Public Accounts Committee seeks to delay power firms’ sell-off until asset valuation

KARACHI / ISLAMABAD — ISLAMABAD: The Pub­lic Accounts Committee (PAC) on Tuesday propo­sed deferring the privatisation of power companies, expected to take place in January, until their assets, machinery, land and other properties are properly assessed and revalued to prevent potential losses to the national exchequer. The proposal came after Auditor General of Paki­stan Maqbool Ahmad Gon­dal raised concerns that the government was relying on outdated valuations of public assets during a meeting of the PAC to examine the audit reports of the Power Division and its attached entities for 2024-25.

The committee observed that the management had failed to revalue fixed ass­ets worth Rs624.47 billion. The Auditor General’s office also pointed out that the companies had not tag­ged their assets, reflecting negligence in complying with directives of the Nati­o­nal Electric Power Regul­a­tory Authority (Nepra). It said property, plant and equipment were key components of financial statements, and inaccurate valuations could distort a company’s overall financial position.

PAC Chairperson Shah­ida Begum said the actual value of the assets needed to be determined and properly categorised before proceeding with 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.