Transparency International Pakistan (TIP) has asked Prime Minister Shehbaz Sharif to suspend the Pakistan Airports Authority’s (PAA) proposed Rs. 20 billion e-Gate project and order an independent inquiry into alleged violations of public procurement rules.
In a letter sent to the Prime Minister’s Office on July 16, TIP said it had received a complaint alleging that the PAA abandoned an international competitive bidding process and instead sought to award the contract to a single private company by invoking Rule 42(f) of the Public Procurement Regulatory Authority (PPRA) Rules, 2004.
According to TIP, the Civil Aviation Authority initially invited international bids for e-Gates, biometric verification and passport authentication systems in 2020, but no contract was awarded. After the PAA launched a fresh Expression of Interest in 2024 and shortlisted three companies, the competitive procurement process was allegedly discontinued.
TIP argued that Rule 42(f) is reserved for exceptional circumstances, such as emergencies, overriding public interest or procurements involving government entities, and questioned its use for a technology project expected to run for 24 months. It also said no public justification had been provided for bypassing open competition.
The organization further questioned the reported eligibility of the company being considered for the contract, claiming preliminary checks did not verify its registration with the Securities and Exchange Commission of Pakistan (SECP), inclusion on the Federal Board of Revenue’s Active Taxpayer List (ATL), sales tax registration or registration with the Pakistan Engineering Council (PEC).
TIP also raised concerns over a consultant’s recommendation to award the contract under Rule 42(f), saying the advice should be independently reviewed.
Separately, the organization questioned an unsolicited proposal from a foreign company for Passenger Information and Passenger Name Record systems, warning that its acceptance could ultimately impose more than Rs. 50 billion annually in additional security surcharges on passengers. It also questioned the legal basis for considering unsolicited proposals outside the PPRA framework.
Describing the allegations as credible on a preliminary basis, TIP urged the government to suspend the procurement process pending an independent investigation. It also recommended that, if the allegations are substantiated, the project should be retendered through an open international competitive bidding process and that action be taken against any officials found responsible for violating procurement rules.
