Islamabad – The Auditor General of Pakistan (AGP) has released a startling audit report, revealing financial irregularities worth Rs4,800 billion in the country’s power sector. The findings highlight deep-rooted inefficiencies, governance lapses, and systemic weaknesses that continue to burden the national economy and consumers alike.
The report, which covers multiple power distribution companies (DISCOs), generation companies (GENCOs), and regulatory institutions, exposes widespread mismanagement in billing, recovery, procurement, and project execution. It has flagged serious concerns over non-recoveries from consumers, unaccounted-for electricity losses, and unauthorized expenditures that significantly strain public finances.
Audit reveals misappropriation of Rs2,212.95 million across six cases, procurement irregularities totaling Rs156,141.88 million in 86 cases, and violations of internal regulations and SOPs amounting to Rs507,242.82 million in 77 cases
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According to the audit, billions were lost due to poor governance practices, inflated project costs, and weak monitoring mechanisms. The report further points to a lack of transparency in power purchase agreements, excessive reliance on imported fuels, and delays in the completion of crucial infrastructure projects, all of which contribute to the ballooning circular debt crisis.
The AGP has called for urgent corrective measures, recommending strict accountability of officials and private stakeholders involved. It has also urged reforms in the energy sector to curb leakages, ensure transparency in procurement processes, and improve efficiency in electricity generation and distribution.
Energy experts believe that the findings underscore the urgent need for restructuring the power sector, as continued inefficiencies not only hamper economic growth but also fuel inflation and increase the cost of living for ordinary citizens.
The report is expected to be tabled before the Public Accounts Committee (PAC), where further scrutiny and accountability measures will be initiated. The revelations come at a time when Pakistan is under immense pressure to improve governance and fiscal management in line with commitments to international lenders and development partners.
The government has yet to issue a formal response to the audit findings; however, officials in the Ministry of Energy have hinted at an upcoming review of power sector policies, with a focus on tightening oversight and curbing corruption.
The AGP’s revelations serve as a critical reminder of the urgent reforms required to stabilize Pakistan’s energy sector, safeguard public funds, and restore consumer confidence in national institutions.
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