NHA under fire over Rs146b road deal

The Senate Standing Committee on Economic Affairs on Monday raised strong concerns over the National Highway Authority's (NHA) failure to present complete records regarding the award of a contract for the N-55 under Tranche-III of the Central Asian Regional Economic Corridor (CAREC).

The contract was awarded to a consortium led by Chinese firm M/s Ningxia Communications Construction, with local partners M/s Rustam Associates and M/s Dynamic Constructors. The deal is valued at Rs146 billion, with a margin of Rs13.2 billion.

The committee, chaired by Senator Saifullah Abbro, criticised NHA officials for withholding key documents despite repeated requests. NHA Chairman Sheheryar Sultan informed the committee that nine documents had been requested, of which five had already been submitted, while the remaining four were being collected from other departments.

He also disclosed to the committee that Prime Minister Shehbaz Sharif had formed an inquiry committee headed by retired federal secretary Muhammad Mushtaq Ahmed to review the procurement process. The panel also includes the commerce secretary, a former NHA member, a retired Punjab Communications & Works officer, and the member infrastructure of the Planning Commission.

He said that to ensure transparency, three NHA members and five officers had been suspended on the prime minister's orders. Sultan urged the Senate body to wait for the inquiry's findings, but the request was rejected by the committee chair.

Senator Abbro reiterated his concerns, claiming the contract went to a "non-performing firm" earlier disqualified from the Multan–Lodhran project. "We are not bound by the prime minister's inquiry committee. Even if that committee clears the award, we will continue with our proceedings," he stated.

The NHA chairman replied that disqualification from one project does not automatically prevent participation in another unless upheld by a legal forum. Officials added that while the Chinese firm had initially been disqualified, the decision was later overturned by an arbitrator appointed by the Islamabad High Court.

On another matter, Sultan briefed the committee on flood damages. He said the entire NHA road network remained open except for a two-kilometre stretch on the Gilgit–Shandur road. After clearing highways, the NHA had also begun restoring blocked provincial roads on the prime minister's directives.

Separately, consortium spokesperson Imdad Ullah defended the contract while briefing media. He insisted it was won through a transparent, competitive bidding process. He claimed companies owned by two lawmakers had lost in the bidding and accused the Senate committee of "interfering in an open and transparent procurement process" to obstruct a multi-billion-rupee project funded by the Asian Development Bank (ADB).

The NHA chairman stated that disqualification from one project does not automatically prevent participation in another unless upheld by a legal forum