PAC Seeks Privatisation Delay Over Rs624 Billion Unvalued Assets

The Public Accounts Committee (PAC) has recommended postponing the planned January privatisation of government-owned electricity companies after an audit disclosed that fixed assets valued at Rs624.47 billion had not undergone revaluation, Dawn reported.

The recommendation emerged during a committee session reviewing the Power Division's audit findings for 2024-25, where Auditor General of Pakistan Maqbool Ahmad Gondal questioned the government's continued use of outdated asset valuations.

The committee noted that power companies had neglected to update the recorded worth of their machinery, land and other properties, potentially exposing the national treasury to financial losses if the privatisation process continued without accurate valuations.

Auditors further highlighted that the companies had not properly labelled or tagged their assets despite previous instructions issued by the National Electric Power Regulatory Authority (NEPRA).

The Auditor General's office cautioned that outdated or incorrect assessments of property, plant and equipment could undermine the accuracy of corporate financial statements and provide a misleading picture of the companies' actual financial health.

PAC Chairperson Shahida Begum emphasised that every asset must be correctly classified and evaluated according to its prevailing market price before the government proceeds with selling the power companies.

She also proposed holding another committee session after three weeks to examine the privatisation plans and determine whether the outstanding valuation exercises had been completed.

The committee instructed the Privatisation Commission and the Power Division to prepare and present comprehensive reports at the upcoming meeting, detailing the status of asset assessments and related developments.