The Auditor General of Pakistan (AGP), in its audit report for 2024-25, has exposed a massive governance crisis within the country’s power sector, uncovering financial and operational discrepancies worth nearly Rs4.8 trillion.
Covering the fiscal year 2023-24, the report portrays a troubling picture of deep-rooted mismanagement, weak oversight, and recurring violations across the sector. While it does not pinpoint a single scandal, the findings highlight systemic failures where regulations are ignored, contracts mishandled, and public resources left vulnerable to misuse, inefficiency, and in some cases, outright theft.
The audit examined the accounts of the Power Division, its subsidiary organisations, and the National Electric Power Regulatory Authority (NEPRA). Key findings include:
• Theft and Embezzlement: Six cases of fraud and misappropriation amounting to Rs2.21 billion.
• Procurement Irregularities: Eighty-six cases of contract and procurement violations involving Rs156.14 billion.
• Internal SOP Violations: Seventy-seven cases of breaches of internal rules and procedures, worth Rs507.24 billion.
• Legal and Regulatory Breaches: Ninety cases of violations of statutory laws and directives from the Ministry of Energy, Finance Division, and NEPRA, involving Rs957.75 billion.
• Asset Mismanagement: Non-tagging and improper valuation of assets in Discos and Genco-I, amounting to Rs624.47 billion.
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• Receivables Crisis: Nineteen cases of unpaid dues and receivables, including consumer bills and CPPA-G claims against Discos and K-Electric, totalling Rs1.37 trillion.
• HR and Employee Benefits: Thirty-two cases of irregularities in HR and employee perks, valued at Rs4.47 billion.
• Recoveries: Seven cases worth Rs21.63 billion flagged for recovery.
• Value for Money Concerns: Ten cases amounting to Rs22.25 billion linked to poor efficiency and weak service delivery.
• Other Irregularities: Fifty-eight cases involving Rs1.05 trillion, including blocked investments, late payment surcharges, capacity payment disputes, and reconciliation issues.
The AGP report will be presented to the Public Accounts Committee (PAC) for review, highlighting the urgent need for reforms in Pakistan’s fragile power sector.