July 15, 2020

PPRA Rules Query on Procurement Procedures

Client Query 049:- Hello, hope everything is fine. Wanted to ask that we intent to buy and purchase some products from our holding company that owns 100% shares of our company.Wanted to ask that are we required to follow PPRA Rules or can we purchase the product without tendering process as we are procuring from our holding company i.e. if we procure from our holding company can we avail any exemption from the tendering process? If you could reply at your earliest, I would be highly obliged.


Moiz Hussain, Spain


Answer:- Thank you very much for writing to us. According to Section 2(j, k & l) of PPRA Ordinance, 2002 provides that:-

(j) “procuring agency” means the following:-

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;

Hope this will help your query!

If you wish to inquire anything else you may set up an appointment with our extremely competent team of lawyers and visit our office which is located at GF-13, Tower A, The Centaurus, Islamabad, Pakistan.

You can also reach us at 0092-300-5075993


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