The Punjab government spent Rs. 160.3 million on private helicopter services for flood rescue and relief operations during the 2025 floods, according to official documents.
The helicopters were hired for 17 days, from August 28 to September 13, 2025, as the province dealt with the flood emergency.
However, the payment and subsequent regularization of the expenditure have raised several procedural and financial questions from government departments.
Finance Department Questions Delayed Payment Process
The Punjab Finance Department questioned why the process to regularize and clear the payment was initiated eight months after the helicopter services had already been provided.
According to the available record, there was no clear explanation for the delay.
The department also raised concerns about the verification of the helicopter’s flying hours. It noted that the government record did not include independent verification of the flying logs to confirm the actual number of hours for which the provincial government was billed.
Concerns Over Helicopter Service Rates
Questions were also raised regarding the rates charged by the private company.
The Finance Department observed that there was no independent assessment available to establish whether the rates were reasonable and consistent with prevailing market prices.
For emergency services, determining whether the quoted rates reflect market conditions is particularly important because direct contracting may be used without the same competitive process normally required for government procurement.
PPRA Highlights Emergency Procurement Requirements
The Punjab Procurement Regulatory Authority (PPRA) acknowledged that direct contracting can be permitted during emergency situations.
However, it emphasized that the relevant legal provisions must be clearly identified and properly followed.
PPRA also stressed the importance of market research and analysis before determining the rates for emergency services. This would help establish whether the amount being claimed is reasonable and justified.
Tax Implications Also Under Review
The documents also highlight concerns regarding potential tax liabilities.
The Finance Department noted that applicable taxes and other tax implications had not been adequately addressed during the processing of the payment.
As a result, the government will need to examine whether all relevant tax obligations were properly considered before the Rs. 160.3 million payment is finalized.
Rs. 72.23 Billion Already Released for Flood Operations
The Punjab Finance Department had already released approximately Rs. 72.23 billion for flood rescue, relief and rehabilitation activities.
Despite the availability of substantial funds for the emergency response, questions remain over the procedure followed to hire the helicopters and the subsequent process used to regularize the expenditure.
The issue is therefore not simply about the availability of funds, but also about whether the procurement, verification and payment procedures were properly followed.
Punjab Chief Secretary Defends Emergency Hiring
The Punjab Chief Secretary maintained that the helicopters were hired under emergency circumstances and stated that payment for the services is the responsibility of the provincial government.
The government is now expected to examine the outstanding issues before the Rs. 160.3 million payment is processed.
Key areas under review include the eight-month delay in regularization, independent verification of flying hours, assessment of market-based rates and applicable tax obligations.
The case highlights the financial and procedural challenges governments can face when making urgent procurement decisions during major natural disasters, where immediate response is essential but proper documentation and accountability remain equally important.
