Punjab Chief Minister Maryam Nawaz Sharif has ordered the immediate suspension of the Rs40 billion Model Village project after allegations of large-scale corruption and fraud surfaced in its execution. She has directed the Anti-Corruption Establishment (ACE) Punjab to investigate the matter and fix responsibility.
The Punjab Model Village project envisaged development work in 800 villages across the province at an estimated cost of Rs40 billion. In the first phase, 400 villages were selected and more than Rs4 billion had been released for development schemes.
Punjab Model Village project: what the inquiry found
Work had started in villages across the Sargodha division, where tenders were invited for various development schemes. According to the findings placed before the chief minister, influential officials allegedly colluded with political figures to register fake companies through partnerships and helped them secure contracts through manipulation rather than merit.
Contractors were reportedly paid Rs3.5 billion for development work in the division. Yet more than 65 per cent of the planned work was never carried out at the sites, despite the payments having been made.
Following these findings, Maryam Nawaz ordered a full investigation into the creation of fake companies and the alleged corruption in the award and execution of contracts.
Project discontinued, replacement planned
Local Government Minister Zeeshan Rafiq confirmed that the chief minister had directed the Punjab Anti-Corruption Establishment to investigate corruption in the Model Village project. He said the project had been discontinued and would be replaced with a new initiative.
The minister did not announce a timeline for the replacement programme. Officials say the government wants a clean structure in place before fresh development spending begins in the villages that were to benefit from the scheme.
Part of a wider accountability drive
The suspension fits a wider pattern. Days earlier, the Punjab government changed the administrative leadership of the Model Village programme, transferring its chief as part of an intensified anti-corruption crackdown across the province. The chief minister has announced zero tolerance for corruption and set up a special intelligence cell to identify corrupt practices, with a public helpline for citizens to report bribery and misuse of authority.
The province has seen a string of related actions. Earlier this year, six people, including government officials and a contractor, were arrested in Toba Tek Singh after a surprise inspection found substandard construction material and suspected financial irregularities in a model village scheme, with an estimated loss of Rs75.9 million to the exchequer.
Maryam Nawaz has also tightened the screws on official privilege in recent days, banning unauthorised police escorts and the unofficial use of official flags, as reported in Maryam Nawaz bans unauthorised police escorts.
What happens next
The ACE investigation will examine how fake companies were registered, who facilitated the contracts, and where the Rs3.5 billion paid in Sargodha division actually went. Officials say action will follow against anyone found involved, regardless of position.
For the 800 villages that were to receive development work, the key question is how quickly the promised replacement initiative takes shape. Until then, the schemes stand frozen.
Frequently asked questions
Why was the Punjab Model Village project suspended?
Chief Minister Maryam Nawaz Sharif ordered the suspension after findings showed fake companies secured contracts through manipulation in Sargodha division, Rs3.5 billion was paid to contractors, and more than 65 per cent of the planned work was never done.
What was the total cost of the Model Village project?
The project envisaged development work in 800 villages across Punjab at an estimated cost of Rs40 billion. In the first phase, 400 villages were selected and over Rs4 billion was released.
Who is investigating the corruption allegations?
The Anti-Corruption Establishment (ACE) Punjab will investigate the matter on the chief minister’s directions, with a mandate to fix responsibility for the fake companies and missing work.
Will the project be restarted?
Local Government Minister Zeeshan Rafiq said the project has been discontinued and will be replaced with a new initiative, though no timeline has been announced yet.
