ISLAMABAD: The Public Accounts Committee (PAC) has reportedly accused the Power Division of ignoring its directives regarding the provision of a list of the top 300 defaulters of power distribution companies (Discos), sources informed Business Recorder.
In a letter to the Power Division, PAC Assistant Secretary Aniqa Waseem Bajwa stated that during the PAC meeting held on February 25, 2025, the committee discussed the non-recovery of energy dues, which amount to Rs 877.6 billion.
The PAC directed the Principal Accounting Officer (PAO) to provide the list of the top 300 Discos defaulters within two weeks.
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PAC Secretariat has raised concerns noting that despite the expiration of the given timeframe, the required list has not yet been submitted.
The delay in compliance has been flagged with concern. According to the audit, it was observed that an amount of Rs 877.6 billion, owed by running and permanently disconnected defaulters (both government and private), was recoverable from FESCO, HESCO, IESCO, LESCO, MEPCO, PESCO, QESCO, SEPCO, and TESCO for the fiscal year 2022-23. No significant efforts were made by the management to accelerate recovery from these defaulters.
In the meeting of the Departmental Accounts Committee (DAC) held between October 9 and 23, 2023, the management was instructed to produce records of completed actions within 15 days and to expedite the pending recoveries.
However, no further progress was reported until the finalization of the audit report. On February 13, 2025, the DAC once again directed the management to reconcile the amount with audit records and provide consumer-wise details showing the status of recovery, linked to the relevant statements, EROs, RCOs, and security adjustments for arrears from dead defaulters.
The Principal Accounting Officer/Secretary Power admitted to the lack of action on the issues raised during the DAC meetings held on December 23, 2023, and February 13, 2025. However, he highlighted that recovery documents totaling Rs 162 billion were submitted after the last DAC meeting.
Additionally, efforts to minimize losses and improve recovery included the disconnection of nearly 3,000 agricultural tube wells out of 28,000 in Balochistan. An MoU was also signed with the Balochistan government for the solarization of the remaining tube wells.
He further noted that to address this long-standing issue the Board of Directors (BoDs) of eight Discos had been reconstituted. Proposals for reducing costs and taxes in electricity charges are underway, and infrastructure projects are being implemented.
Moreover, civil armed forces and district administrations have been involved in the recovery efforts. Steps are also being taken toward privatizing certain Discos and transferring some to the private sector or provincial governments for better management.
Following a discussion, the PAC expressed concern over the continued accumulation of losses without serious recovery efforts, which it described as poor financial governance.
The committee argued that this has undermined overall economic management in the country. As a result, the PAC directed the PAO to provide a detailed list of the top 300 defaulters in Discos within 15 days.
The PAC also noted that the number of DAC meetings held during the tenure of Rashid Mahmood Langrial, former Secretary of the Power Division, was relatively low, and necessary actions were not taken. Therefore, the committee decided to invite Rashid Langrial to the next PAC meeting concerning the Power Division.
Furthermore, the Principal Accounting Officer was instructed to hold DAC meetings twice a month. A monthly progress report on recoveries, including verification from the Audit and Disco-wise details of actions taken against officers and officials, should be submitted to the PAC/Audit.
Additionally, the PAO was directed to provide a progress report on fully funded electrification schemes under the SDGs Program carried out between 2018 and 2024.
The Auditor General of Pakistan (AGP) was also tasked with auditing the funds allocated for the installation of electric poles, as these are being carried out by the local community. It was noted that contractors, in collusion with the department, have already charged for these installations despite the community’s involvement.
The PAO has been once again urged to submit the required list immediately to ensure adherence to PAC directives, which will be presented before the committee.
Copyright Business Recorder, 2025
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