PAKISTAN
The Competition Commission of Pakistan (CCP) has advised the Federal Board of Revenue (FBR) to lower the qualification criteria requested in a proposal document that it issued to hire firms for installing a new trace and tracking system at cigarette production plants.
CCP believes that FBR’s stringent criteria favor only one global party, saying, “A particular security printing firm having implemented the major track and trace systems in California, Turkey, Brazil, Kenya, Morocco, Albania and Georgia appears to be the only firm that meets the experience criteria mentioned.”
If FBR implements CCP’s recommendations, this will further delay the introduction of the new system that remains pending for one year. Sources in FBR said that some of CCP’s recommendations can be seriously considered, particularly on the annual turnover of the bidder.
FBR has been delaying the introduction of the new system, which once implemented, will enhance the government’s tax revenues by at least PKR50 billion.
CCP’s concerns are with respect to profile of bidders pertains to high turnover, high capacity, high volume, and evaluation criteria that awards maximum points based on projects implemented in number of countries and volume of stamp production and capacity. It also objects to a condition of US$100 million consolidated yearly revenues of the bidder, as it is of the opinion that annual turnover requirement of US$100 million restricts competition since only a few companies would meet the criteria.