ISLAMABAD: The Senate Standing Committee on Economic Affairs has decided to seek investigations by the Federal Investigation Agency (FIA) and the National Accountability Bureau (NAB) into alleged irregularities and corruption in foreign-funded power sector projects, while also forwarding its findings to Prime Minister Shehbaz Sharif for appropriate action.
The unanimous decision was taken during a meeting of the committee chaired by Saifullah Abro after the Economic Affairs Division (EAD) stated that it could not order an inquiry into projects executed by another ministry.
Committee members criticized a letter issued by an EAD section officer, which stated that the matter fell outside the committee’s jurisdiction. Senator Kamran Murtaza questioned the wording of the letter, saying the committee should first determine its legal authority before proceeding, while emphasizing that any legal opinion obtained by the government would be respected.
Senator Kamil Ali Agha described the letter as an attempt to divert attention from significant irregularities and alleged corruption uncovered by the committee in various foreign-funded development projects. He stressed that parliamentary oversight is essential to ensuring transparency, accountability, and the proper utilization of foreign loans.
Responding to the committee, EAD Secretary Humair Karim accepted responsibility for the letter but rejected any suggestion that it reflected disrespect towards Parliament. He explained that the committee had earlier directed the EAD to approach the FIA and NAB regarding projects under the Power Division, but the division sought legal guidance from the Ministry of Law because it could not directly initiate action against another ministry under the existing Rules of Business.
He acknowledged, however, that the wording of the communication could have been more carefully drafted.
During the meeting, Senator Kamran Murtaza argued that foreign-funded loans are disproportionately utilized for projects in Punjab, while the financial burden arising from cost overruns and alleged corruption is ultimately shared by all provinces, including Balochistan and Khyber Pakhtunkhwa. He also alleged that project designs are frequently altered after loan approvals and that contract costs are intentionally underestimated before being revised upward.
Senator Dilawar Khan said the committee had already identified major irregularities in several foreign-funded projects. He questioned why the EAD considered it necessary to seek legal advice instead of implementing the committee’s recommendations, arguing that parliamentary directives should be acted upon without unnecessary procedural delays.
Chairman Saifullah Abro maintained that previous committee meetings had established evidence of alleged corruption in several foreign-funded projects and recalled that the committee had earlier instructed the EAD to refer the cases to NAB and the FIA. He added that the Senate committee itself possesses the authority to refer matters directly to oversight institutions but had initially asked the EAD to do so in order to strengthen institutional accountability.
He also noted that the prime minister had previously suspended nine senior officials and four members of the National Highway Authority based on the committee’s findings without first seeking legal opinion.
The committee warned that it would formally record the alleged non-cooperation of both the Economic Affairs Division and the Power Division in its communication to the Public Accounts Committee (PAC), FIA, and NAB.
Concluding the meeting, the committee unanimously decided to write directly to the FIA and NAB, requesting investigations into two Power Division projects as well as other foreign-funded projects under scrutiny. It also directed the Economic Affairs Division to submit, within three days, all correspondence exchanged with the relevant ministry along with an implementation report, which will subsequently be forwarded to the prime minister, PAC, FIA, and NAB.
Story by Khaleeq Kiani
