PAC unhappy over embezzlement in power sector entities

ISLAMABAD: The Public Accounts Committee (PAC) has expressed displeasure over financial mismanagement, inflated electricity bills, and embezzlement in the power sector entities as pointed out in the Audit Report of the Power Sector.

Audit officials informed the committee members that power distribution companies overbilled 278,649 consumers by Rs 47.81 billion through incorrect meter readings for one month.

According to the audit, LESCO accounted for Rs 45 billion of the total, while PESCO was responsible for Rs 1.56 billion.

Shahida Akhtar Ali chaired the PAC meeting on Thursday, which examined the Power Division’s Audit Report

Power Division Secretary Dr Fakhray Alam Irfan said smart meters and transformer-based metering systems are being installed to prevent such incidents, adding that IESCO has already installed one million smart meters.

The committee also apprised that refunds were generally issued only to consumers who challenged inflated bills. Audit officials alleged that lower-level staff used discretionary powers to overbill paying consumers in an attempt to hide electricity theft and line losses.

The committee further examined an alleged Rs 1.06 billion embezzlement case at Hyderabad Electric Supply Company (HESCO), where salaries were allegedly paid to ghost and retired employees through collusion between officials. HESCO’s chief executive said four employees had been dismissed, while the Federal Investigation Agency informed the committee that five FIRs had been registered, more than 130 individuals were under investigation, and Rs. 130 million had been recovered so far.

At one point, the Power Division secretary said the government is gradually exiting the electricity generation and distribution business. He said the privatization of three DISCOs is in its final stages and is expected to be completed by early 2027. Financial advisers are also being appointed for the privatization of HESCO and SEPCO, while TESCO and QESCO will remain under government ownership in line with a federal cabinet decision.

Copyright Business Recorder, 2026