Senate Committee Uncovers Massive Corruption Scandal in National Highway Authority Contracts

Islamabad – The Senate Standing Committee on Economic Affairs, chaired by Senator Saifullah Abro, has revealed staggering levels of fraud, corruption, and procedural violations within the National Highway Authority (NHA), particularly in its multibillion-rupee contracting and tendering processes. The revelations emerged during a committee session at Parliament House attended by several senators and high-level officials from the Economic Affairs Division (EAD), Ministry of Energy, NHA, and the Public Procurement Regulatory Authority (PPRA).

The Committee’s most explosive finding centered on a Chinese company previously disqualified in 2023 for completing only 8% of work on the Rs. 6.86 billion Lodhran–Multan project—despite receiving Rs. 2 billion in payments. Despite its dismissal, this very company was shockingly awarded a new contract worth Rs. 172 billion for the CAREC Tranche-III project in 2024. Senator Abro labeled this a case of “ghost tendering” and questioned how a blacklisted entity could qualify for such a major contract again.

The Committee also discovered attempts to conceal key documents, including bidding records, with Senator Abro accusing a former NHA member of deliberately hiding evidence. “If this is referred to the FIA, the entire NHA will be implicated,” he warned. Senator Kamran Murtaza demanded a full judicial report on the matter, noting serious conflicts of interest in arbitration proceedings that favored the disqualified company.

Senator Kamil Ali Agha condemned the manipulated tendering system as a “national crime” that perpetuates inequality among provinces. He criticized the NHA’s weak legal stance in court and its failure to assert responsibility against the firm, which inconsistently claimed both lead and minor roles in the project.

Further scrutiny revealed that commissions as high as 20–22% were allegedly being taken on World Bank and ADB-funded projects across Pakistan. The PPRA confirmed receiving a formal complaint against the CAREC Tranche-III bidding process. A hearing was held on June 12, 2025, but the NHA failed to provide the requested documentation. As a result, the complaint was upheld, and the CAREC Tranche-III tender was suspended for violating procurement rules.

The Committee ordered the immediate suspension of the bidding process and directed the NHA to submit complete evaluation reports and documents within two days. Senator Abro insisted that the EAD hold all involved parties accountable and include accountability clauses in future contracts. He further urged the EAD to stop funding non-performing departments and to formally notify the Asian Development Bank (ADB) of these irregularities.

Shockingly, the same company had already been disqualified from the CAREC Tranche-II and Zhob–Yarik projects and failed to provide litigation details. Described as a “ghost company” in its own court filings, it still managed to qualify for the Rs. 172 billion CAREC Tranche-III contract.

The Committee also recommended that the Power Division verify the Power of Attorney submitted for tender ADB-401B-2022 Lot-IIA and demanded explanations regarding an unsigned report related to that tender. Discrepancies in that inquiry, led by the former caretaker Federal Minister for Energy, were flagged, and the Committee directed action against officials who had previously misled them.

In another case, the Committee called for the recovery of Rs. 1.282 billion from the company qualified for the 765kV Dasu–Islamabad Transmission Line project, instructing the matter be referred to the Public Accounts Committee and the Power Division.

Senator Haji Hidayatullah Khan condemned the NHA’s delays in completing the long-overdue N-45 (Chakdara–Timergara) project, highlighting its negative impact on Chitral’s infrastructure. He also criticized the imposition of heavy toll taxes and arbitrary fines on national highways.