Pakistan can save $8bn: MD PPRA
June 22, 2010
ISLAMABAD: The founding Managing Director of the Public Procurement Regulatory Authority (PPRA), Mohammad Khalid Javed, says Pakistan can save at least US$8 billion annually as against the figure of US$4 billion quoted by the Transparency International by merely curbing corruption in all procurements.
Approaching The News in response to the chairman Transparency International Pakistan report as published in The News and Jang on Monday, Javed said Pakistan can save more than US$8 billion annually merely by ensuring strict adherence to the legal framework in all procurements.
Javed is the person, who gave this country a Public Procurement Regulatory Framework (Public Procurement Rules 2004) ranked as one of the best in the world by the Transparency International. However, according to a source, the dilemma remains that the regulatory framework is not fully implemented and the defence procurements are exempted from the framework.
“I wish to intimate you that the figure of US$ 4 billion is a very conservative estimate,” Javed said, adding: “The government procurements are estimated at 25 pc of its GDP in a western country. In Pakistan, the government procurements are of much higher as the government is running many large business ventures.”
He explained the Pakistani economy has been stated to be over $212 billion. As per the 25 per cent yardstick, the magnitude of government procurements would be in excess of $53 billion. A 15 per cent improvement in the government procurement, he said, would yield close to $8 billion which is more than the total economic assistance Pakistan gets.
“We do not need any borrowings from the WB or the IMF if we can save this money, he said. Javed believed the 15 per cent figure is also a conservative estimate as the actual magnitude of corruption is much higher. He disclosed some of the cases investigated by him during his tenure as the MD PPRA would indicate a much higher level of corruption.
“All that is required is honest political leadership to arrest this menace,” he commented. Chairman Transparency International Pakistan Syed Adil Gilani had revealed that at this crucial time of financial crunch faced by Pakistan, the government can save US$4 billion only by implementing the Public Procurement Rules 2004 in the federal government, armed corces and all the four provinces of Pakistan and corporations/authorities/trusts.
Approaching The News in response to the chairman Transparency International Pakistan report as published in The News and Jang on Monday, Javed said Pakistan can save more than US$8 billion annually merely by ensuring strict adherence to the legal framework in all procurements.
Javed is the person, who gave this country a Public Procurement Regulatory Framework (Public Procurement Rules 2004) ranked as one of the best in the world by the Transparency International. However, according to a source, the dilemma remains that the regulatory framework is not fully implemented and the defence procurements are exempted from the framework.
“I wish to intimate you that the figure of US$ 4 billion is a very conservative estimate,” Javed said, adding: “The government procurements are estimated at 25 pc of its GDP in a western country. In Pakistan, the government procurements are of much higher as the government is running many large business ventures.”
He explained the Pakistani economy has been stated to be over $212 billion. As per the 25 per cent yardstick, the magnitude of government procurements would be in excess of $53 billion. A 15 per cent improvement in the government procurement, he said, would yield close to $8 billion which is more than the total economic assistance Pakistan gets.
“We do not need any borrowings from the WB or the IMF if we can save this money, he said. Javed believed the 15 per cent figure is also a conservative estimate as the actual magnitude of corruption is much higher. He disclosed some of the cases investigated by him during his tenure as the MD PPRA would indicate a much higher level of corruption.
“All that is required is honest political leadership to arrest this menace,” he commented. Chairman Transparency International Pakistan Syed Adil Gilani had revealed that at this crucial time of financial crunch faced by Pakistan, the government can save US$4 billion only by implementing the Public Procurement Rules 2004 in the federal government, armed corces and all the four provinces of Pakistan and corporations/authorities/trusts.
