Pakistan's Power Sector Faces PKR 4,800 Billion Irregularities: Audit Report

The Auditor General of Pakistan (AGP) has reported significant financial and operational irregularities amounting to PKR 4,800 billion in the nation's power sector for the fiscal year 2023-24, Geo News disclosed. This audit report is part of the AGP's 2024-25 audit cycle and is slated to be reviewed by the Public Accounts Committee (PAC) soon.

According to Geo News, the audit does not revolve around a singular scandal but exposes a widespread, systemic failure in adherence to financial and compliance protocols across multiple entities under the Power Division, including the National Electric Power Regulatory Authority (NEPRA). The report delineates a sector plagued by deficient internal controls, mismanaged contracts, and rampant procedural lapses, jeopardizing substantial public funds.

Financial misappropriations, including theft, were reported to surpass PKR 2.2 billion, with procurement discrepancies evaluated at over PKR 156 billion. The AGP cited violations of internal standard operating procedures, accounting for more than PKR 507 billion, while breaches in statutory guidelines from bodies like the Ministry of Energy and NEPRA amassed to approximately PKR 958 billion. Moreover, asset mismanagement discrepancies reached PKR 624 billion, while outstanding receivables from consumers and significant entities hit over PKR 1.36 trillion, as reported by Geo News.

The report additionally highlighted concerns regarding PKR 4.47 billion in human resources issues, PKR 21.6 billion in audit recoveries, and inefficiencies totaling PKR 22 billion. The report also spotlighted investment blockages, capacity payments, and late surcharges exceeding PKR 1 trillion, raising alarms over the sector's governance, Geo News stated.

(With inputs from agencies.)