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: 24th August, 2026

‎Senate Committee Raises Serious Concerns Over Foreign-Funded Projects, Directs FIA Probe into Alleged Irregularities ‎‎ The Senate Standing Committee on Economic Affairs, chaired by Senator Saifullah Abro, reviewed the implementation of its recommendations, ongoing and completed foreign-funded power sector projects, the progress of Sindh road sector projects, and the Emergency Flood Assistance Project (EFAP). ‎ ‎The meeting was attended by Senator Haji Hidayatullah Khan, Senator Rana Mahmood ul Hassan and Senator Syed Waqar Mehdi. ‎ ‎The Committee Chairman informed members that, in line with the Committee’s unanimous recommendations, the FIA and NAB had been directed to investigate alleged irregularities in the 765 kV Dasu-Islamabad Transmission Line Project and the ACRS Bunting Conductor Project. He appreciated the FIA’s efforts in uncovering the alleged misuse of goods imported under tax-exempt schemes, despite resistance from the FBR, and reiterated the Committee’s resolve to protect public funds and ensure accountability. He directed the relevant authorities to take strict action against officials found responsible for irregularities. ‎ ‎The Committee expressed serious concern over the Power Division’s reluctance to provide details regarding the auction of defunct power plants and stressed the need for transparency and strict implementation of the Right to Information Act. The Committee also discussed non-payment for power plants auctioned through the government-to-government (G2G) mechanism and allegations that certain individuals had used the name of a government-owned company to acquire auctioned plants after making only 10 percent payments. The Chairman directed the Power Division to initiate an inquiry into the matter, including allegations regarding the submission of fictitious names of the Board of Directors of a public-sector company. He also directed that the alleged involvement of GENCO Holding Company chief be thoroughly examined. ‎ ‎The Committee was briefed on the progress of the Dasu-Islamabad Transmission Line Project and was informed that the project was facing delays due to administrative issues, including right-of-way matters. The Committee directed the concerned authorities to resolve the bottlenecks and ensure timely completion. Senator Saifullah Abro expressed concern over the appointment of an allegedly inexperienced and ineligible consultant, which, he said, was contributing to delays and is not capable of testing imported project material. He also raised concerns regarding the composition of the Board of Directors and emphasized that relevant expertise and experience should be considered while appointing members. The Economic Affairs Division was directed to take up the matter with the Prime Minister through the relevant Minister. ‎ ‎The Committee sought detailed information on the mode of payment, right-of-way difficulties and law-and-order issues contributing to delays in the Dasu-Islamabad Transmission Line Project. The Chairman assured the Committee that he would personally pursue the matter with the NHA, the Khyber Pakhtunkhwa Government and other stakeholders to resolve outstanding issues. He directed that the project be treated as a priority agenda item and must be completed at the earliest to safeguard public money. ‎ ‎The Committee also expressed concern over prolonged load-shedding in Sindh and urged the authorities to utilize available capacity of Independent Power Producers (IPPs), particularly in view of the capacity payments being made to them. ‎ ‎The Committee reviewed the reversal of the net-metering policy and its implications for consumers registered under the previous policy. The Committee was informed that around 400 cases were currently under process and would be resolved. The Chairman directed IESCO to address the issues while protecting the legitimate rights of consumers. He also directed IESCO to resolve complaints of overbilling and load-shedding faced by residents of Bahria Town. ‎ ‎The Committee was further briefed on the Emergency Flood Assistance Project (EFAP), under which 60 percent of the work has reportedly been completed across 17 districts of Sindh. The Committee was informed that flood-damaged roads were being rehabilitated and that the newly constructed roads had been designed with climate-resilient features, including provisions for the safe passage of floodwater such as caveats and bridges. ‎ ‎The Committee, however, raised questions regarding the preparation of the initial PC-I, particularly the absence of a clearly defined scope of work, and expressed concern over the approval of loans by lending agencies without adequate consideration of transparency and project requirements. The Chairman directed the Economic Affairs Division to arrange a meeting with the country directors of foreign lending institutions to discuss the issues and address the identified anomalies. ‎ ‎The Committee also questioned discrepancies concerning the originally identified 1,622 kilometres of damaged roads. It was informed that, under the revised PC-I, around 400 kilometres were approved for rehabilitation, while approximately 829 kilometres of roads had ultimately been constructed. The Committee also raised concerns over an alleged pattern of discrepancies between estimated costs, bid values and tendering amounts, as well as allegations regarding the award of contracts to specific construction companies. ‎ ‎The Chairman directed that a letter be written to the Chief Minister Sindh, recommending an FIA investigation into the alleged irregularities and discrepancies in the project. He reiterated that transparency, accountability and protection of public funds must remain the foremost priorities in all foreign-funded development projects