Telecom Operators Urge Govt To Scrap G2G Contracting Under PPRA Rules.

Pakistan’s Telecom Operators Association (TOA) has urged the government to abolish the provision allowing direct government-to-government (G2G) contracts under the Public Procurement Rules (PPRA), arguing that the mechanism is hurting private-sector participation in IT, telecom and digital projects.

In a letter to Finance Minister Muhammad Aurangzeb, Planning Minister Ahsan Iqbal and IT Minister Shaza Fatima Khawaja, TOA Secretary General Kamal Ahmed called for the repeal of Clause 42(f) of the PPRA Rules, which allows procuring agencies to directly contract state-owned entities for certain time-sensitive projects considered to be in the public interest.

The association claimed that numerous IT and telecom projects have been awarded through direct G2G arrangements without competitive bidding over the past five years. It said this has crowded out private technology companies that have invested heavily in infrastructure and digital services.

TOA argued that Pakistan’s telecom sector is increasingly moving beyond traditional connectivity into data centres, cloud computing, artificial intelligence and other digital services. It warned that limiting private companies’ access to government projects could reduce opportunities to develop and test locally built technologies before taking them to international markets.

The association also raised concerns that state-linked entities may receive preferential treatment through regulatory exemptions, licensing advantages or implicit government backing, creating what it described as an uneven competitive environment.

Another concern is the alleged practice of state-owned entities securing G2G contracts and subsequently subcontracting projects to preferred private companies, which TOA said could undermine transparency and accountability in public procurement.

TOA has therefore called for state-owned enterprises to compete with private-sector companies on an equal basis for government-funded projects.