Procurement rules: govt seeks Law Ministry's views on SIFC powers
This move follows a summary submitted by the Ministry of Commerce seeking to hire M/s Haider Global BVBA, a lobbying firm, to assist in the extension of Pakistan's Generalised Scheme of Preferences (GSP) Plus status with the European Union (EU).
On June 17, 2025, MD (PPRA) Hasnat Ahmed Qureshi informed the Board that the Ministry of Commerce in a letter of June 12, 2025 had requested the Authority for exemption from application of Rules 20 & 21 of the Public Procurement Rules, 2004 and other applicable provisions of PPRA framework, for hiring the services of a lobbying firm in Europe, through direct contracting, in terms of Section 21 of the PPRA ordinance, 2002. The lobbying firm will help in the ongoing review and renewal of Pakistan's GSP Plus status.
EU-Pakistan business forum in May: SIFC readying its strategy
Adding background of the case, MoC explained that the current GSP Scheme was introduced by the European Union in 2012 through EU Regulation 978/2012.The scheme was implemented on January 1, 2014, and initially intended to remain in effect for ten years, until December 31, 2023.
The European Parliament has approved an amendment to the said EU Regulation, extending the validity of the existing GSP Regulation by four years, up to December 31, 2027, instead of December 31, 2023.
The scheme provides zero duties on over 66% of EU tariff lines, and exports from Pakistan to the EU have increased from $ 4.6 billion in 2014 to $ 8.38 billion in 2024. Pakistan has undergone four biennial reviews of the GSP Plus, and the next review is now due, with a Monitoring Mission scheduled to visit Pakistan starting on June 22, 2025.
However, the visit has been postponed due to the conflict in the Middle East and unpredictable travel logistics at that time. Now the Monitoring Mission is expected in November or December this year.
According to the MoC, considering the significance of GSP Plus status for Pakistan's exports, the hiring of a lobbying firm is critical for the renewal and extension process. The Ministry highlighted that such a firm should: (i) possess expertise in EU law and conventions to support Pakistan in formulating appropriate legal responses; (ii) assist Pakistani businesses in adapting to evolving EU regulations affecting key sectors; and (iii) maintain access to experienced former EU policymakers who can provide insights on potential political and economic challen8es.
The Ministry of Foreign Affairs (MoFA) has enclosed the proposal and payment schedule from M/s Haider Global BVBA regarding the ongoing review and renewal of Pakistan's GSP plus status. The proposal was received from Pakistan's s Mission in Brussels.
According to the proposal, the contract term will be three years, with a total payment of Euro 6 million (approximately Rs 2 billion) to be made as per the payment schedule. In view of the upcoming visit of the Monitoring Mission of the European Commission, the MoC is of the view that it is imperative that a lobbying firm, as proposed by the Pakistan Mission in Brussels, may be hired on an urgent basis to safeguard our national interest.
MD (PPRA) further stated that the MoC, in this regard, submitted a summary to the Prime Minister, through the Ministry of Foreign Affairs, Finance Division, and SIFC seeking approval for hiring the services of a lobbying firm by relaxation of the relevant provisions of the PPRA Rules and other financial codal formalities.
The SIFC on June 10, 2025 endorsed the request of the Ministry of Commerce and decided 'given the extreme time constraint and criticality of GSP for national economy, SIFC endorses the request of the Ministry of Commerce for exemption from relevant clause of PPRA rules to enable it to go for direct contracting with a firm which has the required expertise, experience and standing to fulfil task, price reasonability be worked out by the Ministry of Commerce.'
Subsequently, the Prime Minister's Office in a letter of June 12,2025, directed the MoC that the matter be placed before the PPRA Board along with recommendations of SIFC for consideration and approval. 'Before the case is submitted for the orders of the Prime Minister, Ministry of Commerce shall place the case along-with the recommendation of SIFC for the consideration and approval of the PPRA Board and resubmit the summary accordingly for the order of the Prime Minister.'
Secretary Commerce Division, Jawad Paul and the Additional Secretary Europe (MoFA) were present in the meeting to defend the case, while the Deputy Head of Mission, Pakistan's Mission in Brussels, attended the meeting via video link. Responding to a query by a Board member, regarding the urgency of the matter, Secretary Commerce explained that the review Monitoring Mission of European Commission will be visiting Pakistan to consider the status of Pakistan, therefore it is critical for continuation of GSP plus scheme that the firm is hired on immediate basis.
The Chair/ Secretary Finance, Imdad Ullah Bosal pointed out that the PPRA Board could only recommend exemptions from application of the procurement Rules, and that the finalization and hiring of a lobbying firm was to be done by the Commerce Division as a procuring agency in this case.
