Islamabad, October 31, 2025- The session of the Standing Committee on Economic Affairs commenced with members expressing concern over the absence of the Minister for Economic Affairs. The Committee emphasized that the Minister’s participation is essential for informed discussions and effective coordination.
The Committee considered the matter referred by the Honourable Chairman Senate regarding the release of unspent funds for the renovation and restoration of Multan’s historic core. It was informed that the total approved cost of the project was approximately PKR 850 million, divided into two phases. However, the Chairman Committee expressed serious concern over the unspent balance of PKR 679 million, which had been redirected by the Management Committee to other projects without proper reporting or accountability. The Committee was informed that Rs. 170 million had been spent on the preparation of the project’s feasibility report.
The EAD also briefed the Committee that the project had been shifted from the Federal Government to the Provincial Government. The Committee found it surprising that the funds allocated for various project components were not utilized appropriately. It emphasized that any such reallocation must follow transparent and well-documented procedures.
The Committee directed the EAD to provide complete documentation, including approvals, revised PC-Is, records of fund utilization, and a copy of the feasibility report, to ensure proper oversight. Furthermore, the Committee unanimously decided and recommended that the EAD invite the concerned representatives including the Commissioner and Deputy Commissioner, Multan; Chairman, Planning and Development Board, Government of Punjab; and Secretary, Local Government and Community Development, Government of Punjab to the next Committee meeting.
Moreover, the Committee reviewed the implementation of previous recommendations regarding IMF funds, including amounts received, disbursements, repayments, interest paid year-wise, and a comprehensive debt breakdown. Senator Saifullah Abro, Chairman of the Committee, expressed concern that while aggregate figures are available, there is no clear audit trail or transparent accounting. He highlighted that successive governments’ commitments to reduce reliance on IMF programmes have not translated into clear data on repayments and interest obligations.
Senator Hidayatullah Khan inquired whether IMF funds categorised as grants or balance of payments support were effectively used for structural reforms, while Senator Syed Waqar Mehdi questioned whether utilisation targets were met. Officials noted that targets exist, but systemic transparency and data visibility remain limited. In response to a query raised by the Chairman Committee, the Committee was informed that budgetary amount was received in 2010, 2019 and 2020. The Chairman Committee asked about the details of the extended fund facility of amount to SDR 3.334, however, the representative of the Finance Division was unable to satisfy the Committee.
It was reported that as of 30 June 2025, Pakistan’s total external debt liabilities were approximately USD 126 billion, including USD 82.5 billion in external public debt and USD 43.5 billion in domestic liabilities. Senator Hidayatullah Khan reiterated the need for complete year-wise data on external debt and IMF liabilities for 2008, 2013, 2018, 2022, and 2024. The Chairman endorsed this suggestion, emphasizing that accurate and verified figures are essential for parliamentary oversight. The Chairman Committee directed EAD to provide a comprehensive breakdown of external public debt, detailing project-wise allocations, creditor categories, and year of contracting since 2008 to 2024 date to the Committee.
The Committee also reviewed ongoing power sector projects including the procurement of STG goods under the Asian Development Bank funded Power Distribution Strengthening Project being implemented through LESCO. A loan of USD 80 million had been signed for the STG component. Procurement under eight lots is underway, with technical evaluation through a third-party assessment. Senator Abro raised concerns over procedural inconsistencies. After the briefing by the MD, PPRA, the Committee observed that LESCO had completely violated PPRA regulations. The Joint Secretary (Power Division) also acknowledged these violations. The Committee expressed surprise that most of the lowest bidders were declared non-responsive without following PPRA rules, and that a bidder declared responsive in one lot of the project was declared non-responsive in another. After the detailed discussions, the Committee unanimously decided and directed the Ministry of Energy (Power Division) to halt the procumbent process of the project. The Committee also directed EAD to write to ADB in this regard. The Committee further recommended the M/o Energy (Power Division) to ensure compliance with Public Procurement Regulatory Authority Rules 2004, submit all documentation of the tendering process of the project to the Committee and take action against the involved officers.
Additionally, Senator Falak Naz expressed concern over poor access roads in Chitral affecting local communities and tourism. The National Highway Authority reported 85 percent of rehabilitation work completed, with remaining work expected by November 2025.
The Chairman Committee decided that the Committee’s next meeting would be held in Chitral to review progress on the project and representatives of the provincial Government will also be informed to attend the meeting to resolve the issue with NHA.
Senator Saifullah Abro underscored that transparency, compliance with procurement laws, and accurate financial disclosures are critical for maintaining the credibility of multilateral and bilateral projects. The Ministry of Economic Affairs was directed to provide a comprehensive update on the LESCO procurement process, and the country’s updated debt data prior to the next session.
Senators Syed Waqar Mehdi, Haji Hidayatullah Khan, Kamil Ali Agha, Falak Naz, Rubina Khalid, Additional Secretary M/o Economic Affairs, attended the meeting among others.
