The Senate Standing Committee on Economic Affairs has cancelled the bidding process for the Rs26 billion N-45 highway project, citing serious irregularities and lack of transparency in procurement procedures. The committee, chaired by Saifullah Abro, directed the National Highway Authority to initiate a fresh tender within 30 days under stricter compliance standards.
The decision followed a detailed review of the Nowshera-Chitral highway project, particularly the Kalatak-Chitral section spanning nearly 48 kilometres with an estimated cost of $93.779 million. Officials revealed that only one bid was initially received, which exceeded the engineer’s estimate by over 224 percent, raising serious concerns about cost inflation and competitive fairness.
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Subsequently, authorities initiated a re-bidding process in December 2025, attracting three companies, while discussions with Korean partners continued due to the project’s financing through a foreign loan. However, committee members criticised officials for failing to provide key documents, including bidder profiles and eligibility criteria, despite repeated instructions, ultimately declaring the process non-compliant.
The panel also expressed concern over significant delays, noting that work has yet to begin on critical sections such as Timergara and Chakdara despite earlier planning approvals. Members highlighted the urgency of upgrading this route due to deteriorating infrastructure, including a tunnel in poor condition, which is vital for improving regional connectivity.
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Officials informed the committee that foreign-funded procurement processes typically take around 350 days, contributing to slow progress since the project’s launch in 2021. Nevertheless, the panel stressed accountability and ordered that the new tender follow a two-envelope system to ensure transparent technical and financial evaluation.
In a separate review, the committee sought detailed records regarding the auction of public sector power plants and expressed dissatisfaction over missing documentation. It directed authorities to submit complete data within two days and also formed a sub-committee to examine delays in foreign-funded projects, focusing on financial oversight and administrative responsibility.