Methods used to procure infrastructure projects in Pakistan: an overview

Abstract

In Pakistan, the need for infrastructure is immense while resources and capital are scarce commodities. The government estimates the public exchequer cannot even meet half of the funds required for infrastructure development. This paper investigates the methods used in Pakistan to procure infrastructure projects. This paper is a part of doctoral study of procurement practises of developing countries. Through literature and archival analysis, it discusses the project approval and procurement process in public sector in Pakistan. With the help of in depth case interviews and in light of the literature it discusses the advantages and disadvantages of the methods used in Pakistan. The findings reveal that there are two distinct methods of infrastructure project procurement in public sector in Pakistan, i.e., the traditional method and the non-traditional method, i.e., public private partnership (PPP). It is also found that there are constraints in project approval process hence causing problems in implementation. The driving forces for the non-traditional method in comparison to the traditional method are also limited.