ISLAMABAD: The Pakistan Telecommunication Access Providers Association (PTAPA) has called on the government to stop awarding government-to-government (G2G) agreements through direct contracting. PTAPA President Dr Shahid Farooq said the practice, carried out under the Public Procurement Rules, is discouraging private investment and slowing innovation across Pakistan’s IT and telecom industry.
Background
Government-to-government (G2G) agreements allow a state body to strike a deal directly with another government, or with a state-owned entity acting on a government’s behalf, without going through the open, competitive bidding process that normally governs public contracts. In Pakistan, such arrangements fall under exemptions written into the Public Procurement Rules, which were originally meant to cover genuine state-to-state cooperation rather than routine commercial IT and telecom work.
Industry associations like PTAPA have flagged this exemption before, arguing that it is increasingly being used as a shortcut around competitive tendering. When a G2G route is chosen for projects that could otherwise be opened to local private companies, those companies lose the chance to bid, invest, and build capacity in the sector.
Details
Speaking on behalf of PTAPA, Dr Shahid Farooq said direct G2G contracting under the Public Procurement Rules is “stifling investment and innovation in the IT and telecom sector.” His remarks reflect a wider concern within Pakistan’s telecom industry: that private access providers and IT firms are being sidelined on projects that fall within their technical capability, simply because a government-to-government arrangement was chosen instead of an open tender.
PTAPA represents companies that provide last-mile connectivity, fiber infrastructure, and internet access services across Pakistan. For these firms, exclusion from public-sector contracts through G2G channels means fewer opportunities to compete for state-funded digital infrastructure projects, even as the government pushes broader digital transformation goals.
Why This Matters for Local Firms
Private telecom and IT companies typically argue that competitive bidding drives down costs, improves service quality, and encourages local firms to develop new technology. When contracts move through a G2G channel instead, that competitive pressure disappears, and local vendors are left without a seat at the table.
Impact
If direct G2G contracting continues without changes to how it is applied under the Public Procurement Rules, industry players warn that Pakistan’s IT and telecom sector could see slower private investment, reduced incentive for local innovation, and a widening gap between state-driven projects and the private companies capable of delivering them. The concern extends beyond individual contracts — it touches Pakistan’s broader ambition to grow a competitive, innovation-led digital economy.
Regionally, procurement models are already shifting. Other countries have been reviewing how G2G and standard public-procurement rules interact, particularly in fast-moving sectors like cloud services and telecom infrastructure, where rigid or opaque procurement can leave local industry unable to keep pace.
Conclusion
PTAPA’s demand puts pressure on policymakers to reconsider how the Public Procurement Rules treat G2G exemptions in the IT and telecom space. Whether the government revises the rules, tightens the criteria for using G2G contracting, or maintains the current approach will shape how much room private telecom and IT firms have to compete for public projects going forward. Industry watchers expect this to remain a live issue as Pakistan continues its digital infrastructure push.
FAQs
What are government-to-government (G2G) agreements?
Government-to-government (G2G) agreements are direct arrangements between two governments, or between a government and a state-owned entity representing another government, to deliver goods, services, or infrastructure projects. Unlike standard public procurement, G2G deals are typically negotiated at a state level and can bypass the open, competitive tendering process that private companies would normally go through to win a public contract.
What is government to government in G2G?
In a G2G structure, the “government to government” part means the deal is struck directly between state authorities rather than between a government and a private company. One government (or a body acting on its behalf) supplies the goods, services, or project delivery, while the other government is the buyer. Private firms are usually not involved unless they are brought in later as subcontractors.
What does G2G stand for?
G2G stands for “government-to-government.” It describes any transaction, agreement, or contracting relationship that takes place directly between government bodies, as opposed to B2G (business-to-government), where a private company sells to a government, or B2B, where businesses trade with each other.
