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: 14th May, 2026

Senate Committee Raises Serious Concerns Over Alleged Corruption in Sindh Foreign-Funded Projects, Delays in Karachi Mass Transit Schemes, and Non-Compliance of Power Division in the Recoveries of 20.8 Billion from M/s GE and Rs. 1.282 billion from the qualified firm in the 765kV Dasu-Islamabad Transmission Line Project (LoT-IV).    Islamabad, May 14, 2026: A meeting of the Senate Standing Committee on Economic Affairs was held today at Parliament House, Islamabad, under the chairmanship of Senator Saifullah Abro. The meeting was attended by Senators Kamran Murtaza, Haji Hidayatullah Khan, and Falak Naz.   The Committee reviewed matters relating to Sindh foreign-funded projects, the power sector, and implementation of its previous recommendations. It was recalled that senior officers from the Government of Sindh had earlier been directed to attend the meeting. The Economic Affairs Division (EAD) informed the Committee that letters had been issued to the concerned authorities; however, responses were still awaited.   During the discussion, serious concerns were raised regarding alleged irregularities in Sindh foreign-funded projects. It was observed that the Secretary, Energy Department, Government of Sindh, had earlier acknowledged in the meeting that massive misappropriations and financial irregularities had been identified in the Sindh Solar Energy project. The fake invoices amounting to US$12.5 million were allegedly involved.   The Chairman Committee observed that Chairman, Planning and Development Department, Government of Sindh, would be answerable before the nation for failing to control such large-scale alleged corruption in Sindh. He directed the EAD to formally write to the Chief Secretary, Government of Sindh, to ensure that the Chairman, Planning and Development Department, Government of Sindh, attends forthcoming meetings and briefs the Committee on Sindh foreign-funded projects.   The Committee also recommended that these concerns be conveyed to the Federal Minister for Economic Affairs for strict action against the officials allegedly involved in corruption in foreign-funded projects and to ensure transparency, effective check and balance, and accountability mechanisms in such projects. The Committee reiterated its earlier recommendation that the EAD establish a dedicated monitoring desk to evaluate tendering processes, minimise the risk of irregularities, and ensure effective follow-up of projects executed in collaboration with donor agencies.   While further discussing the implementation of the Committee’s earlier recommendations regarding referral of the matter to the Public Accounts Committee (PAC), FIA, and NAB for recovery of an alleged amount of Rs. 1.282 billion from the concerned officials of the Power Division, NGC, and the qualified firm in the 765kV Dasu-Islamabad Transmission Line Project, as well as action against officials involved in the award of the contract to the third lowest bidder under ADB-401B-2022 Lot-IIA (ACSR Bunting Conductor), the Committee took serious notice of non-compliance by the EAD.   In response to a query raised by the Committee, the Power Division informed the Committee that three inquiries had already been conducted regarding recovery of Rs. 20.8 billion from M/s GE in connection with the damaged 747MW (GT-14) unit in GENCO-II. However, he further informed that officials attending the previous meetings should have provided a complete update to the Committee.     The Chairman Committee took serious notice of the response submitted by the Power Division and again directed the EAD to formally issue letters to the PAC, FIA, and NAB and share copies with the Committee. The Chairman Committee remarked that funds provided by international donors are meant for the development and welfare of the country and should not be misused through corrupt practices.   The Transport and Mass Transit Department, Government of Sindh, also presented a detailed briefing on the Karachi Mass Transit Plan. The Committee was informed that the project was initially studied in 2012 and comprised six transport corridors. The Green Line and Orange Line projects are operational, while work on the Red Line and Yellow Line projects is currently underway.   Regarding the KBRT Red Line Project, the Committee was informed that it is funded by the Asian Development Bank and that the loan agreement was signed in June 2020. The revised closing date of the project is 30 June 2026, whereas the earlier completion target was 2024. Due to delays of almost two years, the project cost has increased by approximately US$ 100 million.   The Committee was further informed that the initial estimated cost of the project was USD 490 million. The increase in cost was attributed to rupee depreciation, design changes, and changes in the number of buses planned for the project. It was informed that Lot-I comprised the corridor from Mosamiyat to Malir with six stations and two depots, while Lot-II covered the route from Numaish to Mosamiyat with sixteen stations.   The Committee was informed that the tendering process was delayed by one and a half years. A complaint lodged by car showroom owners at Numaish, Karachi, also resulted in design changes to the project. Another major delay was caused by non-payment of utility shifting, which cost approximately Rs. 4 billion by the Government of Sindh.     The Committee expressed serious concern over the additional financial burden of US$ 100 million despite utility shifting expenses amounting to only Rs. 4 billion. It was further informed that the project had incurred interest charges of US$ 10.9 million. The Committee was informed that the project is now expected to be completed in December 2027.   The Committee was further informed that Lot-II, despite achieving 38 percent progress, had been terminated due to delays by the contractor. The Committee questioned why Lot-I, with comparatively less progress, remained under execution while Lot-II had been terminated despite substantial advancement. The Chairman Committee directed the EAD to invite the contractor to the next meeting along with complete details.   Upon inquiry regarding payments made to contractors, the Committee was informed that Package-I, cost at Rs. 13.79 billion with 26 percent progress, had already been paid approximately Rs. 13 billion, while Package-II, valued at Rs. 15.93 billion, had been paid around Rs. 15 billion with 38 percent progress. Documents presented by the Sindh Government revealed that a 92 percent escalation amounting to Rs. 3.6 billion, along with Rs. 3 billion as mob advance, had also been paid which is about 22 percent mobilisation advance. The Committee expressed serious concern over how the department had made nearly 100 percent payments despite only 26 percent and 38 percent physical progress in both Lots. The officials remained unable to satisfy the Committee regarding the justification for such excessive payments.   The Committee expressed concern over the excessive payments made to contractors and sought details of the procedures and rules under which such payments were approved. The Chairman Committee observed that it was unprecedented for a contractor with slow project progress to receive escalation payments. The Committee recommended that the EAD formally write to the Chief Minister Sindh to conduct an inquiry and take action against the officials involved in the slow progress of the project and excessive payments made to the contractor.    The Committee was also briefed on the KBRT Yellow Line Project, which starts from Dawood Chorangi and ends at Numaish, covering a distance of approximately 21 kilometres. The project is funded by the World Bank, and the loan agreement was signed in 2019. The project comprises six packages.   It was informed that Package-IV of the project had achieved 55 percent progress. The original completion date of the project was 31 December 2025; however, it has now been extended to 31 December 2028. The initial estimated cost of the project was USD 439 million, which has now increased to USD 620 million, resulting in an additional financial burden of USD 181 million.   The Transport and Mass Transit Department, Government of Sindh, attributed the increase in project cost to design changes, construction of an additional bridge, and the transition from diesel-hybrid buses to electric vehicles. The Chairman Committee was further briefed about the Jam Sadiq Bridge Project, estimated to cost Rs. 12.5 billion. The project is scheduled to commence in 2026 and is expected to be completed by March 2027. The Committee was informed that physical progress on the project stood at 55 percent, whereas 99 percent payment had already been made to the contractor.   The Chairman Committee again raised objections over excessive payments made to contractors despite slow progress on the projects. He emphasized the need to address delays, strengthen financial oversight, and ensure transparency in payments to contractors. The Committee also decided to hold the next meeting within one week and directed the EAD to ensure the presence of the Chairman, Planning and Development Department, Government of Sindh along with concerned Secretaries in the forthcoming meeting.