Client Query 041:- Hello, Hope all is well. Wanted to discuss about an organization which is a non-profit organization under Societies Act 1860 and operational since 2009. It is governed by Board of Directors and has formulated its operational policies and procedures considering local procurement rules, practices and UN requirements as well. As it is engaged in welfare activities using conditional/restricted grant funds received from INGOs and UN agencies, and are bound to follow their policies and procedures for carrying out project and operational activities. If we advertise any tender in local newspaper for procurement purpose, are we required to follow PPRA rules for said purpose as we are not using public funds and not fall under procuring agency umbrella as defined in PPRA Rules for said purpose as we are not using public funds and not fall under procuring agency umbrella as defined in PPRA Ordinance 2002 and PPRA rules 2004. Further I would like to ask whether we are required to follow PPRA rules if we include PEC registration condition in tender documents for technical evaluation of any tender published for civil work? I shall be very thankful to you for your prompt response.


Javed Khan, Pakistan


Answer:- Thank you very much for writing to us. As per your query the answer to your question is this that according to Section 2(j, k & l) of PPRA Ordinance, 2002 defines the applicability upon the procuring agency’s using public fund for acquisition of goods, services or constructing of any works as under:-

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(j) “Procuring agency” means:- i. any Ministry, Division, Department or any Office of the Federal Government. ii. Any authority, corporation, body or organization established by or under a Federal law or which is owned or controlled by the Federal Government.

(k) “Public Fund” means the Federal Consolidated Fund and the Public Account of the Federation and includes funds of enterprises, which are owned or controlled by the Federal Government.

(l) “Public procurement” means acquisition of goods, services or construction of any works financed wholly or partly out of the Public Fund, unless excluded otherwise by the Federal Government. However there are no restrictions in using PP Rules, 2004 or PEC standard bidding documents for the sake of transparency.

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