Pak Datacom satellite contract faces questions over procurement rules

Islamabad: Questions have been raised over Pak Datacom Limited’s decision to award a new satellite services contract to YahClick for the National Bank, OGDCL and AGPR, focusing on whether the company followed its own procurement rules requiring competition, advertisement, bid evaluation and formal approval.

The issue is important because Pak Datacom’s procurement policy sets out a detailed process for major purchases. The policy requires the procurement department to handle the process from the initial request and tender or request for quotation through evaluation, negotiations, recommendation and final contract approval.

Pak Datacom previously signed an MoU with Kacific for Ka Band satellite services using PakSat MM1, which has 11 spot beams across Pakistan. Pak Datacom also held a Kacific road show in Islamabad in September 2025.

These details are publicly available from Kacific and Pak Datacom. The later change in satellite arrangements raises a commercial question about the reasons for the change, which would depend on the relevant business agreements and records.

Public information also indicates that PakSat MM1 Ka Band services operated within the applicable regulatory framework.

For purchases above Rs1 million, the policy requires sealed quotations from approved suppliers along with advertisement in a daily newspaper or publication on the company website. For larger purchases above Rs2 million, bidders must submit separate technical and commercial offers.

The policy also states that specifications should allow for the widest possible competition and should not favour one supplier. Brand names are not to be used unless an equivalent product is allowed.

The rules also set a formal process for opening bids. Bids above Rs1 million must be opened in the presence of the Purchase Committee and, where applicable, the bidders or their representatives. Prices and bid amounts must be announced and recorded in the minutes.

The procurement policy further requires bidders to be given between five and 15 working days to submit their offers. After that, bids are to be examined on technical and financial grounds before a recommendation is made.

A comparative statement is also required before a major award. It must show unit prices, payment terms, delivery details, warranty, validity, discounts, taxes, shipment costs and the final total. The statement must be signed by the Purchase Committee and approved by the Managing Director.

These requirements have led to questions about the YahClick award, including whether a formal public tender or advertisement was issued, where it appeared, how many companies submitted bids and how the competing offers were evaluated.

Another question is whether satellite operators were directly invited to participate apart from any public advertisement and whether the full procurement record shows that all eligible providers were given a fair chance to compete.

The policy also allows negotiations after evaluation. Normally, the Purchase Committee can recommend the lowest bid to the Managing Director and negotiate with the bidder to improve the price. If negotiations do not take place with the lowest bidder, the rules allow the company to approach the second lowest bidder for price rationalisation.

For international procurement or purchases above Rs10 million or US$60,000, approval of the Board of Directors is required based on the recommendation of the Purchase Committee and the Managing Director. This places major procurement decisions under a clear approval structure.

The Purchase Committee itself includes senior officials from finance, administration and technical areas, indicating that both financial and technical aspects are expected to be examined before a major contract is approved.

The company’s rules also require procurement records to be kept for 10 years. Such records can include bids, evaluations, comparative statements, committee recommendations and approval documents, making the documentary trail important in assessing whether the process was properly followed.

Another point that has drawn attention is the structure of the company’s procurement and board committees. According to Pak Datacom’s 2025 annual report available through the Pakistan Stock Exchange, Mr. Zomma Mohiyuddin is listed as Chairman of the Board of Directors and also heads the Board Procurement Committee.

A previous Daily Minute Mirror report had also highlighted questions around regulatory approvals, licensing and security arrangements related to the satellite service. Following that report, the Ministry of Information Technology and Telecommunication halted further Yahsat installations by Pak Datacom.

Pak Datacom officials have said that technical and financial proposals from different satellite operators were compared before YahClick was selected. They said PakSat could not provide the required C Band capacity in the areas and quantities needed, while YahClick could meet the requirement with lower bandwidth needs. According to the company, the comparison was placed before the Board and the proposal was approved unanimously.

The central question now is whether that comparison was conducted through the full competitive process required by Pak Datacom’s own procurement policy. The answer would depend on records such as the tender notice, request for quotation, list of bidders, technical and financial evaluations, comparative statement, Purchase Committee recommendation and Board approval.

Until those records are examined, questions will remain over whether the YahClick contract was awarded through a fully competitive and properly documented process under Pak Datacom’s procurement framework.