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Power Division Criticized for Failure to Act on Committee Recommendations

Senator Saifullah Abro.

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.

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Severe heatwave likely to grip Karachi, other parts of country until May 5: NDMA

heatwave

ISLAMABAD: The National Disaster Management Authority (NDMA) has issued a comprehensive weather alert warning of an intense heatwave across multiple regions, including Karachi, till May 5.

The NDMA, through its National Emergencies Operation Centre (NEOC), on Thursday urged authorities to activate emergency plans and citizens to adopt precautionary measures to mitigate health and environmental risks.

The Met Office also forecast rain with windstorms and thunderstorms in parts of the country between April 24 and 29.

According to the NDMA, the prevailing weather pattern aligns with its seasonal outlook issued three to four months earlier, indicating a period of climatic extremes.

The authority has also released a detailed assessment of expected weather conditions from April to June.

The alert highlights that Sindh, southern Punjab and parts of Balochistan are likely to experience severe heatwave conditions, with major urban centres including Karachi, Hyderabad, Sukkur, Larkana, Jacobabad, Bahawalpur, Rahim Yar Khan, Multan and Turbat expected to remain in the grip of extreme temperatures.

Central Punjab and certain parts of Khyber Pakhtunkhwa are also likely to witness a significant rise in temperature.

Meanwhile, a separate weather system is expected to bring dust storms, gusty winds and rain to upper and central districts on April 24, 25 and 29.

Areas including Murree, Islamabad, Rawalpindi, Attock, Chakwal, Jhelum, Mianwali, Sargodha, Gujrat, Gujranwala, Faisalabad, Lahore, Dera Ghazi Khan and Multan may receive rainfall during this period.

In Balochistan, northern districts such as Quetta, Ziarat, Kalat and Khuzdar are forecast to experience rain accompanied by strong winds between April 24–25 and April 27–29. Coastal regions, including Gwadar, are expected to remain hot and dry with a gradual increase in temperatures.

Sindh is likely to continue experiencing hot and dry conditions, with a steady rise in temperatures across the province.

However, Hyderabad, Badin and Mithi may receive light rain and strong winds on April 24.

KP is also expected to see intermittent rainfall and gusty winds in districts including Chitral, Dir, Swat, Malakand, Kohistan, Mansehra, Abbottabad, Peshawar, Mardan, Swabi, Charsadda, Nowshera, Kohat and Kurram during April 24–25 and April 27–29.

Gilgit-Baltistan and Azad Jammu and Kashmir are likely to experience intermittent rain with thunderstorms from April 24 to 29.

The NDMA warned that the ongoing heatwave could lead to an increased risk of heatstroke, dehydration and other health complications.

Citizens have been advised to avoid unnecessary exposure to direct sunlight, increase water intake and take preventive precautions.

The Authority has directed all relevant institutions to activate heatwave response plans, establish cooling centres and ensure hospitals remain on high alert.

Provincial and district administrations have also been instructed to stay vigilant and prepared to respond to any emergency arising from the evolving weather situation.

PM orders inquiry into inactive EWS in GB

Separately, Prime Minister Shehbaz Sharif has ordered a high-level inquiry into the non-functional early warning system installed in Gilgit-Baltistan for protection against glacial lake outburst floods (GLOFs) and directed all relevant institutions to accelerate coordinated preparations ahead of the upcoming monsoon season.

Chairing a review meeting on pre-monsoon preparedness and climate-related risks, the prime minister expressed strong displeasure over the continued inactivity of the early warning system despite clear directives issued last year.

He warned that negligence and weak institutional performance would not be tolerated and emphasized that safeguarding citizens from environmental hazards remains a core responsibility of all departments.

The premier instructed federal ministries and provincial governments to remove bottlenecks hindering policy implementation and ensure full operationalisation of digital monitoring infrastructure for early warning systems.

He stressed that Pakistan ranks among the countries most vulnerable to climate change impacts and called for emergency-level efforts to mitigate associated risks.

The PM also highlighted lessons from last year’s monsoon season, and noted that illegal encroachments along river routes and flood channels had contributed significantly to damages.

He directed authorities to adopt an effective preventive strategy this year to address the issue before the onset of heavy rains.

He further instructed all institutions to enhance operational capacity and mobilize resources beyond routine limits to protect lives and property during potential flooding.

