Proceedings of the 40th International Academic Conference, Stockholm

HOW TO ECONOMIZE THE ADVERTISEMENT COST OF THE PUBLIC TENDERS? A COMPREHENSIVE STUDY ON PUBLIC PROCUREMENT OF PAKISTAN

RABIA ASIF, SABAHAT NISAR

Abstract:

Taxes are considered among one of the significant revenue source at government level. Govt. revenue is the collection through taxes. These collections are mainly distributed to Govt. consumption expenditures. Govt. pays special consideration while devising the public procurement rules and procedures. At present, public procurement has an immense importance because existing data on procurement profile suggest that public procurement expenditures accounts for almost 15% of GDP worldwide. Efficient public procurement with economical system is considered to be a scorching issue with respect to developing countries. In order to address these issues, the information of public procurements is preceded via tender publications in print or electronic media. The aim of this study rests on how to achieve efficiency and economy in tender advertisement cost? For this purpose, PPRA rules 2004 of Pakistan are compared with PPRA rules of SAARC countries. Then, determinants of effective advertisement cost are identified through questionnaire survey from suppliers. The results of the study clearly indicate that there exists a comparable difference in Pakistan PPRA rules regarding cost effectiveness. As far as determinants of effective advertisement cost are concerned, financial limit and advertisement size are proved to be most significant variables regarding cost efficiency in public tender advertisement. The implementation of this research study significantly impact on reduction of tender advertisement cost and assist to save million of precious public funds.

Keywords: PPRA, Cost Effectiveness, Advertisement Rule, SAARC etc.

DOI: 10.20472/IAC.2018.040.003

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