PUNJAB PROCUREMENT REGULATORY AUTHORITY ACT 2009

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THE PUNJAB PROCUREMENT REGULATORY AUTHORITY 
ACT 2009 
(VIII of 2009) 
CONTENTS 
1. Short title, extent and commencement 
2. Definitions 
3. Establishment of Authority 
4. Directions by the Government 
5. Functions and powers of the Authority 
6. Board 
7. Meeting of the Board 
8. Managing Director 
9. Appointment and remuneration of the third party evaluation firms 
10. Training 
11. Maintenance of Website 
12. Fund 
13. Power to obtain finances and receive grants 
14. Investment 
15. Budget and accounts 
16. Audit of the Authority 
17. Information 
17A. Blacklisting 
18. Annual report 
19. Ethical considerations 
20. Appointment of officer and staff, etc 
21. Members, officers, etc. to be public servants 
22. Delegation 
23. Exemption 
24. Indemnity 
25. Common seal 
26. Rules 
27. Regulations 
28. Repeal and Validation 
 
TEXT 
THE PUNJAB PROCUREMENT REGULATORY AUTHORITY ACT 2009 
(VIII of 2009) 
[17th November, 2009] 
An 
Act 
to provide for the establishment of the Procurement Regulatory Authority in the 
Punjab. 
 WHEREAS it is expedient to provide for the establishment of the Procurement 
Regulatory Authority for regul ating procurement of goods, services and works in the 
public sector and for matters connected therewith; 
It is hereby enacted as follows:– 
1. Short title, extent and commencement .– (1) This Act may be cited as the 
Punjab Procurement Regulatory Authority Act 2009. 
(2) It extends to the whole of the Punjab. 
(3) It shall come into force at once. 
2. Definitions.– In this Act: 
(a) “Authority” means the Punjab Procurement Regulatory Authority 
established under section 3; 
(b) “Board” means the Board of Management constituted under section 6; 
(c) “Chairperson” means the Chairperson of the Board; 
1
[(d) “corrupt practice” means the offering, giving, receiving, or soliciting of 
anything of value to influence the action of a public official, bidder or 
contractor in the procurement process or in contract execution to the 
detriment of the procuring agency; or misrepresentation of facts in 
order to influence a procurement process or the execution of a 
contract, collusive practices among bidders (prior to or after bid 
submission) designed to establish bid prices at artificial, non -
competitive levels and to deprive the procuring agency of the benefits 
of free and open competition and any request for, or solicitation of 
anything of value by any public official in the course of the exercise of 
his duty; it may include any of the following: 
(i) coercive practice by impairing or harming, or threatening to 
impair or harm, directly or indirectly, any party or the property of 
the party to influence the actions of a party to achieve a wrongful 
gain or to cause a wrongful loss to another party; 
                                                 
1Substituted by the Punjab Procurement Regulatory Authority (Amendment) Act 2016 (XV of 2016), published in the Punjab 
Gazette (Extraordinary), dated: 29 February 2016, pp. 4049-4051, s.2. 
(ii) collusive practice by arrangement between two or more parties 
to the procurement process or contract execution, designed to 
achieve with or without the knowledge of the procuring agency 
to es tablish prices at artificial, noncompetitive levels for any 
wrongful gain; 
(iii) offering, giving, receiving or soliciting, directly or indirectly, of 
anything of value to influence the acts of another party for 
wrongful gain; 
(iv) any act or omission, inc luding a misrepresentation, that 
knowingly or recklessly misleads, or attempts to mislead, a party 
to obtain a financial or other benefit or to avoid an obligation; 
(v) obstructive practice by harming or threatening to harm, directly 
or indirectly, persons  or their property to influence their 
participation in a procurement process, or affect the execution of 
a contract or deliberately destroying, falsifying, altering or 
concealing of evidence material to the investigation or making 
false statements before i nvestigators in order to materially 
impede an investigation into allegations of a corrupt, fra udulent, 
coercive or collusive practice; or threatening, harassing or 
intimidating any party to prevent it from disclosing its knowledge 
of matters relevant to th e investigation or from pursuing the 
investigation, or  acts intended to materially impede the exercise 
of inspection and audit process;] 
(e) “Fund” means the Public Procurement Fund; 
(f) “goods” means articles and objects of every kind and description 
including raw materials, products, equipment, machinery, spares and 
commodities in any form and includes services incidental to installation, 
transport, maintenance and similar obligations related to the supply of 
goods if the value of these services does not  exceed the value of such 
goods; 
(g) “Government” means the Government of the Punjab; 
(h) “Managing Director” means the Managing Director of the Board; 
(i) “Member” means a member of the Board; 
(j) “misprocurement” means public procurement in contravention  of any 
provision of the Act, rules, regulations, orders or instructions made 
thereunder or any other law in respect of, or relating to the public 
procurement; 
(k) “prescribed” means prescribed by the rules made under the Act; 
2
[(l)  “procuring agency” means: 
(i) a department, attached department of the Government; 
(ii) an autonomous body or a special institution of the Government; 
                                                 
