Islamabad: The meeting of the Senate Standing Committee on Economic Affairs was held today in Islamabad under the chairmanship of Senator Saifullah Abro. The meeting was attended by the Senators Syed Waqar Mehdi, Haji Hidayatullah Khan and Kamil Ali Agha. Senator Rana Mahmood Ul Hassan has attended the meeting over zoom link.

A meeting of the Senate Standing Committee was held to review the progress of key development projects, particularly in the water and power sectors, and to examine matters related to transparency, financial management, and implementation of previous recommendations.

The representative of the Karachi Water and Sewerage Services Improvement Project (KWSSIP) briefed the Committee that the project comprises three phases and has achieved 77% overall physical progress to date.

It was informed that the agreement was signed on November 26, 2019, with an implementation period of 12 years. The total cost of the project is USD 1.6 billion, with financing shared as 40% by the World Bank, 40% by the Asian Infrastructure Investment Bank, and 20% by the Government of Sindh.

Syed Waqar Mehdi raised serious concerns over the leakage of millions of gallons of potable water at Sohrab Goth, Karachi, and other areas. He emphasized the urgent need to repair leakages to ensure a smooth and uninterrupted water supply to residents of the densely populated city.

The Committee was further briefed on the implementation status of its previous recommendations regarding ongoing power sector projects financed by multilateral agencies, including the 765kV Dasu–Islamabad Transmission Line Project (Lots I to VI), ADB-funded Lot-II A (ASCR Bunting Conductor), and the 2 x 660 MW Coal-Fired Power Project at Jamshoro.

The Committee observed serious irregularities and alleged large-scale corruption in the award of contracts and recommended strict action against those responsible. The stance presented by officials of the Power Division was unanimously rejected by the Committee.

The Chairman observed that despite the presence of senior officers on its Board, the Power Division had failed to effectively pursue cases in the national interest and appeared to be concealing its shortcomings.

Serious concern was expressed by the Committee over the non-recovery of Rs. 1.282 billion paid to a contractor on account of sales tax in respect of the 765kV Dasu–Islamabad Transmission Line Grid Station at Islamabad West (Lot-IV). The Power Division apprised the Committee that the audit had termed the payment a procedural irregularity and recommended its settlement.

However, the Committee raised strong reservations regarding the authority of the audit to override or supersede the recommendations of the Senate Standing Committee.

The Chairman further highlighted that the international companies were willingly declared of disqualification after establishing the stance that the company failed to submilt the attested copies of the documents and the other company was also disquiled on the on the same basis.

The Committee recommended that the Economic Affairs Division formally write to the Federal Investigation Agency and the National Accountability Bureau to initiate action against the Board of Directors and concerned officers. It also recommended the scrutiny of assets of the officers, including those from the Power Division.

The Committee noted multiple inconsistencies in project execution, particularly concerning the 765kV transmission line. Despite assurances from the Power Division to take action against those responsible, no tangible progress has been made. The Managing Director informed the Committee that an explanation had been sought from the General Manager of the Dasu–Islamabad project; however, the Committee reiterated that the irregular payment of Rs. 1.282 billion remains unjustified.

Relevant documents were presented before the Committee. It was informed that the lowest bid was USD 208 million, while the second lowest bid stood at USD 265 million. The Chairman observed that the concerned company failed to submit the required performance certificate within the stipulated time. Consequently, the National Grid Company of Pakistan Limited was directed to submit a comprehensive report on the project within fifteen days.

The Committee also reviewed its previous recommendation regarding the audit of the 2 x 660 MW Coal-Fired Power Project at Jamshoro. The concerned authorities informed that the audit is currently in process. The Chairman revealed that the project had been awarded to the third lowest bidder instead of the first and second lowest bidders, with a significant difference of approximately Rs. 600 billion.

It was further noted that the bids of the first two bidders were rejected on the basis of communications reportedly issued by the Embassy of China in Pakistan. The Committee termed this a serious instance of mismanagement and recommended action against the concerned officials of National Engineering Services Pakistan and the Power Division.
Representatives of NESPAK informed that an inquiry committee had been constituted to look into the matter; however, report of the said committee has not been submitted to the Senate Standing Committee .

The Chairman reiterated that the third lowest bidder had quoted approximately Rs. 600 million higher than the lowest bidder. It was highlighted that the lowest bid by ZTT was Rs. 3.185 million, the second lowest Rs. 3.601 million, and the third lowest (Newage Cable) Rs. 3.739 million. The Chairman emphasized that the matter cannot be disposed of without a detailed report and concrete action.

The Committee directed that the matter be brought to the notice of the Cabinet Division and recommended termination of the procurement team associated with the project. NESPAK was further directed to suspend the officers found responsible.

The Chairman also expressed concern over the performance of the National Highway Authority, questioning the rationale behind initiating the third section of a road project while earlier phases remain incomplete. He observed that several projects have remained unattended for extended periods, resulting in persistent delays.

Concluding the meeting, the Chairman termed the overall performance of the concerned departments as unsatisfactory and stressed that the relevant Ministry must take strict action against those responsible. He further emphasized the need to establish clear accountability mechanisms and guidelines to curb corruption within departments.