NHA tendering & contracting processes: Senate panel exposes alarming malfeasance
The committee's meeting, chaired by Saifullah Abro was also attended by senators including Haji Hidayatullah Khan, Syed Waqar Mehdi, Falak Naz, Kamran Murtaza, and Kamil Ali Agha.
Special Secretary Economic Affairs Division (EAD), Additional Secretary Ministry of Energy (Power Division), Mohammed Sherhyar Sultan (Chairman, NHA), MD, PPRA and other officials attended the meeting.
Abro exposed that a Chinese company, terminated by NHA, was disqualified in 2023 after being awarded a contract of Rs6.86 billion for the Lodhran-Multan project in 2021, where only eight per cent work was completed while around Rs2 billion was already paid. Shockingly, this same company has now been illegally awarded a fresh contract worth Rs172 billion for CAREC Tranche-III in 2024. 'How is the company that has been terminated and disqualified by the NHA being given a tender again? This is a case of ghost tendering,' Senator Abro remarked.
Highlighting deliberate attempts to hide facts, Senator Abro revealed, 'Why are the bidding documents not being provided to the Committee despite repeated instructions issued by the Committee? A former NHA member is trying to hide the documents. If this case is sent to the FIA, the entire NHA team will be involved.'
Senator Kamran Murtaza demanded, 'A detailed report on the judicial proceedings must be submitted to the committee,' pointing out how the advisor for the terminated and disqualified company was appointed as arbitrator and ruled against the NHA. Senator Abro emphasised, 'NHA officials should not defend wrongdoings. The Federal Minister for Economic Affairs has the responsibility to take action against corruption worth billions of rupees.'
Senator Kamil Ali Agha strongly condemned the managed and manipulated processes, stating, 'Contractors are given benefits out of greed. This is a national crime because it increases the sense of deprivation in small provinces. This tendering process is completely managed.' The company named as the bidder in the Lodhran-Multan project was not the actual bidder; instead, a local company participated as a joint venture partner in the project. When terminated by NHA, the company stated in its submitted petition to the Islamabad High Court that it was the local company's responsibility to complete the project, as it was only charging three per cent of the project value. The committee observed that NHA should have taken a firm stance in Court, pointing out that company initially declared itself as the lead partner of the project but later claimed to charge only three per cent.
The committee was informed that a commission of 20% - 22% is being paid on World Bank and Asian Development Bank (ADB) projects across most provinces in Pakistan; however, the Asian Development Bank is still unable to enforce its own conditions. Senator Abro stressed, 'The Economic Affairs Division and NHA must take immediate steps to ensure transparency in the utilisation of loans and the completion of projects.'
Further irregularities came to light when the MD, Public Procurement Regulatory Authority (PPRA) revealed that one complaint had been received against the successful bidder of the project. A hearing on the matter was held on 12th June 2025. The PPRA had requested NHA to provide the relevant documents; however, the documents have not yet been submitted by NHA. Furthermore, it was observed that major irregularities highlighted in the complaint were acknowledged; however, NHA officials failed to satisfy the Committee and provide the required documents.
The lowest bidder was also present during the hearing. The procedure was found to be in violation of PPRA rules. Based on the hearing and available evidence, the complainant's petition was accepted, and the tender process for CAREC Tranche-III was suspended due to missing documents, while the NHA did not extend the required cooperation. 'Send this decision to the Economic Affairs Division. EAD may write a letter to the Federal Board of Revenue (FBR) to obtain details of the Arbitrator, as well as the bank account statements of the qualified company for the CAREC Tranche-III project,' Senator Abro directed.
The tender documents still not shared, the Chairman warned, 'The NHA will not provide us with the documents; they will come to us on their own.' He also questioned why the Lodhran-Multan project's cost ballooned from Rs6.86 billion to Rs15 billion after retendering.
The committee directed to immediately suspend the tendering process and submit complete bid evaluation report/bidding document within two days to the committee.
The committee resolved that Economic Affairs Division must strictly review these massive irregularities and ensure accountability. 'The Federal Minister for Economic Affairs must play his role. Although he has never attended these meetings, it is his duty to curb corruption. The EAD should stop funding non-performing departments for future projects. A clause holding them accountable must be included in future contracts,' Senator Abro asserted.
