The Auditor General of Pakistan (AGP) has uncovered serious financial mismanagement in federal spending for the 2024-25 fiscal year, including a glaring Rs130 million loss linked to the Higher Education Commission’s (HEC) acquisition of high-priced laptops.
Released on Tuesday, the AGP’s report paints a worrying picture of fiscal oversight, highlighting systemic lapses in accountability and governance.
Billions in Grants Released Without Approval
According to the audit, the government issued grants totaling Rs513 billion without the backing of parliamentary approval, a move that raises red flags over adherence to financial protocols. In addition, Rs265 billion assigned to 175 federal departments went unutilized, while Rs212 billion in 12 separate grants lapsed because they were not surrendered on time.
These figures underline persistent inefficiencies in federal fund management and point to missed opportunities to allocate resources more effectively.
Questionable Spending by Ministries
The report also flagged questionable financial practices among several ministries. These departments sought Rs24 billion in supplementary grants without proper evaluation and overspent an additional Rs12 billion beyond their approved budgets. Such actions, the AGP warns, highlight weaknesses in fiscal discipline and oversight mechanisms at the federal level.
Concerns Over Attorney General’s Office Independence
Another notable concern raised in the audit involves the Office of the Attorney General of Pakistan. The AGP noted that the office functions more like a subunit of the Law Ministry than an independent constitutional entity. This arrangement, the report suggests, could compromise the office’s autonomy and ability to operate without political influence.
Wheat Sector Arrears Add to Fiscal Pressures
The audit also highlighted unresolved dues in the wheat sector, with federal and provincial bodies still owing Rs214 billion. Analysts say these outstanding payments further strain Pakistan’s already stretched fiscal resources, adding yet another layer of concern for economic stability.
Analysis
Taken together, the findings reveal a pattern of weak financial governance across multiple sectors. From expensive, questionable procurements to lapses in grant management and unresolved dues, the report underscores the urgent need for stricter accountability and transparent financial practices within federal institutions.
