AGP uncovers Rs375tr ‘irregularities’ in federal finances

The Auditor General of Pakistan (AGP) has identified a record over Rs375 trillion worth of irregularities, financial mismanagement and loss of public money in the affairs of the federal government and departments and entities working under its control. The AGP expressed grave concern that only 13 per cent of public funds were directed towards the public good, raising significant questions about the country’s financial affairs. In its report for the audit year 2024-25, the AGP examined the accounts of the federal government, including ministries, divisions and other government bodies, for FY24. The report said that the “recurrence of these irregularities indicates that systemic issues were cropping up either due to inadequate oversight mechanisms or inappropriate design of internal controls”. It pointed out unnecessary allocation of supplementary grants leading to blocking of public funds, massive supplementary grants without approval of the parliament, demand for budget without need assessment leading to surrender of budget, lapse of funds due to non-surrendering of funds in time and non-recording of commitments leading to poor budget management.