The Telecom Operators Association (TOA) has urged the government to remove a procurement rule that allows certain projects to be awarded directly to government-owned entities without open bidding.
The association has called for the repeal of Clause 42(f) of the Public Procurement Rules, 2004, arguing that the provision is limiting opportunities for private IT, telecom and digital companies.
Private Sector Seeks A Level Playing Field
TOA says government spending on digital and technology services should allow private companies to compete where they already have the required expertise.
The association argues that telecom and technology firms have invested billions in Pakistan over the past two decades and contributed significantly to the national exchequer.
Concerns Over Competition And Jobs
Pakistan’s technology sector is expanding into areas such as cloud computing, data centres and artificial intelligence. TOA believes a strong domestic market is essential for local companies to develop their capabilities and compete internationally.
The association warns that directing more public contracts toward state-owned enterprises could weaken competition, reduce innovation and limit opportunities for private firms, particularly small and medium-sized businesses.
TOA Raises Subcontracting Concerns
The association has also questioned cases where state-owned entities receive government contracts through the G2G route and subsequently outsource the work to private companies.
TOA believes such arrangements could create transparency and accountability concerns.
Call For Equal Competition
TOA wants government-owned companies to participate in public procurement on the same terms as private-sector firms.
The association argues that removing Clause 42(f) would create a more competitive environment, encourage private investment and support the growth of Pakistan’s telecom and technology industries.