PAC Proposes Delay in Power Firms Privatisation
ISLAMABAD: The Public Accounts Committee (PAC) on Tuesday proposed delaying the privatisation of power companies. The sale was expected in January. The committee said this should happen only after assets, machinery, land and other properties are properly assessed and revalued. This is to prevent possible losses to the national exchequer.
Auditor General Raises Concerns
The proposal came after Auditor General of Pakistan Maqbool Ahmad Gondal raised concerns. He said the government was using outdated valuations of public assets. This was discussed during a PAC meeting to examine audit reports of the Power Division and its attached entities for 2024-25.
Fixed Assets Worth Rs624.47 Billion Not Revalued
The committee observed that management had failed to revalue fixed assets worth Rs624.47 billion.
The Auditor General's office also said the companies had not tagged their assets. This showed negligence in following directives of the National Electric Power Regulatory Authority (Nepra).
It added that property, plant and equipment are key parts of financial statements. Inaccurate valuations could distort a company's overall financial position.
PAC Chairperson's Statement
PAC Chairperson Shahida Begum said the actual value of assets must be determined and properly categorised before privatisation.
"Until we know their exact value, how can we privatise them? If the assets are sold without proper valuation, it will definitely result in a loss for the government," she said.
She called for another meeting in three weeks. The meeting will review the privatisation process and make sure assets are assigned correct market values before further steps.
The Privatisation Commission and the Power Division were directed to submit detailed reports at the next meeting.
Rs8.6bn Payments Questioned
The committee also examined audit objections about payments of Rs8.648bn. These were borne by electricity consumers due to poor planning, faulty equipment procurement and deficiencies in a grid station and its transmission line.
During a performance audit of the power transmission system for wind projects in the Sindh Wind Corridor, auditors found that Rs8.6bn was paid to wind power producers under the Non-Project Missed Volume (NPMV) mechanism.
The projects were ready to supply electricity. However, the 220kV Jhimpir Grid Station could not handle their full output because of frequent tripping and system instability.
The management blamed the losses on faulty equipment procurement and worsening climate change conditions.
MNA Munazza Hassan objected to the response when National Grid Managing Director Altaf Hussain attributed the loss to climate change. Calling it criminal negligence, MNA Shazia Marri expressed concern over resistance to renewable technologies.
Regarding the Rs8.6bn amount, she said the matter was not settled. Further details would be sought at the next meeting, along with the relevant inquiry report.
She said the issue would be taken up again after required information and assessments were completed.
Published in Dawn, November 11th, 2026
Source: dawn