Audit uncovers Rs17.76 billion irregularities in Faisalabad Industrial Estate Development and Management Company

The Auditor General of Pakistan has identified alleged financial irregularities amounting to Rs17.76 billion in the accounts of the Faisalabad Industrial Estate Development and Management Company (FIEDMC) for the period 2015-16 to 2023-24, according to a news report. 

FIEDMC, a subsidiary of the Punjab Industries Department, was established in July 2004 under a public-private partnership model to promote planned industrialisation. It manages industrial zones in Sahianwala, Tehsil Chak Jhumra, including the Allama Iqbal Industrial Estate, Garments City, Value-Added City and a Special Economic Zone developed under the China-Pakistan Economic Corridor framework.

According to audit sources, FIEDMC did not submit audited annual accounts for the years under review by the December 31, 2024 deadline. The Public Accounts Committee has yet to convene a meeting to examine the audit findings.

The audit report details several observations, including a reported loss of Rs500.26 million due to the sale of plots to a ceramic factory at M-3 Industrial City, Rs324.20 million in unrecovered dues from production units and Rs3.29 billion linked to non-recovery of plots from defaulters.

Other observations include Rs3.34 billion attributed to non-imposition of development charges, Rs1.39 billion in unpaid additional electricity and gas load charges and Rs2.49 billion loss from selling plots below rates approved in the business plan.

The audit further highlighted Rs4.18 billion in losses related to terminated contracts, Rs469.60 million in unpaid non-utilisation charges, Rs181.42 million in unrecovered maintenance charges and Rs156.67 million loss to the exchequer due to non-deduction of Punjab Sales Tax from civil contractors.