A Senate panel on Friday ordered an immediate halt to the procurement process for an $80 million power sector project, citing “complete violation” of public procurement regulations by the Lahore Electric Supply Company (LESCO) and directing that action be taken against the officials involved.
The Senate Standing Committee on Economic Affairs, chaired by Senator Saifullah Abro, uncovered significant procedural inconsistencies in the procurement of STG goods for the Asian Development Bank (ADB) funded Power Distribution Strengthening Project. Following a detailed briefing, the committee observed that LESCO had disregarded Public Procurement Regulatory Authority (PPRA) rules, a finding acknowledged by the Joint Secretary of the Power Division.
Legislators expressed surprise that most of the lowest bidders were declared non-responsive without due process and noted the inconsistency of one bidder being deemed responsive for one lot but non-responsive for another within the same project. The panel unanimously directed the Ministry of Energy to stop the procurement, instruct the Economic Affairs Division (EAD) to inform the ADB of the situation, and submit all tender-related documentation to the committee.
The session, which began with members noting the absence of the Minister for Economic Affairs, also scrutinized the misallocation of funds for a heritage project. The committee raised serious concerns over a redirected and unspent balance of PKR 679 million from an PKR 850 million project for the renovation of Multan’s historic core.
It was revealed that the funds were diverted by a management committee to other projects without proper reporting or accountability. The panel found it surprising that a significant portion of the allocated funds was not utilized as intended, with PKR 170 million having been spent solely on the project”s feasibility report. The committee instructed the EAD to provide all documentation, including revised PC-Is and records of fund utilization, and to summon senior officials from the Punjab government to its next meeting.
Accountability for international funds was another major focus, with the committee reviewing the implementation of recommendations concerning IMF financing. Senator Abro expressed unease that while aggregate figures on loans and repayments are available, a clear audit trail and transparent accounting are missing. The Finance Division”s representative was unable to satisfy the committee with details regarding an extended fund facility of SDR 3.334.
The committee was informed that as of June 30, 2025, Pakistan’s total external debt liabilities stood at approximately USD 126 billion. In response, the panel endorsed a call for complete, year-wise data on external debt and IMF liabilities for key years between 2008 and 2024, directing the EAD to provide a comprehensive creditor-wise and project-wise breakdown to ensure effective parliamentary oversight.
Additionally, concerns were raised by Senator Falak Naz regarding poor access roads in Chitral, which negatively impact local communities and tourism. The National Highway Authority reported that 85 percent of rehabilitation work was complete and projected a final completion by November 2025. The Chairman decided the committee would hold its next meeting in Chitral to review the project”s progress directly.
In his concluding remarks, Senator Saifullah Abro underscored that transparency, adherence to procurement laws, and accurate financial disclosures are critical for the credibility of national projects. The committee has demanded a comprehensive update on the LESCO procurement process and the country”s updated debt data before its next session.
The meeting was attended by Senators Syed Waqar Mehdi, Haji Hidayatullah Khan, Kamil Ali Agha, Falak Naz, and Rubina Khalid, among other officials.