Audit uncovers Rs63 billion irregularities as Pakistan Post deficit widens to Rs19.32 billion

An audit of the postal sector has identified financial irregularities exceeding Rs63 billion during FY2024-25, alongside a widening operational deficit of Rs19.32 billion. The audit covered the Pakistan Post Office Department and Postal Life Insurance Company Limited under the Ministry of Communications.

The largest irregularity involved five cases of unauthorised management of accounts with commercial banks amounting to Rs42.03 billion.

Another 12 cases categorised under miscellaneous discrepancies involved Rs20.29 billion, while two cases of uncollected receivables and recoveries totalled Rs1.32 billion. Procurement violations in two cases amounted to Rs74.56 million.

The report also identified 33 cases of fraud, misappropriation, embezzlement, theft and dacoity involving Rs50.4 million in public funds.

Auditors found that the Pakistan Post Office Department used a cash balance of Rs11.28 billion between July 2022 and June 2025 without justification after separate functional bank accounts had been opened.

The department also continued drawing money from postal treasuries through paper chits because it had not established a formal system for imprest funds.

Other accounting issues included receipts of Rs3.17 billion and payments of Rs2.13 billion recorded as negative balances.

The audit also found that asset expenditure of Rs145.03 million had not been capitalised, leaving the value of fixed assets unchanged at Rs1.39 billion. A further Rs7.29 billion under inland money orders remained unadjusted.

The postal sector recorded expenditure of Rs30.36 billion against revenue receipts of Rs11.03 billion in FY2024-25, producing a deficit of Rs19.32 billion.

The deficit increased by Rs5.89 billion, or 43.88%, compared with the previous fiscal year.

The sector’s deficit stood at Rs12.22 billion in FY2020-21 before falling to Rs2.67 billion in FY2021-22. It later rose to Rs11.15 billion in FY2022-23 and Rs13.50 billion in FY2023-24.

The latest expenditure included Rs6 billion for clearing outstanding liabilities owed to utility companies. Employee advances of Rs1.42 billion also remained recoverable.

Auditors pointed out recoveries of Rs7.66 billion, but only Rs1.89 billion was recovered and verified between January and December 2025.

The department deposited Rs3.26 billion in retained pension funds into the Federal Consolidated Fund, but the report said broader administrative and control weaknesses remained unresolved.

The audit attributed the problems to weak planning, limited IT integration and inadequate internal controls, which it said had reduced the impact of the Public Finance Management Act, 2019.

It also noted that directives issued by the Public Accounts Committee between 1987 and 2020 remained pending.

The Directorate General of Audit, Postal and Telecommunication Services, Lahore, audited 179 formations using 4,017 man-days and 66 officers. The audit office had a budget allocation of Rs235 million.

The review examined expenditure of Rs31.29 billion and receipts of Rs16.02 billion. Departmental Accounts Committee meetings were held from December 2 to 4, 2025.