Page 48 - CMA Journal (Jul-Aug 2026)

A r t ic les S ec t ion

Almost each and every project is delayed with E-Procurement system with specialized E-Procurement cannot be compromised nor programs already fed. Their fast speed to perform the
geometrical progression causing cost over-runs with machine-learning and data analytical systems in uenced through any pressure. It can only be functions is the main advantage together with their
Technology Brings Pace Limiting Cost Overruns multiplication. • E-Pak Acquisition and Disposal System (EPADS): modi ed through authorized procedure. This rigidity not to deviate under any situation.
integrated with public infrastructure.
eliminates the chances of any change by miscreants.
A cursory look at Public Sector Development
Triggering horrible collateral losses as delay in
completion of the project deprived the people from The system works under PPRA on "One Nation, One The foremost quality of digitalization is that once it is Programme would reveal that almost every project is
set to a programme, it continues as such.
reaping the bene ts of the project, e.g. Karachi is System" policy. A large number of public agencies, su ering from colossal delays, especially the public
without water from Karachi Bulk Water K-IV Project for suppliers and international rms coordinate on this Challenges utility projects. All the huge losses su ered by big
Every individual, organization and nation are engaged Water Supply K-IV the last over 20 years (650 million gallons per day). platform. It ensures veri cation and elimination of E-programs may be intercepted through cyber-attacks, projects are not going into corruption account, but the
lust for small corruption caused delay to happen and
in the process of procurement as it engulfed the entire Projects are vivid Hurdles: Loading a procurement system with large fake and tax evader companies through FBR, threats, human errors and misuse. And simply, all these resulted in much big losses. E-Procurement would
economic activities for sourcing of goods, services, examples of deadly number of formalities, accountability, responsibility, NADRA, SECP and PEC. This allows only capable and technologies are not totally human-free. Those who control corruption and delays till the system keeps
manpower and funds. It indicates the importance of limping projects where checks and balances, etc. would not bring much genuine contractors to participate in the project, feed them and are authorized to make alterations are running on the parameters fed in. The moment their
dependence on others. Self-reliance could be a cost overruns reached bene ts but completing formalities remains the main which maintains the work ow and quality helping always vulnerable to undermine the system. The appears an iota of variation or needed alteration the E-
medieval concept. Procurement is not just only buying from Rs 800 billion to attention for o cials who would not dare to the project to complete in time avoiding cost bigger the size of the project, the larger the alterations System would halt asking for the remedy. If the learned
and purchasing but a complete philosophy with a over Rs 3 trillion and compromise a rule to save millions rather would insist overruns. and variations, as it is not humanly possible to cater for system is equipped with all the clauses of agreement
strategic process of acquiring of a complete cycle of from Rs 25 billion to Rs for compliance that might cost billions extra • Procurement Planning: All the departments all the possible parameters which could be in millions especially where changes are allowed under certain
economic pursuits. It is the only scal pillar whose 172 billion, respectively, discouraging human ingenuity. upload their Annual Procurement Plans to EPADS, and some may be changing with time, especially conditions like price escalations, change in
careful handling is a surety to prosperity. The success of and yet with no nal where the system automatically invites tenders where project timelines spread over years, like dams, quantity/speci cation or any other change, the system
highways, railways, etc.
any procurement system directly depends upon the completion dates in Trust: Our economic system contains a huge portion through the public press. Bidders submit their would work it out making adjustments with no
level of trust amongst its functionaries and the view. These are the Syed Shamim Ahmed, FCMA (could be 70%) of grey economy working without tenders through an encrypted portal. No physical • Chances of cyber-attacks which may cause huge stoppage. There could be variations where the
absence of trust brings into regulations, authority and classic casualties of red Former General Manager much documentation and avoiding requisite legalities. bids are accepted. The system is paperless and nancial losses, bad name, legal problems, etc. agreement or rules and regulations are silent, Force
procedures giving birth to delay, ultimately more cost. tapism, passing the buck Finance They work on Trust when their primitive paper locked. The basic criteria are checked automatically, • There is always resistance to change, especially Majeure and other unforeseen circumstances waiting
Our Procurement system is over loaded with rules and and delayed decision Karachi Port Trust (KPT) evidences are not acceptable at legal forums, yet the when the same set of o cials are engaged in the for human decisions. It would ask for recti cation from
regulations and is a victim of delays and corruption making. Public sector system is said to be reliable, fast and delivering without and disputed bids are sent to authorized o cials change who have bene tted themselves with the the authorized o cers and would immediately involve
completely oblivion to the reality that such mandates procurement system is ripe to undergo much delay and hectic. On the other hand, in a legally through private dashboards using weighted conventional system. the concerned o cials and would continue pushing
are not an end in themselves but are tools to mindful implementation of E-Procurement systems. The basic complied system courts are overloaded with law suits matrices and determinants. Disquali ed bidders • There is also dearth of digitally trained workforce. together with involving seniors till issues are resolved.
quests by people as these are prone to manipulation. principle of public procurement system is-ensuring fair causing much lags in nalizing disputes. receive automated notices with detailed reasoning • Automated coordination among all concerned The system would not sit quiet but continue knocking
Such legalities must be strict for safety with liberated competition with transparency and maximum value Performance of E-Procurement of rejection. Successful contractor is provided with a institutions takes time. at all possible forums till the problem is cleared.
