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PAC uncovers Rs5bn irregularities; several govt institutions refuse audit

ISLAMABAD: In a significant revelation during a meeting of the Public Accounts Committee (PAC), Auditor General of Pakistan disclosed that 7 to 8 government institutions are currently refusing to undergo audit.

The meeting, chaired by Junaid Akbar Khan, raised concerns over transparency and accountability in public sector organizations.

The most alarming disclosure came from the Pakistan Standards and Quality Control Authority (PSQCA), where financial irregularities amounting to Rs5 billion were identified. PAC member Naveed Qamar noted that PSQCA does not consider itself under the federal government’s jurisdiction, which complicates efforts to regulate and audit its operations.

The committee instructed the formulation of financial rules for PSQCA within one month to ensure compliance and oversight.

Chairman Khan directed that heads of all audit-refusing institutions be summoned before the committee. “No institution is above the law,” he said, emphasizing the need for uniform accountability standards.

During the meeting, the Secretary of Energy also briefed the committee on the government’s 2020 decision to privatize five power plants in Muzaffargarh, citing overcapacity in the national power system. However, PAC members expressed dissatisfaction with the claim, pointing to ongoing load shedding across the country.

The Secretary clarified that load shedding is occurring mainly in areas with high line losses and that only machinery — not land — of outdated plants such as Guddu and Nandipur is being sold. The committee demanded full details of all privatized power plants and ordered a special audit of those already sold.

Audit officials responded that only fully completed transactions are eligible for audit under current rules.

The session highlighted deep-rooted issues in governance, regulatory compliance, and transparency, urging swift reforms to restore public trust in state institutions.

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