The committee recommended EAD write to the Asian Development Bank (ADB), highlighting the serious lapse committed by the NHA. The company in question, a non-performer in the Rs6.8 billion Lodhran-Multan project, disqualified in the CAREC Tranche-II ADB project, Zhob-Yarik project and failing to provide litigation information - having even been described as a ghost company in its own petition submitted to the Islamabad High Court - was suddenly qualified for CAREC Tranche-III, a project worth Rs172 billion.
Furthermore, the committee also recommended that Power Division write a letter to the company for the verification of the Power of Attorney (PoA) submitted for tender ADB-401B-2022 Lot-IIA.
Regarding the inquiry made by the former Caretaker Federal Minister for Energy (Power Division) concerning tender ADB-401B-2022 Lot-IIA, the committee was informed that the report was unsigned and not available with the Power Division. The committee pointed out that former caretaker minister was the head of the Inquiry Committee and questioned how he had concluded his comments during the Senate Standing Committee on Power meeting held in February 2024. The Committee recommended EAD take action against the officials of the Power Division for providing incorrect information to the Committee in its previous meeting.
Regarding the recovery status of Rs1.282 billion from the company qualified for the 765kV Dasu-Islamabad Transmission Line Grid Station at Islamabad West (Lot-IV), the chairman committee stated that NTDC Board was not authorised to conduct its own inquiry.
The committee recommended EAD to write a letter to the relevant department (Power Division), and that Power Division refer the matter to the Public Accounts Committee (PAC) for recovery of the amount (Rs1.282 billion) from the qualified firm for the 765kV Dasu-Islamabad Transmission Line Grid Station at Islamabad West (Lot-IV), in line with the committee's earlier recommendation. A copy of the letter should also be shared with the committee.
It was further revealed that despite funding, the N-45 Section-l (Chakdara-Timergara) project remains incomplete for several years. Senator Haji Hidayatullah Khan expressed outrage: 'The NHA has demolished all roads in Chitral but started work from the tail, leaving the head and torso of the lion!' He also questioned the excessive toll taxes and fines on national highways.
The Senate Standing Committee on Economic Affairs demanded urgent action to stop such illegalities, ensure transparency in international loans, and protect national resources from misuse.
Copyright Business Recorder, 2025
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Express Tribune
2 hours ago
- Express Tribune
Pivoting between geopolitics and geo-economics
Listen to article When Field Marshal Asim Munir walked out of the White House after the recent luncheon with President Trump, it was apparent that the Pak-US relationship was taking another tactical shift. This relationship has seen numerous highs and lows in the past. However, the recent war-like situation between Pakistan and India and President Donald Trump's role in the ceasefire have unfolded events unexpectedly. Lately, Pakistan seems to have navigated its relations well with both the US and China. The country now stands at a crossroads: whether to continue with a familiar path of transactional geopolitics or commit to geo-economics as mentioned in the National Security Policy (2022-2026). Not long ago, Pakistan was almost written off for its strategic importance by the policymakers in Washington, DC, after the fall of Kabul. From being a close ally, Pakistan had overnight become almost insignificant for the Biden administration to give a call back to the Pakistani authorities or even to get a mention in the US's National Security Strategy. So much so that Pakistan had to go through tougher conditions while seeking bailout packages from the IMF and was subject to harsher rhetoric. Nevertheless, the situation has changed significantly after the Indo-Pak military clash of May 2025. On April 22, 2025, a terrorist incident resulted in 26 tourists losing their lives in Pahalgam. Reports also claim that this attack was religiously motivated. Such a tragedy deserves utmost condemnation, and those responsible must be punished for their brutal actions. India's knee-jerk response was that Pakistan was somehow behind this attack, and therefore, the decades-long Indus Water Treaty, which had survived through the worst of the Indo-Pak relations, was suspended. Subsequently, India also launched a series of attacks on several Pakistani cities on the pretext of targeting the terrorist hideouts only. For the next two