Press Release Title: Senator Saifullah Abro, Chairman Senate Standing Committee on Economic Affairs presiding over a meeting of the committee at Parliament Lodges Islamabad

Press Release Date: 16th June, 2025

Senator Saifullah Abro, Chairman Senate Standing Committee on Economic Affairs has called for ensuring transparency while executing development projects. He said that there are projects of roads under NHA which need scrutiny and ensuring timely completion to avoid extra burden on the exchequer. He specifically mentioned the CAREC Tranche-3 project, which spans over 330 kilometers, covering the Rajanpur–Dera Ghazi Khan–Dera Ismail Khan corridor. Although the project was approved in 2020, implementation has yet to commence. The total estimated cost is Rs. 85 billion, comprising a 121.5 km stretch from Rajanpur to D.G. Khan with six bypasses, and a 208.2 km section from D.G. Khan to D.I. Khan with five bypasses. The Chairman also directed the NHA to submit a detailed report outlining the standard procedure followed for hiring consultancy firms. The Senate Standing Committee on Economic Affairs, chaired by Senator Saifullah Abro reviewed the Central Asia Regional Economic Cooperation (CAREC) Corridor Development Investment Program – Tranche 3, along with bilateral and multilateral development projects undertaken by the Provincial Government of Khyber Pakhtunkhwa in collaboration with UN agencies and international development partners. While discussing the tendering of Lot-1 (Rajanpur–Jampur section, 58 km), it was disclosed that six companies had submitted bids, out of which five were technically qualified. The committee expressed serious concerns over the award of the contract to a company that had previously failed to complete the Multan - Lodhran project, valued at Rs. 6 billion. Senator Saifullah Abro questioned the rationale behind awarding a Rs. 172 billion project to a company with a history of non-performance. The Chairman further ordered that strict action be taken against both the NHA and the Grievance Redressal Committee (GRC) for their alleged role in manipulating the contract award process. He instructed that matter be referred to the Federal Investigation Agency (FIA), National Accountability Bureau (NAB) for necessary legal action against the reported violation of rules. The members voiced deep dissatisfaction over the NHA’s apparent negligence in awarding such a critical infrastructure project to a disqualified bidder. The Chairman Committee directed the NHA to submit the complete bidding details of Carec - II and Carec - III projects along with number of bidders participated (both qualified & disqualified) within two days to the Committee. He also criticized the absence of the Secretary, M/o Communications, stating that Committee cannot operate effectively without the presence of senior representatives from key implementing departments. The officials were unable to brief and satisfy the Committee. Senator Abro highlighted that several complaints had been received regarding ADB funded road projects in the D.I. Khan region. He emphasized the consistent oversight of all projects sponsored by the World Bank and Asian Development Bank. After a detailed discussion, the Committee concluded that the NHA Board, in its meeting held on January 6, 2023, had determined that company was not eligible to apply for the project. Notably, the decision to terminate the company's contract had already been taken by the NHA Board on December 23, 2022. The Committee expressed concern over how the NHA had previously allowed the company to commence work on the CAREC-II project, despite having achieved only 8% progress on a contract worth Rs. 6.8 billion. It further questioned how the same company was again favored and deemed qualified for the CAREC-III project, valued at Rs. 172 billion. The Committee was briefed by the Special Secretary, M/o Economic Affairs on projects undertaken in Khyber Pakhtunkhwa province with the support of multilateral, bilateral, and UN agencies. It was informed that due to favorable exchange rates, the province had received additional funds to compensate for the increased costs of ongoing projects. Senator Haji Hidayatullah Khan remarked that many projects in Khyber Pakhtunkhwa remain incomplete and delayed due to inefficiencies within the executing departments. In response, provincial representatives stated that many projects are near to completion and would require additional funds and time for completion. Regarding the upcoming road sector schemes in Khyber Pakhtunkhwa, the Chairman Committee recommended that the Planning & Development Department of Khyber Pakhtunkhwa review Lot 4 (Tibi Qaisrani to D.I. Khan Section – 96.245 km) of the CAREC-III project and refrain from awarding the contract due to identified irregularities. The Committee also recommended that a comprehensive report be submitted, detailing all incoming projects from the last five years, including the names of companies that applied - both those that qualified and those that were disqualified. The Committee expressed serious concern over reports that certain Project Directors were soliciting bribes from stakeholders and urged the department to take immediate and appropriate disciplinary action against those involved.