Page 64 - CMA Journal (Jul-Aug 2026)
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F oc us  S ec t ion



                                                                                                                                                                                                                                                                                                        Digital procurement, when integrated with electronic   administrative reforms. International experiences                                     Building Smarter Procurement Systems
                       Smart Procurement, Seamless Trade:                                                                                                                                                                                                                                               single-window systems, customs modernization and   provide practical lessons for Pakistan in moving                                          or  Trade Facilitation and Industrial

                                                                                                                                                                                                                                                                                                        digital trade documentation, can therefore contribute
                                                                                                                                                                                                                                                                                                                                                          beyond  electronic tendering  towards a  more

                                                                                                                                                                                                                                                                                                                                                                                                                                                     Competitiveness
              Building Pakistan’s Industrial Competitiveness                                                                                                                                                                                                                                            to faster and more e cient cross-border trade.    integrated and strategic procurement ecosystem. and                                        Integrating Procurement with  Trade Facilitation


                                                                                                                                                                                                                                                                                                                                                          International
                                                                                                                                                                                                                                                                                                                                                                               Experiences
                                                                                                                                                                                                                                                                                                        However, Pakistan's  current performance highlights
                                                                                                                                                                                                                                                                                                        the remaining gap: imports take an average of 33 days   Pakistan's Current Position                                                          Systems

                                By: ICMA Research and Publications Department                                                                                                                                                                                                                           to clear and exports 19 days, while compliance costs   International experience demonstrates that successful                                 Pakistan  should   move    towards    stronger
                                                                                                                                                                                                                                                                                                        are around 17% of trade value for both imports and
                                                                                                                                                                                                                                                                                                        exports; moreover, only 15% of  rms report exporting   procurement reforms extend beyond the digitization                                    interoperability between EPADS, Pakistan Single
               Introduction                                     transparency and competitiveness. Pakistan has also                                                                                                                                                                                     digitally ordered goods. These indicators suggest that   of tendering processes. Leading economies have                                      Window, customs, taxation, business registration an
                                                                advanced procurement digitalization  through  PPRA,                                                                                                                                                                                     digitalization alone is not su cient and that stronger   integrated procurement with customs modernization,                                  other relevant government systems. International
               Public procurement has evolved beyond its traditional   EPADS and the Pakistan Single  Window (PSW), but                                                                                                                                                                                 integration between procurement, trade facilitation   digital government, trade facilitation and institutional                               experiences from Singapore, South Korea, Estonia an
               role of purchasing  goods, works and  services to   these reforms remain largely focused on operational                                                                                                                                                                                  and logistics systems is needed to translate digital   interoperability to improve transparency, e ciency                                    Rwanda demonstrate that connecting procurement
               become an important instrument of economic policy.                                                                                                                                                                                                                                       infrastructure into more e cient trade outcomes.  and industrial competitiveness.  Table 3 summarizes                                        with wider  digital government and trade  facilitat
               Governments increasingly use procurement to      e ciency rather than using procurement strategically                                                                                                                                                                                                                                      selected international experiences and highlights the                                      infrastructure can reduce administrative duplicatio
               promote industrial competitiveness, strengthen   for trade facilitation and industrial competitiveness.                                                                                                                                                                                  The integration of procurement with trade facilitation   key lessons relevant for Pakistan.                                                  improve information sharing and create a more
               supply chain resilience, facilitate international trade   Against this backdrop, this article developed by ICMA                                                                                                                                                                          can generate bene ts beyond operational e ciency                                                                                             seamless business environment. For Pakistan, such
               and accelerate digital transformation.  The growing   Research and Publications Department examines                                                                                                                                                                                      by improving supplier participation, competition,   The  World Bank's B-READY assessment further                                             integration would allow procurement reforms to
               impact  of  geopolitical  tensions,  supply  chain   international experiences to identify how smart                                                                                                                                                                                     transparency and supply-chain resilience. Digital   highlights this implementation gap. Pakistan scores                                      contribute not only to transparency and e ciency bu
               disruptions and rapid technological advancement has   procurement can strengthen Pakistan's procurement                                                                                                                                                                                  procurement systems can also support industrial   54.95 on public services but only 25.50 on operational                                                                                      Ac
               further reinforced the need for smarter procurement   ecosystem and support its broader trade and digital                                                                                                                                                                                competitiveness by improving access to procurement   e ciency, resulting  in an  overall international  trade                                also  to  lower  transaction  costs  and smoother
               systems that extend beyond compliance and cost   economy objectives.                                                                        Procurement    decisions   increasingly  a ect    an important instrument of national competitiveness                                        markets and creating more predictable business    score  of 43.04.  This  suggests  that while  digital  and                                 processes.                                       re
               e ciency.                                        Public Procurement as a Strategic Trade                                                    supply-chain resilience, domestic production, market   and digital economic transformation. International                                    environments. As a result, countries increasingly   institutional infrastructure has improved, translating                                   Developing an End-to-End Digital Procurement     st
               Public procurement represents a signi cant share of   and Industrial Policy Tool                                                            competitiveness and economic security, encouraging   experiences  demonstrate  how  such  integration  can                                   integrate  procurement  reforms   with  digital   these systems into e cient trade outcomes remains a                                        Ecosystem                                        in
                                                                                                                                                                                                                                                                                                                                                          major challenge.
                                                                                                                                                                                                                                                                                                        government, customs modernization and trade
               economic activity, accounting for approximately 13%                                                                                         governments to move from compliance-driven        support trade and industrial development, o ering                                          facilitation rather than treating them as isolated                                                                                           Pakistan's  digital procurement  reform  should  ex
               of GDP across OECD countries. International      Traditionally, public procurement was viewed as an                                         approaches towards smarter systems that integrate   relevant lessons for Pakistan's evolving procurement                                                                                                                                                                                  beyond  electronic tendering  towards an  end-to-en
               experience  shows  that  countries such  as  Singapore,   administrative function  focused  on transparency,                                digital technologies, innovation, industrial policy and   system.                                                                                                                                                                                                                         procurement ecosystem covering supplier registratio
               South Korea, Estonia and Chile have increasingly   competition, cost e ciency and timely delivery.                                          trade facilitation. The OECD (2026) similarly identi es   Smart  Procurement     and     Trade                                                                                                                                                                                            tendering, contract management, payments and     wh
               integrated  digital  procurement  with  customs,  trade   However, global supply-chain disruptions, geopolitical                            modern public procurement as a strategic lever for                                                                                                                                                                                                                                                                                         go
               facilitation and wider digital government systems,   tensions, climate-related risks and the expansion of the                               sustainable economic growth, stronger domestic    Facilitation                                                                                                                                                                                                                            performance monitoring.  The experience of South
               making procurement a broader tool for e ciency,   digital economy have transformed its role.                                                industries and greater resilience to economic and   Trade facilitation and public procurement were                                                                                                                                                                                        Korea's KONEPS demonstrates the bene ts of
                                                                                                                                                           geopolitical challenges.                                                                                                                                                                                                                                                                  integrating procurement processes with shared    br
                                                                                                                                                                                                             traditionally treated as separate policy areas, but                                                                                                                                                                                                                                      op
                                                                                                                                                           Modern procurement systems increasingly extend    digitalization and increasingly integrated supply                                                                                                                                                                                       government databases, while Estonia's X-Road
                                   Table 1:Comparative Overview of Smart Public                                                                            beyond electronic tendering by linking procurement   chains have brought  them closer together. Smart                                                                                                                                                                                     highlights the importance of secure interoperabilit

