The Public Accounts Committee (PAC) has expressed serious concerns over alleged financial mismanagement, electricity overbilling, and fraud in Pakistan’s power sector after audit officials revealed that power distribution companies (DISCOs) overbilled consumers by Rs. 47.81 billion in a single month.
According to the audit report, 278,649 electricity consumers were overcharged due to incorrect meter readings. Officials told the committee that the overbilling was allegedly used to conceal operational inefficiencies as well as transmission and distribution losses across power distribution companies.
The audit found that Lahore Electric Supply Company (LESCO) accounted for approximately Rs. 45 billion of the overbilling, while Peshawar Electric Supply Company (PESCO) was responsible for around Rs. 1.56 billion.
The revelations emerged during a PAC meeting chaired by Shahida Akhtar Ali, where members reviewed the Power Division’s Audit Report 2024-25, which contains 20 audit objections involving more than Rs. 508 billion.
The committee also decided to write to the prime minister over the repeated absence of principal accounting officers from PAC meetings, warning that future sessions would not proceed without their participation.
During the briefing, Power Division Secretary Dr. Fakhray Alam Irfan said the government is deploying smart meters and transformer-based metering systems to reduce such incidents. He added that IESCO has already installed one million smart meters. However, PAC members questioned the pace of reforms, with Senator Saleem Mandviwallanoting that similar assurances had been made for nearly two decades.
Audit officials further informed the committee that refunds were generally issued only to consumers who challenged inflated electricity bills. They alleged that some lower-level staff used discretionary powers to overbill consumers in an effort to offset electricity theft and line losses.
Separately, the committee reviewed an alleged Rs. 1.06 billion embezzlement case at the Hyderabad Electric Supply Company (HESCO), where salaries were reportedly paid to ghost and retired employees through collusion between officials.
HESCO’s chief executive informed the committee that four employees had been dismissed. Representatives of the Federal Investigation Agency (FIA) said five FIRs had been registered, more than 130 individuals were under investigation, and approximately Rs. 130 million had been recovered so far.
The PAC directed the Power Division to verify employees across all distribution companies and shift salary payments to a digital system to improve transparency and prevent fraud.
During the meeting, the Power Division secretary also said the government is gradually exiting the electricity generation and distribution business. He stated that 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.
The PAC concluded by directing the Power Division to strengthen financial oversight, improve governance, and enhance transparency and accountability across Pakistan’s power sector.
