FIA arrests two former FESCO CEOs in alleged Rs12 Billion power sector corruption scandal

Pakistan’s Federal Investigation Agency (FIA) has arrested two former Chief Executive Officers (CEOs) of the Faisalabad Electric Supply Company (FESCO) in connection with an alleged corruption scandal involving nearly Rs12 billion in the country’s power sector 

According to the FIA, the case relates to alleged financial irregularities that occurred between 2007 and 2015, during which two private companies, in alleged collusion with senior FESCO officials, illegally purchased and sold electricity, causing an estimated loss of Rs11.96 billion to the national exchequer.

Investigators claim that the companies operated without the required legal authorization and sold electricity without obtaining the necessary licenses, in violation of Pakistan’s electricity laws and regulatory framework. The FIA further alleges that electricity supply continued even after the relevant contractual agreement had expired, allowing the companies to benefit from unauthorized power distribution for an extended period.

The agency believes that these actions were made possible through the alleged cooperation and negligence of certain FESCO officials, who are accused of facilitating the unlawful transactions instead of ensuring compliance with legal and regulatory requirements. Authorities say the alleged misconduct resulted in significant financial losses to the government and raised serious concerns about governance and accountability within the power sector.

As part of the investigation, the FIA arrested two former FESCO CEOs, Khurshid Alam and Ahmad Saeed Akhtar, on allegations of their involvement in the case. Following their arrest, the investigating agency presented the suspects before a court and obtained five-day physical remand to further question them and collect additional evidence related to the investigation.

The FIA stated that the investigation remains ongoing and that efforts are being made to identify the full extent of the alleged corruption. Officials are examining financial records, contractual agreements, and other relevant documents to determine the roles played by all individuals involved in the case.

In addition to the arrests, the FIA has initiated legal measures against other suspects linked to the alleged scam. The names of several accused individuals have been placed on Pakistan’s Exit Control List (ECL), preventing them from leaving the country while investigations continue. This step is intended to ensure that all suspects remain available for questioning and any subsequent legal proceedings.

The alleged corruption case is considered one of the major financial investigations involving Pakistan’s power sector in recent years. Authorities maintain that accountability is essential to protecting public resources and strengthening transparency within state-owned institutions. The FIA has reaffirmed its commitment to pursuing those responsible for causing losses to the national treasury, regardless of their official positions.

The investigation is expected to continue over the coming weeks as authorities gather further evidence and question additional suspects. Depending on the findings, more arrests and legal action may follow. The case has drawn public attention due to the substantial financial losses involved and highlights the importance of stronger oversight, regulatory compliance, and accountability in Pakistan’s electricity sector. Meanwhile, the accused will have the opportunity to present their defense during the legal process, and the allegations against them remain subject to judicial proceedings