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Event Title: Senator Saifullah Abro, Chairman Senate Standing Committee on Economic Affairs presiding over a meeting of the committee at Parliament House Islamabad

Event Date: 2026-09-14

Senate Economic Affairs Committee Directs NHA to Commence Work on N-45 (Kalkatak - Chitral Section) by 1st December 2026, Seeks Update on CAREC Tranche-III (Rajanpur-DG Khan-DI Khan) Project and Reviews Irregularities in all LoTs of 765kV Dasu - Islamabad Transmission Line Project.

The Senate Standing Committee on Economic Affairs met at Parliament House, Islamabad, under the chairmanship of Senator Saifullah Abro, to review the progress of ongoing foreign-funded projects in the power and communication sectors, with particular focus on the 765kV Dasu-Islamabad Transmission Line Project and the progress of ongoing foreign funded Projects in the Communication sector, with particular focus on the Improvement and Widening of the N-45 Chakdara - Chitral Road (Kalkatak-Chitral Section) and the remaining two sections of the project.

The Committee expressed serious concern over delays and huge irregularities in the implementation of the 765kV Dasu-Islamabad Transmission Line Project. Officials briefed the Committee that the project was scheduled for completion by June 2028. The Committee observed that significant time had already been lost and stressed that further delays could result in wastage of public funds.

The Committee was further informed that irregularities had been pointed out in the project and stressed the need for strict action against those responsible for delays and irregularities, stating that the project involved substantial public resources and could not be allowed to suffer further setbacks. Regarding the project’s implementation, the Committee was briefed that delays had occurred in design, soil investigation and other technical processes. The Committee questioned the prolonged delays in completing essential surveys and directed the National Grid Company (NGC) to take responsibility for ensuring timely completion of all required technical and contractual processes.

The Committee was informed that NGC had held a meeting with General Manager at NHA Headquarters on September 7, 2026, regarding issuance of NOCs and necessary cooperation for road closures during execution of the 765kV Das-Islamabad Transmission Line Project. Revised estimates for the relevant sections had also been shared with the contractor for payment processing.

The Committee was further informed that, following a high-level meeting held on September 10, 2026, the Forest Department, Government of Khyber Pakhtunkhwa also agreed to issue Forest NOCs for towers foundations and access roads at 7 locations in Lower Kohistan (Section-I) and 16 locations in Hazara Tribal/Battagram and Agor Tanawal Gujzara Forest Divisions (Section-II). The Chairman also personally contacted the concerned officials during the leave period and directed them to take necessary action in this regard. NOCs had already been issued for 6 towers in Abbottabad (Gallies), 7 towers in Siren and 6 towers in Haripur designated forest (Lot-2). A fresh field visit of the relevant locations was also directed for submission of a comprehensive report.

Additionally, the Committee decided to invite the M/o Planning, development and Special Initiatives in its next meeting to resolve the issue of releasing of pending payments to the Power Division / executing agency and ensure the timely completion of the project. It also directed the concerned departments to submit the required reports, correspondence and project documents for further examination.

The Committee also reviewed the progress of ongoing foreign-funded projects in the communication sector and was briefed by officials of the National Highway Authority (NHA) regarding the status of the Section-I Chakdara - Timergara (38.85 km) project. The Committee was informed that consultancy contract for Section-I has already been awarded and that the PC-I, with an estimated cost of Rs. 17.012 billion, was submitted to the Ministry of Planning, Development and Special Initiatives for approval through CDWP/ECNEC on 31st March, 2026. The Committee was further informed that procurement activities can only be initiated after administrative approval of the PC-I. The Committee expressed serious concern over the fact that despite the lapse of approximately six months since submission, the PC-I was still awaiting approval. The Economic Affairs Division also acknowledged before the Committee that such a prolonged delay was not justified. The Committee noted that delay has adversely affected project implementation and has the potential to undermine the objectives for which the foreign financing was secured.

The Committee further noted that the financing arrangement for the project was signed in 2021 and that the project completion date is 30th June, 2028. The Members expressed serious reservations that, despite the passage of nearly five years, critical stages of project preparation and approval have yet to be completed. The Committee observed that continued delays may significantly affect timely commencement and completion of the project, resulting in cost escalations, implementation challenges, and avoidable financial implications for the national exchequer. The Committee emphasized that loans obtained for development projects are ultimately repaid from public resources and therefore require efficient and timely utilization. After detailed deliberations, the Commitee directed the concerned authorities to address the observations raised by the financing agency and resolve the matter at the earliest. The Committee also sought copies of the PC-I, relevant project documents, correspondence and findings regarding the reported irregularities to be shared with the Committee. The Chairman emphasized that foreign-funded projects must be implemented efficiently, as continued delays could affect future development financing.


The Committee was surprised to note, during the discussion on the latest procurement status of Section III, N-45 (Kalkatak-Chitral), measuring 47.98 km, that the presentation indicated that the Senate Standing Committee on Economic Affairs had instructed the annulment of the second procurement process on 4th May, 2026. The Committee expressed its strong displeasure over this assertion and reminded the officials of the National Highway Authority (NHA) that, during the meeting held on 4th May, 2026, the Chairman, NHA himself had acknowledged that due process had not been followed in the procurement and, therefore, NHA had decided to annul the tendering process for the N-45 Chakdara-Chitral Road (Kalkatak-Chitral Section) and initiate a fresh tendering process within one week. The Committee directed the NHA officials to revise the presentation accordingly and resubmit the updated version to the Committee. The NHA officials further informed the Committee that contractor will be mobilized at the project site within three months. In view of this assurance, the Committee unanimously decided to dispose of the matter with the commitment of the NHA officials that work on the said section will commence by 1st December, 2026.
 
The Committee stressed that all concerned authorities must ensure transparency, accountability and timely execution of development projects in the larger public interest.