A Senate panel expressed grave alarm on Friday over the Finance Division’s inability to trace Rs. 3.3 billion received as budgetary support from the International Monetary Fund (IMF), while simultaneously ordering an immediate stop to a major power project’s procurement due to significant violations of public procurement rules.
The Senate Standing Committee on Economic Affairs, led by Chairman Senator Saifullah Abro, commenced its session by noting the conspicuous absence of the Minister for Economic Affairs, whose presence was deemed crucial for the day’s important discussions.
During a review of the Asian Development Bank-funded Power Distribution Strengthening Project, the committee uncovered serious irregularities in the tendering process managed by the Lahore Electric Supply Company (LESCO). Senator Abro highlighted that several of the lowest bidders were arbitrarily disqualified, and major inconsistencies were found across the procurement for eight different lots under an USD 80 million loan component.
After deliberation, the panel unanimously concluded that LESCO had breached Public Procurement Regulatory Authority (PPRA) regulations, a finding acknowledged by both the PPRA’s Managing Director and Power Division officials. The committee instructed the Ministry of Energy to halt the procurement process immediately and directed the Economic Affairs Division (EAD) to notify the Asian Development Bank of the decision. A demand was also made for complete tender documentation and disciplinary action against the officers responsible.
The committee’s attention then shifted to IMF-related financial matters, where Senator Abro lamented the lack of a transparent audit trail for funds received. He stated that while aggregate data was available, no clear accounting record had been maintained.
Officials from the Finance Division were unable to provide satisfactory answers when questioned about an Extended Fund Facility amounting to SDR 3.334 billion. The panel was informed that Pakistan had received IMF funds in 2010, 2019, and 2020. To enhance parliamentary oversight, the committee requested year-wise data on external debt and IMF obligations from 2008 to 2024.
As of June 30, 2025, Pakistan’s total external debt was reported to be USD 126 billion, which includes USD 82.5 billion in external public debt and USD 43.5 billion in domestic liabilities.
In another matter, the committee examined the case of unspent funds for the restoration of Multan’s historic core. Officials reported that out of an Rs. 850 million approved cost, Rs. 679 million remained unspent and had been redirected to other projects by a management committee without proper authorization. The panel criticized this lack of transparency, especially since Rs. 170 million had already been used for the project’s feasibility report.
The EAD was ordered to submit all relevant documentation for the Multan project. The committee also decided to summon senior officials from Multan and the Punjab government, including the Chairman of the Planning and Development Board, to its next meeting for clarification.
Additionally, Senator Falak Naz raised the issue of deteriorating access roads in Chitral, which are negatively impacting tourism and local residents. The National Highway Authority reported that 85% of the rehabilitation work was complete, with the remainder slated for completion by November 2025. The panel resolved to hold its subsequent meeting in Chitral to inspect the progress firsthand.
Concluding the session, Chairman Abro emphasized that transparency, adherence to procurement laws, and accurate financial disclosures were essential for maintaining the credibility of Pakistan’s international financial engagements.
The meeting was attended by Senators Syed Waqar Mehdi, Haji Hidayatullah Khan, Kamil Ali Agha, Falak Naz, Rubina Khalid, and senior officials from various government departments.