The Auditor General of Pakistan (AGP) released its 2024-25 audit report, exposing financial and operational irregularities totaling Rs4,800 billion in the power sector.
As reported by The News journalist Ansar Abbasi, the report covering the financial year 2023-24, the report, set to be presented to the Public Accounts Committee (PAC), highlights systemic governance failures, including mismanagement, rule violations, and instances of theft.
Key Findings of the AGP Report
The report identifies widespread issues across the Power Division, its entities, and the National Electric Power Regulatory Authority (Nepra):
- Theft and Embezzlement: Six cases involving Rs2,212.95 million in theft, embezzlement, and misappropriation.
- Procurement Irregularities: 86 cases of contractual mismanagement worth Rs156,141.88 million.
- Regulatory Violations: 77 cases of internal regulation breaches amounting to Rs507,242.82 million.
- Legal Non-Compliance: 90 cases of violations of laws by statutory authorities, involving Rs957,751.65 million.
- Asset Mismanagement: Non-tagging and non-revaluation of assets in Discos and Genco-I, worth Rs624,470.85 million.
- Receivables Issues: Rs1,369,053.65 million in unpaid consumer and CPPA-G receivables to Discos/K-Electric.
- HR Irregularities: 32 cases related to human resource management and employee benefits, totalling Rs4,470.34 million.
- Recoveries Identified: Rs21,634.08 million in recoverable amounts across seven cases.
- Service Delivery Issues: 10 cases of inefficiencies in value for money and service delivery, involving Rs22,249.60 million.
- Other Issues: 58 cases, including reconciliation failures and capacity payment disputes, worth Rs1,056,808.80 million.
The report underscores a “comprehensive system-wide failure” where rules are routinely ignored, contracts poorly managed, and public funds face risks of mismanagement and theft. These issues exacerbate Pakistan’s power sector challenges, including circular debt and tariff burdens, impacting economic stability.
The AGP’s findings call for urgent reforms to address governance lapses and financial losses. The PAC is expected to review the report and recommend actions to recover funds and strengthen oversight. Ongoing talks with Chinese Independent Power Producers (IPPs) and the IMF regarding circular debt highlight the sector’s critical role in Pakistan’s economy.
The AGP report serves as a wake-up call for the power sector, urging accountability and structural changes. As Pakistan navigates economic reforms, addressing these irregularities is vital to restoring trust and ensuring sustainable energy management.
