The Government has introduced amendments to public finance regulations, permitting the procurement of goods and services without a competitive bidding process under certain conditions. 

The changes were officially published in the Government gazette by the Ministry of Finance and Planning on Wednesday.

Under the amended rules, "single source procurement" allows direct acquisition of materials or services from a specific provider. This provision applies primarily to projects aimed at enhancing public welfare and essential services. Additionally, projects related to security services can also be awarded in this manner, but only upon the recommendation of the Cabinet or a designated Cabinet Committee.

The revised regulations further grant authority to the finance minister to exempt certain projects from standard bid security, performance guarantees, or other financial securities. This exemption applies to projects under the Public Sector Investment Programme (PSIP) that have been submitted to the finance ministry by Government offices and subsequently selected by a Cabinet Committee based on ministerial recommendations.

To ensure financial responsibility in the execution of such projects, the regulations also establish special criteria set by the finance ministry for assessing the financial capability of companies receiving direct contracts.

While the new rules enable direct procurement, the current Administration discontinued a previous practice in 2023, that allowed private entities to submit project proposals to the Government without a formal bidding process. This policy was introduced in 2019, allowing private sector initiatives to align with national development goals before the government publicly announced project implementations.