The Auditor General of Pakistan’s (AGP) recent audit report has exposed significant financial and procurement irregularities in Pakistan’s diplomatic missions, raising concerns about the transparency of public spending. The report scrutinized expenditures in key missions, notably Berlin and Bangkok, uncovering repeated breaches of procurement rules, unauthorized payments, and procedural lapses.
The Embassy of Pakistan in Berlin was found to have purchased gift items worth Rs7.286 million during the fiscal years 2019 to 2022 without adhering to prescribed procurement procedures. Payments for these purchases were reimbursed to the ambassador instead of vendors, and a stock register to record receipts and distribution was not maintained. Previous audit reports flagged similar issues, pointing to a recurring pattern of non-compliance.
Further irregularities were observed in the procurement of office furniture worth Rs2.353 million (€7,740.69). Purchases were made without issuing tenders, and essential documentation such as invoices and approvals was missing. Additionally, Rs851,200 (€2,800) was paid into the personal account of a driver, reportedly due to the unavailability of a credit card at the mission.
The Pakistan Community Welfare and Education Fund (PCW&EF) was misused to pay Rs2.970 million as honorariums to private security and janitorial staff. These payments, made in cash without proper receipts, violated PCW&EF rules, which restrict its use to welfare activities for overseas Pakistani communities. While the ministry defended the payments as a welfare measure for low-paid workers, the audit deemed them unauthorized.
The Embassy of Pakistan in Bangkok paid Rs4.133 million (BHT 900,000) to a legal firm for translation services related to prisoner cases without obtaining prior approval from the Ministry of Foreign Affairs or the Law and Justice Division. Despite requests for clarification, no response was provided by the concerned department.
In Berlin, a fixed deposit of Rs26.44 million (€87,000) recorded in the mission’s cashbook until December 2020 was unaccounted for starting January 2021. The funds were later attributed to repair expenses without supporting documentation.
Multiple missions failed to claim Rs64.695 million in VAT refunds from host governments, resulting in losses to the national exchequer. The Institute of Regional Studies in Islamabad also operated a welfare bank account with Rs3.462 million without approval from the Finance Division, further highlighting procedural lapses.
The audit recommends immediate compliance with DAC directives, strict adherence to procurement regulations, and the establishment of effective oversight mechanisms. Despite repeated directives, significant gaps remain unaddressed, necessitating urgent remedial action to restore public confidence in the management of Pakistan’s diplomatic missions.
