The Ministry of Commerce has been held responsible for financial mismanagement and irregularities totaling Rs9.47 billion during the 2023–24 financial year, according to the Audit Report 2024–25.
According to a news report, the audit report, which reviewed expenditures across various departments and organisations under the ministry, highlighted breaches of financial discipline, unauthorised spending, and non-compliance with procurement and administrative regulations.
One of the most critical findings was an unauthorised payment of Rs1.1 billion made by the Trading Corporation of Pakistan (TCP) during urea procurement operations. The audit revealed that TCP bypassed the required competitive bidding process, violating Public Procurement Rules, undermining transparency, and causing a loss to the public exchequer.
The deal was executed on a government-to-government basis without exploring the open market, despite the availability of time and capacity for a fair competition.
The Trade Development Authority of Pakistan (TDAP) incurred Rs96 million in irregular expenses related to international exhibitions and promotional events. The audit noted that these expenses lacked performance evaluations, impact assessments, or completion certificates, indicating misuse of funds for export promotion.
Another major concern involved the Export Development Fund (EDF) and related entities, which failed to recover Rs. 3.1 billion in outstanding dues from defaulters. Despite repeated audit queries and internal reminders, no serious effort was made to recover the amount, pointing to a systemic issue in enforcement within the ministry.
The Pakistan Horticulture Development and Export Company (PHDEC) was also criticised for irregular expenditures of over Rs. 250 million. The company was found to have hired consultants without competitive tendering, diverted development funds for administrative expenses, and made payments without proper documentation, violating financial controls and raising transparency concerns.
Additionally, Rs. 110 million were spent on foreign delegations and promotional tours without proper approval or post-activity reports, further highlighting improper use of public funds.
The audit also flagged systemic issues, including duplicate payments, poor recordkeeping, unreconciled accounts, and incomplete documentation, all of which obstructed proper financial evaluation.
The Auditor-General recommended that the Ministry of Commerce initiate internal inquiries, recover outstanding dues, hold accountable those responsible for violating rules, and overhaul its internal audit systems to prevent future financial mismanagement. However, as of the latest report, the Ministry has yet to respond to the audit’s findings.
