The Auditor General of Pakistan’s 2023–24 audit has unearthed staggering financial mismanagement in Punjab, exposing irregularities exceeding Rs1 trillion in government expenditure. The report highlights 14 cases of outright fraud and misappropriation worth Rs3.1 billion, alongside 50 instances of overpayments totaling Rs25.4 billion. At the same time, 21 cases of financial mismanagement amounting to Rs10.6 billion and 45 mis-procurement instances valuing Rs43 billion were flagged.
Perhaps most alarming was the unauthorized retention of Rs988 billion in non-interest-bearing bank accounts by autonomous bodies—striking evidence of systemic neglect in treasury regulations. The audit further pinpointed HR-related irregularities worth Rs8.2 billion and performance-related deficiencies totaling Rs3.6 billion.
The report revealed an eye-opening Rs282 billion in unreconciled e-pay receipts and Rs352 billion in unrecovered loans. It also flagged Rs282 billion in unreported receivables, Rs44 billion in consolidated funds improperly held in bank accounts, and Rs2 billion in uncollected interest. Other concerns included 541 acres of illegally encroached land and Rs480 million in subsidies paid to ineligible farmers.
Expenditure distribution showed that Communication & Works consumed 41% of the budget, health 15%, education 6%, and housing/urban development and public health engineering 11%. Meanwhile, irrigation and agriculture together made up just 9%—surprising for a primarily agricultural province. Salaries accounted for 25% of spending, debt repayment 20%, debt servicing 5%, and repair and maintenance a mere 2%.
Recovered funds totaled Rs25.46 billion, of which Rs2.24 billion have been reclaimed since February 2024.
To address these massive gaps, the audit recommended a full legal investigation into fraud and misappropriation, stronger procurement controls under the Punjab Procurement Rules 2014, disciplinary measures for HR irregularities, recovery of unauthorized payments, and tighter financial monitoring, including merit-based hiring and transparent budget execution .
Punjab’s Information Minister, Azma Bukhari, confirmed the report has been forwarded to Special Departmental Accounts Committees, with unresolved issues set to reach the Public Accounts Committee for resolution and compliance.
This audit paints a picture of deep-rooted governance failures—mismanagement, weak internal controls, and questionable fund retention—underscoring the urgent need for administrative reform in one of Pakistan’s most pivotal provinces.
