Pak's AG uncovers PKR 4.8 trillion in irregularities in counrty's power sector, urges stronger oversight

Islamabad [Pakistan], August 21 (ANI): The Auditor General of Pakistan (AGP), in its audit report for the fiscal year 2023-24, has uncovered financial and operational irregularities worth PKR 4,800 billion in the country's power sector, raising concerns over governance and transparency, Geo News reported.

The report, part of the AGP's 2024-25 audit cycle, is expected to be presented to the Public Accounts Committee (PAC) soon.

According to Geo News, rather than identifying a single major scandal, the audit reveals what it calls a broad, systemic breakdown in compliance and financial discipline across various institutions under the Power Division, including Pakistan's National Electric Power Regulatory Authority (NEPRA) and associated entities.

The report paints a troubling picture of a sector struggling with weak internal controls, mismanaged contracts, and widespread procedural lapses, some of which have put public funds at considerable risk.

According to the AGP, cases of theft, embezzlement, and misappropriation were found to total over PKR 2.2 billion, Geo News reported.

Procurement and contractual irregularities were valued at more than PKR 156 billion, while violations of internal standard operating procedures were recorded at over PKR 507 billion.

The report also highlights breaches of rules and guidelines issued by statutory bodies, including Pakistan's Ministry of Energy, Finance Division, and NEPRA, with related irregularities estimated at around PKR 958 billion.

As per Geo News, one of the more significant findings involved PKR 624 billion in asset management discrepancies within power distribution and generation companies. Meanwhile, the AGP pointed out over PKR 1.36 trillion in outstanding receivables, largely from consumers and between major entities like CPPA-G, DISCOs, and K-Electric.

The audit also flagged concerns regarding human resources and employee benefits amounting to PKR 4.47 billion, along with PKR 21.6 billion in recoveries reported during the audit process.

Additionally, the report cited inefficiencies in service delivery and value for money totalling PKR 22 billion and further highlighted challenges related to investment blockages, capacity payments, and late surcharges exceeding PKR 1 trillion, Geo News reported. (ANI)

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