PAC Grills Power Division Over Soaring Costs, Load shedding, and Sector Mismanagement

Power-sector

ISLAMABAD, 23 July 2025 — The Public Accounts Committee (PAC) launched a scathing critique of the Ministry of Energy during a detailed review of audit objections, highlighting skyrocketing electricity costs, unchecked growth in capacity payments to independent power producers (IPPs), prolonged load-shedding, and stalled development projects.

Chaired by MNA Junaid Akbar Khan, the PAC questioned officials from the Central Power Purchasing Agency (CPPA-G) on the exponential rise in IPP capacity—from 9,765MW in 2015 to 25,642MW in 2024—and the corresponding surge in annual capacity payments from Rs141 billion to Rs1.4 trillion. Paradoxically, power generation had plummeted from 90 billion kWh in 2014 to 58 billion kWh in 2015.

PPP MNA Naveed Qamar rejected the ministry’s justification based on coal price hikes, while Mr Akbar challenged exaggerated efficiency claims of 200% from sugarcane bagasse projects, later clarified by CPPA-G as exceeding the benchmark 45% output.

PAC members also slammed inefficiencies and irregularities in major plants, including the Bhikki plant, where salaries continued despite halted operations. Riaz Fatyana criticized the decision to build the Sahiwal coal plant in a non-coal region and pushed for reviving the Kalabagh hydropower project.

Electricity billing practices also came under fire. Mr Akbar noted that consumers exceeding 200 units in a single month were penalized with high tariffs for six months. Power Secretary Dr Muhammad Fakhre Alam Irfan acknowledged that 58% of users fall in this category and said a direct subsidy model via BISP data is being developed for implementation by 2027.

PAC members, including Shazia Marri, condemned the severe load-shedding in their constituencies—up to 16 hours daily—and called out the power division for mismanagement and lack of transparency. Dr Irfan attributed many challenges to technical losses and IMF-imposed policy constraints.

Unfinished electrification schemes and financial discrepancies also came to light. MNAs Aamir Dogar, Sanaullah Mastikhel, and Khawaja Shiraz Mehmood demanded special audits of FESCO and MEPCO over uncompleted projects and alleged corruption.

“The power sector alone is enough to ruin the country,” Khawaja Shiraz said, pointing to transformer theft, manipulated reporting, and administrative apathy.

The PAC referred IPP-related issues to a subcommittee and ordered special audits to uncover misuse and mismanagement across the sector.

Story by Jamal Shahid

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