Page 22 - CMA Journal (Jul-Aug 2026)
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F oc us  S ec t ion



              It also demonstrates potential synergies, as the same   agreements that may incorporate ESG metrics.                                         essential for successful adoption. PPRA reforms have
              blockchain network could be extended to other     Blockchain can therefore support measurable green                                          focused on capacity building, with more than 14,000
              documents, repositories and procurement records. The   procurement through traceable environmental and                                       o cials and vendors trained over two years. Similar
              attestation initiative illustrates the potential of                                                                                          programmes would be required at universities.
              blockchain  to  improve  transparency and  transaction   social compliance records.                                                          Vendors would also need to register on the blockchain
              speed when core processes  are digitized and      Legal, Technical and Implementation                                                        network and understand how to participate in digital
              supported by appropriate governance.
                                                                Challenges                                                                                 procurement.  The principal challenges therefore
 Digital Transformation of Public   Blockchain and   Applying the HEC Blockchain Model to   Several issues need to be addressed for successful             include scalability, security, legal recognition of
                                                                                                                                                           blockchain transactions and the digital divide.
 Procurement in Pakistan  Public   Procurement                  blockchain adoption and integration. Pakistan's

 The Higher Education Commission (HEC) has recently   Procurement  The HEC system provides a common chain for verifying   existing  procurement  legislation  requires  Conclusion
                                                                e-procurement but does not speci cally address
 introduced a historic initiative for degree attestation   Blockchain can replace   o cial documents and activities. A procurement   blockchain. Although the Public Procurement Rules   Blockchain integration holds signi cant potential to
 using blockchain technology, marking a digital   numerous  hand-o   system could similarly maintain shared tender, bid and   2025 mandate e-bidding and digital records, they do   improve procurement processes in higher education   convergence of blockchain-based degree attestation
 development in Pakistan's higher education system.   processes  with  contract records. The analogy is direct: degrees can be   not explicitly address blockchain records or digital   institutions  by  making  them more  transparent,   and  e-procurement  could  also  enable  universities  to
 This article examines whether such innovation can be   cryptographically protected   represented as veri able digital records that   signatures.  Clari cation  regarding  the  legal  e cient, secure and sustainable. Its immutable ledger   verify academic and supplier credentials through
 scaled up to public-sector procurement across   transactions and smart   authorized agencies can  access to con rm the   admissibility of  blockchain records will  therefore be   can provide a  permanent record of procurement   secure digital systems.
 universities and how policy, regulatory and technical   contracts.  This  can  authenticity of a student's quali cations. Similarly,   necessary.         transactions,  reducing  opportunities  for  bid  In the future, this approach could be extended to other
 aspects can work together to establish smarter and   provide real-time visibility   invoices and product certi cates in a supply chain can                manipulation, fraud  and document  forgery  while   public sectors and combined with technologies such
 sustainable supply chains.  and traceability, with   be integrated into a blockchain-based system.  Data privacy is another concern, as procurement data   strengthening accountability.                    as IoT sensors and AI analytics to support sustainable
 bids, approvals, product   One of the most signi cant bene ts of blockchain in   may include personal information of stakeholders.                        Smart contracts can reduce paperwork, processing
 The PPRA Ordinance and subsequent rules and   checks and payments   Although Pakistan does not have comprehensive data                                    time and human error. Blockchain can also support   supply chains across Pakistan.
 regulations are in force to regulate public procurement   recorded  on  an  procurement is its potential to improve transparency,   protection legislation, privacy best practices can be   supplier management through secure digital vendor   References
 in Pakistan. To achieve “One Nation, One System,” the   immutable  ledger  traceability and trust among multiple parties.   applied to safeguard personal information.  credentials and improve collaboration among
 government  has  been  actively  digitalizing  the   accessible to regulators and authorised stakeholders.  Transactions such as tender submission, bid   Successful  blockchain adoption would also require   stakeholders through a trusted platform.  •   ABC News  Web  Editor. (2026,  March  12). HEC  set  to launch
                                                                                                                                                                                                               blockchain-based degree attestation system in June. Asian Broadcasting
 procurement process through the e-Pak Acquisition &   submission, contract award, delivery and payment can   integration of existing systems, including EPADS,                                                Corporation.