2Substituted by the Punjab Procurement Regulatory Authority (Amendment) Act 2016 (XV of 2016), published in the Punjab 
Gazette (Extraordinary), dated: 29 February 2016, pp. 4049-4051, s.2. 
(iii) a court or tribunal financed by the Provincial Consolidated Fund; 
(iv) Provincial Assembly of the Punjab; 
(v) a local government; 
(vi) a body corporate owned or controlled by the Government or a 
local government; or 
(vii) a private organization financed by the Government or a local 
government where such finance is not less than five million 
rupees and constitutes not less th an fifty percent of the 
expenditure of the organization in the financial year;] 
3
[(m) * * * * * * * * * * *   ] 
4
[(n) “public procurement” means procurement of goods, works or services 
by a procuring agency wholly or partly financed out of the Provincial 
Consolidated Fund or the Public Account of the Province or funds of a 
procuring agency;] 
(o) “regulations” means regulations made under the Act; 
(p) “rules” means rules made under the Act; 
5
[(q) “services” includes physical, maintenance, professional, intel lectual, 
consultancy or advisory services but does not include appointment of 
an individual to a post or office, advertisement, arbitration, conciliation 
or mediation services, services of an advocate in a court case or any 
other services specifically excluded under the rules;] 
(r) “works” means a construction work adding consisting of erection , 
assembly, repair, renovation or demolition of a building or structure or 
part thereof, such as site preparation, excavation, installati on of 
equipment or materials and decoration, finishing and includes 
incidental services such as drilling, mapping, satellite photography, 
seismic investigations and similar activities, if the value of those 
services does not exceed that of the works themselves. 
3. Establishment of Aut hority.– (1) The Government shall, by notification, 
establish an Authority to be called the Punjab Procurement Regulatory Authority for 
carrying out the purposes of this Act. 
 (2) The Authority shall be a body corporate, having perpetual succession 
and common seal with power to enter into contract; and it may sue or be used by the 
said name. 
4. Directions by the Government.– The Government may issue directive to the 
Authority on a matter of policy and the directive shall be binding on the Authority. 
                                                 
