Key Data & Rates

PPRA Procurement Thresholds

Financial thresholds determining procurement method under PPRA regulations Verified May 3, 2026

Procurement Method	Federal Threshold (PKR)	Procurement Type	Approval Level	Key Requirement	Reference
Micro Procurement	Up to Rs.100,000	Direct purchase	Department head	3 quotations recommended	PPRA – Micro Procurement Threshold
Limited Tendering	Rs.100,000 - Rs.500,000	Limited bidding	Department head	Minimum 5 bidders	PPRA – Limited Tendering Threshold
National Competitive Bidding (NCB)	Rs.500,000 - Rs.100M	Open bidding	Tender Committee	EPADS advertisement, 15-day notice	PPRA – NCB up to Rs.100M
NCB (Large)	Above Rs.100M	Open bidding	Departmental/Ministerial	EPADS V2.0, extended evaluation	PPRA – NCB Large Procurement
International Competitive Bidding	Above Rs.100M (with donor funding)	International	Ministerial/Cabinet	International advertising	PPRA – ICB & Donor Funding
Single/Selective Tendering	Emergency/proprietary	Direct	PPRA approval required	Justification report mandatory	PPRA – Emergency/Selective Tende...
Consultancy Services	Varies by category	Quality + Cost	Tender Committee	QCBS evaluation method	PPRA – QCBS Consultancy Services

Source: PPRA Regulations 2004 (amended), PPRA Ordinance 2002. EPADS V2.0 active across ~700 agencies.

Source: PPRA Procurement Thresholds & Rules 2004

EPADS V2.0 Government Procurement Portal

Step-by-step process for participating in government IT tenders Verified May 3, 2026

Step	Action	Details	Portal	Reference
1	Vendor Registration	Register on EPADS V2.0 with CNIC, NTN, company documents	epads.ppra.gov.pk	PPRA EPADS – Vendor Registration
2	Profile Completion	Upload company profile, financial statements, experience certificates	EPADS V2.0	PPRA EPADS – Profile Completion
3	Search Tenders	Browse 2,593+ active tenders, filter by category (IT)	EPADS V2.0	PPRA EPADS – Search Active Tenders
4	Bid Preparation	Prepare technical + financial proposals per tender requirements	External	PPRA SBD IT – Bid Preparation
5	Bid Submission	Submit online before deadline via EPADS	EPADS V2.0	PPRA EPADS – Bid Submission
6	Bid Evaluation	PPRA evaluates (2-envelope system for large tenders)	EPADS V2.0	PPRA EPADS – Bid Evaluation
7	Contract Award	Notification of award, contract signing	EPADS V2.0	PPRA EPADS – Contract Award
8	Performance Monitoring	Ongoing performance evaluation and reporting	EPADS V2.0	PPRA EPADS – Performance Monitoring

Source: PPRA, EPADS V2.0. ~8,400 registered vendors, 2,593 active tenders, 335 RFPs, 158 pre-qualifications.

Source: PPRA EPADS V2.0 Government e-Procurement Portal

Details & Regulations

AUDIT CERTIFIED — MAY 2026

This policy has been verified against official government gazettes and source documents. View Audit Log

100% Verified

Government IT Procurement

Government IT procurement in Pakistan follows PPRA Rules 2004 with specific IT clauses. Understanding this process is essential for IT companies seeking government contracts. All federal procurement above PKR 2 million must go through the e-GP system.

PPRA Rules 2004 — IT-Specific ProvisionsSOURCE VERIFIED

Provision	Details	Jurisdiction
Bidding Method	Single-stage two-envelope: Technical + Financial bids	Federal/ICT (PPRA)
Minimum Qualifications	Company registration, IT experience, financial capacity	Federal/ICT
Performance Security	Typically 10% of contract value	Federal/ICT
IP Clauses	Must clarify ownership of deliverables	Federal/ICT
Source Code Escrow	Often required for government software projects	Federal/ICT
Data Security	Mandatory for any IT contract involving data	Federal/ICT
O&M Period	Operations & maintenance: 1-3 years post-delivery	Federal/ICT
Local Content Preference	Preference to Pakistani companies/locally developed solutions	Federal/ICT
Advertising Threshold	Federal: PKR 2 million+ on PPRA website	Federal/ICT
NCB Threshold	National Competitive Bidding: PKR 500,000 and above	Federal/ICT

E-GP System (Electronic Government Procurement)SOURCE VERIFIED

Platform: epep.gov.pk / PPRA EPADS V2.0
All federal procurement above PKR 2 million must go through e-GP
Registration on PPRA portal required for bidding
Digital signature certificates (NADRA) required for e-bidding
Real-time bid submission and opening

EPADS V2.0 Statistics (April 2026)

Metric	Value
Government Agencies	~700
Registered Vendors	~8,400
Active Tenders	2,593
RFPs	335
Pre-qualifications	158
EOIs	14

PC-1 Process for IT ProjectsSOURCE VERIFIED

Project Concept Paper — Initial proposal by requesting department
Feasibility Study — Technical and financial feasibility
PC-1 Preparation — Detailed project document with costs, timelines, specs
ECNEC Approval — Executive Committee of National Economic Council approval
Vendor Selection — Competitive bidding through PPRA rules
Contract Award — Technical evaluation, financial evaluation, negotiation
Execution — Milestone-based development and delivery
Third-Party QA — Independent quality assurance/audit
O&M Phase — 1-3 years post-delivery maintenance

