The Auditor General of Pakistan (AGP) has identified financial irregularities exceeding Rs1 trillion in the Punjab government’s accounts for the fiscal year 2023–24, The News reported, quoting the AGP’s audit report for 2024–25.
The report lists 14 cases of fraud and misappropriation worth Rs3.1 billion, 50 cases of recoveries and unauthorised payments totalling Rs25.4 billion, and 21 cases of financial mismanagement amounting to Rs10.6 billion.
It also flags 45 mis-procurement cases worth Rs43 billion and 12 cases involving unauthorised retention of consolidated fund receipts in commercial banks and non-interest bearing accounts by autonomous bodies, amounting to Rs988 billion.
Additionally, the audit outlines 24 human resource-related irregularities of Rs8.2 billion and seven performance-related issues of Rs3.6 billion. The AGP reported that it pointed out recoverable amounts of Rs25.46 billion, out of which Rs2.2 billion was recovered between February 2024 and January 2025.
The report highlights weak internal controls across financial management, procurement, contract handling, HR recruitment, payroll, asset management, and budget execution. It recommends investigations into fraud cases, recovery of overpayments, disciplinary action against involved officials, and compliance with Punjab Procurement Rules 2014.
The report also urges the provincial government to stop retaining consolidated fund receipts in commercial banks, conduct merit-based hiring, strengthen monitoring of performance indicators, and ensure better project outcomes.
Among the specific cases cited are non-reconciliation of Rs282 billion in e-pay receipts, Rs352 billion in unrecovered loans and advances, Rs282 billion in unreported long-standing dues, and Rs44 billion in unreported consolidated funds held in banks. Other issues include Rs2 billion in uncredited interest, non-retrieval of 541 acres of encroached state land, and Rs480 million in subsidies given to ineligible farmers.
Four sectors accounted for 73% of total provincial spending: Communication & Works (41%), Health (15%), Education (6%), and Housing, Urban Development & Public Health Engineering (11%). Agriculture and Irrigation received only 5% and 4% of the budget, respectively.
Expenditure on salaries and benefits made up 25% of total spending, with 20% going to debt repayment and 5% to debt servicing. Only 2% was spent on repair and maintenance.
The audit calls for reforms in revenue collection and expenditure planning. It recommends steps such as process restructuring, e-service expansion, improved agricultural and industrial productivity, recovery of outstanding dues, and adoption of modern planning tools.
Commenting on the report, Punjab Information Minister Azma Bukhari said all audit objections would be reviewed by Special Departmental Accounts Committees (SDACs). Unsettled matters would be referred to the Public Accounts Committee (PAC), whose decisions would be implemented in line with legal procedures.
