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The Citizen
11 hours ago
- Business
- The Citizen
Blow for state over BEE requirement for estate agents
Ministers will no longer oppose the matter brought before court by Sakeliga. Lobby group Sakeliga has struck an arguably decisive blow in its legal challenge to moves by the Property Practitioners Regulatory Authority (PPRA) to no longer issue fidelity fund certificates to non-Black Economic Empowerment (BEE) compliant businesses. It announced on Tuesday that Minister of Trade, Industry and Competition Parks Tau 'has withdrawn his opposition' to its case. This ministry is responsible for driving government's BEE agenda through legislation, codes, policies and sector charters. Sakeliga originally filed papers in the North Gauteng High Court against the PPRA and the ministers of human settlements; water and sanitation; and trade, industry and competition. It made these papers public in January. The Minister of Human Settlements, Water and Sanitation (Thembi Simelane, since December 2024) had already indicated that the department would abide by the decision of the court, effectively not opposing the matter. The PPRA falls under the ambit of this department. ALSO READ: Real estate agents warned of licensing risks over BEE compliance Sakeliga brought the papers following decisions by the PPRA last year to deny operating licences, in the form of fidelity fund certificates (FFCs), to property businesses that did not meet the regulator's stipulated minimum BEE score. It argues that this was a 'brazen effort to put people out of business unless they comply' and that the case is needed to 'resist further overreach'. The first formal warning from the PPRA came in March 2024, when it warned practitioners in the property sector that failure to comply with BEE legislation 'may result in the inability to obtain or renew' a FFC. Property practitioners, including estate agents, need these certificates to operate. This followed a webinar in March, during which the PPRA's legal manager and acting transformation manager, Deli Nkambule, made it clear that the regulator 'will not issue an FFC unless a compliant BEE certificate accompanies the application. The accepted level of compliance is 40 points or more (BEE level 8). You will not be issued a BEE certificate if you score below 40 (making your BEE certificate non-compliant).' After sustained pushback from the sector, the PPRA quietly made an about-turn in August, with its chair sending a letter to estate agent industry grouping Real Estate Business Owners of South Africa (Rebosa) stating that the PPRA had sought legal advice and would no longer be requiring level 8 broad-based black economic empowerment (B-BBEE) certificates with new FFC applications. Sakeliga described this at the time as a 'tactical retreat'. ALSO READ: State sued over estate agent BEE plan It argues that the mandatory requirement for a 'valid' B-BBEE certificate for the issuing of an FFC 'serves no legitimate government purpose'. It says, 'there is no relationship between fulfilling the requirements for a fidelity fund certificate and having a B-BBEE certificate.' Currently there are around 40 000 FFCs issued, mostly to estate agents operating in the country. It highlights that the 'certificate requirement extends even to those thousands of businesses that do not participate in BEE (due to falling below certain turnover thresholds), bizarrely requiring them to fork out in the region of R10 000 every year just to buy and submit a 'valid' yet 'non-compliant' B-BBEE certificate.' Through the case, it is also seeking to roll back the expanded definition of property practitioner, which it says was 'unnecessarily expanded by the PPRA' to 12 new categories. Sakeliga says this includes developers, property administrators, landlords, homeowners' associations, auctioneers, bond originators and even property marketing companies, which 'improperly expands the reach of the PPRA over thousands of businesses and hundreds of billions of rand in turnover'. Achieving both outcomes would be seen as a success by the group. It is finalising its replying affidavit and, after filing it, will await a date for the matter to be heard. This article was republished from Moneyweb. Read the original here.
