The Public Accounts Committee (PAC) has expressed dissatisfaction over the repayment system for foreign loans and interest payments, directing the Finance Ministry to provide a comprehensive briefing on the matter. PAC Chairman Junaid Akbar instructed the finance secretary to attend the next meeting after ongoing negotiations with the International Monetary Fund (IMF) to discuss foreign debt management.
During the meeting, the PAC reviewed audit objections related to the Economic Affairs Division and the Ministry of Foreign Affairs for the fiscal year 2023-24. Members criticised the Ministry of Economic Affairs for inaccurate projections on exchange rate fluctuations and questioned the government’s handling of debt repayments.
Opposition leader Omar Ayub highlighted that Rs58 billion in loans had been rescheduled, stressing that repayment must be ensured. Given the gravity of the situation, the committee called for input from both the Finance and Planning Ministries in the upcoming session.
The committee also addressed financial irregularities within the Ministry of Foreign Affairs. It raised concerns over an Rs181 million loss due to delays in constructing an embassy building in Kathmandu, with audit officials noting that the project, approved in 2008, remained incomplete due to funding shortages.
Similarly, the PAC questioned the Pakistani embassy in Berlin for failing to deposit Rs97 million in receipts into the national treasury. Foreign ministry officials acknowledged the lapse and assured corrective measures.
Further irregularities were reported in Pakistani embassies in London and Paris, where unauthorised salary payments of Rs49 million were made. PAC directed the Finance Ministry to resolve this issue within 15 days.
The committee also criticised the practice of double payments to Foreign Ministry officers, amounting to over Rs5 million. Officials admitted that certain officers had received duplicate salaries while posted abroad for extended periods. PAC instructed the ministry to complete an inquiry and take action within a month.
Additionally, the committee examined an Rs11 million deposit in a bank account in Nairobi that had not been transferred to Pakistan. The Foreign Secretary attributed the delay to banking restrictions in Kenya. PAC ordered verification and adjustment of the funds.
Committee member Riaz Fatyana also inquired whether retired officers living abroad receive pensions in Pakistani or foreign currency, to which the Foreign Secretary confirmed that payments are made in Pakistani rupees.
