Unlocking Opportunities: A Comprehensive Guide to Tenders in Pakistan

Formal offers or bids made in response to an invitation from a procuring organization are referred to as tenders by potential suppliers or contractors. These invitations, sometimes referred to as tender notices or requests for proposals (RFPs), specify the goods, services, or labor that are needed as well as the guidelines for submitting an offer. Tender Business in Pakistan is an essential component of procurement procedures since they guarantee accountability, efficiency, and fairness in the purchase of goods and services.

Legal and Regulatory Framework Governing Tender Business in Pakistan:

The following laws, rules, and regulations form the basis of the legal and regulatory framework that governs tenders in Pakistan:

1. Public Procurement Regulatory Authority (PPRA) Ordinance 2002: This ordinance establishes the PPRA as the regulatory body for public procurement;
2. Public Procurement Rules 2004: This set of rules provides specific guidelines for procurement procedures, evaluation criteria, and contract management;
3. PPRA Regulations 2010: This set of rules supplements the previous regulations, offering guidelines for particular procurement methods;
4. Pakistan Single Window Act 2017: This act streamlines procedures and reduces paperwork;
5. Pakistan Constitution 1973: Article 18(2) guarantees fairness and transparency in public contracts;
6. Pakistan Penal Code 1860: Section 165A makes corrupt practices in public procurement illegal.

Important aspects of the legal system:

• Transparency: Contract details, award notifications, and tender notices have to be published by procuring agencies.
• Fairness: No prejudice or discrimination; all bidders are treated equally.
• Competition: To guarantee the best value, encourage multiple bids.
• Integrity: Outlawing deception, fraud, and cooperation.
• Accountability: Purchasing organizations must justify their choices.

How to Start a Tender Business in Pakistan?

Here are the following steps you need to follow to start a tender business in Pakistan:

• Market Research: Perform in-depth market research on Pakistani tendering opportunities.
• Registration and License: Register your company and secure the required authorizations and licenses.
• Networking: Create a network with governmental, commercial, and non-governmental organizations that conduct tenders.
• Legal and Technical expertise: Gain experience with the legal aspects, bid management, and tender writing. Make sure that all tender submissions adhere to ethical and legal requirements.
• Infrastructure and technology investment: the infrastructure and technology investments required for tender management.
• Initial setup costs: Determine the amount of money needed for the initial setup.
• Marketing and web presence: Produce marketing collateral and an expert web presence.
• Bid drafting and client relationships: Keep an eye out for tender announcements and draft strong bids.
• Continuous improvement: Continue to communicate and build strong client relationships. Constantly enhance service delivery and bid strategies.

Eligibility Criteria for Tender Business in Pakistan:

A bidder or tenderer is eligible if they meet the following requirements:

1. they must be a Pakistani registered or incorporated company with at least two (2) years of relevant business experience for each lot.
2. must be registered with tax authorities by the most recent tax laws in effect (only businesses with sound financial standing and valid registrations with the income tax and sales tax departments are eligible to participate);
3. must have a valid National Tax Number (NTN) and General Sales Tax (GST) registration;
4. has filed a bid for the entire lot or lots, along with any necessary bid security, against each lot separately.
5.  Should these be broken, the bid will be rejected;
6. possesses the principal’s or manufacturer’s approval for Lots #1, #2, and 8;
7. possesses the principal, manufacturer, or reseller’s authorization for Lots #3–7;
8.  no provincial or federal government department, agency, organization, autonomous body, or private sector organization in Pakistan has placed them on a blacklist.
9. Each Lot (submission of undertaking) has the necessary qualified personnel and strength to complete the assignment requirements.
10. possesses sufficient strength and the necessary, qualified personnel to complete the assignment. complies with the clause in this tender document titled “Responsiveness of Bid.”
    Only supplies, sources, and routes for goods and services can come from “origin” in “eligible” member nations.
    a. Any nation or area that is permitted by Pakistani law to conduct business in Pakistan is referred to as “eligible.”
    b. “Origin” refers to the location of the production of the Goods or the source of the Services. Products are created when a commercially recognized product emerges from the manufacturing, processing, or significant and major assembly of components that differ significantly from its constituent parts in terms of fundamental qualities, function, or utility.

Tips to win Tenders Business in Pakistan:

In Pakistan, winning tenders necessitates a strategic combination of:

• Market insight
• Meticulous preparation
• Adherence
• Establishing connections
• Innovation

To succeed, businesses must:

• Understand the market landscape
• Navigate the tender process effectively
• Deliver compelling bids

Product sourcing for Tender Business in Pakistan:

There are several ways to source products for tenders business in Pakistan, including:

• Regional producers and vendors
• Trade shows and events
• Trade associations and trade bodies; government organizations (e.g., Trade Development Authority of Pakistan);
• online marketplaces (e.g., Alibaba)
• International embassies and consulates
• Regional associations for business and industry
• Procurement firms and sourcing agents
• Online directories (e.g., Pakistan Trade directory)

Some popular local sources include:

• Karachi: Karachi Chamber of Commerce and Industry, Karachi Expo Center
• Lahore: Lahore Chamber of Commerce and Industry, Expo Lahore
• Islamabad: Islamabad Chamber of Commerce and Industry, Pakistan-China Friendship Centre

Also, you can search online on the following websites:

• Trade Development Authority Pakistan website (https://tdap.gov.pk/)
• Pakistan Single Window Act (https://www.psw.gov.pk/)
• Tradekey (https://www.tradekey.com/)
• Pakbiz (https://pakbiz.com/)

Organization that Publish Tenders in Pakistan:

Here are some organizations:

• Public Procurement Regulatory Authority (PPRA)
• IOM Pakistan, UN Migration
• Ministry of Commerce
• Islamic Relief Pakistan
• UNHCR Pakistan
• Fast Rural Development (FRDP)