guidelines for advancement. for money. digital wallet and linked directly to commitment • Complete engagement of all possible suppliers,
Digitalization has brought a big relief in cutting time by accounting. Digitalization cannot eliminate corruption or delays
The basic procurement system could be that simple for We all know that manufacturers of all kind of goods at automating data-heavy tasks, rationalizing vendors' manufacturers, consultants, contractors etc., is but can make the corruption harder through
instance put money in pocket, go to market, select local and international level are making products of risks and analyzing the supply chain. However, it • Transparency: NAB, AGP, Competition Commission di cult and the missing one can create legal continuous follow-ups. This chase through machines
goods needed, ensure the quality, negotiate price, good, moderate and prime quality. A product, with the cannot replace human intelligence, negotiation, and other scal tracking institutions have direct issues. and online involvement of other agencies would
make payment and back. It hardly took 10 minutes and agreed or comparable speci cations, could be of high on-the-spot decisions, considering changes, legality, access to monitor nancial transactions. They can • Legal compliance. Machines work as fed. A small de nitely put a big pressure minimizing delays and
rest of the time was spent on commute. The best and low performance level. Under an open bidding accountability and responsibility. check communication trails without asking for legal lapse may create big issues. corruption where the system keeps all awake.
quality product at the least price as someone trusted system, it is generally observed that manufacturers physical les. Not only anti-corruption agencies, but • At times the project needs changes and
someone but it is not always so simple. There are all with low performance goods win the contract due to The technicality and sophistication of machines being citizens and any interested person, banks and other modi cations as the project moves on and these Can corruption be brought at zero? It can’t, nor
sizes of projects involving procurements of huge its low price. Under the system it is di cult to award engaged in e-procurement system depends upon the donor institutions may approach for the progress of changes have to be checked by authorized o cials possible. Just as an example the rule demands a
materials and enormous services, with heaps of tender to non-lowest bidder where technical bids are size of the project. From small to big projects, the these projects. Such a direct strategy gives a straight which generally take long time on false pretexts. minimum of three quotations. The same contractor
documents, vetting by hundreds of people, passing opened before nancial bids. However, rejecting the re nement goes on expanding technical depth as per message to the contractors and o cials that you are • Coordination amongst various departments is arranges three quotations with di erent names. Rule
through the intricacies of regulations, demanding lowest bid with conditions like "Responsive, requirements. A small purchase project, like purchase being watched every second. This automatically di cult and time consuming. followed, corruption intact. Technology has no
transparency, audit, fear of Substantially Responsive, lab tests, etc.," are of a car, requires the machine to feed information reduces evil intentions and deliberate delays while absolute independence but only to the extent humans
accountability/investigation, satisfying these problematic ventures inviting court cases, with about the local market, price range, speci cations, handling variations and alterations. Conclusion allowed it. The same stands true for E-Procurement.
procedural requirements need more time and more substantial delays. It usually happens in public sector tender documents, lowest bid ful lling the • Managing Delays: The E-Procurement is capable of No doubt E Procurement saves time and cost with Therefore, it is imperative to shun nepotism as it
cost. When culture and society are weak rules multiply projects. speci cations, ordering, receipt and payment. On the e ciency and causes transparency through requires judicious and prudent humans to successfully
and when culture and society are strong trust other hand, medium and big size projects carry huge refusing any variations or alterations and sending automated work ows and reducing human errors. keep the system operative meeting its goals.
simpli es. Could all these formalities save time and Project Delays: The country has reached a stage data and planning, with intricate functions right from these to the authorized o cials for necessary There are two main demanding issues confronted by For the success of the system and for reaping
bring transparency? Possibly no, as no one trusts no where poverty level is around 47 percent and burden the design stage. It does not involve only purchasing approval within a speci ed time period. After the our society. One, corruption and two, procrastination maximum bene ts from E-Procurement, it is
one. All this brings into the concept of Smarter of total debts is over Rs. 80 trillion. Such a gloomy but starts with planning, bidding, digital vault expiry of timeline it sends reminders, inform the and delays. Both behavioral phenomena closely imperative to have clear vision together with a
Procurement Systems. situation is not by accident but purely on account of opening, evaluation, contract management, and next senior or seeks his approval. It may terminate related and work together. Delay breads corruption as consistent long-term policy.
callous human factor. Just a cursory look at the transparency. the process and ask for audit of delays. time is money. Corruption has a set price but delay has
Scenario at Home ongoing public sector projects substantiates the point On the other hand, AGPR and NAB are also online to a big recurring cost. Small corruption may form under
Under the present procurement prevailing system of self-collapse where the people responsible for Progress at Home observe all such delays and may intervene duress but big corruption is a mutual cooperation.
there is no value for time. Every project in the public handling the a airs have no value for deliverance. The country is actively engaged in implementing AI in immediately for recti cation or may initiate inquiry if Machines are only capable for the job these are
sector is a prey of delays. These abnormal delays cause Flaws in the present system have been playing the public procurement system under a phased nds necessary depending upon the nature of the equipped with and are dependent on humans for any
huge cost overruns. Bhasha Dam and Karachi Bulk unimaginable su erings to the people. programme from basic to fully automated case. improvement as these cannot deviate from the

46 ICMA’s Chartered Management Accountant, Jul-Aug 2026