A government audit has uncovered sweeping mismanagement in Pakistan’s COVID-19 relief program for electricity subsidies, exposing how billions of rupees meant for struggling industries during the pandemic ended up in the wrong hands.
The Auditor General’s special investigation focused on a Rs 106 billion package distributed through power distribution companies (DISCOs) between 2019 and 2021. Instead of providing targeted relief to small and medium-sized enterprises, the audit found systemic violations of guidelines and widespread inclusion of ineligible recipients.
A Snapshot of the Irregularities
The report paints a damning picture of how lax oversight turned a lifeline for businesses into a massive leak of public funds:
- 588 power thieves were mistakenly enrolled for subsidies.
- 144,000 defaulters—customers who owed utilities—received Rs 1.39 billion in benefits.
- Nearly 97,000 unverified consumers got Rs 1 billion in relief without proper checks.
- Some industrialists held multiple power connections under the same identity card to claim extra subsidies.
- Over Rs 7.7 billion went to customers who signed up after the official cutoff date.
- 57,000 late applicants were added to the program despite being ineligible.
- More than 11,000 beneficiaries couldn’t even provide proof of a permanent address.
- In total, auditors flagged Rs 2.43 billion in excessive payouts.
Systemic Failures in Oversight
The audit blames DISCOs for openly disregarding directives from the Power Division and Power Information Technology Company—a lapse that allowed the abuse of relief funds at scale.
What was designed as emergency support during the height of the pandemic appears to have been hijacked by inefficiency and weak verification processes. The findings not only highlight poor governance but also point to vulnerabilities in Pakistan’s subsidy distribution systems, particularly in sectors riddled with electricity theft and chronic bill defaults.
Bigger Picture
The revelations are likely to fuel public frustration over how pandemic-era funds were handled, especially at a time when many legitimate businesses were struggling to stay afloat. Calls for stricter audits, better digital verification systems, and reforms in the power sector’s management are expected to intensify following this report.
