Islamabad : September 4,-2026: A meeting of the Senate Standing Committee on Economic Affairs was held today under the chairmanship of Senator Saifullah Abro, with Senator Kamran Murtaza attending virtually and Senators Haji Hidayatullah Khan and Kamil Ali Agha also in attendance.
The committee reviewed progress on ongoing power sector projects financed by multilateral development agencies, with particular focus on the 765kV Dasu-Islamabad Transmission Line Project, comprising Lots I to IV. The committee was briefed by the Economic Affairs Division on project proposals, the tendering process, current physical progress, imported materials and hardware, and testing procedures being introduced for the first time in Pakistan for a 765kV transmission line.
Chairman Senator Saifullah Abro expressed serious concern over what he described as irregularities in projects on the committee’s agenda and the persistence of allegations of corruption in the power sector despite repeated efforts to bring greater transparency and accountability to project implementation. He stressed that public funds must be protected and told officials that they were custodians of the people’s money.
During the discussion on the Dasu-Islamabad Transmission Line Project, the chairman questioned officials about the recovery of Rs26 million reportedly linked to a matter involving a fraudulent will document. Officials informed the committee that Rs10 billion had been recovered in connection with the broader recovery process. The chairman questioned why the outstanding amount had still not been recovered and observed that private companies had recovered their money while the Government-to-Government component remained unresolved.
Senator Abro further questioned the repeated denial of information despite requests made under the Right of Access to Information framework. He stressed the need for transparency in the matter and said the case should not simply be left unresolved. The chairman initially called for the matter to be referred to the Federal Investigation Agency for investigation; however, the committee gave the department a final opportunity to write formally to the relevant department and seek a detailed briefing before deciding its next course of action.
The committee also examined the financial requirements and funding position of the Dasu transmission project. Power Division officials informed the committee that Rs19 billion had been sought from the government for Dasu last year, against which Rs17 billion was provided. Officials further stated that Rs12 billion had been released by the government only a few days earlier.
During the discussion, Senator Kamil Ali Agha questioned the financial implications of the delayed release of funds and asked how much interest would have to be paid on the recently released Rs12 billion. The committee took note of the financial burden associated with project delays and financing costs.
Senator Saifullah Abro expressed dissatisfaction over the pace of construction of the Dasu transmission lines, describing the progress as very slow. He questioned how the transmission project could be completed within two years if work continued at the existing pace.
The chairman also raised questions over the timing of decisions concerning power infrastructure and remarked that the government had only now realised the need to operate the steam turbine at the Guddu Power Plant. He linked such delayed planning and implementation decisions to the broader concerns surrounding the power sector’s project management and financial efficiency.
The committee was informed that the Dasu transmission line project had already incurred substantial interest costs. Senator Abro pointed out that 12 percent interest had been paid on the Dasu project’s transmission line financing. He further stated that a total of Rs76 billion had been received from donors, while Rs9 billion had already been paid in interest.
The chairman also questioned the procurement and delivery of imported material and hardware for the project in the absence of corresponding progress in construction. He remarked that bringing and dumping material at sites without first constructing the required towers raised serious questions about project planning, utilisation of funds and storage of equipment.
The committee was informed that a high-level committee had been constituted to monitor the transmission line project associated with the Dasu Dam and that several federal ministers were members of the monitoring body. Officials also told the committee that expenditure within the Power Division was exceeding the amounts allocated for various activities.
Senator Abro expressed concern over the gap between allocations, actual expenditure and physical progress and stressed that projects financed through foreign assistance require effective oversight to ensure that donor funds are utilised transparently and efficiently. The committee noted that it had repeatedly requested the Ministry of Finance and the Ministry of Planning to ensure protection and proper utilisation of projects being implemented through foreign funding.
The committee also sought a detailed explanation from NESPAK regarding step-by-step activities under the relevant project components and the payment mechanism for Lots I to IV of the Dasu transmission line project. Officials explained that the activities were processed through different billing arrangements and that the step-wise or day-to-day work was reflected through separate billing processes.
The committee decided to seek further clarity on the relationship between physical progress, billing, payments and procurement under the different lots so that the pace of expenditure could be assessed against actual work completed on the ground.
The chairman directed officials to provide complete and updated information on the projects under consideration and emphasised that delays, financial irregularities, procurement issues and outstanding accountability matters could not be allowed to remain unresolved. He reiterated that public money must be treated with the highest level of responsibility and transparency.
The committee decided to summon officials from the Ministry of Finance and the Ministry of Planning at its next meeting to obtain a comprehensive briefing on the Dasu transmission project, its financing, expenditure, progress, delays, interest costs and measures being taken to ensure timely completion and effective utilisation of foreign funding.