Business Recorder
4 days ago
- Business
- Business Recorder
Power-intensive items: PPRA seeks registration data from NEECA
ISLAMABAD: The Public Procurement Regulatory Authority (PPRA) has directed the National Energy Efficiency & Conservation Authority (NEECA) to provide detailed registration data of five power-intensive items that require regulatory oversight. This directive was issued during a meeting between representatives of PPRA, Power Division, NEECA, and the Pakistan Standards and Quality Control Authority (PSQCA), convened to discuss reform measures agreed under the International Monetary Fund's (IMF) Resilience and Sustainability Facility (RSF). The primary objective of the meeting was to facilitate information sharing for advancing regulatory enhancements aimed at mandating compliance with Minimum Energy Performance Standards (MEPS) in public procurement. PPRA approves new set of rules A Policy Specialist from PPRA highlighted that the authority is still awaiting the necessary information from NEECA, which is a prerequisite for initiating any regulatory enhancement. The Director of Strategy Management Office (SMO) at NEECA informed the participants that under the Pakistan Energy Labels Regulations 2023, NEECA has registered 32 LED manufacturing companies and 62 fan manufacturing companies. He added that data on the total number of makes and models from these companies is currently being compiled digitally. Deputy Secretary Power Division Sami Ullah Khan stressed the importance of a comprehensive market assessment by NEECA regarding the availability of MEPS-compliant companies and products. He emphasised that such an assessment is crucial before enforcing MEPS-compliant procurement to prevent market monopolization. Director General Legal at PPRA noted that as the government-mandated body, NEECA must formally communicate to PPRA the market readiness of the five MEPS-compliant power-intensive items. He further stated that any regulatory enhancements must ensure the principles of fair competition and equal opportunity are upheld. After detailed deliberations, it was agreed that NEECA would formally submit to PPRA, by August 15, 2025, the following: (i) registration details of the five power-intensive items registered under the Pakistan Energy Labels Regulations ;(ii) key considerations for regulatory enhancement ; and (iii) recommendations including proposed Star Label Categories and other relevant measures. Upon receipt of the information, PPRA will initiate the necessary steps toward regulatory enhancement, in coordination with the Power Division, PSQCA, and NEECA. Copyright Business Recorder, 2025
Business Recorder
18-07-2025
- Business
- Business Recorder
PPRA approves new set of rules
ISLAMABAD: The Public Procurement Regulatory Authority (PPRA) has approved new set of Public Procurement Rules 2025 including procedure for blacklisting of parties, methods of procurement, bids validity, sources told Business Recorder. Sharing the details, PPRA initiated a consultation process with concerned ministries and relevant procuring agencies on 5th June 2024, and consolidated their recommendations on improvement of procurement framework. The Prime Minister, while chairing meetings on tendering/procurement on August 23, 2024, followed by a review on 21st November 2024, expressed concerns about the adequacy of the PPRA institutional and legal framework. In this context, following directives were issued by the Prime Minister: (i) PPRA shall review its regulatory framework on an urgent basis to determine whether it is in accordance with the international best practices of transparency, economy, efficiency, and facilitates ease of doing business or not ;(ii) procurement rules shall be reviewed by adopting the best international practices and principles of transparency and fairness, ensuring that there should be no conflict of interest at any level, e.g., composition of procurement committee, bid evaluation process, complaint Redressal Committee, etc; (iii) While drafting new rules, PPRA shall ensure that a Complaint Redressal Committee/Grievance Committee and Inspection Committee are completely independent of the influence of the Procuring Agency and Procurement Committee; (iv) while drafting new rules, PPRA shall ensure a system of pre-shipment inspection by independent assessors at the cost of the procuring agency, for all significant and/or international procurements; and (v) PPRA shall create checks in ePADS and ensure that Procuring Agencies have conducted Third Party Evaluation in the spirit of directions conveyed vide PMO's. The directive stipulates, 'Third Party Evaluation/validation of development projects' shall be mandatory for all projects above RS 70 million. In compliance with the PM's directives, PPRA with the support from the World Bank Pakistan engaged a consultant, Peter Trepte, an international procurement lawyer, to undertake a comprehensive review of the PPRA's legal and institutional framework, including the PPRA Ordinance 