A massive corruption scandal involving ghost tendering, illegal contract awards, and irregularities worth billions of rupees has been unearthed in National Highway Authority (NHA) projects, particularly the CAREC Tranche-III (Rajanpur-D.G. Khan-D.I. Khan project), prompting the Senate Standing Committee on Economic Affairs to demand immediate accountability and transparency.
The revelations came on Monday during a meeting of the Committee chaired by Senator Saifullah Abro, with participation from Senators Haji Hidayatullah Khan, Syed Waqar Mehdi, Falak Naz, Kamran Murtaza, and Kamil Ali Agha. Senior government officials, including the Chairman of NHA, representatives of the Economic Affairs Division (EAD), Ministry of Energy (Power Division), MD PPRA, and others, were also present.
Senator Abro exposed that a Chinese firm, disqualified in 2023 for completing only 8% of the Rs6.86 billion Lodhran-Multan road project (despite receiving Rs2 billion), had shockingly been awarded a fresh contract of Rs172 billion for the CAREC Tranche-III project in 2024. ‘This is ghost tendering at its worst,’ Abro remarked, questioning how a blacklisted firm could qualify again.
He also accused a former NHA member of deliberately withholding bidding documents despite repeated committee directives. “If this case goes to the FIA, the entire NHA team will be implicated,” Abro warned.
Senator Kamran Murtaza demanded a full judicial report, raising questions about the neutrality of an arbitrator-allegedly linked to the terminated company-who ruled against NHA. Senator Kamil Ali Agha condemned the manipulated tendering process as a ‘national crime’ that fuels deprivation in smaller provinces.
The Committee further revealed that the Chinese firm had claimed it was only a minor stakeholder in the Lodhran-Multan project, taking a mere 3% share, contradicting its original claim as the lead partner. The court was not adequately informed by the NHA, the senators said, adding that NHA’s legal defense was ‘feeble and non-serious.’
Allegations of 20-22% commission rates in World Bank and ADB projects across provinces were also discussed. The PPRA MD disclosed that the NHA failed to provide required documents for a complaint hearing on June 12, 2025. The complaint was upheld, and the CAREC Tranche-III tender was suspended for non-compliance with PPRA rules.
The Committee directed the Economic Affairs Division to write to the Federal Board of Revenue (FBR) for full financial and legal background checks on the qualified company, including its bank accounts and power of attorney (PoA) documentation. ADB will also be informed about the misuse of its funds and lack of due diligence.
Senator Abro also questioned why the Lodhran-Multan project’s cost inflated from Rs6.86 billion to Rs15 billion upon retendering. He demanded that the complete bid evaluation report and bidding documents be submitted within two days.
In another startling disclosure, the Committee learned that Rs1.282 billion is yet to be recovered from the company handling the 765kV Dasu-Islamabad transmission project. It recommended that the Power Division refer the case to the Public Accounts Committee (PAC) and share all communications with the Senate Committee.
Projects like the N-45 Chakdara-Timergara section remain incomplete despite funding, while tolls and fines on national highways continue to burden the public. Senator Haji Hidayatullah Khan expressed outrage at NHA’s mismanagement in Chitral, claiming it ‘started the project from the tail, leaving the lion’s head and torso undone.’
The Committee stressed that the Federal Minister for Economic Affairs, who has not attended any meetings so far, must take strict action to root out corruption and ensure that international loans are not misused by non-performing departments.