                                     Procurement Systems in Selected Countries                                                                             with  customs,  digital  trade  platforms,  logistics  and   procurement can connect government purchasing                                                                                                                                                                                across public institutions. Such an approach could
                                                                                                                                                           supplier development.  This can reduce transaction   with customs, logistics and digital trade systems,                                                                                                                                                                                   improve procurement e ciency, reduce information
                                                         Digital          Trade                                                                            costs, improve market access and transparency, and   reducing administrative barriers while improving                                                                                                                                                                                     gaps and strengthen the predictability of governmen
                                 Public Procurement                                                                                                                                                                                                                                                                                                                                                                                                                                                   In
                    Country                           Procurement      Facilitation       Key Strength                                                     strengthen domestic industries, making procurement   transparency, competition and supply-chain e ciency.                                                                                                                                                                                 procurement for suppliers.                       in
                                      (% GDP)
                                                        Platform        Platform                                                                                                                                                                                                                                                                                                                                                                     Strengthening       Domestic        Industrial   mo
                                                         Varies by      Varies by                                                                                                                                                                                                                                                                                                                                                                    Competitiveness                                  pl
                  OECD Average          13%                                             Global benchmark
                                                         country         country                                                                                                                                                                                                                                                                                                                                                                                                                      in
                                                                                      Procurement integrated                                                                                                                                                                                                                                                                                                                                         Public procurement can be used more strategically t
                    Singapore            8%               GeBIZ         TradeNet                                                                                                                                                                                                                                                                                                                                                                     support domestic industrial competitiveness by
                                                                                           with trade                                                                                                                                                                                                                                                                                                                                                                                                 co
                                                                                        End-to-end digital                                                                                                                                                                                                                                                                                                                                           creating stronger linkages between government    vu
                   South Korea           9%              KONEPS         uTradeHub                                                                                                                                                                                                                                                                                                                                                                    demand and domestic productive capacity. Digital
                                                                                          procurement                                                                                                                                                                                                                                                                                                                                                                                                 go
                                                                                       Interoperable digital                                                                                                                                                                                                                                                                                                                                         procurement data can help identify sectors with str
                     Estonia            15.3%         e-Procurement      X-Road                                                                                                                                                                                                                                                                                                                                                                      local supplier potential as well as areas of signi
                                                                                          government                                                                                                                                                                                                                                                                                                                                                                                                  pa
                                                                                           Transparent                                                                                                                                                                                                                                                                                                                                               import dependence,  allowing procurement planning
                      Chile              5%            ChileCompra        SICEX                                                                                                                                                                                                                                                                                                                                                                      to complement broader industrial policy objectives.
                                                                                          procurement
                                                                        Electronic     Developing-country                                                                                                                                                                                                                                                                                                                                            The objective should be to encourage competitive
                    Rwanda              13.5%            Umucyo                                                                                                                                                                                                                                                                                                                                                                                      domestic production, innovation and supplier     ex
                                                                      Single Window       digital reform                                                                                                                                                                                                                                                                                                                                                                                              in
                                                                      Pakistan Single   Current reforms and                                                                                                                                                                                                                                                                                                                                          development  while   maintaining  transparency,
                    Pakistan            19.8%             EPADS                                                                                                                                                                                                                                                                                                                                                                                      competition and value-for-money principles.      fa
                                                                         Window          future roadmap
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      co

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