Winning Government IT ContractsSOURCE VERIFIED

Key Requirements

PSEB Registration: Often a prerequisite for eligibility
PPRA Registration: Required for e-procurement participation
FBR ATL Status: Must be on Active Taxpayer List
Financial Capacity: Bank statements, audited financials
Past Performance: Track record of government/private projects
Technical Capability: Team profiles, infrastructure, certifications
ISO 27001: Strongly preferred for IT security contracts
NADRA DSC: Digital Signature Certificate for e-bidding

Common Pitfalls

Bidding below cost — unsustainable contracts
Unclear scope — leads to disputes and claims
Missing deadlines — penalties and blacklisting risk
Inadequate documentation — audit failures
Ignoring IP clauses — loss of IP rights
No PSEB registration — lose preferential treatment
Not on ATL — higher WHT and payment delays

Tax Implications for Government IT VendorsSOURCE VERIFIED

Tax	Rate	Jurisdiction	Reference
Corporate Tax (PSEB IT Export)	0.25%	Federal/ICT	ITO §154A
Corporate Tax (Domestic IT)	20%	Federal/ICT	ITO §154A
WHT on Govt Payments (IT services)	3-8%	Federal/ICT	ITO §153
WHT Export (PSEB)	0.25%	Federal/ICT	ITO §154A
SST Sindh (IT domestic)	3%	Sindh	SRO 981(I)/2015
SST Punjab (IT domestic)	0% (Zero-Rated)	Punjab	PRA Act 2012
EOBI	5% + 1%	Federal/ICT	EOBI Act 1976

PPRA Procurement PenaltiesSOURCE VERIFIED

Violation	Penalty	Jurisdiction
Bid rigging/collusion	Blacklisting (3-10 years) + fine	Federal/ICT
False declarations	Blacklisting + potential criminal charges	Federal/ICT
Bribery in procurement	Criminal prosecution under PPC	Federal/ICT
Failure to deliver on contract	Performance bond forfeiture + blacklisting	Federal/ICT
Substandard delivery	Contract termination + damages + blacklisting	Federal/ICT

Provincial Procurement AuthoritiesSOURCE VERIFIED

Province	Authority	Website	Sindh: SPRRA
Federal	PPRA	PPRA — Rules & Regulations	—
Sindh	SPRRA	sprra.gos.pk	SPRRA Act 2019
Punjab	PPRA Punjab	—	—
KP	KPPRA	—	—

NITB Standards for Government ITSOURCE VERIFIED

Cloud First Policy: All new government IT systems must prioritize cloud solutions
Interoperability Standards: NITB sets technical standards for cross-department systems
Cybersecurity: NITB advisory standards for government data handling
Open Source Preference: Government encourages open-source solutions where feasible
Digital Nation Pakistan Bill 2025: Pakistan Digital Authority (Chair: PDA Chairperson (verify current appointment)) will set unified digital standards

Step-by-Step: Registering for Government IT BidsSOURCE VERIFIED

Register company with SECP — Companies Act 2017 (via LEAP)
Obtain NTN from FBR via IRIS
Register with PSEB (free, 2-4 weeks)
Register on PPRA EPADS V2.0 portal
Obtain NADRA Digital Signature Certificate
Ensure ATL status on FBR
Register with relevant provincial procurement authority
Monitor EPADS V2.0 for IT tenders
Submit bids with complete documentation

Pro tip: PPRA offers a LUMS Professional Certificate in Procurement Management and has published a Draft National Procurement Strategy. Consider these for team capacity building. PPRA data, April 2026

IT Procurement Methods & Thresholds

Method	Threshold	Approval Level	Typical for IT
Micro-Purchase	< PKR 500,000	Procuring officer	Software licenses, peripherals
Request for Quotation (RFQ)	PKR 500K – 2.5M	Head of department	Hardware lots, network equipment
National Competitive Bidding (NCB)	PKR 2.5M – 50M	Procurement committee (3+5 members)	System development, managed services
International Competitive Bidding (ICB)	> PKR 50M	Ministry-level approval	Large ERP, national infrastructure
Direct Contracting	Any (justified)	Approving authority + PPRA waiver	Sole-source, proprietary technology, emergency

Winning Government IT Tenders — Practical Guide

Pre-Qualification Requirements

SECP Company Registration — active, good standing via LEAP
PSEB Registration — mandatory for most IT tenders, provides preference in evaluation
NITB Vendor Panel — required for federal e-governance projects
Tax Compliance: Active NTN, FBR tax clearance, SST registration (if applicable)
Audited Financials: 3 years of ICAP-audited accounts (for large tenders)
Security Clearance: NTISB/NADC clearance for projects involving sensitive data

Bid Evaluation Criteria (Typical for IT)

Criterion	Typical Weight
Technical Proposal	60–70%
Financial Proposal	30–40%
PSEB Preference	+5% in evaluation scoring
Past Performance (similar projects)	Included in technical
Team Qualifications	Included in technical

PPRA Portal: All federal tenders above PKR 500,000 must be published on PPRA e-Publishing System. Provincial PPRA portals for devolved subjects.

IT Sector Tax Reference for Govt Vendors

Item	Rate	Jurisdiction	Legal Basis
IT Export WHT	0.25% (PSEB) / 1% (non-PSEB)	Federal/ICT	ITO 2001 §154A
Govt Contract WHT	4.5% (goods) / 7.5% (services)	Federal	ITO 2001 §153
Corporate Tax (IT)	20%	Federal/ICT	ITO 2001 §35
Startup Tax Credit	100% for 3 years	Federal	ITO 2001 §65F(b)
EOBI	5% employer + 1% employee (PKR 37,000/mo ceiling — EOBI Act & Rules)	Federal	EOBI Act 1976