The Sindh Smart Home Solution Solar Energy Project was launched as part of the provincial government’s renewable energy initiative, intended to provide solar power systems to low-income households across Sindh. With an estimated cost of Rs. 15 billion (approximately US$54 million), the initiative was promoted as a flagship effort to expand access to clean energy among low-income households in the province.

However, the complaint received by Transparency International Pakistan’s Advocacy and Legal Advice Centre (ALAC) indicates that the project’s procurement process may have violated procurement laws, raising serious concerns about potential corruption, misuse of authority, and loss of public resources.

Direct contracting and breach of SPPRA Rules

According to the letter submitted by Transparency International Pakistan, to the Chief Minister of Sindh on 26 September 2025, the Sindh Cabinet authorised a direct contract with NRTC Energies (NRTC-E), a subsidiary of the National Radio & Telecommunication Corporation (NRTC), by granting exemptions under Rules 21 and 22 of the Sindh Public Procurement Rules (SPPRA) 2010.

Yet, after the agreement was finalised, NRTC unilaterally replaced NRTC-E with another subsidiary, the National Energy & Transport Company (NETC). Since the Cabinet’s approval applied exclusively to NRTC-E, this substitution invalidated the legal basis of the contract and the exemption from competitive bidding. TI Pakistan highlighted that any further sub-granting by NRTC-E under a G2G contract can only take place through open tendering as per procurement rules.

In addition to the alleged procedural violations, the complaint has highlighted advance disbursements of Rs. 6 billion before compliance and performance verification steps were completed. Transparency International Pakistan’s letter indicates that the actual market cost for the specified solar units is around US$135 per unit, compared to the contracted price of US$219 per unit - an inflated margin of nearly US$84 per unit.

This pricing discrepancy could imply an excess burden of over US$21 million (approx. Rs. 6 billion) in public funds. Had the systems been procured at market rates, project coverage could have increased by nearly 60% - reaching 400,000 households instead of the planned 250,000 - without additional costs.

Lack of oversight

The absence of Cabinet reapproval after the change of contracting entity, coupled with opaque subcontracting, has eroded institutional accountability and undermines public trust in renewable energy governance.

The controversy also exposes weaknesses in the SPPRA oversight mechanisms, where exemptions and direct contracting - originally intended for special circumstances - are allegedly being used to circumvent competition and favor undue influence in the award of contracts.

Civil society and media response

Following the release of Transparency International Pakistan’s letter, national media outlets including DAWN, Geo News, The News, Dialogue Pakistan, 24 News HD, and INP highlighted the case as emblematic of procurement opacity. Coverage emphasised the lack of Cabinet oversight, advance disbursements without accountability, and the potential misappropriation of US$ 68 million in taxpayer funds due to inflated procurement price.

Transparency International Pakistan has urged the Sindh government to initiate an independent inquiry, and restore compliance with SPPRA Rules through open, competitive bidding processes including taking action under anti-corruption rules, if irregularities are found correct.