3Omitted by th e Punjab Procurement Regulatory Authority (Amendment) Act 2016 (XV of 2016), published in the Punjab 
Gazette (Extraordinary), dated: 29 February 2016, pp. 4049-4051, s.2. 
4Substituted by the Punjab Procurement Regulatory Authority (Amendment) Act 2016 (XV of 2016), published in the Punjab 
Gazette (Extraordinary), dated: 29 February 2016, pp. 4049-4051, s.2. 
5Substituted by the Punjab Procurement Regulatory Authority (Amendment) Act 2016 (XV of 2016), published in the Punjab 
Gazette (Extraordinary), dated: 29 February 2016, pp. 4049-4051, s.2. 
5. Functions and powers of the Authority .– (1) The Authority may take 
measures and exercise powers as may be necessary for improving governance, 
management, transparency, accountability and quality of public procurement. 
 (2) Subject to sub-section (1), the Authority may– 
(a) monitor application of the laws, rules, regulations, policies and 
procedures in respect of, or relating to the public procurement; 
(b) monitor the implementation of and evaluate laws, rules, regulations , 
policies and procedures in respect of,  or relating to, inspection or 
quality of goods, services and works and recommend reformulation 
thereof or revisions therein as it deems necessary; 
(c) recommend to the Government revisions in or formulation of new laws, 
rules and policies in respect of or related to public procurement; 
(d) make regulations and lay down codes of ethics and procedures for 
public procurement, inspection or quality of goods, services and works; 
(e) establish performance indicators for procurement performance of the 
Procuring A gencies and monitor compliance with these indicators 
through independent third party evaluati on and make 
recommendations for improvement of procurem ent performance of the 
Procuring Agencies; 
(f) Issue guidance and instructions regarding the interpretation and 
implementation of this Act, rules and regulations; 
(g) provide assistance and coordinate with the Procuring Agencies for 
developing and improving their institutional framework and public 
procurement activities; 
(h) prepare standard documents to be used  in connection with public 
procurement; 
(i) present an annual report to the Government regarding the overall 
functioning of the public procurement system, including 
recommendations on measures to be taken by the Government to 
enhance the quality of procurement work; 
(j) call a functionary of a Procuring Agency to provide assistance in its 
functions and call for information from a Procuring Agency pursuance 
of its objectives and functions; 
(k) develop, promote and support training and professional developmen t 
policy of officials and other persons engaged in public procurement; 
and 
(l) perform other function as may be assigned to it by the Government. 
6. Board.– (1) The management and administration of the Authority shall vest in 
the Board of Management. 
 (2) The Board shall consist of– 
(a) Chief Secretary to the Government; Chairperson 
(b) Secretary to the Government, Finance 
Department; 
Member 
(c) Secretary to the Government, Planning and 
Development Department; 
Member 
(d) Secretary to the Government, Health 
Department; 
Member 
(e) Secretary to the Government, Information 
Technology Department; 
Member 
(f) Secretary to the Government, Irrigation & Power 
Department; 
Member 
(g) Three Members of Provincial Assembly of the 
Punjab 
6
[including at least one female member 
of the Assembly] nominated by the Government;  
Members 
 
(h) Three Members from Chamber of Commerce 
and Industry 
7
[including at least one female] 
nominated by the Government; and  
Members 
(i) Managing Director Secretary/Member. 
 (3) A Member other than an ex-officio Member shall hold office for a period 
of three years and shall be entitled to the perks and privileges as the Government 
may determine. 
 (4) A Member other than an ex-officio Member may resign by tendering his 
resignation to the Government. 
 (5) A casual vacancy in the Board shall be filled through nomination by 
appropriate authority for the residue of the term of the outgoing Member. 
 (6) The existing of a vacancy in the constitution of the Board shall not 
invalidate an act or proceedings of the Board. 
7. Meeting of the Board.– (1) The meetings of the Board shall be presided over 
by the Chairperson or in his absence by a member nominated by the Chairperson. 
 (2) Seven Members shall constitute the quorum for a meeting of the 
Board. 
 (3) An ex-officio Member may nominate an officer, not below the rank of 
an Additional Secretary, to attend the meeting. 
 (4) The Board shall take decision by a simple majority of the Members 
present and voting. 
 (5) The Managing Director shall record the minutes of the meeting. 
                                                 
