Pakistan Cancels Vaccine Procurement Contract After Inquiry Finds Alleged Irregularities

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Pakistan’s Health Ministry will issue a fresh tender for meningococcal and influenza vaccines after an inquiry raised concerns over procurement approvals, bidding procedures and costs for international travellers.

Pakistan’s federal government has cancelled a controversial vaccine procurement process following an inquiry into alleged financial irregularities and procedural violations involving a contract awarded by Border Health Services (BHS), the Ministry of National Health Services said.

The ministry will issue a fresh tender for meningococcal meningitis and influenza vaccines for international travellers within a month. The decision follows an inquiry ordered by Prime Minister Shehbaz Sharif into the procurement process and the administration of the BHS vaccination system.

Federal Health Minister Mustafa Kamal confirmed that the existing vaccination arrangement for religious pilgrims and overseas job seekers had been suspended. He said officials involved in initiating the unauthorised tender had been arrested for allegedly bypassing the ministry’s oversight.

Kamal said he would not tolerate actions that undermined the ministry’s authority or damaged his reputation. He added that those responsible for failing to keep the ministry informed would be held accountable.

Following the suspension, pilgrims have been advised to obtain their mandatory vaccinations through travel agents until a replacement procurement system is established. The ministry’s central procurement committee is expected to supervise the new tender.

Vaccine prices and bidding process questioned

The controversy emerged after allegations that the new contract had increased vaccination costs to approximately Rs4,500 per pilgrim, compared with around Rs1,250 per dose under a previous arrangement. Seven companies have also approached the Islamabad High Court, challenging alleged irregularities in the bidding process.

A five-member inquiry committee headed by the Cabinet Division secretary examined the legal framework, required approvals and justification for awarding the contract. Its members included representatives from the Intelligence Bureau, the Drug Regulatory Authority of Pakistan, the Public Procurement Regulatory Authority and the Attorney General’s Office.

According to documents examined by the committee, BHS officials established separate procurement and grievance committees without following the arrangements approved by the ministry.

The ministry had constituted a six-member procurement committee on May 9, chaired by BHS Director Dr. Mir Muhammad Hassan Builo. A separate grievance committee was formed under the federal director general of health.

However, BHS reportedly established another procurement committee on June 10 under Dr. Pardeep Kumar and a separate redressal committee led by Dr. Shahbaz Ahmed Hashmi. The department subsequently proceeded with the tender independently.

A senior ministry official said the health ministry had not been properly informed about the process. The official also questioned whether public procurement rules were applicable to a public-private partnership, arguing that the relevant partnership regulations should have governed the tender.

Previous vaccine rates and payment arrangement

Under the previous agreement, the private company purchased the vaccines, while payments were deposited into an account managed by the National Database and Registration Authority (NADRA). After deducting service charges, NADRA distributed the remaining amount between BHS and the private company. The arrangement did not require direct expenditure from the national treasury.

Officials said the Rs1,250 rate recorded in 2026 resulted from a company securing vaccines at a lower price. Historical figures showed that meningococcal vaccine charges were Rs2,555 per dose in 2025, Rs2,244 in 2024, Rs2,476 in 2023 and Rs2,550 in 2022. Influenza vaccine charges stood at Rs1,426 in 2025 and Rs1,670 in 2024.

Another official said the tender would be advertised again but maintained that companies challenging the process should demonstrate their ability to supply vaccines at the claimed rate of Rs1,250 per dose. The official added that the vaccine’s maximum retail price was approximately Rs1,300, although charges in previous years had frequently exceeded Rs2,000.

Officials also linked inconsistencies in earlier procurement arrangements to cases involving fake vaccination certificates. These practices, they said, created difficulties for pilgrims and raised concerns about the credibility of the vaccination system.

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