PPR-2025: A step towards transparent governance

The introduction of the Public Procurement Rules (PPR)-2025, in place of the earlier 2008 framework, represents a major policy shift in management of one of the largest channels of public expenditure in Bangladesh. With government procurement estimated at around $30 billion annually, the implications of these reforms extend far beyond purchasing-it is about governance, accountability and the credibility of public institutions. At the heart of the new rules is the mandatory use of electronic government procurement (e-GP) for all public agencies. This move decisively ends decades of manual tender submissions, which were notorious for inefficiency and systemic corruption. According to the Bangladesh Public Procurement Authority (BPPA), nearly 35 per cent of government purchases were still conducted through paper-based processes even after the e-GP's introduction in 2011. This loophole left ample space for manipulation and syndication. The PPR-2025 closes that door, mandating that even the smallest procurements must be carried out digitally.

The abolition of the long-debated 10 per cent price cap is another bold step. While originally intended to prevent abnormal bidding, in practice, it fostered collusion and political interference by allowing bidders to manipulate outcomes within a controlled margin. Removing the cap is expected to bring more competition, although it also demands stronger evaluation mechanisms to prevent underpricing or reckless bidding, leading to compromise on quality. Beyond digitisation and pricing reforms, the PPR-2025 embeds sustainability and international best practices into procurement. The rules expand procurement categories to formally include physical services like maintenance and security, introduce framework agreements for efficiency and create a debarment board to blacklist habitual offenders. By requiring disclosure of beneficial ownership, the system also strikes at the use of proxy contractors-a common route for vested interests to capture tenders. These measures, if enforced rigorously, could elevate procurement from being a breeding ground of corruption to a platform for fair competition and responsible governance.

Analysts note that the reform is not merely technical but also structural. Public procurement has long had a trickle-down effect on governance: when contracts are awarded through manipulation, project costs rise, service quality falls and public trust erodes. By enforcing transparency and accountability in procurement, the government indirectly strengthens governance in infrastructure, health, education and other vital sectors.  However, the success of the PPR-2025 will hinge on institutional capacity. Digitisation alone does not eliminate malpractice unless officials are trained, systems monitored and violations penalised. Many ministries and agencies still lack adequate technical expertise and administrative readiness to fully operate within a digital-only environment. Without capacity-building and strict enforcement, loopholes may re-emerge in new forms. Similarly, sustainable procurement, while commendable in principle, requires well-developed evaluation criteria and sectoral guidelines to avoid maintenance of a mere formality.

The reforms have rightly drawn appreciation from diverse quarters. Yet their true test will be in implementation-whether the rules translate into fairer competition, improved service delivery and greater public trust. In this sense, the PPR-2025 is not just about procurement but also about the state's ability to modernise governance and align public spending with accountability and development priorities.