Islamabad, September 4, 2026: The Senate Standing Committee on Economic Affairs has raised serious concerns over delays, mounting interest costs, procurement issues and alleged financial irregularities in the 765kV Dasu-Islamabad Transmission Line Project, questioning whether the scheme can be completed on time at its current pace.
The committee, which met on Friday under the chairmanship of Senator Saifullah Abro, reviewed ongoing power-sector projects financed by multilateral development agencies, with particular focus on Lots I to IV of the Dasu-Islamabad transmission line.
The Economic Affairs Division briefed the committee on project proposals, the tendering process, physical progress, imported materials and hardware, and testing procedures being introduced in Pakistan for the first time for a 765kV transmission line.
Chairman Saifullah Abro expressed serious concern over what he described as irregularities in projects before the committee and the continued allegations of corruption in the power sector despite repeated efforts to improve transparency and accountability.
He stressed that public funds must be protected and reminded officials that they were custodians of taxpayers’ money.
During the discussion on the Dasu project, Abro questioned officials about the recovery of Rs26 million reportedly linked to a matter involving a fraudulent will document.
Officials told the committee that Rs10 billion had been recovered as part of the broader recovery process. The chairman questioned why the outstanding amount had not yet been recovered and observed that private companies had managed to recover their money while the government-to-government component remained unresolved.
Abro also questioned repeated denials of information despite requests made under the Right of Access to Information framework. He stressed that the matter could not simply be left unresolved.
The chairman initially called for the issue to be referred to the Federal Investigation Agency (FIA) for investigation. However, the committee decided to give the department a final opportunity to formally approach the relevant department and obtain a detailed briefing before deciding on further action.
The committee also examined the funding position and financial requirements of the Dasu transmission project.
Power Division officials informed the meeting that Rs19 billion had been requested from the government for the project during the previous year, against which Rs17 billion was provided. They further said that Rs12 billion had been released only a few days earlier.
Senator Kamil Ali Agha questioned the financial consequences of the delayed release and asked how much interest would have to be paid on the recently released Rs12 billion.
The committee took note of the additional financial burden associated with delays and financing costs.
Abro said the project had already incurred substantial interest costs, pointing out that financing for the Dasu transmission line carried an interest rate of 12 per cent.
He further said Rs76 billion had been received from donors for the project, while Rs9 billion had already been paid in interest.
The figures prompted concerns among committee members over the financial cost of delays and the need to ensure that foreign-funded infrastructure projects deliver results within their planned timelines.
The chairman also expressed dissatisfaction with the pace of construction of the Dasu transmission lines, describing progress as “very slow”.
He questioned how the project could be completed within two years if construction continued at the existing pace.
Abro also questioned the timing of decisions related to power infrastructure, citing the government’s recent realisation of the need to operate the steam turbine at the Guddu Power Plant as an example of delayed planning and implementation.
He linked such decisions to broader concerns over project management, planning and financial efficiency in the power sector.
The chairman also questioned the procurement and delivery of imported equipment and hardware in the absence of corresponding progress in construction.
He observed that transporting and storing material at project sites without first constructing the required towers raised questions about project planning, utilisation of funds and equipment storage.
Officials informed the committee that a high-level body had been constituted to monitor the transmission line project associated with the Dasu Dam, with several federal ministers included in the monitoring committee.
The committee was also told that expenditure within the Power Division was exceeding amounts allocated for various activities.
Abro expressed concern over the gap between approved allocations, actual expenditure and physical progress.
He stressed that projects financed through foreign assistance required effective oversight to ensure that donor funds were used transparently and efficiently.
The committee noted that it had repeatedly asked the Ministry of Finance and the Ministry of Planning to ensure proper protection and utilisation of projects being implemented through foreign funding.
The committee also sought a detailed explanation from NESPAK regarding the step-by-step activities under the relevant project components and the payment mechanism for Lots I to IV of the Dasu transmission line.
Officials explained that different activities were processed through separate billing arrangements and that step-wise work was reflected through individual billing processes.
The committee decided to seek further clarity on the relationship between physical progress, billing, payments and procurement under the different project lots to determine whether expenditure was proportionate to the work actually completed on the ground.
The chairman directed officials to provide complete and updated information on the projects under consideration, stressing that delays, procurement concerns, financial irregularities and outstanding accountability issues could not be allowed to remain unresolved.
He reiterated that public money must be handled with the highest level of responsibility, transparency and accountability.
The committee decided to summon officials from the Ministry of Finance and the Ministry of Planning at its next meeting for a comprehensive briefing on the Dasu transmission project, including its financing, expenditure, physical progress, delays, interest costs and measures being taken to ensure timely completion and effective utilisation of foreign funding.
