Senate Committee reviews the implementation status of ongoing foreign-funded projects
Rs. 30 billion project, the Chairman suggested referring the matter to the FIA for further investigation.
The loan was approved for 400 kilometers of road works, nearly 724 kilometers had been undertaken, exceeding the approved scope.
Senator Abro “In our country, it has become a custom to borrow for projects and then mortgage the same projects for further loans.”
ISLAMABAD ( WEB NEWS )
The Senate Standing Committee on Economic Affairs, chaired by Senator Saifullah Abro, met at Parliament House to review the implementation status of ongoing foreign-funded projects and assess Pakistan’s borrowing patterns under IMF and multilateral programs. The Committee examined the performance of the National Highway Authority (NHA), Economic Affairs Division (EAD), and other concerned departments regarding on-going foreign funded projects financed by the Asian Development Bank (ADB), World Bank, emphasizing transparency, audit compliance, and the need for accountability in public spending.
While reviewing the ADB-financed CAREC Tranches I, II, and III, covering the Rajanpur – Dera Ghazi Khan – Dera Ismail Khan corridor, the Committee expressed serious reservations over irregularities in procurement and evaluation processes. Senator Saifullah Abro termed the case one of the most significant procurement controversies in recent years, noting that despite repeated directives, the local companies failed to furnish complete documentation to the NHA and the Committee. The Committee recalled that in its earlier meeting, it had declared the bids technically invalid because the JV partners (M/s Ningxia Communications Construction Co. Ltd. (NXCC), M/s Dynamic Constructors, and M/s Rustam Associates) failed to submit the essential audit reports and other mandatory documents required under the bidding criteria.
The Committee expressed serious concern that it is alarming how the NHA, as the executing agency, failed to implement the recommendations regarding major irregularities and blunders committed by NHA officials and their procurement team with mala fide intent. As a result, the Prime Minister suspended the senior officials of the NHA.
It was highlighted that the issue of mis-procurement, involving an estimated Rs. 172 billion, required immediate corrective action. The Chairman directed that all correspondence with ADB, including the letter issued by the Prime Minister’s Office, be shared with the Committee, emphasizing that guilty officials must be held accountable. He further noted that despite the Prime Minister’s instruction for an inquiry within seven days, no tangible progress had been reported.
The Committee was informed that the mis-procurement matter had not yet been finalized and that ADB’s concurrence was still awaited. The CEO, NHA, assured the Committee that necessary clarifications would be obtained and the required recommendations incorporated. He further assured that a meeting would be held with EAD regarding the Committee’s recommendation to inform the ADB that bids for the ADB CAREC Tranche-III (Rajanpur – DG Khan-DI Khan) Project were technically invalid and had been manipulated due to the mala fide intentions of certain NHA officials and contractors. It was further emphasized that NHA should share its findings with the ADB within coming days and not wait for the approval of the revised estimates by ECNEC.
The Committee stressed that issues related to land acquisition, delays, and cost escalations under Tranche-III must be resolved to ensure project completion by June 2026. Senator Abro reiterated that the Committee would continue to monitor progress until all irregularities were fully addressed.
In a related discussion, the Committee reviewed the details of IMF programs, loans, and grants obtained by Pakistan from the first program till September 2025. Examining the data presented by the Finance Division and the State Bank of Pakistan, Senator Abro remarked that reliance on borrowing had become a persistent trend rather than an economic necessity, observing that “in our country, it has become a custom to borrow for projects and then mortgage the same projects for further loans.” He emphasized that borrowing should aim at national self-reliance instead of creating a recurring debt cycle.
The Committee directed the Ministry of Finance and the State Bank of Pakistan to furnish complete bifurcation of loan details from 2008 onward, including utilization, repayments and interest payments, to ensure transparency. It was further noted that sudden allocations such as Rs. 90 billion under special funds in the 2022 – 23 federal budget must be fully explained in terms of source and utilization.