2002, and the Rules 2004. Following extensive consultations with the Federal PPRA management, the World Bank experts, Provincial PPRAs, and key stakeholders from procuring agencies, the international consultant identified strengths, weaknesses, and missing elements in the existing regulatory framework of PPRA and presented a preliminary report during the 82nd meeting of the PPRA Board, held on September 27, 2024. The following were the main recommendations for regulatory reforms: (i) the Ordinance should be amended to include additional functions for PPRA; (ii) Rules should be revised in their entirety (using MAPS and the UNCITRAL Model as guidance) - retaining the positive elements of the current rules but expanding on them to provide more details and filling the identified gaps. Critical elements of this exercise will be (a) the mandatory creation of a procurement cell (appropriate to the level of procurement spend) in each procuring agency, together with an evaluation committee and Procurement Oversight Committee, all with detailed responsibilities; (b) revision of grievance redressal committee; (c) revision of appellate body and its procedures; and (d) centralization of blacklisting procedure; and (iii) PPRA should be restructured according to the amendments made, under-staffing will need to be adequate, and appropriate tools provided. The PPRA Board broadly agreed with the recommendations of the consultant and asked for preparation of a draft new set of rules outlining the entire spectrum of activities to be performed in the procurement process, including TPE, TPV, and the establishment of Procurement Cell along with well-defined roles & responsibilities within the procuring agencies as well as at the regulatory level. The international consultant, in consultation with local consultant Shan Gul, former Advocate General Punjab, submitted the initial draft of the Public Procurement Rules 2025 on 30th December 2024. The draft was examined by the PPRA team and was also disseminated to stakeholders, including procuring agencies. It was made publicly available via the PPRA website on January 17, 2025 for feedback. Comments and observations received from procuring entities, bidders, suppliers, and the general public were thoroughly examined and duly incorporated after detailed deliberations. An improved version of PP Rules 2025 was placed before the 88th, 89th, 90th and 91st consecutive meetings of the PPRA Board, held on January 21st, 23rd, 27th, and 28th, 2025, respectively. The Board members examined the existing rules of 2004 and the proposed amendments, discussed details, and finalized a draft new set of PP Rules 2025. The Board directed PPRA to share it again with the international and national consultant(s), and the feedback received from these quarters be incorporated, and a fresh set of rules be presented for a final review and approval by the Board. The updated draft (New Set of Public Procurement Rules, 2025) was submitted to the international consultant on 31st January 2025 for evaluation and feedback. The input received from the international consultant was shared with the local legal consultant Usama Siddique on February 6, 2025 for review. Subsequently, the draft was also referred to the Prime Minister's Office (PMO) on February 14, 2025 for guidance on financial thresholds in case of TPE and TPV, as procuring agencies had expressed serious reservations on low thresholds for TPV/TPE. According to procuring agencies, inclusion of TPV/TPE in the bid evaluation process, that too with low financial thresholds will result in delayed procurement at an extra cost. The procuring agencies also expressed concerns on the involvement of bid evaluators and members of grievance redressal and inspection committees from outside the domain of procuring agencies, as that would complicate the procurement process. In order to address these issues, a consultative meeting was held at the PMO on April 10, 2025 in the presence of the Advisor to the Prime Minister and the Minister for Economic Affairs Division, where some strategic guidelines were suggested to enhance effectiveness of procurement rules and to institutionalize capacity building of procuring agencies through a well-defined competency framework to be developed by PPRA. Another meeting on the subject was again held on May 19, 2025 in the PMO chaired by Minister for EAD, to deliberate upon the financial thresholds of TPV/TPE and issues like independence of grievance redressal and inspection mechanism, rationalization of blacklisting mechanism and definition of mis-procurement. The guidance, so provided by the PMO was incorporated in the new set of draft Public Procurement Rules, 2025. The revised draft of Public Procurement Rules 2025 was placed before the Board for approval in its 96th and 97th meetings held on June 19 and 20, 2025 respectively, where MD (PPRA) once again presented the salient features of the draft Public Procurement Rules 2025 in comparison with PP Rules 2004 and proposed