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

Press Release Date: 25th August, 2025

The Senate Standing Committee on Economic Affairs, chaired by Senator Saifullah Abro, met at the Parliament House to review the progress and transparency of major national development projects, including the ADB CAREC Tranche-III (Rajanpur -DG Khan-DI Khan) Project.   The meeting was attended by Senators Haji Hidayatullah Khan, Syed Waqar Mehdi, Falak Naz, and Kamil Ali Agha. Officials from the Economic Affairs Division and the National Highway Authority (NHA) also briefed the Committee.   At the outset, the Chairman Committee expressed displeasure that detailed documents for CAREC Tranches II and III, which had been demanded by the Committee through the Senate Secretariat’s letter dated 04-08-2025 and unanimously recommended in its previous meeting, were still not provided by the NHA. The CEO of the NHA informed the Committee that responses to certain questions were still awaited from the concerned firms and departments, while some information had already been submitted to the Ministry of Communications.           The Chairman Committee clarified that the Committee had not received this information to date.   The CEO, NHA informed the Committee that Honourable Prime Minister had constituted a high-level inquiry committee and ordered a comprehensive investigation into the matter. Disciplinary action had been taken against eight individuals, including five NHA officers,         Mr. Fayyaz Ahmed Khattak, GM (P&CA), and other members of the procurement team as well as three other officers, Mr. Asim Amin, Mr. Imtiaz Ahmed Khokhar, and Mr. Sami ur Rehman (who has since retired), in connection with the irregularities. A copy of the notifications issued by the Ministry of Communications was also presented to the Committee.   Senator Kamil Ali Agha also took serious notice of the matter and suggested that the Economic Affairs Division (EAD) depute an officer to coordinate with the NHA and ensure submission of the requisite information to the Committee. He emphasized that it was the responsibility of the EAD to send an interim response to the Committee, since the letter had primarily been addressed to the EAD. The Special Secretary, EAD assured the Committee that an officer will be deputed and an interim response to the said letter will be provided.   The CEO, NHA assured the Committee of “full cooperation with the inquiry committee formed by the Prime Minister.” Senator Kamil Ali Agha, however, termed the suspension of officers on such a large scale a “very serious matter” and demanded clarity: “The Committee should be told what the charge sheet is against the officers. The charge sheet must have been attached with these notifications.”   After detailed deliberations, the Committee recommended that the EAD write to the ADB, as previously suggested, highlighting the serious lapses committed by the NHA in awarding the ADB CAREC Tranche-III (Rajanpur-DG Khan-DI Khan) Project and about the suspension of procurement team Members of this project. It further directed the NHA to provide the requisite information, as referenced in the Senate Secretariat’s letter dated 04-08-2025, within two days. Alternatively, the NHA should write to the ADB, stating that the concerned firm had earlier submitted forged and fake documents to the Committee, and has continued to fail in providing the required records. The CEO, NHA assured the Committee that he will summon the concerned companies and auditors to his office within a few days. If they fail to provide the requisite documents, appropriate action will be taken accordingly.   The Committee also recommended that the EAD and NHA forward a copy of the Senate Secretariat’s letter dated 04-08-2025 to the Inquiry Committee constituted by the Prime Minister for the ADB CAREC Tranche-III Project. The letter should clearly state that the required documents mentioned therein are essential for meeting the qualification criteria, particularly regarding financial status and average annual turnover. A copy of the same should also be provided to the Senate Committee.   Furthermore, the Committee directed the NHA to provide, until submission of all documents mentioned in the reference letter dated 04-08-2025, at least the JV agreements, PEC certificates, work orders, completion certificates, and details of payments made to all three bidders, along with tax deduction certificates for these companies over the last three years in NHA projects. The Committee also asked for details of JV partners (M/s Nauman Construction Company and M/s M. Sajjad), including their JV agreements, PEC certificates, work orders, and completion certificates, specifically for the Lodhran - Multan Project. The Committee expressed serious concern that the NHA had failed to provide these records throughout the meeting and noted with surprise that if the NHA was unaware of the details of its own projects, it raised serious questions about how the procurement process of such a major project had been conducted. It was further observed that many of the documents submitted by M/s Rustam Associates (RA) and M/s Dynamic Constructors (DC) appeared to be manipulated and forged, as reflected in their own audited reports presented to the Committee.   Turning to the construction of the Shandoor - Gilgit Road Project, Senator Saifullah Abro strongly criticized the handling of the scheme. “You people cannot even defend the Shandoor - Gilgit project,” he remarked, noting that contract had been awarded in December 2021 and February 2022. He expressed shock that the same firm, M/s Ningxia Communications Construction Co., Ltd. (NXCC), which had been disqualified from the ADB CAREC Tranche-II (Shikarpur–Rajanpur) Project and the ADB Yarik - Zhob Project for submitting fake documents and forged seal stamps, was still awarded the Shandoor - Gilgit project. He termed it a major blunder on the part of the NHA.       The Chairman also revealed startling details: “Work orders worth ten billion rupees were issued in a single day. There were widespread irregularities in this project.” He further emphasized the need for accountability and transparency in all running, future and past projects.   Furthermore, the Committee expressed surprise at how the NHA had mentioned in its briefing material the Arbitrator, Mr. Zafar Hussain Siddiqui, and local partners, including M/s Rustam Associates (RA) and M/s Dynamic Constructors (DC), even though they have no connection with the Lodhran - Multan Project. The Committee asked the NHA to clarify its confirmation and provide any correspondence with the arbitrator and the firms. The NHA officials were unable to satisfy the Committee. The Committee noted that this appeared to be a clear case of manipulation by the NHA and the local partners. The Committee also expressed serious concern that M/s NXCC, in its petition submitted to the Islamabad High Court, claimed that the responsibility for completing the project rested with the local partner company and that it was only charging 3% of the project value for its involvement. Concerns were raised regarding the appointment of the Arbitrator, which was allegedly manipulated by the NHA in collusion with the local partners of M/s NXCC, namely M/s Rustam Associates (RA) and M/s Dynamic Constructors (DC). The Committee questioned how M/s NXCC will complete the project as per the Arbitrator’s award. After detailed deliberations, the Committee unanimously decided to hold a meeting within seven days to conclude the matter.   The Committee deferred the second agenda item for a detailed briefing in the next meeting. Senator Abro directed WAPDA to ensure that working papers are submitted at least 48 hours prior to meetings so members can thoroughly review the material.