Senator Saifullah Abro also raised the issue of the privatization of United National Bank Limited UK (UNBL UK). He shared with the Committee that UNBL UK is a joint venture between United Bank Limited (UBL) and the National Bank of Pakistan (NBP). A proposal for the bank’s privatization was submitted to the State Bank of Pakistan in December, 2023. He stated that shares of NBP in UNBL UK was sold for 22 million pounds and questioned how the State Bank of Pakistan had issued the NoC. He also asked how NBP sold its 45% of shareholding to UBL without any transparent process.
The representative of the State Bank of Pakistan informed the Committee that requisite information will be provided before the next meeting. While discussing transparency mechanisms, the Committee received a briefing from the Managing Director of the Public Procurement Regulatory Authority (PPRA) on the implementation of the e-Pak Acquisition and Disposal System (EPADS).
Senator Abro appreciated the progress made in Punjab and directed that Balochistan should also adopt the system to prevent manipulation in the tendering process. He emphasized that loan funds belong to the people of Pakistan and must be spent for their benefit. Expressing concern over irregularities in Sindh’s tendering processes, the Chairman Committee noted that Sindh Public Procurement Regulatory Authority (SPPRA) had issued several letters this year to train officers on EPADS. Major departments in Sindh are already using EPADS, except for the Irrigation Department and the Works and Services Department, which have deliberately avoided adopting the system. SPPRA initially issued a letter allowing the manual tendering process to continue until May 30, 2025, after which all tenders were to be processed through EPADS. However, the Committee was surprised to learn that SPPRA issued another letter on September 17, 2025, stating that these two departments would not adopt EPADS and extending the deadline for manual tendering to October 21, 2025.
The Chairman Committee shared that projects worth Rs. 30 billion had been submitted for tendering by October 20, 2025. He described the situation as alarming and recommended that PPRA obtain the relevant records from SPPRA. He also suggested referring the matter to the FIA for further investigation. Senator Kamil Agha proposed that PPRA introduce legislation to make EPADS mandatory for all departments across the provinces.
The Committee also reviewed the Sindh Solar Energy Project (SSEP) funded by the World Bank and the Sindh Road Sector Projects financed by the ADB. Senator Abro expressed serious concern over procedural lapses and verification gaps in both initiatives. Regarding the SSEP, he noted discrepancies in the data of 200,000 household beneficiaries, with instances of duplicate entries and incomplete validation. The Chairman directed the department to submit verified beneficiary lists from all districts within ten days, along with clarification on the additional list of 400,000 beneficiaries reportedly provided by the BISP. He further questioned the involvement of non-governmental organizations in project execution, directing that all agreements, payment details, and service charges be disclosed, with a proposal to rationalize NGO service fees by up to 50 percent. The Committee also sought complete details of imported and locally manufactured equipment, including solar panels, fans, and components supplied by the contractor, and directed that EAD to verify tax deductions from FBR in this regard.
Reviewing the ADB-funded Sindh Road Sector Projects, the Committee noted that while the loan was approved for 400 kilometers of road works, nearly 724 kilometers had been undertaken, exceeding the approved scope. The Chairman observed striking similarities in bidding patterns across 17 contract packages, raising concerns of possible collusion. He directed the submission of comprehensive bidder records, prequalification criteria, and turnover histories, and proposed that EAD representatives may attend future bidding processes of these projects to ensure transparency and fairness. He also recommended EAD and its concerned department (Works and Services department, Government of Sindh) to provide the average annual turnover of all qualified bidders for the project.
Concluding the meeting, Senator Saifullah Abro emphasized that foreign-funded projects must be executed with full accountability and transparency. He directed all concerned Ministries and implementing agencies to submit verified records, bidding documents, audit reports, and correspondence with donors within ten days. He reiterated that Committee would maintain close oversight of all foreign-funded projects to ensure that public resources and international assistance are utilized strictly for the development and welfare of the people of Pakistan.
The meeting was attended by Senators Kamil Ali Agha and Haji Hidayatullah Khan, along with senior officials from the Economic Affairs Division (EAD), National Highway Authority (NHA), Ministry of Finance, State Bank of Pakistan, PPRA, and other concerned departments.