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The Auditor General of Pakistan (AGP) has submitted a 399-page report to the National Assembly, detailing serious financial irregularities, non-recoveries, and procedural violations across several federal ministries and departments. The report, presented by Finance Minister Muhammad Aurangzeb on Wednesday, was prepared under the supervision of AGP Maqbool Ahmad Gondal and will now be taken up by the Public Accounts Committee (PAC) of the National Assembly.

The findings are observations reflecting the auditors' position and include responses from departments during Departmental Accounts Committee (DAC) meetings, according to Dawn.

Coverage Comparison

Dawn's reporting highlights the scale of irregularities, noting that the report spans dozens of entities, from commercial corporations and the tax machinery to the power, telecommunications, railway, and social protection sectors. The report identifies billions of rupees in irregularities, with the Ministry of Interior and Narcotics Control recording the highest number of audit observations at 65 audit paras.

Other entities with notable audit observations include the Higher Education Commission (31), Trade Development Authority of Pakistan (18), Ministry of National Food Security and Research (17), Ministry of Science and Technology (16), National Heritage and Culture Division (12), Pakistan Agricultural Research Council (12), Pakistan Atomic Energy Commission (12), Ministry of National Health Services (11), and Education Division (10). Further observations were raised against the Cabinet Division, Communications Division, Defence Division, Economic Affairs Division, Information Division, Inter-Provincial Coordination Division, Maritime Affairs Division, National Accountability Bureau, National School of Public Policy, Ministry of Planning, and Religious Affairs Division.

Key Claims

  • A 399-page Auditor General of Pakistan report has identified serious financial irregularities, non-recoveries, and procedural violations across several federal ministries and departments.
  • The Ministry of Interior and Narcotics Control recorded the highest number of audit observations, with 65 audit paras.
  • Receipts from 3,421 arms licences amounting to Rs56 million were not deposited into the government treasury.
  • The non-recovery of Rs22 million in annual renewal fees and penalties related to no-objection certificates issued for armoured vehicles was reported.
  • The non-recovery of Rs27 million in annual renewal fees from private security companies was reported.
  • The conversion of manual arms licences into computerised licences was doubtful, and discrepancies in data relating to prohibited-bore weapons were highlighted.
  • The AGP report was laid before the National Assembly.
  • Irregularities in Discos and the Petroleum Division were flagged by auditors.
  • The National Telecommunication Corporation was found to be serving private clients beyond its government-only mandate.
  • Pakistan Railways was flagged for the encroachment of more than 1,500 kanals of prime land.
  • The Defence Services spent nearly all of its Rs2.2 trillion allocation.
  • Rs117.8 billion in under-realised super tax was identified by auditors.
While examining the accounts of the Federal Board of Revenue (FBR), auditors identified Rs117.8 billion in under-realised super tax alone, alongside other irregularities such as un-recovered duties. In the Petroleum Division, auditors pointed to recoveries of about Rs117 billion and a disputed gas subsidy balance running into hundreds of billions of rupees.

Electricity distribution companies, including Hesco, Lesco, and Fesco, were reported to be operating with unaudited accounts for 2023-25 and without internal audits, against a backdrop of withheld subsidy claims and stalled transmission projects. The Pakistan Telecommunication Authority (PTA) was criticised for failing to bring data centres under its licensing regime and for not penalising Ufone's operator despite established cases of illegal SIM activation.

The report also revealed that the Defence Services spent nearly all of its Rs2.2 trillion allocation, and Pakistan Railways was flagged for the encroachment of more than 1,500 kanals of prime land.

The Ministry of Interior, which faced the highest number of audit objections, was cited for a wide range of financial, regulatory, and administrative irregularities. Auditors pointed to the non-recovery of Rs22 million in annual renewal fees and penalties related to no-objection certificates issued for armoured vehicles, and the non-recovery of Rs27 million in annual renewal fees from private security companies. The report also revealed that receipts from 3,421 arms licences amounting to Rs56 million were not deposited into the government treasury. The conversion of manual arms licences into computerised licences was doubtful, and discrepancies in data relating to prohibited-bore weapons were highlighted.

The report will now be taken up by the Public Accounts Committee of the National Assembly, which will review the observations and departmental responses.