6Inserted by the Punjab Fair Representation of Women Act 2014 (IV of 2014), w.e.f. 12.3.2014, s.2 and the Schedule; and 
published in the Punjab Gazette (Extraordinary), pages 2733-2744. 
7Inserted by the Punjab Fair Repr esentation of Women Act 2014 (IV of 2014), w.e.f. 12.3.2014, s.2 and the Schedule; and 
published in the Punjab Gazette (Extraordinary), pages 2733-2744. 
8. Managing Director.– (1) The Government shall appoint Managing Director of 
the Board for a period of three years on the terms and conditions as it may 
determine. 
 (2) The Government shall not vary, alter or modify the terms and 
conditions of service of the Managing Director during his term of office. 
 (3) The Managing Director shall be responsible for day to day 
administration of the Authority.  
 (4) The Managing Director shall be eligible for re -appointment but his total 
tenure shall not exceed six years. 
 (5) The Government shall not appoint a person as the Managing Director, 
if he– 
 (a) has been convicted of an offence involving moral turpitude; 
 (b) has been removed from a service for misconduct; 
(c) has been adjudged as un-discharged insolvent; 
(d) is incapable of discharging his duties by reasons of physical or mental 
incapacity in the opinion of a Medical Board constituted by the 
Government; or 
(e) has a conflict of interest with the Authority. 
 (6) The Managing Director may resig n by tendering his resignation to the 
Government. 
 (7) The Managing Director shall not engage in any other service, business, 
vocation or employment nor shall he, before the expiry of one year from the date of 
his relinquishment of the charge of his office , enter into employment or accept any 
advisory or consultancy relationship with any person engaged in public procurement 
activity: 
Provided that where the Managing Director is a government servant, there 
shall be no such restrictions on his employment afte r his retirement or transfer from 
the post of Managing Director. 
 (8) The Managing Director shall not have a direct or indirect financial 
interest or connection with a Company engaged in public procurement activity during 
the term of his office and for a period of one year thereafter. 
 (9) The Managing Director shall– 
 (a) exercise administrative control over the personnel of the Authority; 
(b) exercise, in respect of the Authority, such other management, 
administrative and financial powers as may be determ ined by the 
Board; 
(c) submit the annual budget proposals of the Authority to the Board, 
(d) prepare the annual report of the Authority for the Board and the 
Government; 
(e) exercise powers as the Board may delegate to him; and 
(f) act on behalf of the Aut hority, in any emergency, subject to the 
obligation to report the action to the Board at its next meeting and to 
seek ratification of his action. 
9. Appointment and remuneration of t he third party evaluation firms .– (1) 
The Authority may appoint a firm for  conducting a third party evaluation of public 
procurement contracts of a Procuring Agency against payment of remuneration. 
 (2) Subject to sub -section (3), the criteria for the selection and 
appointment of a firm for third party evaluation shall be prescribed. 
 (3) A firm that submitted bid for the award of a public procurement contract 
of a Procuring Agency shall not be eligible for appointment as evaluator of the 
contracts of the Procuring Agency. 
 (4) The firm shall submit its evaluation report to the Authority. 
10. Training.– The Authority shall formulate training policies and launch training 
programmes for the relevant personnel of the Procuring Agencies.  
11. Maintenance of Website.– (1) The Authority shall maintain a website for the 
procurement activities. 
 (2) The Procuring Agency shall update the procurement activities on the 
website in the prescribed manner. 
12. Fund.– (1) The Authority shall establish a Fund to be known as the Public 
Procurement Fund. 
 (2) The sources of income of the Fund shall be– 
(a) grants made by the Government; 
(b) donations, endowments and grants from any individual or organization 
except from those dealing with public procurement; 
(c) income from investment by the Authority; and 
(d) all other sums or properties which may in  any manner become payable 
to, or vest in the Authority. 
(3) The Authority shall keep, maintain and spend the Fund in the 
prescribed manner. 
(4) The Authority shall exercise prudence in all financial transactions. 
(5) The Authority shall spend the Fund for the purpose of– 
(a) paying an expenditure lawfully incurred by the Authority, relating to 
remuneration of its Members, employees, advisers and consultants of 
the Authority, legal fees and costs as well as other fees and costs; 
(b) paying any other expense s, costs or expenditure properly incurred by 
the Authority in the performance of its functions or exercise of its 
powers; 
(c) purchasing or hiring equipment, machinery and any other work and 
undertakings in the performance of its functions or exercise of i ts 
powers; 
(d) payment of a financial obligation; and 
(e) payment of an expense for carrying out the provisions of this Act. 
13. Power to obtain finances and receive grants .– The Authority may, with the 
approval of the Government, accept grants from entities both domestic and 
international, including multilateral agencies, except those connected with public 
procurements, for meeting its obligations or performing its functions. 
14. Investment.– The Authority may invest its surplus funds in the prescribed 
manner. 
15. Budget and accounts .– (1) The Managing Director shall maintain the 
accounts of the Authority in the prescribed manner. 
 (2) The Managing Director shall prepare, for approval of the Government, 
by such date and in such form as may be specified by the G overnment, a statement 
showing the estimated receipts and current expenditure and the sums required by 
the Authority from the Government during the next financial year. 
16. Audit of the Authority .– (1) The Government shall appoint a firm of 
chartered accountants for the annual audit of the accounts of the Authority. 
 (2) Annual audit report of the accounts of the Authority shall be laid before 
the Board for approval. 
17. Information.– The Authority may call for an information required by it for 
carrying out the purposes of this Act, from a person or an institution concerned with 
the public procurement and the person or the institution shall provide the requisite 
information. 
 (2) The Authority shall furnish information to the Government, as the 
Government may require. 
8
[17A. Blacklisting.– (1) A procuring agency may, for a specified period and in the 
prescribed manner, debar a bidder or contractor from participating in any public 
procurement process of the procuring agency, if the  bidder or contractor indulg es in 
corrupt practice or any other prescribed practice. 
(2) The Managing Director may, in the prescribed manner, debar a bidder 
or contractor from participating in any public procurement process of all or some of 
the procuring agencies for a specified period. 
(3) Any person, aggrieved from a decision of a procuring agency, may 
within prescribed period prefer a representation before the Managing Director. 
(4) A procuring agency or any other person, aggrieved from a decision of 
the Managing Director, may wit hin prescribed period prefer a representation before 
the Chairperson whose decision on such representation shall be final.] 
                                                 
