The Senate Standing Committee on Finance has decided to formally write to Prime Minister Shehbaz Sharif and the Ministry of Finance, urging them to stop the Federal Board of Revenue (FBR) from purchasing 1,010 vehicles for operational activities. The decision came after the committee raised serious concerns over the transparency of the procurement process.
The issue was brought to the committee’s attention on Wednesday by Senator Faisal Vawda, who alleged irregularities in the purchase of 1,010 vehicles, each with an engine capacity of 1300cc. The FBR’s Chief Admin representative failed to provide satisfactory answers to the committee’s questions regarding the procurement process. The official informed the committee that the Economic Coordination Committee (ECC) had approved the purchase, and both a procurement and technical committee had been formed to oversee the process, which had been ongoing for several months.
When questioned about the advertisement for the procurement, the FBR official stated that the Public Procurement Regulatory Authority (PPRA) Rules allow for direct contracting after conducting a market survey. However, the committee expressed concerns over the 1300cc engine limit imposed in the ECC-approved summary, with Chairman Salim Mandviwalla questioning whether the restriction was deliberately designed to exclude certain manufacturers. “This is very disturbing to hear. The FBR should be transparent while granting contracts,” Mandviwalla said.
Senator Faisal Vawda accused the FBR of rewarding its officials with vehicles worth Rs. 6 billion, despite a revenue shortfall of Rs. 384 billion during the first six months of the current fiscal year. He alleged that the procurement process lacked competition and was tailored to benefit a specific manufacturer. “This is a scam and a scandal that needs to be stopped,” Vawda stated, adding that the purchase order was issued to the manufacturer on the same day the ECC granted approval, January 10, 2025.
Vawda further criticized the FBR for acting in haste and demanded the immediate withdrawal of the purchase order. He called for a competitive bidding process that includes all manufacturers and legal action against officials involved in the alleged irregularities. “This kind of corruption is unacceptable. Why were all manufacturers not allowed to participate in the competition?” he questioned.
The senator also proposed that the FBR should only receive vehicles worth Rs. 10 billion if it manages to overcome the Rs. 384 billion revenue shortfall. He emphasized that the Senate must take action to ensure accountability, warning that if the issue is not resolved, the Senate Standing Committee on Finance should be dissolved.
