Pakistan Airports Authority has shifted its Automated Border Control E-Gate project from open international competition to a single entity procurement under Rule 42(f) of the Public Procurement Regulatory Authority Rules 2004, prompting sharp objections from oversight bodies over how the Rs20 billion contract was awarded. The project is intended to modernise immigration processing at Pakistani airports through automated e-gates, biometric verification, and passport authentication systems.
In 2020, the then Civil Aviation Authority, now restructured as Pakistan Airports Authority, issued an international request for proposal covering the e-gate system, with a technical evaluation subsequently completed. However, no contract was awarded following that evaluation. In 2024, the authority launched a fresh Expression of Interest process that shortlisted three separate firms for further consideration, and appointed a German engineering consultant to prepare technical specifications. Despite this process, the final request for proposal was issued exclusively to AXI Systems Private Limited, a state owned enterprise, bypassing the three previously shortlisted firms entirely.
Transparency International Pakistan raised the alarm over the award earlier this year, writing to the Prime Minister’s Office and the Ministry of Defence to flag what it described as a likely case of mis-procurement. The watchdog argued that Rule 42(f) was misapplied, since the rule permits procurement through state owned entities only if the entity executes the project entirely through its own resources, without involving private partners, joint ventures, or subcontractors. Transparency International Pakistan noted that AXI Systems reportedly lacks the in-house technology, expertise, and capacity needed to independently deliver a system of this scale, raising questions over whether the rule’s conditions were genuinely met. The organisation also pointed out that where multiple eligible state owned entities exist, procurement rules require limited competition among them through transparent procedures, along with price reasonableness checks that were reportedly never conducted in this case.
The Public Procurement Regulatory Authority separately took up the matter, writing to Pakistan Airports Authority on May 11, May 21, and June 3 this year requesting complete procurement records, including justification for invoking Rule 42(f), the status of the award, documentation confirming AXI Systems’ status as a state owned entity, and details of price reasonableness checks and beneficial ownership disclosures. According to Transparency International Pakistan, the authority did not furnish the requested records despite repeated follow ups.
In its response dated July 3, the Ministry of Defence stated that the project was being pursued through indigenous resources due to data and national security considerations, and confirmed that no contract has yet been formally awarded. The ministry also said the Rs20 billion figure cited by Transparency International Pakistan does not reflect the current financial particulars of the project, without specifying updated figures. The ministry told the Prime Minister’s Office that matters relating to price reasonableness, disclosure, beneficial ownership, and performance security would be addressed at a later contractual stage, leaving the core procurement transparency concerns raised by watchdogs and the regulator still unresolved as the project moves forward.
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