The Ministry of Aviation, along with its attached bodies, including the Pakistan Civil Aviation Authority (PCAA) and the Airport Security Force (ASF), has been found responsible for financial mismanagement exceeding Rs 3 billion, Business Recorder reported, citing the Audit Report for 2024-25.
The audit report highlights a range of financial irregularities, including unauthorised payments, poor recordkeeping, weak internal controls, and irregular contract awards.
A large portion of the financial shortfall, Rs 2.3 billion, stems from the PCAA’s failure to recover long-standing dues from airlines and other stakeholders. Despite multiple audit observations in previous years, these receivables remain unpaid, raising concerns about enforcement mechanisms and the lack of follow-up action.
Additionally, Rs 313.6 million was found to have been spent on consultancy contracts awarded without adherence to Public Procurement Rules (PPRA). The PCAA hired consultants for design and supervision tasks without competitive bidding or proper approvals, which brings into question the transparency of the process.
Further, the PCAA spent Rs 154.6 million on procurement without proper authorisation, and discrepancies were noted in advance payments and missing documentation, pointing to a lack of compliance culture.
The ASF was also found to have violated financial procedures, including an expenditure of Rs 45.8 million on vehicles and uniform procurement without following the correct tendering processes. Furthermore, ASF failed to maintain proper inventory records, hindering accountability.
The audit also flagged Rs 125 million paid as rent to a private landlord for an ASF camp, with no documentation supporting the lease terms or space utilisation. The lease extension and increased payments lacked legal vetting, raising concerns over the legitimacy of the transaction.
Asset management issues were also noted, with several properties and equipment not recorded in fixed asset registers, increasing the risk of misuse or loss. Despite repeated findings over the years, the departments involved failed to provide satisfactory responses or corrective measures.
The report urges strict adherence to financial regulations, recovery of outstanding dues, and accountability for those involved in bypassing procurement procedures. It also recommends improvements to internal audit functions to prevent such issues in the future.
