ISLAMABAD: The National Highway Authority (NHA) has encashed a Rs402 million bank guarantee from M/s Sultan Mehmood and Company (SMC) after the firm failed to mobilise work on the Zhob-Quetta section of National Highway-50, officials confirmed on Tuesday.
The 180-kilometre dualisation project comprises three packages. NHA awarded the first two packages to an SMC-ACE joint venture, while it handed over the third package to SMC alone in October 2023. Despite receiving a mobilisation advance, the company did not deploy machinery or start construction.
Field reports from Balochistan show that NHA issued repeated reminders, but SMC ignored them. In August, the Member Balochistan formally recommended encashment of the guarantee, and the finance wing subsequently directed the bank to transfer the funds into NHA’s account.
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Sources said SMC blamed law and order challenges for the delay. However, NHA rejected the justification, stressing that the company had failed to use the advance as agreed. Pay orders reviewed by Dawn confirm that the bank has credited Rs402 million to NHA.
