A Senate panel on Monday expressed profound concern over extensive irregularities and a lack of transparency in major foreign-funded development projects, ordering swift action against officials implicated in what it termed one of the nation’s most significant recent procurement controversies.
The Senate Standing Committee on Economic Affairs, led by Senator Saifullah Abro, uncovered serious flaws in projects financed by the Asian Development Bank (ADB) and the World Bank during a review at the Parliament House. The committee underscored the urgent need for stringent accountability and transparent use of international financial assistance.
A major point of contention was the ADB-funded CAREC Tranches I, II, and III, particularly the Rajanpur-Dera Ghazi Khan-Dera Ismail Khan corridor. Senator Abro highlighted an unresolved mis-procurement issue estimated at Rs172 billion, noting that bids for Tranche-III were invalidated due to incomplete audit and bidding documentation, leading to significant delays.
The chairman voiced dissatisfaction with the National Highway Authority (NHA) and local contractors for their failure to provide necessary records despite repeated instructions. He demanded that all communications with the ADB and the Prime Minister’s Office regarding the matter be presented to the committee, warning of severe consequences for those found responsible.
The committee also delved into Pakistan’s extensive borrowing from the International Monetary Fund (IMF) and other lenders. Reviewing data from the Finance Division and the State Bank of Pakistan (SBP), Senator Abro remarked that acquiring loans had become “a tradition rather than an economic necessity,” pointing out a cycle where completed projects are mortgaged to secure new debt. The panel instructed the finance ministry and SBP to submit detailed records of all loans taken since 2008.
Scrutiny was also directed at the Sindh government’s reluctance to adopt the digital e-Pak Acquisition and Disposal System (EPADS). The committee learned that the provincial authority had repeatedly extended deadlines for manual tendering, allowing departments to bypass the transparent system. Senator Abro described the situation as “alarming,” revealing that projects worth Rs30 billion were being tendered manually just before the latest deadline. He recommended the matter be referred to the FIA for investigation.
Further examination of the World Bank-funded Sindh Solar Energy Project (SSEP) revealed significant discrepancies, including duplicate entries in the beneficiary data for 200,000 households. The chairman ordered the submission of a verified beneficiary list within ten days and questioned the role of NGOs in the project’s implementation, proposing a 50% reduction in their service fees.
The committee also found that ADB-financed road projects in Sindh had surpassed their approved scope, with 724 kilometers constructed against a sanctioned 400 kilometers. The panel noted that similar bidding patterns across 17 contract packages suggested possible collusion among bidders.
Concluding the meeting, Senator Abro reiterated the committee’s commitment to ensuring all foreign-funded initiatives are executed with complete transparency. He gave the relevant ministries and agencies a ten-day deadline to submit all bidding documents, audit reports, and project records for review.