8Inserted by the Punjab Procurement Regulatory Authority (Amendment) Act 2016 (XV of 2016), published i n the Punjab 
Gazette (Extraordinary), dated: 29 February 2016, pp. 4049-4051, s.3. 
18. Annual report.– (1) The Authority shall, before the end of October, prepare 
its annual performance report of the preceding finan cial year which shall include 
inquiries and investigations made by the Authority during the financial year. 
 (2) The Authority shall submit to the Government its annual audit report 
and the annual performance repot. 
 (3) The Government  shall lay the annual  audit report and the annual 
performance report in the Provincial Assembly of the Punjab. 
19. Ethical considerations .– A Procuring Agency shall observe ethical 
standards and principles of conduct laid down by the Authority. 
20. Appointment of officer s and staff, etc .– The Authority may appoint such 
officers, servants, advisers, consultants and experts, as it may consider necessary 
for performance of its functions in accordance with the criteria and procedure as may 
be provided in the regulations. 
21. Members, offic ers, etc. to be the public servants .– The Chairperson, 
Members, Managing Director, officers, servants, advisers, consultants and experts of 
the Authority shall, when acting or purporting to act in pursuance of any of the 
provisions of this Act or the rules and regulations made there under, be deemed to 
be the public servants within the meaning of section 21 of the Pakistan Penal Code, 
1860 (XLV of 1860). 
22. Delegation.– The Board may, by such conditions and limitations as it may 
deem fit to impose, delegate any of the functions or powers of the Authority to the 
Managing Director, or one or more Members or any of the officers of the Authority 
except the power to– 
(a) approve audited accounts of the Authority; 
(b) recommend exemption under section 23; and  
(c) make, amend or repeal regulations. 
9
[23. Exemption.– (1) The Board may, for reasons to be recorded in writing, 
recommend to the Government to exempt any public procurement from the 
application of any rule or regulation made under this Act. 
(2) The Government may, on the recommendation of the Board and by 
notification, exempt application of any rule or regulation made under the Act in any 
public procurement by specifying alternate mode of the public procurement. 
(3) The notification under subsectio n (2) shall immediately be published in 
the official Gazette and on the websites of the Government and the Authority.] 
24. Indemnity.– No suit, prosecution or other legal proceedings shall lie against 
the Authority, the Board , the Chairperson or any member , officer, servants, advisers 
or consultants of the Authority in respect of anything done in good faith in public 
interest or intended to be done under this Act, the rules or the regulations. 
                                                 
9Substituted by the Punjab Procurement Regulatory Authority (Amendment) Act 2016 (XV of 2016), published in the Punjab 
Gazette (Extraordinary), dated: 29 February 2016, pp. 4049-4051, s.4. 
25. Common seal .– (1) The Managing Director or such other person , as the 
Chairperson may authorize shall keep the common seal of the Authority. 
 (2) The seal shall be authenticated in the manner as may be prescribed 
and a document, pertaining to the public procurement, authenticated with the seal of 
the Authority shall be admissible as evidence of the contents of the document. 
26. Rules.– The Government may, by notification, make rules for carrying out the 
purposes of this Act. 
27. Regulations.– Subject to the provisions of the Act and the rules, the Authority 
may make regulations for giving effect to the provisions of this Act. 
28. Repeal and Validation.– (1) The Punjab Procurement Regulator y Authority 
Ordinance, 2007 (XIX of 2007) is hereby repealed. 
 (2) Notwithstanding anything contained in any law, anything done, 
proceedings of action taken, order or rule made, liability incurred or right acquired 
under the Ordinance XIX of 2007 or purported to have been done, taken, made, 
incurred or acquired under that Ordinance , from the date of promulgation of the 
Ordinance till the coming into force of this Act, shall be deemed to have been done, 
taken, made, incurred or acquired under this Act.