Page 64 - CMA Journal (Jul-Aug 2026)
P. 64
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