              be time-stamped and cryptographically connected,
 Disposal System (EPADS). EPADS 1.0 processed over 1.4   In Pakistan, blockchain could complement the existing   providing a veri ed source of information for   universities, banks and NADRA/SECP for vendor   End-to-end  traceability of goods and services can   •   Council Fire. (2025, Oct 28). Blockchain in Sustainable Supply Chains: Case
 trillion in FY2024–25 and registered almost 10,000   EPADS  infrastructure,  with  supplier  registration  and   authorized parties. This makes unauthorized alteration   veri cation and payment processing. Due to the size of   further support sustainable procurement by enabling   •   Studies. Council Fire Guides.
                                                                                                                                                                                                               Dawn Sta  Reporter. (2025, December 6). Automated degree attestation
 agencies and 51,000 suppliers. The enhanced EPADS   release of funds managed through EPADS while   and fraud more di cult.  documents involved in e-procurement, careful system   institutions to monitor supply chains and assess   system soon: HEC. Dawn.
 2.0 pilot, launched in February 2026, includes   detailed provenance and contract information are   design will also be required. Global public blockchains   environmental,  social  and  governance  (ESG)  •   De  Brabandt, C.  (2023,  Sept  12).  How  Blockchain  Can  Enhance
 captured through a permissioned blockchain layer.
 automated  supplier  onboarding,  e-invoicing,  Blockchain can also streamline processes by reducing   may face limitations related to transaction speed and   compliance.                                    Transparency,  Traceability and  Trust in Procurement Processes. Inside
                                                                                                                                                                                                               Supply Management (ISM).
 e-payments, e-bidding, system-based bid evaluation   HEC’s Blockchain-Based Degree   paperwork and intermediaries. Smart contracts can   block size.      Overall, blockchain may not transform supply chains   •   Deloitte. (2020). Using blockchain to drive supply chain transparency.
 and integration with national data repositories such as   Attestation Initiative  automatically enforce conditions for contract stages                    on its own, but it can strengthen them by improving   Deloitte Insights.
 NADRA, FBR and SECP.  These initiatives have   such as delivery con rmation and payment without   Clear legislation de ning who will manage and           visibility and reducing risk.  With the  government's   •   Higher Education Commission (HEC). (2025, December 5). HEC Initiates
 reportedly resulted in savings of more than  20 billion   HEC already has experience connecting university ERP   manual intervention.  The Inside Supply Chain   operate the blockchain network will also be necessary   push towards Digital Pakistan and recent procurement   Landmark  Project to  Revolutionize  Degree Attestation  with  Blockchain
                                                                                                                                                                                                               Technology. [Press release]
 through administrative e ciencies and increased   data to blockchain for degree veri cation. In late 2025,   Management (ISM) points out that smart contracts can   to ensure e ective governance. The EPADS framework   reforms, the environment is favourable for further   •   Huzaifa, I. (2023). Impact of Blockchain  Technology on Supply Chain
 competition in contract prices.  HEC launched a blockchain-based degree attestation   manage several procurement processes, including   recommends a federated approach involving federal   experimentation. However, pilot testing is essential to   Management E ciency and  Transparency in Pakistan. International
 system under the Higher Education Development in   documenting purchase orders, delivery checks, receipt   and provincial units, which could potentially be   identify challenges and demonstrate bene ts before   Journal of Supply Chain Management.
 Challenges in Public University   Pakistan project funded by the  World Bank.  The   of invoices and settlement payments.  Walmart has   replicated through a blockchain network with a shared   wider implementation.  •   Khuhro, A. A., Zaidi, S. Z. H., Khaskheli, M. S., Amur, S. A., & Khuhro, Q. (2025).
