Billions of irregularities in federal ministries, 1.9 trillion foreign loans, 75 billion schemes of members of the assembly included, revelations in the audit report_x000D_
The audit report of the Auditor General of Pakistan on the accounts of the federal government (civil) for the audit year 2025-26 has revealed billions of rupees of financial irregularities, weak supervision, non-recoveries, unauthorized expenditure and serious governance deficiencies in federal ministries, divisions and autonomous bodies. According to the 399-page report, the Higher Education Commission (31), Trade Development Authority of Pakistan (18), Ministry of National Food Security (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 (11) and Education Division (10) are among the most corrupt. Other departments facing audit objections include the Cabinet Division (2 paragraphs), Communications Division (5), Defence Division (5), Economic Affairs Division (2), Information Division (2), Inter-Provincial Coordination Division (8), Maritime Affairs Division (6), NAB (2), National School of Public Policy (1), Ministry of Planning (1) and Ministry of Religious Affairs (3). One of the most significant observations of the report concerns the Cabinet Division, where auditors have questioned the utilization of Rs75 billion allocated for federal and provincial development projects under the Sustainable Development Goals Achievement Programme (SAP), commonly known as the MPs’ Development Schemes. According to the audit, the Cabinet Division failed to obtain the required monthly progress reports and completion certificates from the implementing agencies. Due to the unavailability of scheme-wise and area-wise data, the auditors could not verify whether the distribution and utilization of funds was in line with the objective of balanced regional development. Despite multiple audit objections, the Cabinet Division did not respond. The auditors have recommended that a central digital monitoring system be established to monitor the distribution and utilization of funds for development schemes given to members of parliament. The report also said that although the Toshakhana Act was enacted in 2024, the rules and regulations for its implementation have not been framed yet. The report highlighted one of the biggest financial objections against the Economic Affairs Division. According to the audit, Rs 1.927 trillion could not be recovered from various state institutions as of June 30, 2025, towards principal, interest and exchange risk liabilities of external reliant loans. The administration did not respond to the audit objections. In the education sector, the auditors pointed out that out of 1709 acres of land allotted to Quaid-e-Azam University by the Capital Development Authority (CDA), 298 acres have been illegally occupied by private occupants for the last almost 50 years. The report directed the university administration to take effective steps to recover the land. The university had not deposited Rs 177 million in the form of income tax deducted to the government treasury. Citing a severe financial crisis, Quaid-e-Azam University told the auditors that Rs 83 million had been deposited with the FBR later. The audit further pointed out that instead of spending scholarship funds of Rs 356 million, this amount was invested, however, the university maintained that these funds were being used as per the conditions of the donors. Another objection relates to the investment of Rs 281 million by various Quaid-e-Azam University centers without an approved policy, on which no response was provided. In addition, the Center of Excellence in Molecular Biology, Lahore, instead of returning the unused funds to the government at the end of the financial year, invested Rs 500 million, for which no explanation was given to the auditors. The Information Division was accused of non-collection of Rs87 million in due fees and fines by PEMRA. The Anti-Narcotics Force (ANF) has recommended an investigation into the Rs1.2 billion overhaul of two helicopters without open competition. Several important allegations were also made against the Karachi Dock Labour Board (KDLB) under the Ministry of Maritime Affairs, including non-collection of Rs433 million in cess, persistent losses of Rs1.9 billion due to expenditure exceeding income, irregular bonuses of Rs343 million, and non-transparent selection of hospitals and laboratories along with payments of Rs620 million. The audit report has listed objections worth Rs324 million against NAB, including spending Rs277 million on law officers and experts from the regular budget instead of the Recovery and Reward Fund, and not depositing receipts of Rs46 million in the government treasury. However, NAB did not admit any irregularities. The main objections against the Ministry of National Food Security include non-recovery of Rs1.9 billion as cotton quality testing fees, unnecessary expenditure of Rs193 million on aircraft spare parts, spending of Rs355 million on non-transparent recruitment of contract employees, discrepancies in receipts of Rs4.4 billion, and the Plant Protection Department’s failure to complete the investigation into the plane crash that crashed in 2020 despite the lapse of five years. The auditors also pointed out that 15 deregistered aircraft remained idle for years and their failure to be auctioned resulted in a loss of over Rs. 42 million. The objections facing the Ministry of National Health include the purchase of Rs1.1 billion worth of vaccines at high prices due to non-compliance with the federal cabinet decision, the irregular purchase of medicines worth Rs508 million by the Federal Government Polyclinic Hospital, and the fraudulent payment of Rs28 million as consultants’ share at Sheikh Zayed Medical Complex, Lahore. Several important objections were also raised against the National Heritage and Culture Division, including the irregular investment of Rs681 million in treasury bills by the Quaid-e-Azam Shrine Management Board, the investment of Rs865 million by the National Academy of Performing Arts without the approval of the Ministry of Finance, the non-recovery of Rs27 million from the CDA in connection with the construction of the Pakistan National Council of Arts building, and the non-recovery of Rs145 million in utility charges from the Iqbal Academy Pakistan. Regarding the Pakistan Atomic Energy Commission (PAEC), the auditors identified non-utilization of Rs2.8 billion of water disposal fund by the Chashma Nuclear Power Plant, spot purchases of Rs61 million, and non-adjustment of Rs936 million paid in advance for items not supplied. The only audit against the Ministry of Planning and Development concerned the non-receipt of audited statements and adjustment accounts of Rs3.1 billion from district administrations by the Pakistan Statistics Department. The audit on the Ministry of Religious Affairs said that audited statements and adjustment accounts of Rs45 billion were not received, raising serious concerns about expenditure verification and accountability. One of the biggest objections in the report concerns the Ministry of Science and Technology. According to the audit, the Pakistan Standards and Quality Control Authority (PSQCA) suffered a loss of Rs59 billion due to non-imposition of surcharge on late payment, excess funds of Rs1.7 billion were not deposited in the Federal Consolidated Fund, investments of Rs7.3 billion were not withdrawn despite the maturity in the National Bank of Pakistan, while 45 unauthorized bank accounts with a balance of about Rs3 billion were maintained outside the Federal Consolidated Fund. The Trade Development Authority of Pakistan (TDAP) is facing 18 audit objections. The main objections include illegal retention of Rs513 million of Karachi Expo Center’s revenue in commercial banks, liabilities of Rs1.56 billion towards Export Development Fund, overspending of Rs1.2 billion on international exhibitions, unnecessary expenditure of €31,320 despite not participating in Intertex Portugal 2025, and failure to reclaim valuable land of Expo Center allegedly in the possession of PIA and Sindh Police. Overall, the audit report paints a worrying picture of weak financial controls, poor record-keeping, non-recoveries, unauthorized investments, irregularities in procurement and failure of monitoring systems in several federal institutions. Several institutions either did not respond to the audit objections, or defended the measures that the auditors called irregular, leaving many fundamental questions about accountability unanswered.
