Pakistan can save $8bn: MD PPRA

Listen , June 22, 2010

ISLAMABAD: The founding Managing Director of the Public Procurement

Regulatory Authority (PPRA), Mohammad Khalid Javed, says Pakistan can save at
least US$8 billion annually as against the figure of US$4 billion quoted by the
Transparency International by merely curbing corruption in all procurements.

Approaching The News in response to the chairman Transparency International

Pakistan report as published in The News and Jang on Monday, Javed said Pakistan
can save more than US$8 billion annually merely by ensuring strict adherence to the
legal framework in all procurements.

Javed is the person, who gave this country a Public Procurement Regulatory
Framework (Public Procurement Rules 2004) ranked as one of the best in the world
by the Transparency International. However, according to a source, the dilemma
remains that the regulatory framework is not fully implemented and the defence
procurements are exempted from the framework.

“I wish to intimate you that the figure of US$ 4 billion is a very conservative
estimate,” Javed said, adding: “The government procurements are estimated at 25 pc
of its GDP in a western country. In Pakistan, the government procurements are of
much higher as the government is running many large business ventures.”

He explained the Pakistani economy has been stated to be over $212 billion. As per
the 25 per cent yardstick, the magnitude of government procurements would be in
excess of $53 billion. A 15 per cent improvement in the government procurement, he
said, would yield close to $8 billion which is more than the total economic assistance
Pakistan gets.

“We do not need any borrowings from the WB or the IMF if we can save this money,
he said. Javed believed the 15 per cent figure is also a conservative estimate as the
actual magnitude of corruption is much higher. He disclosed some of the cases
investigated by him during his tenure as the MD PPRA would indicate a much higher
level of

corruption.

“All that is required is honest political leadership to arrest this menace,” he

commented. Chairman Transparency International Pakistan Syed Adil Gilani had
revealed that at this crucial time of financial crunch faced by Pakistan, the government
can save US$4 billion only by implementing the Public Procurement Rules 2004 in
the federal government, armed corces and all the four provinces of Pakistan and
corporations/authorities/trusts.

Link:

https://www.thenews.com.pk/archive/print/671861