The first Integrity Pact implemented in Pakistan was applied to procurement of the K-III Greater Karachi Water Supply Scheme Project in 2001 by the Karachi Water & Sewerage Board with TI-Pakistan as civil society monitor. This experience demonstrated how the IP contributed to greater transparency, corruption prevention, and cost savings for the procurement process.

In light of this, Pakistan’s 2002 National Anti-Corruption Strategy set out a plan for scaling-up the use of IPs to oversee public procurement. Many public sector companies signed MOUs with TI-Pakistan for their advice regarding IP implementation.

Pakistan’s Public Procurement Rules enacted in 2004 mandated that IPs must be implemented in all public procurement tenders valued at or above PKR 10 million.

The Pakistani IPs entail integrity and anti-corruption obligations on the part of the contracting agency and bidders, but do not result in the appointment of independent monitors, although TI-Pakistan can receive complaints from bidders and forward them to procuring agencies. Since IPs have become mandatory under the procurement rules and TI-Pakistan is no longer directly involved in all IP applications, TI-Pakistan has not been monitoring or evaluating the use of IPs and no information on the recent effectiveness of IPs under the current model is available.

Case study

View the Integrity Pacts Case Study: Greater Karachi Water Supply Scheme in Pakistan. How an Integrity Pact reduced costs on a massive public works tender – and has since become law.