Senate panel calls for probe into foreign-funded power projects
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• Decision taken unanimously by Senate Standing Committee on EAD
• Division says it cannot directly order FIA, NAB inquiry into another ministry’s projects
• Senators criticise EAD letter questioning committee’s jurisdiction
ISLAMABAD: The Senate Standing Committee on Economic Affairs Division on Thursday decided to brief the prime minister on irregularities and alleged corruption in foreign-funded projects in the power sector and directly ask the Federal Investigation Agency (FIA) and the National Accountability Bureau (NAB) for detailed investigations.
The decision was taken unanimously by the committee, presided over by Senator Saifullah Abro, after the Economic Affairs Division apparently expressed its inability to order an inquiry into projects of another ministry.
Senator Kamran Murtaza expressed displeasure that an EAD section officer had written a letter stating that the matter did not fall within the committee’s jurisdiction. He said the committee should first determine whether it had the authority to proceed, adding that if it lacked jurisdiction, there would be no purpose in continuing the meeting.
Senator Kamil Ali Agha termed the letter an attempt to create confusion and divert attention from significant irregularities and alleged corruption identified by the committee in various foreign-funded projects across the country.
He observed that the letter reflected an adversarial approach towards parliamentary oversight and expressed concern that such actions could undermine the committee’s efforts to ensure transparency, accountability and proper utilisation of foreign-funded resources.
He maintained that the Senate’s constitutional role was to monitor state institutions. He said the wording of the letter gave the impression that those responsible for obtaining foreign loans believed they alone were entitled to decide how those funds would be used without parliamentary scrutiny.
Chairman Senator Saifullah Abro questioned whether EAD Secretary Humair Karim was satisfied with the contents and wording of the letter issued by the section officer.
The EAD secretary accepted full responsibility for the letter and its contents. However, he said, there was no element of disrespect towards parliament in the letter and that Senate recommendations had always been implemented.
He explained that the committee had earlier directed his division to write to the FIA and NAB regarding matters related to the Power Division. However, he said, the EAD could not directly write such a letter against another ministry and had therefore sought legal opinion from the Ministry of Law to determine the procedure applicable to the EAD under the Rules of Business.
He also acknowledged that the wording of the letter could have been drafted with greater care and sensitivity.
Senator Murtaza said if the EAD secretary accepted the contents of the letter, it implied that senators had exceeded their authority. He said the committee did not object to the ministry seeking legal opinion and would respect the legal opinion once received. He also appreciated the EAD secretary for accepting responsibility.
Senator Murtaza said foreign-funded loans were largely utilised for projects in Punjab, while the financial burden arising from cost escalations and corruption was ultimately borne by provinces, including Balochistan and Khyber Pakhtunkhwa.
He said designs in foreign-funded projects were frequently altered after loan approvals, no action was taken against responsible officials and contract prices were deliberately kept low initially so that costs could later be increased.
Senator Dilawar Khan said the committee had identified major irregularities in projects financed through foreign loans. He said the EAD facilitated foreign borrowing while project implementation remained the responsibility of executing ministries.
He questioned why the EAD felt the need to seek legal opinion instead of acting on the committee’s recommendations. He also maintained that the mandate of the ministry, as defined in the Rules of Business, 1973, consisted of internal administrative rules and did not require legal opinion for implementing Senate committee directives.
Chairman Senator Abro stated that alleged corruption in foreign-funded projects had been established during previous committee meetings attended by EAD officials as well. He recalled that the committee had instructed the EAD to refer projects involving allegations of corruption to NAB and the FIA for further investigation. He asserted that the Senate committee itself had the authority to directly refer matters to the Public Accounts Committee, NAB and the FIA, but had instead asked the EAD to act in order to strengthen its oversight role in foreign-funded projects.
He observed that the prime minister had suspended nine senior officers and four members of the National Highway Authority on the basis of the committee’s findings and had not sought legal opinion from the Ministry of Law and Justice before taking action.
The chairman warned that the committee would express regret in its communication to the PAC, NAB and FIA by specifically mentioning the non-cooperation of both the EAD and the Power Division.
Abro said the senior EAD management had the responsibility to ensure institutional accountability and effective governance. He directed the EAD to advise its officials to extend full cooperation to parliamentary committees and facilitate their proceedings rather than creating procedural impediments in the discharge of their oversight functions.
Senators Mahmoodul Hassan, Syed Waqar Mehdi, Kamran Murtaza, Kamil Ali Agha, Haji Hidayatullah Khan and Ahmed Khan proposed that the committee’s investigation report and recommendations be forwarded to the prime minister, PAC, NAB and FIA for necessary action.
The committee then unanimously decided to write directly to NAB and the FIA, seeking inquiries into two Power Division projects and other projects. It also directed the EAD to submit, within three days, all correspondence exchanged with the ministry concerned along with its implementation report. The report would subsequently be forwarded to the prime minister, PAC, NAB and FIA, the committee decided.
Published in Dawn, July 3rd, 2026 ...