During the discussion, the Secretary of Commerce also highlighted the need for clarity regarding the recommendation of exemption from application of PPRA rules, both by the SIFC and PPRA Board, as it leads to duplication and consumes considerable time. He was of the view that referring such cases to the PPRA Board should not be required when SIFC had already recommended the case.
Most Board members also expressed similar views on the issue and recommended adopting a consistent and standardized approach for handling cases endorsed by the SIFC for exemptions from the procurement Rules.
One member opined that it is a question of law and clarification should be sought from the Law Division as to whether the PPRA Board should consider exemption from application of procurement rules, already recommended by SIFC under 10-F of Board of Investment Act 2023 'power to relax or exempt from regulatory compliance' or otherwise?
Secretary Commerce emphasized that in line with the recommendations and endorsement of the SIFC and direction of PMO, PPRA Board should recommend the case to the Federal Government, for grant of exemption from operation of Rules 20 and 21 of PPRA Rules, 2024, and other applicable provisions of PPRA Framework for hiring of M/s Haider Global BVBA through direct contracting under Section 21 of PPR Ordinance.
After a thorough discussion on the importance of the matter and legitimacy of the recommendations of the PPRA Board decided to seek opinion from the Ministry of Law &Justice on the legal question as to 'whether exemption recommended/endorsed under Section 10-F of BoI (Amendment) Act, 2023 by the SIFC is sufficient for grant of exemption by the Federal Cabinet or matter is required to be referred to PPRA Board again for consideration of exemption under Section 21 of PPRA Ordinance, 2OO2 in addition to the exemption recommended by SIFC ?'
Copyright Business Recorder, 2025
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Recorder
3 hours ago
- Business Recorder
Yen stumbles as Trump imposes 25% tariffs on Japan
SINGAPORE: The yen fell broadly on Tuesday while the dollar held steady as U.S. President Donald Trump unveiled 25% tariffs on goods from Japan and South Korea in the latest development of his chaotic trade war. Trump on Monday began telling trade partners – from powerhouse suppliers like Japan and South Korea to minor players – that sharply higher U.S. tariffs will start August 1. He later said that he was open to extensions if countries made proposals. The announcement rattled investor sentiment, sending the Japanese yen and South Korean won down roughly 1% overnight. Both currencies remained under pressure early on Tuesday, with the yen falling to a two-week low of 146.44 per dollar. The won rose 0.4% to 1370.20 per dollar. US dollar flat to slightly lower Investors entered the week with much confusion over Trump's tariff plans ahead of an initial July 9 deadline. While the new August 1 date offers a brief reprieve, the outlook remains uncertain and global economic concerns persist. 'There is still a lot of uncertainty as to where tariff rates will eventually settle and which countries will get what rates, so uncertainty about the global economy is still high and that will keep investors on edge for the time being,' said Carol Kong, a currency strategist at Commonwealth Bank of Australia. 'This is just the start and we'll get more headlines out for sure over the coming days.' Japanese Prime Minister Shigeru Ishiba said on Tuesday that Japan would continue negotiations with the United States to seek a trade deal that benefits both countries. South Korea has said it plans to intensify trade talks with the U.S. and views Trump's plan for a 25% tariff from August 1 as effectively extending a grace period on implementing reciprocal tariffs. Other currencies meanwhile gained some ground on Tuesday, after sliding in the prior session when the dollar rebounded. The euro was up 0.27% to $1.1741 after having slid 0.67% on Monday, while sterling edged up 0.17% to $1.3626. The European Union will not receive a letter from the United States setting out higher tariffs, EU sources familiar with the matter told Reuters on Monday, and is eyeing possible exemptions from the U.S. baseline levy of 10%. Dollar holds gains Against a basket of currencies, the dollar was little changed at 97.40, holding on to most of its gains from Monday when it rose 0.5%. The Australian dollar last traded 0.32% higher at $0.6513, having tumbled 0.9% in the previous session as risk appetite soured. The New Zealand dollar advanced 0.22% to $0.6015, reversing some of Monday's 0.8% fall. The Reserve Bank of Australia announces its rate decision later on Tuesday, where expectations are for the central bank to deliver another rate cut owing to easing inflation and a slowing economy. 'Given the ever-shifting balance of risks and the heightened uncertainty it creates for hiring and investment in the Australian economy, more RBA cuts are set to follow,' said Carl Ang, fixed income research analyst at MFS Investment Management. 'A 3.1% terminal rate by early 2026 remains the base case for this RBA cutting cycle.'
