Pakistan scraps vaccine contract over alleged irregularities

The federal government has cancelled a controversial vaccine procurement process after an investigation uncovered alleged financial irregularities and procedural violations in a contract awarded by Border Health Services (BHS).

The Ministry of National Health Services will issue a fresh tender for meningococcal meningitis and influenza vaccines for international travellers within a month. The decision follows an inquiry ordered by Prime Minister Shehbaz Sharif into the procurement process and the administration of the BHS vaccination system.

Federal Health Minister Mustafa Kamal confirmed that the existing vaccination arrangement for religious pilgrims and overseas job seekers had been suspended. He said officials involved in launching the unauthorised tender had been arrested for allegedly bypassing the ministry’s oversight.

Kamal said he would not tolerate actions that undermined the ministry’s authority or damaged his reputation. He maintained that those responsible for keeping the ministry uninformed would be held accountable.

Following the dismantling of the existing arrangement, pilgrims have been advised to obtain their mandatory vaccinations through their travel agents until a new procurement system is established. The ministry’s central procurement committee is expected to oversee the replacement tender.

The controversy emerged after allegations that the new contract had raised vaccination costs to approximately Rs4,500 per pilgrim, compared with around Rs1,250 per dose under a previous arrangement. Seven companies have also approached the Islamabad High Court, challenging alleged irregularities in the bidding process.

A five-member inquiry committee, headed by the Cabinet Division secretary, examined the legal framework, approvals and justification for awarding the contract. Its members included representatives from the Intelligence Bureau, the Drug Regulatory Authority of Pakistan, the Public Procurement Regulatory Authority and the Attorney General’s Office.

Documents examined by the committee indicated that BHS officials had established separate procurement and grievance committees without following the ministry’s approved arrangements.

The ministry had constituted a six-member procurement committee on May 9, chaired by BHS Director Dr Mir Muhammad Hassan Builo. A separate grievance committee was also formed under the federal director general of health.

However, on June 10, BHS reportedly established another procurement committee under Dr Pardeep Kumar and a separate redressal committee led by Dr Shahbaz Ahmed Hashmi. The department subsequently proceeded with the tender independently.

A senior ministry official said the health ministry had not been properly informed about the process. The official also questioned the application of public procurement rules to a public-private partnership, arguing that the relevant public-private partnership regulations should have governed the tender.

Under the previous agreement, the private company was responsible for purchasing the vaccines, while payments were to be deposited into an account managed by the National Database and Registration Authority (NADRA). After deducting its service charges, NADRA would distribute the remaining amount between BHS and the private company. The arrangement did not require direct expenditure from the national treasury.

Officials said the lower price of Rs1,250 recorded in 2026 resulted from a company securing vaccines at a cheaper rate. Historical figures showed that meningococcal vaccine charges stood at Rs2,555 per dose in 2025, Rs2,244 in 2024, Rs2,476 in 2023 and Rs2,550 in 2022. Influenza vaccine charges were Rs1,426 in 2025 and Rs1,670 in 2024.

Another official said the new tender would be advertised again but maintained that the companies challenging the process should demonstrate their ability to supply vaccines at the claimed rate of Rs1,250 per dose.

The official added that the vaccine’s maximum retail price was approximately Rs1,300, although charges in previous years had frequently exceeded Rs2,000.

Officials also linked inconsistencies in earlier procurement arrangements to cases involving fake vaccination certificates. These practices created difficulties for pilgrims and raised concerns about the credibility of the vaccination system.