Tender for Pakistan Post Software System Awarded ‘At High Cost’

ISLAMABAD: Though the Pakistan Tehreek-e-Insaf (PTI) government has embarked on a cost-cutting drive, Pakistan Post – a state-owned postal service provider – has caused a loss of millions of rupees to the national exchequer by awarding contract for running the Centralised Software System at almost double the actual cost to a single bidder.

Earlier, a different company had run a similar project at a cost of Rs70 million per annum for seven years till 2018. Interestingly, the company was knocked out in the technical bid evaluation process.

Now, Pakistan Post has awarded the contract to a single bidder at a high cost of Rs130 million per annum for two years – 2019 and 2020.

Several attempts were made to seek comment of Pakistan Post on the matter. Queries were sent to Director IT Farrukh Basheer and Director Finance Services Muhammad Zaheer for their reply. However, they did not give any response.

Documents and reliable sources revealed that Pakistan Post had awarded a major IT project after receiving only one financial bid in an alleged attempt to favour a single bidder.

It rejected offers of several other IT firms, including that of the old service provider that had run the IT project for seven years. This will result in a loss of Rs100-120 million to the national exchequer over two years.

The single bidder was chosen despite several complaints from other bidders who offered to provide similar services at a much lower cost if they were provided a level playing field.

Moreover, the established IT players with decades of experience in running IT projects complained that the contract was awarded to a new and unknown entrant called AIMS without proper comparison of experience.

The financial bid of the qualified bidder included Rs.3,327,201 per month for project maintenance and support centre and Rs.1,001,741 per month for hosting server machines. However, both are excessively superfluous expenses, amounting to Rs.52 million per year.

IT experts, who were familiar with the IT services provided by Pakistan Post, told The Express Tribune that the competitive bid, while keeping in view the industry standards in terms of profit, should not exceed Rs.80 million in any case and it was higher by Rs.50 million per year.

Other bidders have termed it a travesty of fair competition. According to sources, there was seemingly a deliberate attempt to reject the rest of the technical bids on flimsy grounds to avoid price comparison and allow the remaining one technically qualified bidder to demand the amount as it liked.

It was also in violation of the rules and regulations of Public Procurement Regulatory Authority (PPRA) and Competition Commission of Pakistan.

They were of the view that if the tender was floated again and was fairly evaluated, a maximum cost of close to Rs80 million would have to be borne, thereby saving the national exchequer close to Rs100 million over the two-year validity period of the contract.

These bidders pointed out that in spite of the complaints against the award of the contract, no inquiry or action had been initiated so far.

Source: https://tribune.com.pk/pakistan-post

Hot this week

Alibaba Regional GM Highlights Pakistan Digital Export Potential and AI Role in CPEC 2.0

Alibaba General Manager Shawn Yang outlines how AI tools, digital trade platforms, and CPEC 2.0 can transform Pakistan SME sector and boost global export competitiveness.

OPay Backs Central Bank of Nigeria Payments System Vision 2028 Framework to Drive Universal Financial Inclusion

Financial technology platform OPay commits to the Central Bank of Nigeria new Payments System Vision 2028 initiative to accelerate instant transactions and secure digital finance.

Securities and Exchange Commission of Pakistan Introduces Groundbreaking ESG Mutual Funds Framework to Drive Sustainable Investing

The Securities and Exchange Commission of Pakistan launches its first-ever ESG Mutual Funds Framework, allowing asset management companies to introduce sustainable investment products.

JazzCash Secures Top Position as Highest Momentum Fintech Platform in Pakistan by CB Insights

Leading digital wallet JazzCash emerges as the highest-momentum fintech in Pakistan with a global top one percent Mosaic score following international recognition.

JazzCash Partners with MAL Pakistan Limited to Advance Cashless Mobility Solutions Across the Country

Leading fintech platform JazzCash collaborates with MAL Pakistan Limited to integrate QR and merchant-to-driver payment solutions for transport professionals and ride-hailing networks.

Topics

Alibaba Regional GM Highlights Pakistan Digital Export Potential and AI Role in CPEC 2.0

Alibaba General Manager Shawn Yang outlines how AI tools, digital trade platforms, and CPEC 2.0 can transform Pakistan SME sector and boost global export competitiveness.

OPay Backs Central Bank of Nigeria Payments System Vision 2028 Framework to Drive Universal Financial Inclusion

Financial technology platform OPay commits to the Central Bank of Nigeria new Payments System Vision 2028 initiative to accelerate instant transactions and secure digital finance.

Securities and Exchange Commission of Pakistan Introduces Groundbreaking ESG Mutual Funds Framework to Drive Sustainable Investing

The Securities and Exchange Commission of Pakistan launches its first-ever ESG Mutual Funds Framework, allowing asset management companies to introduce sustainable investment products.

JazzCash Secures Top Position as Highest Momentum Fintech Platform in Pakistan by CB Insights

Leading digital wallet JazzCash emerges as the highest-momentum fintech in Pakistan with a global top one percent Mosaic score following international recognition.

JazzCash Partners with MAL Pakistan Limited to Advance Cashless Mobility Solutions Across the Country

Leading fintech platform JazzCash collaborates with MAL Pakistan Limited to integrate QR and merchant-to-driver payment solutions for transport professionals and ride-hailing networks.

1LINK Onboards Zarai Taraqiati Bank Limited to Boost Digital Agriculture Payments via 1GO Raast P2M

1LINK and Zarai Taraqiati Bank Limited partner to deploy the 1GO Raast P2M service, driving financial inclusion and modern agritech payment solutions for Pakistan's farmers.

Passport Offices Go Cashless as Pakistan Steps Up Public Sector Digital Transformation Drive

Pakistan introduces mandatory digital payments across nationwide passport offices to eliminate wait times and enhance transparency under its modern public services initiative.

US President Donald Trump Reports Massive Financial Gain via Family Crypto Ventures

Recent financial disclosures reveal that US President Donald Trump earned over 1.4 billion dollars from crypto ventures in 2025, reshaping his personal wealth landscape.
spot_img

Related Articles

Popular Categories