KPPRA Rules 2014: A Comprehensive Guide to Procurement Limits (Updated 2026)
In the Khyber Pakhtunkhwa public sector, the KPPRA Rules 2014 are the primary authority for spending public funds. For Government Departments and Contractors, adhering to the correct financial thresholds is not just a matter of procedure—it is a mandatory legal requirement for passing audits.
1. Official Procurement Thresholds & Methods
The procurement method is determined by the total value of the goods, works, or services required. Below are the verified limits according to the latest KPPRA framework:
A. Direct Sourcing (Up to Rs. 100,000)
For small-scale requirements, a procuring entity can use Direct Sourcing.
- Requirement: Only one (01) quotation is necessary.
- Use Case: Urgent petty repairs, small stationery items, or minor office services.
B. Request for Quotation – RFQ (Rs. 100,000 to Rs. 500,000)
When the value exceeds one lakh but remains below five lakhs, the RFQ method is used.
- Requirement: A minimum of three (03) written quotations must be solicited.
- Key Rule: If three quotations are not received after a genuine effort, the procurement can still proceed with the available quotes, provided they meet technical specifications.
C. Open Competitive Bidding (Above Rs. 500,000)
This is the principal method of procurement for the Government of KP.
- Requirement: Full tender process with a formal Advertisement and Standard Bidding Documents (SBDs).
- Goal: To ensure maximum competition and transparency.
2. Advertising & Notice Requirements
Transparency is a core pillar of the KPPRA Act. The visibility of a tender depends on its estimated cost:
| Estimated Cost | Mandatory Platform |
| Up to Rs. 5 Million | Must be posted on Department Website and KPPRA Website. |
| Above Rs. 5 Million | Must be posted on Websites AND advertised in at least two national newspapers (one Urdu, one English). |
3. Critical Rules for Compliance
Rule 12: Prohibition of Splitting
A procuring entity cannot split or subdivide a single procurement into smaller lots just to avoid the “Open Bidding” threshold. For example, you cannot split a Rs. 600,000 furniture purchase into two Rs. 300,000 RFQs to avoid a tender. This is a major audit objection.
Rule 3: Direct Contracting
Direct contracting (without multiple quotes) above Rs. 100,000 is only allowed in specific cases, such as:
- Emergency requirements (natural disasters).
- Proprietary items (only one manufacturer exists).
- Add-on work (extending an existing contract within limits).
4. Why Accuracy Matters for KP Professionals
Incorrectly applying these limits leads to Audit Para and recovery notices. As a DDO or Accountant, using the SeekifyHub KPPRA Guide ensures you are following the consolidated version of the law, protecting your department from financial irregularities.
Frequently Asked Questions (FAQ)
Q: Can we buy items worth Rs. 80,000 through RFQ?
A: Yes, but it is not required. You can use Direct Sourcing (1 quote) for anything under Rs. 100,000.
Q: Is it mandatory to register with KPRA for these purchases?
A: Yes. For any service-related procurement, the contractor must be registered with the Khyber Pakhtunkhwa Revenue Authority (KPRA) to ensure Sales Tax on Services is properly deducted.
Q: Where can I find the latest SBDs?
A: All Standard Bidding Documents are available in the Notifications Hub on SeekifyHub.com.
- Managing KP Sales Tax? See our KPRA Sales Tax on Services Guide.
- Planning for Retirement? Use the KPK Pension Calculator 2025.
- Checking Job Age? Access the Interactive Age Calculator.