Business Recorder
4 hours ago
- Business Recorder
Shares steady, dollar firms on US tariff letters; oil dips
TOKYO: Stock markets in Asia took in stride the latest twist in U.S. President Donald Trump's tariff roll-out on Tuesday, as the dollar held onto gains and oil retreated. Shares on Wall Street fell after Trump sent letters to 14 countries, including Japan and South Korea, unveiling sharply higher tariffs on imports into the United States, while also postponing their implementation to August 1. Japan's Nikkei stock gauge opened lower but then turned positive after Trump described that deadline as 'firm, but not 100% firm' and said tariffs may be adjusted for some countries. The Aussie dollar rose ahead of a Reserve Bank of Australia decision later in the day. Market reaction to the tariff announcements was muted on memories of Trump's rapid walk back of his 'Liberation Day' duties initially set out on April 2, said Tapas Strickland, head of market economics at National Australia Bank. 'There's going to be a lot of volatility as the headlines start to emerge, as more of these letters come out, and as the negotiations really come to the fore ahead of that August 1 deadline,' Strickland said on an NAB podcast. In April, Trump capped all of the so-called reciprocal tariffs with trading partners at 10% until July 9 to allow for negotiations. Only two agreements, with Britain and Vietnam, have been reached. In June, Washington and Beijing agreed on a framework covering tariff rates, restoring a fragile truce in their trade war. Tariffs on Japan and South Korea are now due to go up to 25% on August 1. Japanese Prime Minister Shigeru Ishiba called the hike deeply regrettable and said his nation would continue negotiations with the U.S. The European Union will not be receiving a letter setting out higher tariffs, EU sources familiar with the matter told Reuters on Monday. The EU still aims to reach a trade deal by Wednesday after European Commission President Ursula von der Leyen and Trump had a 'good exchange,' a commission spokesperson said. MSCI's broadest index of Asia-Pacific shares outside Japan was up 0.2% in early trade. Japan's Nikkei stock index rose 0.4% while South Korea's KOSPI jumped 1.5%. The dollar rose 0.2% to 146.36 yen , touching a two-week high. The euro was flat at $1.1741. The Aussie advanced 0.4% to $0.6516 before a meeting by the central bank where policymakers are widely expected to deliver a 25-basis-point cut. U.S. crude dipped 0.5% to $67.59 a barrel after surging nearly 2% on Monday. Spot gold edged 0.2% lower. In early trade, pan-region Euro Stoxx 50 futures were down 0.1%, German DAX futures were down 0.1% at 24,133, and FTSE futures slid 0.3%.
Business Recorder
5 hours ago
- Business Recorder
Sustained tariff reforms: Aurangzeb underscores significance
ISLAMABAD: Federal Minister for Finance and Revenue Muhammad Aurangzeb chaired a meeting of the Steering Committee for the Implementation of the National Tariff Policy here on Monday. The meeting was attended by Minister for Commerce Jam Kamal Khan, Minister for Petroleum Ali Pervaiz Malik, Governor State Bank of Pakistan and senior officials from the Ministry of Finance and other relevant ministries, divisions and organisations. The finance minister underscored the significance of sustained tariff reforms as a cornerstone of Pakistan's trade policy. He highlighted that the National Tariff Policy represents a five-year roadmap toward liberalising trade, fostering export-led growth, and enhancing industrial competitiveness. Pakistan prepared for regional fallout, optimistic on US tariff talks: Aurangzeb Aurangzeb emphasised that the Steering Committee, constituted by the prime minister, has been entrusted with the critical task of continuously monitoring implementation progress, state of forex reserves, and guiding the transition of domestic industry during this period of reform. During the meeting, the National Tariff Commission (NTC), operating under the Ministry of Commerce, delivered a detailed presentation on its mandate, core functions, and recent performance. The Commission outlined its pivotal role in safeguarding domestic industry through rational tariff structuring and trade remedy actions against unfair trade practices, including dumping, subsidised imports, and harmful import surges. Participants were also apprised of the NTC's ongoing efforts to bolster institutional capacity. These include organisational reforms, targeted technical training, automation of internal processes, the proposed establishment of a dedicated facilitation centre for exporters, and initiatives to enhance legal and analytical capabilities to strengthen service delivery. The finance minister acknowledged the valuable contributions of the NTC and urged the commission to maintain its focus on ensuring a level playing field for local producers. He extended his support for addressing the commission's resource challenges and emphasised the importance of reinforcing Pakistan's anti-dumping framework. However, he advised that rather than expanding in size, the NTC should strive to become a lean, responsive, and fit-for-purpose organisation aligned with international best practices and compliant with the rules of the World Trade Organisation (WTO). The meeting concluded with a shared resolve among participants to continue working in close coordination for the successful implementation of the National Tariff Policy, thereby, reinforcing Pakistan's trade competitiveness and industrial development. Copyright Business Recorder, 2025
