Another major case of financial irregularities has emerged in Khyber Pakhtunkhwa, with an audit report highlighting issues involving the KP Economic Zones Development and Management Company during the 2024–25 financial year.
According to senior journalist Irfan Khan, quoting the audit findings, the company faced serious administrative and financial management issues, including failures to recover outstanding dues, irregularities in land allotments and concerns over vacant key positions.
Irfan Khan questioned the provincial government’s oversight of the company, asking why the relevant ministers and authorities had not taken timely action to address the reported irregularities and recover public money.
Rs2 billion loss over unrecovered dues
According to the audit observations cited in the commentary, the company failed to recover outstanding payments from industrial landowners despite court orders, resulting in a reported loss of Rs2 billion to the provincial exchequer.
The commentary also highlighted the company’s failure to renew commercial land agreements in line with a revised leasing policy introduced in 2024. This was associated with a further loss of Rs620 million.
More irregularities in land allotments
The audit findings discussed by Irfan Khan also identified issues concerning land in Buner, Mohmand and Jalozai, with an alleged loss of Rs1.74 billion.
Another objection concerned the alleged illegal allotment of commercial land for industrial purposes, reportedly resulting in a loss of around Rs170 million.
In Hattar, Haripur, an engineering company was allotted approximately 10 acres across plots numbered 185, 186, 187 and 190. The failure to recover the outstanding amount allegedly caused a further loss of Rs497.8 million.
Rs14 billion in potential liabilities
Irfan Khan also drew attention to legal disputes involving increases in land prices, which could expose the company to potential liabilities estimated at Rs14 billion.
The potential liabilities have raised concerns about the company’s financial stability and its ability to continue operations if the disputes result in adverse outcomes.
Questions over PTI government’s governance
The senior journalist questioned why the PTI-led provincial government had not ensured effective monitoring of the company during the period under review.
He raised questions about whether the relevant ministers held regular meetings, reviewed the company’s performance and took timely steps to address financial irregularities and recover outstanding amounts.
Irfan Khan also questioned why stronger policy guidance and administrative oversight had not been provided despite the reported financial and management problems.
He argued that the findings raise broader concerns about the government’s priorities, suggesting that political protests and street agitation may have diverted attention from the administration of public institutions.
The audit observations now raise questions about whether the provincial government will recover the reported amounts, address the administrative shortcomings and hold those responsible accountable.
