The Public Accounts Committee (PAC) has criticised the National Telecommunication Corporation (NTC) for breaching constitutional requirements by failing to deposit surplus profits into the Federal Consolidated Fund and for incurring unauthorised expenditures amounting to billions of rupees.
During its meeting on Wednesday, PAC members voiced concerns over NTC’s poor services and the operation of parallel administrative systems that bypassed official procedures.
“Being a strategic organisation does not give NTC the licence to disregard rules, no matter what hybrid system is introduced in the country,” remarked MNA Naveed Qamar.
The committee also expressed frustration upon learning that NTC had failed to prepare its financial statements for three consecutive years, from 2021-22 to 2023-24.
The committee reviewed audit findings that revealed NTC had spent Rs5.63 billion during FY2022-23 without budgetary approval. MNA Masti Khel highlighted the broader issue of corruption, stating, “Pakistan suffers from Rs10 trillion in annual corruption.” The committee directed that a detailed report be submitted within a month.
Other concerns included irregular payments and recruitments at NTC. Audit officials reported that NTC had distributed Rs94 million in bonuses to employees without approval from the Finance Division or its own management board. The committee ordered that these bonuses be recovered within a month.
In terms of recruitment, it was noted that 14 employees had been appointed without an open advertisement. The committee, led by MNA Syed Naveed Qamar, referred the issue to a subcommittee for further action.
Additionally, PAC members raised concerns over the tax exemptions granted on sugar imports. They accused the Federal Board of Revenue (FBR) of favouring specific groups by reducing sales tax from 18% to 0.25% and waiving 3% VAT on 500,000 tonnes of imported sugar. MNA Masti Khel condemned this as “looting the public to benefit a few.” The committee decided to summon FBR Chairman and the Commerce Secretary to the next meeting for further clarification.
The committee also addressed the slow progress of the Islamabad IT Park project, initiated in 2017 with funding from the Korean Exim Bank. Although the project was meant to be completed by 2022, work had barely started by the end of 2021, and the project was now expected to be completed by the end of 2025. The revised cost of the project had increased to Rs13.73 billion due to the rupee devaluation. The committee requested a comprehensive report within a month.
Audit briefs also raised concerns about 12 Public Sector Development Programme (PSDP)-funded projects, where significant amounts had been spent but progress was minimal. Lawmakers demanded accountability and warned that a letter would be sent to the Prime Minister if no action was taken. A report on the matter was requested within 15 days.
