Senate body raps grant of key foreign-funded projects to non-performing firm
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Chairman Senate Standing Committee on Economic Affairs Division (EAD) Senator Saifullah Abro presides over a meeting of the committee at the Parliament House on June 16, 2025. — Facebook@Pakistansenate
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ISLAMABAD: The Senate Standing Committee for Economic Affairs (EAD) has awarded a non -performing company with foreign financing projects worth billions of rupees.
The Senate panel directed that the matter be sent to the Federal Investigation Agency (FIA) or the National Accountability Bureau (NAB) for necessary legal action against the alleged violation of the rules. The Senate Committee met with Senator Saifullah Awar on Tuesday with Senator Saifullah Aubrobo to review the Central Asian Regional Economic Cooperation (CAREC) Corridor Development Investment Program – along with TRACH 3, with the United Nations and the United Nations. The committee was given a comprehensive briefing about the Carec Trache-3 project, which covers more than 330 km, covers Rajanpur-Rara Ghazi Khan-Rara Ismail Khan Corridor. Although the project was approved in 2020, its implementation has not begun. Total estimates cost RS. 85 billion, with six bypasses from Rajanpur to DG Khan, 121.5 km long, and five bypasses from DG Khan to DI Khan, with 208.2 km.
National Highway Authority (NHA) officials informed the committee that a consulting firm was hired to finalize the bidding procedure for the project. In response, the chairman directed the NHA to submit a detailed report, presenting a standard procedure for the services of consulting firms. Talking about the tendering of Lot 1 (Rajanpur-Jimpur section, 58 km), it was revealed that six companies had submitted a bid, five of which were technically eligible. The committee expressed serious concerns to a company at the contract award that had previously failed to complete the Multan -Lodharan project, worth Rs. 6 billion. Senator Saifullah Awabar questioned the rationality behind giving one rupee. 172 billion project for non -performance history company. The chairman further ordered that strict action be taken against both the NHA and the complaint resolution committee (GRC) for their alleged role in manipulation of the contract award process. He directed that the matter be sent to the Federal Investigation Agency (FIA) or the National Accountability Bureau (NAB) for necessary legal proceedings against the rules. The members expressed deep dissatisfaction over the clear negligence of the NHA in giving such an important infrastructure project to the disqualified bidder. The chairman of the committee directed the NHA to present the full bid details of the Carec – II and Carec – III projects, along with the number of bids (both eligible and incompetent) within two days. He also criticized the absence of secretary, M/O communications, and said that the committee could not work effectively without the presence of senior representatives of the key implementing departments. The officials were unable to shorten and satisfy the committee.
Senator eyebrows highlighted that several complaints have been received about the ADB financial -driven road projects in the region. He called for permanent monitoring of all the projects organized by the World Bank and the Asian Development Bank. After a detailed conversation, the committee concluded that the NHA Board had decided at a meeting held on January 6, 2023 that the company was not eligible to apply for the project. In particular, the decision to terminate the company’s deal was already taken by the NHA board on December 23, 2022. The committee had expressed concern that before the NHA had allowed the company to start work on the Carec-II project, it has made only 8 % progress on an agreement. 6.8 billion. It further raised the question of how the same company was re-liked and qualified for the Carec-III project, worth Rs. 172 billion.
It also discussed the implementation of the recommendations made during its previous meetings, including the EAD and its related department, the Power Division, including the NTDC projects. After detailed consideration, the committee recommended that the Power Division ADB 401B -2022 take action against the third bidder against the officials involved in the contract for LOT-IIA (ACSR bunting conductor). The committee further recommended that the Power Division provide a copy of the inquiry report prepared by the three-member inquiry committee, headed by Mr. Muhammad Ali, headed by the former caretaker Federal Minister for Energy (Power Division), the ADB 401B-2022 LOT-IIA tender investigation. In addition, the Committee recommended the Power Division to write a letter to the Prime Minister to the Assistant Assistant to the Government and share a copy of the letter with the committee. The Power Division was also directed to write to the FIA and NAB in connection with the issuance of fake letters by the Engineering Development Board (EDB) in connection with the ADB 401B-2022 LOT-IIA (ACSR bunting conductor) tender.
The committee was briefed by the Special Secretary, M/O economic affairs, about the projects made in Khyber Pakhtunkhwa province, which supported multilateral, bilateral and UN agencies. It was reported that the province has received additional funds to compensate for the growing costs of the ongoing projects. Senator Haji Heditullah Khan remarked that many projects in Khyber Pakhtunkhwa are incomplete and delayed due to being ineffective in departments. In response, the provincial representatives said that many projects are nearing completion and they will need time for additional funds and completion. Various Khyber Pakhtunkhwa department officials provided updates about the progress of development projects in areas including Balakot, Peshawar, Hazara and Malakand. In connection with Germany’s financing measures, it has been reported that land acquisition issues have been delayed for about five months. The Forest Department informed the Committee on the Billion Tree Plantation Program organized by Germany, which was applied to various villages in Khyber Pakhtunkhwa, including Peshawar, Hazara and Malakand. Officials highlighted the need for a strong management information system (MIS) to monitor and protect planting locations, especially in remote areas.
