The Auditor General of Pakistan (AGP) has identified financial irregularities amounting to Rs520.74 billion in the Khyber Pakhtunkhwa government’s accounts for the financial year 2024-25, raising serious questions about financial management, budgetary controls and transparency under the PTI-led provincial government.
According to an audit report highlighted by senior journalist and analyst Irfan Khan, the findings include undocumented expenditures, spending beyond approved budget allocations, discrepancies in foreign loan accounts and irregularities in development expenditure.
The report identifies several weaknesses in the provincial government’s financial management, including the failure to maintain verifiable records of billions of rupees in public spending.
Rs72.46 billion in expenditures without verification
The audit report identified Rs72.46 billion in expenditures for which the provincial government could not provide adequate supporting documentation.
Against total estimated expenditures of Rs1,537 billion during 2024-25, the government provided documentary verification for approximately Rs1,464 billion, leaving the remaining amount without satisfactory verification.
Rs104.26 billion recorded beyond approved budget
The audit also flagged Rs104.26 billion in additional expenditure entries recorded in the government’s SAP financial system beyond the budget approved by the provincial assembly.
According to the report, the entries were made without the required legal authorisation and legislative approval, raising questions about compliance with established budgetary procedures.
Major discrepancies across government departments
The audit identified additional expenditure entries across several provincial departments and development programmes.
Some of the major amounts flagged in the report include:
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Tribal districts development: Rs19.24 billion.
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Health Services: Rs7.14 billion.
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Bridge construction: Rs6.60 billion.
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Education and training: Rs4.76 billion.
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Other education budget heads: Rs3.35 billion.
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Police Department: Rs2.45 billion.
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Transport: Rs1.90 billion.
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Urban and rural development: Rs1.72 billion.
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Irrigation and construction: Rs1.68 billion and Rs1.21 billion under separate heads.
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Health Services under another budget head: Rs1.54 billion.
The report also identified irregular entries involving the Home and Tribal Affairs Department, Local Government, Higher Education and other provincial departments.
COVID-19 emergency spending exceeds allocated funds
The audit raised questions about the utilisation of COVID-19 emergency funds during the PTI-led government’s tenure.
According to the report, Rs600 million was spent against an allocation of Rs300 million for COVID-19 emergency expenditures, exceeding the approved allocation by Rs300 million.
The additional spending was flagged for non-compliance with financial regulations.
Foreign loan accounts raise questions over Rs149 billion
The audit also identified significant discrepancies in the management and accounting of foreign-funded projects and external loans.
The findings included Rs19.18 billion in unauthorised expenditure entries relating to foreign-funded projects, approximately Rs98 billion in discrepancies involving outstanding liabilities and foreign accounts, and a further Rs51 billion in unverified foreign loan repayment entries.
The report highlighted weaknesses in maintaining updated loan records and reconciling provincial accounts with foreign financial records.
Rs39.58 billion in additional public account payments
The Auditor General also flagged Rs39.58 billion in additional payments from the Public Account.
Furthermore, Rs153.58 billion in development expenditure was recorded under incorrect budget codes and unrelated accounting heads.
The findings raised concerns about the accuracy of provincial financial reporting and the classification of current and development expenditures.
Digital financial controls and accountability in focus
The audit findings have placed the PTI-led Khyber Pakhtunkhwa government’s financial management and accountability mechanisms under scrutiny.
The identified discrepancies involve multiple departments, development projects, emergency spending and foreign loan accounts, highlighting the need for stronger financial controls and transparent public expenditure records.