                                                                                                                                                                                                               Challenges of  Traditional Procurement Practices in Public Sector
 Procurement  initiative aims to streamline the attestation process   already demonstrated that blockchain can reduce the   data layer.                    Given HEC's pioneering blockchain-based degree      Universities: Evidence from Sindh, Pakistan. Pakistan Journal of
 and eliminate paper-based procedures and physical   time required for traceability from days to seconds.  Cost, Capacity Building and Digital             attestation initiative and the broader Digital Pakistan   Humanities and Social Sciences, 13(4), 238-255.
 However, gaps remain in implementation, particularly   visits.                                                                                                                                              •   NED University  of Engineering  &  Technology. (2023).  Sustainable
 at the higher education level. A recent survey of public   Blockchain for Sustainable Supply   Readiness                                                  agenda, Pakistan's higher education sector has a    Procurement Policy. (Institutional policy document)
                                                                                                                                                                        for
                                                                                                                                                           foundation
                                                                                                                                                                                          blockchain-based
                                                                                                                                                                              exploring
 universities in Sindh by Khuhro et al. (2025) concluded   The 25 universities integrated into the system provide   Chains  Development, hardware, training, maintenance  and   procurement.  The government could develop a   •   Public Procurement Regulatory Authority (PPRA). (2026, July 2). EPADS 2.0
                                                                                                                                                                                                               under Vision of ‘One Nation, One System’ [Press release].
 that 91.9% of procurement processes remain manual   graduation data that is uploaded directly to the HEC   Blockchain integrations are also being tested globally   validation would involve both initial and recurring   permissioned blockchain network integrated with   •   Siemens Pakistan. (2009). Higher Education Commission (HEC) – SAP ERP
 and paper-based.  These processes result in slow   blockchain. At other universities, students upload   to support sustainable supply chains. Provenance data   costs. Existing digital reforms such as EPADS have   existing e-procurement systems to support faster,   Implementation [Case study]. Siemens CIO Pakistan.
 documentation,  limited  transparency  and  digital transcripts that are veri ed by the universities   such as the origin of materials, CO  emissions per   already  generated  signi cant  savings,  with  fairer and greener procurement.
 ine ciencies, with around 90% of participants calling   on-chain, after which HEC attests and stores them in a   shipment and social compliance certi cates can be   administrative cost savings of PKR 20.5 billion recorded   Potential bene ts include improved transparency,
 for replacement of the existing system.  tamper-proof manner. Blockchain-based degrees   recorded on-chain and used by procurement o cers   in FY2024–25.
 provide instant and veri able proof of authenticity that                                                                                                  reduced fraud,  stronger  contract  management  and
 These  ndings are consistent with other studies   can be accessed by government agencies, embassies   to assess sustainability criteria.  Greater transparency in procurement could further   real-time  sustainability  monitoring.  Legal
 identifying similar shortcomings in Pakistan's   and employers.  Companies can track metrics such as carbon footprints,   reduce losses associated with corruption and process   requirements, data privacy and capacity development
 procurement system. Very few federal universities and   The HEC system demonstrates several important   working conditions and sourcing practices and enforce   delays. Reducing paperwork and accelerating   must, however, be addressed.
 HEC bodies have adopted EPADS, while many continue   enablers, including a central record, cross-institutional   supplier ESG conditions through smart contracts. In   tendering could also improve budget and resource   A staged approach, beginning with small-scale pilots
 to rely on legacy or spreadsheet-based systems.  links and high-level institutional engagement.   Pakistan, the new PPRA framework explicitly includes a   management.  before wider implementation, can help identify
              “Sustainable Procurement Policy” and framework    Training procurement o cials and vendors would be                                          practical challenges and demonstrate value.  The
               20   ICMA’s Chartered Management Accountant, Jul-Aug 2026
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