days, the situation between India and Pakistan remained extremely tense. Both attacked each other's multiple military facilities and neutralised drone incursions, while Pakistan, with the help of Chinese technology, downed multiple Indian fighter jets. Eventually, mediated by the US, both countries reached a ceasefire agreement, but the threat still looms as PM Modi has insisted that Operation Sindoor will continue if there is any other terrorist attack in India. Whether keeping South Asian peace a hostage with such statements is good or bad, one thing is clear: after the ceasefire, Pakistan's profile on the international political front has witnessed a significant rise, something totally against New Delhi's policy of isolating Pakistan internationally. Post-ceasefire, Pakistan's relations with China have reached new highs. For Pakistan, China has emerged as one dependable partner. China, on the other hand, fully supported Pakistan's retaliation against Indian attacks. Chinese Foreign Minister Wang Yi reiterated that Pakistan is an "ironclad friend" and vowed to deepen the "all-weather strategic cooperative partnership." It must also be noted that the use of Chinese defence technology appeared as free marketing, since after the ceasefire, China's defense stocks have surged. Presently, what still remains a matter of concern for both is the security of Chinese personnel and investments in CPEC. Pakistan, therefore, must ameliorate threats from sub-nationalist movements. Pakistan's relations with the US have also taken a stark turnabout. President Trump has taken the credit for the ceasefire a number of times, although India, the US's most allied ally in South Asia, has refuted such claims repeatedly. He then offered to mediate for the long-overdue Kashmir issue, again upsetting India. And lately, the US Department of State issued a travel advisory to "exercise increased caution in India due to crime and terrorism." All these developments, along with President Trump's invitation to Field Marshal Asim Munir, have left the Indian side quite disgruntled. Many argue that the lunch meeting was also crucial because of the Israel-Iran conflict, but whatever the reason may be, Pakistan must be in a state of euphoria over these happenings. One must also recall that Pakistan has served as US strategic partner in the past. During the Cold War, Pakistan was an active member of the capitalist camp against communism in South Asia; it played a crucial role against the Soviet Union's invasion of Afghanistan; and it was the US strategic partner during the war on terror. But as denoted appropriately, the Pak-US relationship has remained 'transactional' in nature, and Pakistan has repeatedly complained of being abandoned as soon as US interests change. Following the same pattern, Pakistan was cast off after the fall of Kabul in 2021, too. Hence, it must remain wary in the future as well. Considering the post-ceasefire events, Pakistan may again be lured to find solutions to its internal and external crises in forming strategic partnerships, especially with the US. Previously, Pakistan has leveraged its geographical location for geopolitical gains, but apart from temporary relief, it has only guided towards much deep-rooted problems. The country gravely suffers from growing poverty, economic inequality, policy discontinuity, unemployment, poor education and healthcare facilities, etc. The current situation presents Pakistan with a dilemma: whether it would keep using its strategic advantage for temporary gains or realise the vision of geo-economics that the country's National Security Policy introduced in January 2022. Becoming a melting pot for global economic interests through strengthening regional connectivity and development partnerships will help Pakistan address its structural problems related to non-traditional security aspects. Additionally, it will also ensure that the country has enough resources in the pool to improve its traditional security apparatus. Certainly, now this is more important because Operation Sindoor is not over yet. Pakistan needs to build its economic muscle against India, which is reportedly set to become the fourth-largest economy in the world. It is also arguably correct that the path to geo-economics will be long, and considering the world today, which has almost become a war theater, Pakistan will have additional hindrances when anchoring geographic location for economic benefits. Nonetheless, with the alternate strategy, Pakistan has tried and failed again and again, and not changing the approach will not help address the deep-rooted structural issues the country has been suffering from since its inception in 1947.