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Timely energy conservation steps averted crisis in Pakistan amid Mideast conflict: PM

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Islamabad: Prime Minister Shehbaz Sharif on Thursday called energy security a vital part of the country’s future planning, saying that the government’s timely measures regarding energy conservation in the current regional situation averted a crisis.

The prime minister, chairing a high-level meeting regarding energy security, said that work was underway on a plan to maintain strategic reserves of crude oil in the country, keeping in view future energy needs.

Besides, he said that for energy conservation and sustainable development, means of transportation should be gradually transitioned to eco-friendly electric vehicles (EVs).

The prime minister directed the purchase of only electric buses and motorcycles for government use in the future and accelerate the establishment of charging stations for EVs.

Calling for a strategy to facilitate the acquisition of batteries for the storage of surplus solar electricity, he said that local manufacturing of high-quality storage batteries should also be encouraged.

During the briefing, the participants of the meeting were told that the National Coordination and Management Council (NCMC) was reviewing the energy situation on a daily basis.

It was informed that sufficient stocks of petroleum products were available, and the food security situation in the country was also stable.

The participants were told that through the continuous efforts of oil and gas companies, local production of gas and oil was increasing and a PC-I was being prepared for two pilot projects for battery storage at the grid level.

Besides, the domestic consumers generating solar energy were being encouraged to install battery storage.

Federal ministers Musadik Masood Malik, Ahad Khan Cheema, Muhammad Aurangzeb, Sardar Awais Leghari, Attaullah Tarar, Ali Pervez Malik, Ahsan Iqbal, Advisor to the Prime Minister on Privatisation Muhammad Ali, Minister of State Bilal Azhar Kayani, Special Assistant Haroon Akhtar, and relevant senior government officials attended the meeting.

Last month, PM Shehbaz announced a range of measures to conserve fuel as Pakistan moves to mitigate the fallout from the ongoing war in the Middle East.

The wide-ranging austerity and fuel conservation plan includes a four-day workweek, early closure of markets, a cut in fuel allowance and a 20% reduction in all government departments’ expenditures. Citing impacts of disruptions to the global oil supply chain, Pakistan also jacked up the prices of petroleum products.

The measures come as Pakistan moves to mitigate the impact of rising global fuel and energy costs, triggered by the ongoing war in the Middle East.

The turmoil in the Gulf region has led to a spike in global oil and energy prices, with countries around the world rushing to ration fuel and energy.

The more than month-old conflict erupted after the United States and Israel launched joint attacks on Iran on February 28.

In its response, Tehran targeted US bases across the Gulf region and effectively blocked the Strait of Hormuz, a key route for oil and energy shipping.

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Gold drops by Rs5,200 per tola as global prices tumble

gold

Islamabad: Gold prices extended their decline on Thursday in Pakistan as the price of gold per tola dropped by Rs5,200 after the international market saw a dip of $52 per ounce to $4,714.

According to the All-Pakistan Gems and Jewellers Sarafa Association (APGJSA), in the local market, the price of gold per tola after the drop reached Rs493,762. Similarly, the price of 10 grams of gold decreased by Rs4,458 to Rs423,321.

Silver prices also recorded a decline. The price per tola of silver fell by Rs225 to Rs8,099, while the price of 10 grams decreased by Rs193 to Rs6,943.

In the international market, silver fell 1.9% to $76.22 per ounce, platinum lost 1.8% to $2,037.18, and palladium was down 2.1% at $1,512.86.

The latest drop follows Wednesday’s decline, when the price of gold per tola fell by Rs1,200 to settle at Rs498,962, according to the All-Pakistan Gems and Jewellers Sarafa Association. Similarly, the price of 10 grams of gold decreased by Rs1,029 to Rs427,779.

Silver prices also followed a downward trajectory, falling by Rs34 to Rs8,324 per tola. Market sentiment globally was supported by a decline in benchmark 10-year US Treasury yields, which slipped by 0.2%, making non-yielding assets like gold relatively more attractive.

Meanwhile, on Wednesday, the Pakistani rupee appreciated by 0.01%, gaining Rs0.03 to settle at 278.87 against the US dollar in the inter-bank market after closing at 278.90 on Tuesday.

Also on Tuesday, gold and silver prices declined in both international and domestic markets. In the international bullion market, gold fell by $10 per ounce to $4,778. Locally, gold per tola dropped by Rs1,000 to Rs500,162, while 10 grams fell by Rs857 to Rs428,808.

Silver also declined, with the per tola rate down Rs59 to Rs8,358 and 10 grams falling Rs51 to Rs7,165.

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