EDITORIAL: In a significant development highlighting Pakistan’s ongoing struggle against systemic corruption in public infrastructure projects, Prime Minister Shehbaz Sharif has suspended eight senior officials of the National Highway Authority (NHA) and ordered a high-level inquiry into glaring irregularities in the Central Asia Regional Economic Cooperation (CAREC) project.
At the centre of the controversy is the award of a major contract under the CAREC programme to a joint venture that had previously been disqualified by the NHA just two years ago.
This disqualification was related to the Asian Development Bank’s CAREC Tranche II, where the same contractor had failed to complete the project on time — and more alarmingly, was accused of submitting fake documents and forged seal stamps.
Awarding a new contract to a previously blacklisted firm not only undermines merit and fair competition but also jeopardises the integrity of a strategically vital initiative. CAREC is not merely another road development project; it is central to Pakistan’s aspirations for enhanced connectivity with Central Asia and holds the potential to boost long-term regional trade and mobility.
Any compromise on the project’s transparency could have serious economic and diplomatic repercussions. The allegations go further as reports suggest instances of ghost tendering and bid collusion — practices that indicate internal manipulation aimed at granting undue favours to pre-selected firms under the facade of open competition. Such activities constitute blatant violations of Public Procurement Regulatory Authority (PPRA) rules and inflate project costs, thereby compromising the efficient use of national resources.
The issue has rightly drawn the attention of Parliament. In a recent meeting, the Senate Standing Committee on Economic Affairs Division gave the NHA a two-day deadline to produce relevant documents proving transparency in the award of contract. Failure to do so, the committee warned, could result in the cancellation of the contract awarded to the joint venture in question. This parliamentary intervention is a very welcome exercise of oversight. However, suspensions and inquiries must not become symbolic gestures.
The inquiry committee formed by the Prime Minister must act with full independence and transparency. It should be granted unrestricted access to internal records, communications, and, most importantly, financial audits. This case also underscores the need for systemic reforms within the NHA and other infrastructure-related agencies.
Procurement procedures must be fully digitised and transparent, with public disclosures and independent third-party audits. At the very least, public infrastructure projects, especially those involving foreign funding or critical regional partnerships like CAREC, must be held to the highest standards of integrity, transparency, and accountability. Anything less is unacceptable.
Copyright Business Recorder, 2025
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