeholders against
certain set of standards prescribed by it.

4. Role of Regulatory Authority
 Provides a framework and maintains the “rules of the
game” for carrying out economic activities by individuals
and corporations.
 More specifically, in terms of its targets and tools,
regulation involves activities which
 (a) affect the operating business environment of broad
sectors of private enterprise, including market entry and
exit, rate, price and profit structures, and competition;
 (b) control specific commodities, products or services
through permit, certification or licensing requirements; and
 (c) relate to the development, administration and
enforcement of national standards.

5. Role of regulator
 To regulate competition, including stimulating it if it does
not emerge spontaneously
 Regulation must ensure that the system adapts to changing
demands and technology.
 The regulator must ensure that both “services in the general
interest” (for citizens) and “universal services” (for
consumers) continue to be provided.
 Regulatory authorities have to undertake the function of
regulating access to, and the use of, the scarce (public)
resource.

6. Why Public Procurement Authority
needed?
A. In Pakistan all provinces, and within provinces various Purchase
manuals/Procurement rules were being followed.
B. These Rules/Manuals were mostly outdated and not compatible with
changing environment.
C. These were not in line with International standards.
D. These were mostly dealing with SOPs about construction and supply
tendering.
E. Services procurements were completely absent from these manuals.
F. These manuals could not work against corruption or corrupt
practices in procurements.
G. There was no mechanism to update these manuals nor there was no
system to guide the client departments, in case it was needed.

7. Procurement mechanism in Balochistan
 In Balochistan all purchases/procurements were centralized at the
time of dissolution of ONE UNIT and it was being done by Supply
and Inspection Wings of Directorate of Industries and Mineral
Development, Department.
 This arrangement was limited to supplies, including food supply and
there was no system in place for construction, which was based on
PWD manual.
 This arrangement continued till 1997, when Balochistan Purchase
Manual was compiled and issued by the Finance Department,
Government of Balochistan.
 This manual which did not cover many areas, like food/wheat
supplies etc, was not updated ever since except issuance of few
memoes: enhancing ceilings.
Continue

8. Procurement mechanism in Balochistan
 Even this manual was not universally being applied in all the
department/autonomous bodies and authorities working under the
provincial government.
 Many clauses of this manual were never applied while going for
purchases and construction.
 On inquiries, it transpired that many purchase officers had never
seen this manual, except major nation building department.
 Major flaw besides its being obsolete, it was completely silent about
procurement of supplies, whereas in all major construction and other
projects consultancies were involved.
 In Finance department there was no inbuilt system of monitoring
and guidance for implementation of this manual
Continued

9. Legal position of Purchase Manual
 Balochistan purchase manual has no legal status. This can be termed
as SOP for Purchases, supplies and construction. Even for day to day,
enquiries, there is no system in place to address issues arising during
course of its operation.
 Since it contains many flaws, it resulted in numerous litigation.
 For safeguard of government interests there is passing remarks in
chapter V. these guiding principles have been culled out of GFR.
 Departmental officers have never been given any training for
effective implementation of these SOPs.