amendments in line with the outcomes of the discussion with all stakeholders. The Board also examined afresh each provision of the draft Public Procurement Rules 2025, the proposed amendments, and deliberated on all aspects of regulatory framework. The Board endorsed the proposed amendments and revisions to the definitions of key terms, including bid, blacklisting, competitive bidding, cross-debarment, ePADS, e-procurement, force account, GRC, and standard bidding documents etc. Further, the Board reviewed and endorsed the proposed adjustments concerning the responsibilities related with Procurement Cells, Bid Evaluation Committees, TPV/TPE, GRC & inspection committees, procurement methods, procurement of second-hand goods, entry into force of the procurement contract, and settlement of disputes, their mechanisms, and timelines. After detailed discussion, the PPRA Board finalized and endorsed new set of Public Procurement Rules 2025, and decided that, pursuant to Section 26 of the Public Procurement Regulatory Authority Ordinance 2002, the new set of Public Procurement Rules 2025 should be forwarded to the Cabinet Division for further processing and submission to the Federal Cabinet for final approval. The PPRA Board acknowledged the efforts and hard work of the PPRA Management and appreciated the strategic guidance provided by the PMO in finalizing the new set of Public Procurement Rules, 2025. The Board also appreciated the technical support extended by the World Bank in this regard. Copyright Business Recorder, 2025
Express Tribune
11-07-2025
- Politics
- Express Tribune
MPs decry 'unlivable' Parliament Lodges
Minister of State for Interior, Talal Chaudhry, found himself in an uncomfortable and difficult position on Friday as several senators expressed strong frustration over the deteriorating condition of the Parliament Lodges during a meeting of the Senate House Committee. Lawmakers, visibly upset, raised multiple complaints with the minister, criticising the appalling state of infrastructure, lack of maintenance, and overall mismanagement at the lodges. Chaudhry too voiced his concerns, saying, "I'm personally troubled by a female parliamentarian living upstairs who has installed water taps in the stairwell. Someone, please have those taps removed." It was disclosed during the meeting that not even a single light bulb has been replaced in two years, while a former female senator left Parliament Lodges without paying Rs1.7 million in outstanding electricity and gas bills. The Senate House Committee meeting was chaired by Deputy Chairman Senate Syedaal Khan Nasar. During the session, Minister Talal Chaudhry responded to senators' questions. Capital Development Authority (CDA) officials briefed the committee, stating they had received 48 requests from parliamentarians for repairs, AC installations, and other work at the lodges, claiming work is underway and being carried out in line with PPRA rules. They added that 12-13 suites have been made habitable. However, Senator Kamil Ali Agha rejected the CDA's presentation, calling it "completely false." He alleged that no actual work is being done. Chairman Nasir said that action would be taken against those who haven't completed work in the past 16 months. Senator Poonjo Mal Bheel too complained that the sanitation system in Parliament Lodges is practically nonexistent, with visible filth everywhere. While the CDA DG is polite, he said, their performance is "zero." Minister Talal Chaudhry added that the Interior Minister has already suggested to the National Assembly Speaker that if CDA cannot do the job, the responsibility should be handed over to another agency. Work on 104 lodges is about to begin, and if funds are released, it will be completed in six months. "Contractors haven't been paid in two years. Following the Speaker's instructions, all senators' lodges will be repaired simultaneously. The tender for 104 lodges will be issued within two days, and lodges must be vacated for four months to carry out the work," he said. Senator Khalil Tahir Sindhu raised another concern, stating that his lodge was given to a fellow female senator at the request of the Deputy Chairman. She vacated the premises overnight without paying utility bills worth Rs1.7m — Rs1.3m for electricity and Rs470,000 for gas. "I can't pay this bill," he added. Chairman Nasir responded that she is the daughter of a former Deputy Chairman of the Senate and that he personally asked her to clear the dues.
Business Recorder
05-07-2025
- Business
- Business Recorder
Procurement rules: govt seeks Law Ministry's views on SIFC powers
ISLAMABAD: The government has sought the Law Ministry's opinion on whether the powers of the Special Investment Facilitation Council (SIFC) take precedence over the Public Procurement Rules in the hiring of consulting firms, sources close to the Secretary of Commerce told Business Recorder. 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/ 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
