Public Accounts Committee Proposes Delay in Power Firms’ Privatization

ISLAMABAD: The Public Accounts Committee (PAC) has proposed delaying the privatization of power companies, originally scheduled for January, until a comprehensive assessment of their assets, machinery, land, and other properties is conducted. This move aims to safeguard the national exchequer from potential financial losses.

The recommendation emerged during a PAC meeting where Auditor General of Pakistan Maqbool Ahmad Gondal expressed concerns over the government’s reliance on outdated asset valuations. The committee scrutinized audit reports for the Power Division and its affiliated entities for the fiscal year 2024-25, revealing that management had neglected to revalue fixed assets worth Rs624.47 billion.

Furthermore, the Auditor General’s office highlighted that the companies had failed to tag their assets, indicating a lack of compliance with directives from the National Electric Power Regulatory Authority (Nepra). Inaccurate asset valuations could significantly distort the financial statements of these companies, raising alarms about their overall financial health.

PAC Chairperson Shahida Begum emphasized the necessity of determining the actual value of these assets to ensure transparency and accountability in the privatization process. The committee’s decision underscores the importance of accurate financial assessments in protecting public interests.