Transparency International Wants PM Shehbaz to Stop Rs. 20 Billion Airport Project

Transparency International Pakistan (TIP) has urged Prime Minister Shehbaz Sharif to immediately suspend the Pakistan Airports Authority’s (PAA) proposed Rs. 20 billion e-Gate project and order an independent inquiry into alleged violations of public procurement rules.

In a letter sent to the Prime Minister’s Office on July 16, TIP said it had received a complaint alleging that the PAA improperly abandoned an open international competitive bidding process and instead sought to award the contract to a single private company by invoking Rule 42(f) of the Public Procurement Regulatory Authority (PPRA) Rules, 2004.

According to TIP, the Civil Aviation Authority first invited international bids for e-Gates, biometric verification and passport authentication systems in 2020, but no contract was awarded. After the PAA issued a fresh Expression of Interest in 2024, three companies were shortlisted before the competitive process was allegedly discontinued.

TIP argued that Rule 42(f) is intended only for exceptional circumstances, such as emergencies, overriding public interest, or procurements involving government entities or state owned organizations. It said none of these conditions appeared to apply to a 24 month technology project and questioned why no public justification had been provided for bypassing competitive bidding.

The organization also raised concerns about the eligibility of the company reportedly being considered for the contract. It claimed preliminary checks did not confirm the firm’s registration with the Securities and Exchange Commission of Pakistan, its inclusion on the Federal Board of Revenue’s Active Taxpayer List, sales tax registration or registration with the Pakistan Engineering Council, all of which it said are required for such procurements.

According to the letter, consultants hired by the PAA in January 2026 later recommended issuing the tender solely to the company under Rule 42(f), a recommendation TIP said should be independently reviewed.

TIP further questioned an unsolicited proposal submitted by a foreign company for passenger information and passenger name record systems. It warned that accepting the proposal could ultimately impose an additional financial burden of more than Rs. 50 billion annually on passengers through a security surcharge and raised concerns over the legal basis for considering unsolicited proposals outside the PPRA framework.

The organization said the allegations appeared to have merit on a preliminary basis and recommended that the procurement process be suspended until an independent inquiry is completed.

TIP also urged the government to ensure the project is awarded through an open and transparent international competitive bidding process if the inquiry confirms the alleged irregularities. It further called for action against any officials found responsible for violating public procurement rules.