Pakistan - Country Commercial Guide
Selling to the Government

Describes how major projects are secured and financed. Explains activities of the multilateral development banks in and other aid-funded projects.

Last published date: 2022-11-11

Pakistani law requires that all government tenders be advertised in national newspapers and the Pakistan Procurement Regulatory Authority (PPRA) website for a minimum of 15 days, except for government-to-government contracts. The procurement rules “Public Procurement Rules, 2004” are well defined and can be found on PPRA website.

Pakistani law does not prohibit payment of commissions on commercial procurement of large amounts of military equipment. However, the Directorate General Defense Purchase (DGDP) requires that the foreign principal provide the following: ex-factory value of items supplied, FOB value of these items, and percentage or amount of commission/or any other fee for services provided by the local agent. Commercial procurement of small to medium amounts of military equipment is generally made through local agents of overseas manufacturers and suppliers. For government contracts, bidders are very often asked to submit refundable “earnest money,” “bid bonds” or bank guarantees along with their bids to demonstrate their seriousness in bidding for a contract.

Some government agencies, such as the DGDP and the Water and Power Development Authority (WAPDA) allow only exclusive agents to submit bids for tenders to ensure that they receive only one quotation from each supplier.

Further details on government tenders’ website.

Financing of Projects

Many government’s public works projects are financed through borrowing from Multilateral Development Banks. U.S. companies bidding on Government tenders may also qualify for U.S. Government advocacy. A unit of the U.S. Commerce Department’s International Trade Administration, the Advocacy Center coordinates U.S. Government interagency advocacy efforts on behalf of U.S. exporters bidding on public sector contracts with international governments and government agencies. The Advocacy Center works closely with our network of the U.S. Commercial Service worldwide and inter-agency partners to ensure that exporters of U.S. products and services have the best possible chance of winning government contracts. Advocacy assistance can take many forms but often involves the U.S. Embassy or other U.S.

Outline how major projects are financed and give examples where relevant. If your country is a borrower from a Multilateral Development Bank, insert the following text (otherwise skip this section):

Multilateral Development Banks and Financing Government Sales. Price, payment terms, and financing can be a significant factor in winning a government contract. Many governments finance public works projects through borrowing from the Multilateral Development Banks (MDB). A helpful guide for working with the MDBs is the Trade Finance Guide. The U.S. Department of Commerce’s (USDOC) International Trade Administration (ITA) has a Foreign Commercial Service Officer stationed at each of the five different Multilateral Development Banks (MDBs): the African Development Bank; the Asian Development Bank; the European Bank for Reconstruction and Development; the Inter-American Development Bank; and the World Bank.

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Many governments’ public works projects are financed through borrowing from the Multilateral Development Banks.