Islamabad, March 28: The Public Accounts Committee (PAC) has criticized the Power Division for failing to comply with its directives regarding the submission of a list of the top 300 defaulters of power distribution companies (Discos).
In a letter to the Power Division, PAC Assistant Secretary Aniqa Waseem Bajwa highlighted that during the committee meeting on February 25, 2025, discussions centered on the non-recovery of energy dues, which amount to Rs 877.6 billion.
The PAC had instructed the Principal Accounting Officer (PAO) to provide the list within two weeks. However, the committee noted with concern that the deadline had passed without submission of the required information.
Audit reports revealed that Rs 877.6 billion was recoverable from both active and permanently disconnected defaulters—spanning government and private entities—from Discos including FESCO, HESCO, IESCO, LESCO, MEPCO, PESCO, QESCO, SEPCO, and TESCO for the fiscal year 2022-23. The PAC noted that management had not taken significant steps to expedite recovery efforts.
In an earlier Departmental Accounts Committee (DAC) meeting, held between October 9 and 23, 2023, officials were directed to provide records of completed recovery actions within 15 days and accelerate pending collections.
However, no notable progress had been reported by the time the audit was finalized. On February 13, 2025, the DAC reiterated its instructions, demanding a reconciliation of the amounts with audit records and a consumer-wise breakdown of recoveries.
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During discussions, the PAO and Secretary Power admitted that no substantial action had been taken on the DAC’s concerns raised during meetings on December 23, 2023, and February 13, 2025.
However, he noted that recovery documents amounting to Rs 162 billion were submitted following the last DAC meeting.
Agri Tube Well
To mitigate losses and enhance collections, authorities had disconnected approximately 3,000 agricultural tube wells out of 28,000 in Balochistan. Additionally, a Memorandum of Understanding (MoU) was signed with the Balochistan government to transition the remaining tube wells to solar energy.
The Secretary Power also noted that the Boards of Directors (BoDs) of eight Discos had been restructured to improve governance.
Plans were underway to reduce electricity costs and taxes, alongside infrastructure development projects.
Furthermore, civil armed forces and district administrations were involved in recovery operations, while discussions continued regarding the privatization or transfer of certain Discos to private sector or provincial control for better management.
Also Read: Power Sector Receivables from Balochistan’s Agri-Tubewells Reach Rs530 Billion
Despite these measures, the PAC voiced dissatisfaction, stressing that ongoing financial losses without robust recovery efforts reflected poor governance, further straining economic management.
As a result, the committee issued a final directive for the PAO to submit the list of the top 300 defaulters within 15 days.
PAC & DAC
Additionally, the PAC noted that under former Secretary of the Power Division Rashid Mahmood Langrial, the frequency of DAC meetings had been low and essential measures were not taken.
Consequently, the committee decided to summon Langrial to the next PAC meeting for further deliberations.
To strengthen oversight, the PAC directed the PAO to conduct DAC meetings twice a month and submit monthly progress reports detailing recovery efforts, including audit verification and Disco-wise actions taken against officials.
The committee also requested a report on fully funded electrification schemes executed under the Sustainable Development Goals (SDGs) Program between 2018 and 2024.
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Furthermore, the Auditor General of Pakistan (AGP) was assigned to audit funds allocated for the installation of electric poles.
Concerns were raised that contractors, in collusion with department officials, had already been paid for these installations, despite local communities undertaking the work.
The PAO has been urged once again to ensure immediate submission of the required list to uphold PAC directives, which will be reviewed in an upcoming committee meeting.
