Senate committee demands faster action on technical issues, forest NOCs and payments as concerns grow over project delays and rising costs.
ISLAMABAD, September 14, 2026: The Senate Standing Committee on Economic Affairs has expressed serious concern over delays and alleged irregularities in the implementation of the 765kV Dasu-Islamabad Transmission Line Project, warning that further setbacks could result in wastage of public funds and higher project costs.
The committee, chaired by Senator Saifullah Abro, met at Parliament House in Islamabad to review the progress of foreign-funded development projects in the power and communications sectors.
Officials informed the committee that the transmission line project was scheduled for completion by June 2028. Members, however, noted that substantial time had already been lost and stressed that the project could not afford further delays given the significant public resources involved.
The committee was informed that irregularities had been identified in the project and called for strict action against those responsible for delays and violations.
Officials attributed the delays to issues involving design, soil investigations and other technical processes. The committee questioned why essential surveys and technical work had taken so long and directed the National Grid Company (NGC) to ensure all outstanding technical and contractual processes were completed on time.
NGC informed the committee that it had held a meeting with the General Manager at National Highway Authority (NHA) headquarters on September 7, 2026, regarding the issuance of no-objection certificates (NOCs) and cooperation required for road closures during construction.
Revised estimates for the relevant sections had also been shared with the contractor for payment processing, officials said.
Forest NOCs for transmission towers
The committee was further informed that, following a high-level meeting on September 10, the Khyber Pakhtunkhwa Forest Department agreed to issue forest NOCs for tower foundations and access roads at several locations.
These included seven locations in Lower Kohistan under Section-I and 16 locations in the Hazara Tribal/Battagram and Agor Tanawal Gujzara Forest Divisions under Section-II.
NOCs had already been issued for six towers in Abbottabad (Gallies), seven towers in Siren and six towers in Haripur designated forest under Lot-2, the committee was told.
A fresh field visit to the relevant locations was ordered so that a comprehensive report could be submitted to the committee.
The chairman also personally contacted the concerned officials during the leave period and directed them to take necessary action on the outstanding NOCs.
Planning Ministry summoned over pending payments
The committee decided to invite the Ministry of Planning, Development and Special Initiatives to its next meeting to address pending payments to the Power Division and executing agency.
Members directed the relevant departments to submit project reports, correspondence and other documents for further examination.
N-45 project faces approval delays
The committee also reviewed the foreign-funded Improvement and Widening of the N-45 Chakdara-Chitral Road, particularly the Chakdara-Timergara and Kalkatak-Chitral sections.
NHA officials informed the committee that the consultancy contract for Section-I, Chakdara-Timergara, covering 38.85 kilometres, had already been awarded.
The PC-I, with an estimated cost of Rs17.012 billion, was submitted to the Ministry of Planning, Development and Special Initiatives for approval through CDWP/ECNEC on March 31, 2026.
Officials said procurement could only begin after administrative approval of the PC-I.
The committee expressed serious concern that approximately six months had passed without approval. The Economic Affairs Division also acknowledged that such a prolonged delay was not justified.
Members noted that the financing arrangement had been signed in 2021, while the project’s completion deadline is June 30, 2028. They expressed concern that nearly five years had passed while critical preparation and approval stages remained incomplete.
The committee warned that continued delays could result in cost escalation, implementation difficulties and additional financial implications for the national exchequer.
Members stressed that development loans secured through foreign financing are ultimately repaid from public resources and must therefore be utilised efficiently and within the prescribed timeframe.
The committee directed the relevant authorities to address observations raised by the financing agency and resolve outstanding issues at the earliest. It also sought copies of the PC-I, project documents, correspondence and findings related to reported irregularities.
N-45 work ordered to begin by December
The committee also expressed displeasure over the NHA’s presentation concerning the procurement process for Section-III of N-45 (Kalkatak-Chitral), covering 47.98 kilometres.
The presentation stated that the Senate Economic Affairs Committee had instructed the annulment of the second procurement process on May 4, 2026.
The committee rejected this assertion and reminded NHA officials that, during the May 4 meeting, the NHA chairman had acknowledged that due process had not been followed in the procurement process.
According to the committee, the NHA had itself decided to annul the tendering process and initiate fresh procurement within one week.
The committee directed the NHA to correct its presentation and submit an updated version.
NHA officials subsequently assured the committee that the contractor would be mobilised at the project site within three months.
On the basis of this assurance, the committee unanimously disposed of the matter, with the NHA committing that construction work on the section would commence by December 1, 2026.
The committee stressed that all concerned authorities must ensure transparency, accountability and timely execution of development projects in the wider public interest, particularly where projects are financed through foreign loans and involve substantial public resources.