Pakistan audit flags billions in irregularities across 23 ministries

Pakistan's Auditor General has uncovered billions of rupees in financial irregularities across 23 federal ministries and departments in its audit report for fiscal year 2025-26.

The findings point to weak internal controls and violations of fiscal rules, raising fresh concerns over public financial management.

What did Pakistan's audit report find?

The audit found that PKR 75 billion allocated for parliamentarians' development schemes was spent in violation of prescribed rules. It also identified PKR 187 billion in excess expenditures during fiscal year 2024-25 and ordered recoveries in 82 cases of financial mismanagement.

The Auditor General flagged 78 cases of weak internal controls, warning that poor oversight had exposed the national exchequer to significant financial risk. Investigators also found expenditures made without parliamentary approval and two cases of misappropriated government funds.

What other financial irregularities did the audit uncover?

The report cited fake payments and serious breaches of financial discipline across public institutions. These findings point to persistent weaknesses in governance and accountability within government departments.

Auditors also found that PKR 87 billion in allocated funds lapsed after going unutilized within the required timeframe. This reflects gaps in budget execution and project implementation across the audited ministries.

In a separate finding, PKR 7.49 billion was transferred from the Federal Consolidated Fund to the Public Account in violation of financial regulations. The Auditor General also said PKR 24 billion sitting in dormant government accounts had not been moved to the consolidated fund, despite existing rules requiring the transfer.

What did the Auditor General recommend?

The report raised concerns about weak internal audit systems, saying poor monitoring had contributed to substantial losses for the national treasury. The Auditor General recommended that all unutilized government funds be surrendered to the national exchequer immediately.

The report also called for broad reforms to strengthen financial transparency, internal controls and fiscal discipline. It urged the federal government to reinforce accountability mechanisms and improve financial management practices to better safeguard public resources.