World Bank Accused of Inflating Sindh Water Project Cost

The Senate Standing Committee on Economic Affairs has alleged that the World Bank’s involvement in the Sindh Water and Agriculture Transformation Project unnecessarily increased the project’s cost by nearly Rs. 14 billion.

The panel questioned whether the lender exceeded its financing role by influencing the project’s design and implementation.

ProPakistani reached out to the World Bank for comment on the allegations. No response had been received at the time of press. This story will be updated if the lender responds.

The committee reviewed externally funded development projects during its meeting on Friday, with lawmakers focusing on the Sindh Water and Agriculture Transformation Project.

During the meeting, one senator argued that the World Bank’s role should be limited to approving or declining financing and should not extend to shaping a project’s technical design or implementation. He maintained that such decisions fall within the mandate of Pakistan’s relevant authorities.

The committee chairman alleged that changes introduced under external pressure had significantly increased the project’s cost. He claimed Pakistan could save around Rs. 14 billion if the project proceeded under its original design and said the country should not accept what he described as “blackmail” in externally financed development projects.

Officials informed the committee that the project’s estimated cost had risen substantially. The Chairman of the Planning and Development Department told lawmakers that the project was now expected to cost nearly twice its original estimate.

Referring to the Peshawar–Torkham project, one senator alleged that similar issues had emerged previously over financing conditions. He said the committee had intervened at the time to protect Pakistan’s financial interests and urged the government to do the same in the current case.

Following the discussion, the committee directed the Economic Affairs Division to engage with the World Bank and convene a meeting to address the concerns raised during the session.

No response from the World Bank regarding the allegations was presented during the committee meeting.