The Senate Standing Committee on Economic Affairs has strongly criticized the Power Division for failing to implement previous committee recommendations and alleged serious irregularities in multiple ongoing development projects.
The meeting was held in Islamabad under the chairmanship of Senator Saifullah Abro and attended by Senators Syed Waqar Mehdi, Haji Hidayatullah Khan, Kamil Ali Agha, while Senator Rana Mahmood-ul-Hassan joined via Zoom.
KWSSIP project progress reviewed
Officials briefed the committee on the Karachi Water and Sewerage Services Improvement Project (KWSSIP), stating that the $1.6 billion project has achieved 77% physical progress. The project, signed in November 2019, is being implemented over 12 years with funding from the World Bank (40%), Asian Infrastructure Investment Bank (40%), and the Government of Sindh (20%).
Senator Syed Waqar Mehdi raised concerns over large-scale water leakage in Karachi, including Sohrab Goth, urging urgent repairs to ensure uninterrupted water supply.
Concerns over power sector projects and corruption allegations
The committee reviewed implementation of its earlier recommendations regarding several power sector projects, including the 765kV Dasu–Islamabad Transmission Line, ADB-funded projects, and the Jamshoro 2×660 MW coal-fired power project.
Members expressed strong dissatisfaction over alleged irregularities, contract awards, and lack of follow-up action by the Power Division. The committee unanimously rejected the Power Division’s stance, terming it unsatisfactory.
The chairman noted that despite senior representation on its board, the Power Division had failed to act in the national interest and appeared to be concealing shortcomings.
Rs 1.28 billion payment questioned
The committee also raised serious objections over the non-recovery of Rs 1.282 billion paid as sales tax to a contractor in the Dasu–Islamabad transmission line project. Officials termed it a procedural issue, but the committee questioned the audit’s authority to override parliamentary recommendations.
Procurement and bidding irregularities
Members highlighted discrepancies in bidding for transmission line projects, noting that the lowest bid of $208 million was reportedly ignored in favor of higher bids. The committee directed the National Grid Company of Pakistan Limited to submit a detailed report within 15 days.
Jamshoro power project under scrutiny
The committee also examined the Jamshoro coal-fired power project, alleging that contracts were awarded to the third-lowest bidder despite significant price differences, reportedly amounting to hundreds of millions of rupees.
Officials from NESPAK informed the committee that an inquiry was underway but its report had not yet been submitted.
The chairman criticized the process, calling it a serious case of mismanagement, and recommended action against responsible officials, including possible suspension and referral to accountability institutions.
The committee also expressed concern over delays in National Highway Authority projects, questioning why new sections were being initiated while earlier phases remain incomplete.
Concluding the session, the chairman termed the overall performance of concerned departments as “unsatisfactory” and stressed the need for strict accountability mechanisms to curb corruption and improve governance in development projects.