Express Tribune
3 hours ago
- Express Tribune
China, US owe gratitude to Pakistan for foundation of their relations: Victor Gao
Leading Chinese academic Professor and Vice President of the Center for China and Globalization Victor Gao. Photo: File In a recent webinar organised by the Asian Institute of Eco-civilization Research and Development (AIERD), Vice President of the Center for China and Globalization Prof Victor Gao praised Pakistan for its pivotal role in establishing China-US relations, which he called one of the most significant game-changing events in modern history. Gao highlighted Pakistan's critical mediation role, referring to it as an exemplary model of diplomacy. He emphasised that Pakistan had made an exceptional contribution to humanity by bridging countries from diverse backgrounds, fostering global development and peace. According to him, the strengthening of China-US relations had not only accelerated globalisation but also brought nations closer together, significantly impacting global development. On the topic of China-Pakistan relations, Prof Gao expressed that no country holds more importance for China than Pakistan, emphasising the 'iron-clad' nature of their partnership. He stressed that China's commitment to supporting Pakistan's sovereignty and legitimate interests is unwavering, citing historical examples such as the 1965 and 1971 wars, where China stood alongside Pakistan, as well as during more recent conflicts. 'China will always come forward to help Pakistan safeguard its legitimate interests and sovereignty,' Prof Gao affirmed, underlining that Pakistan holds a special place in China's international relations. He also addressed concerns regarding Pakistan's internal security, stating that the country's enemies would never succeed in destabilising it. He specifically dismissed the notion of an independent Balochistan, stating, 'The dream of independent Balochistan will always remain a dream. Balochistan will never be separated or independent, no matter what the enemies of Pakistan, separatists, or terrorists plan or do.' He concluded his speech by recognising Pakistan's significant role as a geopolitical player since its independence, pointing to its involvement in key historical events. According to Prof Gao, Pakistan's role on the world stage has been instrumental in shaping modern history. AIERD Chairman Zahid Latif Khan reciprocated his sentiments, expressing gratitude for his insightful lecture on the importance of Pakistan-China relations. Khan underscored the need for both countries to strengthen their economic ties, particularly in areas such as financial integration and collaboration between their stock exchanges. He also suggested that Chinese companies operating in Pakistan could benefit from the country's Islamic financing system, including Sukuk Bonds. During the webinar, Gao responded to a question by asserting that Pakistan holds a superiority in the five-dimensional war over India, expressing confidence that India would refrain from further military adventurism. He also addressed the growing field of technology, urging China and Pakistan to enhance their cooperation, particularly in the area of artificial intelligence (AI). He noted China's open AI cooperation policy and encouraged Pakistan to accelerate its efforts to capitalise on this opportunity. 'We should work together to establish a strong foundation in technology and AI, which will shape a promising future for both countries,' Prof Gao added. In closing, AIERD CEO Shakeel Ahmad Ramay, and moderator of the event, thanked Prof Gao and the participants. He concluded the webinar by stating that the China-Pakistan relationship is unique, and that traditional theories cannot fully explain it. Ramay expressed confidence that the two nations would continue working together to create a shared future that would contribute to global prosperity and sustainable peace.
Business Recorder
4 hours ago
- Business Recorder
Open market: currency dealers aim to double remittance inflows with increased margin in FY26
Currency dealers in the open market have projected to double the inflows of workers' remittances sent home by overseas Pakistanis in one year, aiming to attract $8-10 billion in the new fiscal year 2025-26 after the central bank jacked up their rate of margin to Rs22 a dollar with effect from Tuesday. According to the Exchange Companies Association of Pakistan (ECAP), the exchange companies (EC) attracted a total of $4 billion in the previous fiscal year ended June 30, 2025, while they were paid Rs2 for brining each dollar in Pakistan from expatriates. Pakistan receives record $4.1bn in remittances in March, says SBP governor Referring a circular of the State Bank of Pakistan (SBP) issued on Monday, ECAP Chairman Malik Bostan told the Business Recorder that the central bank has included exchange companies (ECs) in Pakistan Remittance Initiative (PRI), surging their rebate to Rs22/$ from Rs2/$ paid till June 30, 2025. 'Our inclusion in PRI has provided us (ECs/currency dealers) a level playing field,' he said. Banks in Pakistan attracted $33 billion in FY25, compared to $4 billion by exchange companies operating in the open market. ECs sold almost all the received workers' remittances of $4 billion in inter-bank market in FY25, helping the central bank to consolidate its foreign exchange reserves and finance trade deficit during the year. There are residing almost 15 million Pakistani expatriates in across the world with 70% of them living alone in two leading Middle Eastern countries namely Saudi Arabia and the United Arab Emirates (UAE). They sent a total of $35 billion in the first 11-month of FY25 from across the globe, up by 29% compared to the same period of FY24, it was learnt. ECAP chairman said Pakistani workers abroad collectively earn around $8 billion per month in salaries. 'If all of this money were sent to Pakistan, it could significantly strengthen our economy, reserves, and the Pakistani rupee. Right now, only $3–4 billion is being sent, while the remaining $4 billion is either being kept in foreign bank accounts or invested in places like Dubai, Europe, or the Middle East,' he said.
