ISLAMABAD: Pakistan’s telecom operators have urged the government to repeal a public procurement provision allowing state-owned entities to receive government contracts directly, arguing that the arrangement sidelines private companies and weakens competition and innovation.
The Telecom Operators Association (TOA), whose members include Jazz, Naya Tel, PTCL, Telenor, Transworld and Ufone, raised its concerns in a letter to Finance Minister Muhammad Aurangzeb, Planning Minister Ahsan Iqbal and IT Minister Shaza Fatima Khawaja.
The association asked authorities to abolish the rule permitting direct government-to-government contracting with eligible state-owned organisations.
Private Operators Warn of Shrinking Opportunities
Introduced in 2021, the provision allows government agencies to directly award certain time-sensitive and public-interest projects to state-owned entities without open competitive bidding.
However, TOA argued that federal and provincial authorities have expanded existing state enterprises and established new ones that have secured numerous technology and telecom projects through direct contracts.
The association said this trend disadvantages private operators that have invested billions of rupees in infrastructure, data centres, cloud computing, artificial intelligence and digital services.
Moreover, it warned that reduced domestic opportunities could prevent technology companies from developing experience needed to compete in international markets.
TOA Calls for Equal Competition and Transparency
TOA also alleged that state-linked contractors benefit from regulatory exemptions, preferential licensing and implicit government support unavailable to private businesses.
Furthermore, the association claimed some state-owned entities subcontract projects to preferred private contractors after receiving direct awards, potentially bypassing competitive procurement processes.
It warned that restricting opportunities for small and medium-sized businesses could also undermine investment and employment prospects for educated young Pakistanis.
Consequently, TOA called for state-owned companies to compete for publicly funded projects under the same conditions as private firms.
The association said equal competition would improve procurement transparency, encourage innovation and strengthen Pakistan’s technology sector as local companies seek greater participation in global digital-services markets.
