Page 81 - CMA Journal (Jul-Aug 2026)

SECTOR INSIGHTS

S ECT O R I NSIG HT S

Current Overview • The Strategic Role of Management

Public procurement in Pakistan has transformed from Accountants:
a primarily paper-based, compliance-focused system For Management Accountants, digital
to a more digital and data-driven aspect of public procurement creates an expanded strategic role
By: ICMA Research and Publications Department nancial management. The Public Procurement beyond nancial recording and budgeting. Their
Regulatory Authority (PPRA), established in 2002, expertise in costing, value-for-money analysis,
along with the Public Procurement Rules of 2004, laid performance measurement, risk management,
Public Procurement and Digital the groundwork for a formal procurement framework internal control, data analytics, and sustainability
can help public institutions convert procurement
at the federal level, supplemented by provincial
Governance Sector of Pakistan regulatory authorities. This regulatory structure aims data into actionable nancial and operational
insights. The future of public procurement in
to ensure transparency, competition, e ciency,
accountability, and fairness throughout the Pakistan will consequently depend not only on
procurement process, underlining the necessity of digitizing transactions, but on using integrated
Public procurement is more than an administrative strong institutions, robust procedures, and e ective systems, reliable data, analytics, and professional
function; it is a key instrument for converting public oversight. The scal environment further underscores expertise to achieve greater transparency,
resources into essential services, infrastructure, and the critical need for e cient procurement practices. accountability, e ciency, and value for public
socioeconomic development. Globally, it accounts for As of 2025, the international monetary fund reported money.
around 15–20% of GDP, highlighting its signi cant role that Pakistan’s general government • Emerging Technologies in Digital Procurement:
in public resource allocation. In Pakistan, with a expenditure-to-GDP ratio was at 21.21%. This ratio Globally, digital procurement is increasingly
nominal GDP of approximately US$284 billion, public encompasses government expenses and the incorporating arti cial intelligence, machine
procurement at 20% could represent nearly US$56.8 acquisition of non- nancial assets, relative to the GDP, learning, robotic process automation, blockchain,
billion annually. which re ects the total value of nal goods and and advanced data analytics to improve e ciency,
services produced. Despite uctuations over time, the
Procurement covers the entire cycle, from identifying importance of disciplined and e ective resource risk management, fraud detection, supplier
needs and selecting suppliers to contract award, management in public procurement is heightened by analysis, and value for money. However, Pakistan
faces challenges including fragmented systems,
delivery, payment, and asset management. Given that the scale of government spending. limited interoperability, legacy infrastructure,
it can account for 45–65% of public-sector budgets, • EPADS 2.0: Advancing Digital Procurement in data-quality issues, cybersecurity risks, limited
e cient procurement is critical to scal management, Pakistan: digital skills, and institutional resistance to change.
service delivery, and value for money. The digital transformation of procurement is now E ective digital transformation therefore requires
Well-governed procurement can reduce waste, being driven by the e-Pak Acquisition and Disposal strong data governance, standardized systems,
improve quality and e ciency, and strengthen System (EPADS), particularly EPADS 2.0. As of robust internal controls, continuous capacity
building, and responsible adoption of emerging
accountability. It can also advance broader priorities, February 2026, the platform had registered 1,824 technologies.
federal procuring agencies and 18,909 users. The
including digital transformation, sustainable not only on compliance and cost, but also on system supports the digitization of procurement
development, local economic activity, and green maximizing the long-term economic, environmental, activities and captures standardized information References
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ICMA’s Chartered Management Accountant, Jul-Aug 2026 79