Islamabad: (RightNow) The IT and Telecom sector has urged the government to end direct G2G (government-to-government) contracts. This demand was made by the Telecom Operators Association to prevent adverse effects on the private sector.

The association has requested the removal of clause 42(f) from the Public Procurement Rules 2004. They claim that direct contracts are negatively impacting the private sector, limiting their opportunities.

Federal Finance Minister Muhammad Aurangzeb and Federal Minister for Information Technology Shaza Fatima Khawaja have been informed of the drawbacks of G2G agreements through a letter. The association stated that these agreements are detrimental to private companies.

The association argues that preferential agreements for state institutions are increasing inequality in the private sector. The lack of competition in G2G projects could affect performance and innovation.

It is noteworthy that the private sector has demanded the government ensure a transparent and competitive process to prevent hindrance in the development of local digital products and services.