PPRA probes Punjab health procurement

LAHORE: The Punjab Procurement Regulatory Authority (PPRA) has questioned the procurement practices of the Specialized Healthcare and Medical Education Department (SHC&MED) after allegations that tender specifications for cardiac consumables unfairly restricted competition and significantly increased procurement costs for the financial year 2026–27.

The matter came before the PPRA after M/s 4S International filed a representation challenging the department’s decision to make United States Food and Drug Administration (US FDA) approval mandatory for several high-volume cardiac consumables. The company argued that the exclusion of European CE Mark-certified products, which had previously been accepted, created discriminatory conditions and led to an unjustified increase in prices.

According to an order issued by PPRA Managing Director Sahibzadi Wasimah Umer, the complainant stated that balloon catheters (Item C3) bearing European CE certification had been procured during FY 2025–26 at a unit price of Rs6,985. Under the revised tender conditions requiring US FDA approval, the estimated unit price for the same item increased to Rs9,800.

The company further alleged that the department selectively applied the US FDA requirement to certain high-volume items, including C3, C4, C7, C19 and C20, while continuing to accept European CE Mark-certified products for other comparable items such as C5, C6 and C8.

The representation also claimed that objections to the revised tender conditions were formally raised during a pre-bid meeting held on June 30, 2026, but the official minutes did not reflect or address the concerns raised by prospective bidders. The complainant maintained that its CE Mark-certified products are registered with the Drug Regulatory Authority of Pakistan (DRAP) and are widely used in leading cardiology centres across Punjab with an established performance record.

During a hearing before the PPRA on July 8, 2026, SHC&MED Contract Manager Shafique Hussain stated that the US FDA requirement had been introduced on the advice of medical experts to ensure higher quality standards. However, after the proceedings, the department’s representative requested that the matter be referred back for reconsideration by the department.

In its ruling, the PPRA observed that public procurement laws require fairness, transparency and value for money, and noted that the distinction between accepted certifications warranted careful examination to determine whether it was based on clinical necessity, patient safety or other objective criteria, or whether it unnecessarily restricted competition without adequate justification.

The authority directed the health department to constitute an independent technical committee comprising impartial experts and departmental officials to conduct an evidence-based review of whether restricting procurement exclusively to US FDA-approved products is clinically essential.

The committee has also been asked to assess whether DRAP-registered products carrying European CE certification meet the required safety and performance standards and to provide M/s 4S International with an opportunity to present its case before a final decision is taken.

The PPRA also ordered the immediate refund of the Rs50,000 security deposit submitted by M/s 4S International.