Islamabad, May 4, 2026: The Senate Standing Committee on Economic Affairs has declared the bidding process for the National Highway Authority’s (NHA) N-45 road project null and void over alleged irregularities and directed the authority to restart the procurement process within 30 days.
The committee meeting, chaired by Saifullah Abro, was held in Islamabad and attended by senators Waqar Mehdi, Kamil Ali Agha, Hidayatullah Khan and Rubina Khalid.
During the briefing, the National Highway Authority informed the committee that the N-45 project consists of three sections. The first section, Chakdara–Timergara (38 km), has already been submitted to the Planning Division, while the second covers the Khagram–Dir stretch (43.39 km).
Officials said the third section, Kalatak–Chitral (47.98 km), carries an estimated cost of $93.779 million. A single bid submitted by M/s Sambu Engineering in August 2024 was found to be 224.24 percent higher than the engineer’s estimate when opened in January 2025. A re-bidding process was later initiated in December 2025, with three companies submitting proposals.
Representatives of the Economic Affairs Division informed the committee that the project is being financed through a Korean loan programme, under which the lending country prefers execution through its own contractors. However, negotiations are underway to allow a joint venture with a Pakistani company.
Chairman Committee Senator Abro criticized the bidding process, saying the panel had previously directed authorities to retain all bidding documents and provide company profiles, eligibility criteria, and procurement records. He observed that the required legal procedures had not been followed and noted that NHA officials failed to satisfactorily answer the committee’s concerns.
The committee subsequently declared the bidding process void and directed the NHA to initiate a fresh tendering process based on a transparent two-envelope system covering both technical and financial evaluations.
The panel also expressed concern over delays in the Chakdara–Timergara section, noting that despite the project being initiated in 2021, work has yet to begin. Senator Hidayatullah Khan highlighted the deteriorating condition of the tunnel in the area and stressed the urgency of reconstruction due to the road’s strategic importance in connecting four districts.
The committee further noted that verification letters regarding bidding companies were issued only after the committee’s recommendations in April 2026, instead of before the bidding process.
A sub-committee was constituted to examine all foreign-funded projects, including their budgets and causes of delays, while the chairman emphasized that officials responsible for delays and irregularities should be held accountable.
The committee was also briefed on the Jamshoro Coal-Fired Power Project, where officials stated that the 660MW project’s LOT-I is operating on imported coal, while LOT-II has not commenced due to carbon emission-related obligations and financing constraints linked to the Asian Development Bank’s policy against coal-based projects.
Senator Kamil Ali Agha suggested that the plants could be converted to environmentally friendly fuel sources.
The committee also took serious notice of the Power Division for not providing records related to the auction of four GENCO power plants and directed the division to submit complete details of coal supplier bidding and auction records within two days.
