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: 11th December, 2025

‎Committee demands Punjab return euro (3.5 million) diverted Multan heritage funds and urges NHA action over ADB CAREC Tranche – III manipulated tendering process, while questioning the absence of the Secretary, Communications ‎ ‎A meeting of the Senate Standing Committee on Economic Affairs was held under the Chairmanship of Senator Saifullah Abro to consider matters referred by the Honourable Chairman Senate regarding the release of unspent funds allocated for the renovation and restoration of the historic core of Multan city. The Committee also reviewed the compliance report on the implementation of its recommendations concerning the ADB CAREC Tranche - III (Rajanpur - D.G.Khan - D.I.Khan) NHA project, examined the Sindh Water and Agriculture Transformation (SWAT) Akram Wah Canal Project, the Sindh Barrages Improvement Project (SBIP), the implementation status of the Committee’s recommendations on the Sindh Solar Energy Project (SSEP), and the Sindh Road Sector Project. The meeting was attended by Senator Haji Hidayatullah Khan, Senator Rana Mahmood ul Hassan, Senator Syed Waqar Mehdi, Senator Falak Naz, Senator Rubina Khalid, Senator Kamran Murtaza and Senator Kamil Ali Agha. ‎ ‎The Committee deliberated on the issue of unspent funds originally allocated for the renovation and restoration of the historic core of Multan city. The Chairman Committee recalled that members had already discussed the matter in detail during the previous meeting and had recommended (EAD) to provide the details including full site-wise details, the six project components, estimated costs, utilization, and the percentage of work completed under the Multan heritage scheme, along with explanations regarding any transfers of funds to other projects.  ‎ ‎The EAD informed the Committee that funds were an Italian loan later converted into a grant, with the condition that it will be used strictly for public welfare and service. The funds were specifically intended for the preservation of the historical core of Multan City. The Committee noted with concern that Government of Punjab utilized these funds (Rs. 251 million) for other purposes, contrary to the intent of the Italian Government, which had earmarked them for heritage, historical, and cultural preservation.  ‎ ‎It was also revealed to the Committee that Rs. 430 million had been diverted to the Benazir Nashonuma Programme. The Committee was surprised to learn that none of the allocated funds had been utilized at the sites identified in the initial PC-I. After detailed discussions, the Committee unanimously disposed of the matter and decided that the remaining amount of Rs. 423 million must be used solely for the renovation and restoration of Multan’s historic core, in accordance with the original allocation mentioned in the PC-I. The Chairman Committee recommended EAD to recover the diverted funds from the Government of Punjab, amounting to 3.5 million euros and utilize the recovered amount for the sites mentioned in the initial PC-I. He further directed that responsibility be fixed and strict action be taken against the officers involved in diverting the allocated funds to other projects. ‎ ‎The Standing Committee reviewed the implementation status of its earlier recommendations on the ADB CAREC Tranche-III NHA Project (Rajanpur - D.G. Khan - D.I. Khan). The Committee expressed strong displeasure over the absence of the Secretary (Communications) and the Chairman NHA from the meeting. The Chairman directed EAD to ensure their presence in the next meeting. The Committee was briefed that a total of nine inquiries had been conducted into irregularities in the project. The Chairman Committee expressed astonishment at the selection of M/s Ningxia Communications Construction Company (NXCC) for new project (M-5 maintenance) despite it having been declared non-performing twice by NHA. ‎ ‎The Committee also raised concerns regarding NHA’s responses to petitions that appeared favourable to the delinquent company. It noted that NHA was awaiting approval of the revised estimates for the project from ECNEC. In response to a query raised by the Committee, it was revealed that NHA had not written any formal letter to the ADB and had only engaged in verbal communication. The Chairman Committee took serious notice of this and questioned what would happen if the inquiry report of the Committee constituted by the Prime Minister did not present its findings for another year. He stressed that the NHA should not wait for the Inquiry Committee’s report and should write to the ADB as previously recommended. The Committee had already noted that tendering process was manipulated by NHA officials and the contractor. The Committee also learned that its earlier findings were not included in the response submitted by the NHA to the Islamabad High Court regarding the petition filed by NXCC. Instead, NHA officials made another mistake and submitted a manipulated stance that supported NXCC’s faulty tendering process. ‎ ‎The Chairman directed the NHA to take strict disciplinary action against its legal team and recommended the termination from government service of Mr. Liaqat, Deputy Director (NHA). He further instructed the NHA to write a detailed letter to the Asian Development Bank (ADB), incorporating the Committee’s findings and recommendations, and to submit a compliance report to the Standing Committee within two days. The Committee also recommended that the EAD to take action against the officials from the NHA legal team and other officials involved in submitting the so-called stance in favour of NXCC, and share the report with the Prime Minister’s Office. ‎ ‎The Committee received a briefing on the EDCF Project (N-45), linking Chakdara to Chitral. It recommended that NHA ensure strict prevention of overloading, noting that such practices severely damage road infrastructure. The Chairman directed NHA to submit a comprehensive brief on the repair works of the EDCF Project (N-45). ‎ ‎Expressing strong displeasure over the absence of the Secretary, Planning & Development, Government of Sindh, Secretary, Energy department, Government of Sindh and relevant representatives of the Sindh Solar Energy Project (SSEP), the Committee expressed serious concern over procedural lapses and verification gaps in the initiative. It also observed that each solar system was being provided at a cost of about Rs. 60,000, which, in its view, was significantly higher than the prevailing market rate. It expressed its dissatisfaction with such a high price and said that market rate of the solar system was approximately Rs. 22,000 as discussed in the previous meetings. The Committee was surprised that to learn from the FBR report submitted to this Committee that most of the items were not imported and no taxes were deducted by the FBR on those items. ‎ ‎The Chairman Committee noted that manufacturers had been allowed to participate in the bidding process, a decision that was opposed by the Committee. The Committee also discussed discrepancies in the project, where data verification revealed duplicate and incomplete entries for over 200,000 household beneficiaries. It had earlier highlighted similar inconsistencies in the beneficiary records provided by the Benazir Income Support Programme (BISP). He mentioned that list for Larkana District included a total of 21,000 beneficiaries, with 4,525 families selected from four tehsils. After detailed deliberations, the Committee directed EAD to formally write a letter to the Chief Secretary, Government of Sindh to ensure their presence in the next meeting to clarify their position on issues previously raised by the Committee.  ‎ ‎The Committee was also briefed by the Mr. Zarif Iqbal Khero, Secretary, Irrigation Department, Government of Sindh on the ongoing project for capacity enhancement of the Sukkur Barrage under the Sindh Barrages Improvement Project (SBIP), as well as the Sindh Water and Agriculture Transformation (SWAT) Akram Wah Canal Project. The Committee stressed that Secretary Planning and Development, Government of Sindh and relevant project representatives must ensure their attendance in future meetings.