Precautions:

There are some precautions to keep in mind while doing Tender business in Pakistan:

1. Verify tender authenticity: Verify the legitimacy of the tender by visiting the organizations’ offices or checking their official websites.
2. Research the organization: Make sure it is trustworthy and has a solid history of open business practices.
3. Understand the terms and conditions: Go over the tender documents carefully and ask questions you have.
4. Compliance with regulations: Acquaint yourself with the guidelines and procedures about public procurement in Pakistan.
5. Paperwork and documentation: Make sure all paperwork, including bids, is accurate and sent on schedule.
6. Avoid corruption: Clear any unethical behavior, including fraud and bribery.
7. Secure payments: To prevent misunderstandings, ensure the payment terms are unambiguous and safe.
8. Competition: Recognize rivals and their tactics.
9. Seek professional advice: If necessary, speak with legal or business professionals.
10. Register with relevant authorities: To gain access to tender opportunities, register with SPPRA, PPRA, or any other appropriate authority.
11. Stay updated: Keep an eye out for tender announcements by routinely visiting government websites, newspapers, and trade journals.

Rejection/ Acceptance of Tender Business in Pakistan:

At the time of placing the order, the Purchaser shall have the sole right, at his own expense, to increase or decrease the quantity of any or all item(s) or services, without affecting unit prices or other terms and conditions. Before a bid or proposal is accepted, the Purchaser has the right to reject any of them. The Purchaser will, upon request, provide any bidder with the reasons it rejected every bid or proposal; however, the Purchaser is not obliged to explain these reasons. By merely invoking sub-rule (1) of Rule 35 of the Punjab Procurement Rules, 2014, the Purchaser will not be held liable to the bidders. But, if any bids are rejected, the bidders will be notified as soon as possible (per Rule 35 of Punjab Procurement Rules, 2014).

The tender can be rejected, if;

1. Significantly non-responsive in the way specified in clause 20 of this tender document; or
2. Submitted using forms, annexes, schedules, documents, / by other
3. Less than the designated mode; or
4. Incomplete, partial, conditional, alternative, late; or
5. Bid was not made against each lot separately and no pertinent bid security was submitted against each lot separately.
6. The Tenderer declines to accept the updated Total Tender Price; or
7. Is subject to interlining, cuttings, corrections, erasures, or overwriting
8. The tenderer participates in dishonest or fraudulent activities to compete for the contract award;
9. Or the tenderer attempts to sway the tender evaluation or contract award;
10. The tenderer does not meet all of the requirements of the Tender Eligibility / Qualification Criteria (Clause-7);
11. It does not meet the requirements of the Evaluation Criteria (Clause-22); any public or private sector organization has blacklisted it;
12. It has received legal notices or letters of displeasure from public sector organizations for serious failures to provide satisfactory services;
13. The tenderer has mentioned any financial implication(s) in the financial proposal that is in contradiction to this document and Government rules and regulations.
14. There is any discrepancy between the bidding documents and the bidder’s proposal i.e. any non-conformity or inconsistency or informality or irregularity in the submitted bid.
15. The Tenderer submits any financial conditions as part of its bid that are not in conformity with the tender document.
16. Non-submission of verifiable proofs against the mandatory as well as general documentary, qualification, and eligibility-related requirements
17. If the rates quoted by the vendor are not workable or on the higher side etc.

Award Criteria:

1. The first step will be the technically qualified bidder(s)/tenderer(s) who meet the qualification and technical evaluation criteria against each Lot as stated in clause-7 (Tender Eligibility) of this tender document.
2. Regardless of their performance in the previous step, the technically qualified and successful bidder(s)/tenderer(s) will be selected at the second step based on the lowest cost quoted by the rules and fulfilling all codal formalities against each Lot. They will be evaluated in light of all Pre-Conditions and necessary requisites.

Turning Failure into Success: Strategies for Winning Tenders in Pakistan:

In Pakistan, if you don’t win tender, then follow these steps and improve future tenders:

• Examine the tender process: Consider your bid submission, note any shortcomings, and modify your approach.
• Request feedback: To find out what went wrong with your bid, get in touch with the tendering authority and ask for their opinion.
• Enhance documentation: Make sure that all of your documents, including financial proposals and technical specifications, are complete and of high quality.
• Improve technical capabilities: To satisfy the tender requirements, update your knowledge, tools, and resources.
• Develop connections: To better understand the needs of important stakeholders, such as officials and business leaders, network with them.
• Market research: To comprehend the market, rivals, and customer needs, perform in-depth market research.
• Establish connections with nearby companies: Work together with nearby companies to better understand the market and enhance your bid.
• Compliance: Make sure that all laws, rules, and tender specifications are strictly followed.
• Enhance pricing strategy: Make necessary price adjustments to stay profitable while remaining competitive.
• Create a distinctive value proposition: Set yourself apart from the competition with your offerings.
• Stay informed: To stay ahead of the game, keep an eye on industry advancements and tender announcements.

Conclusion:

In conclusion, tenders are essential to Pakistan’s procurement system because they present chances for companies to expand and thrive. It is crucial to comprehend the eligibility requirements, legal and regulatory framework, and winning tender strategies to succeed in the tender process. Businesses also need to know about the award criteria and the necessary safety measures.

Companies that follow the guidelines in this article can increase their chances of winning contracts and support Pakistan’s economy.

Do not forget to:

• Recognize the legal and regulatory framework that governs tender business in Pakistan
• Fulfill the requirements for participation in the tender
• Conduct extensive research and preparation
• Create a network and build relationships
• Remain current and flexible

By implementing these tactics and maintaining awareness, companies can successfully manage the bidding process and support the growth of Pakistan’s economy.