Pakistan’s Auditor General has identified significant financial irregularities in the federal government’s accounts for the 2024-25 fiscal year, raising concerns about budget management, parliamentary oversight, and the effectiveness of internal financial controls.
According to audit reports covering federal accounts for the 2024-25 fiscal year, a total of Rs3.454 trillion in supplementary grants was obtained by various government entities. However, Rs3.177 trillion, or nearly 92 percent of these expenditures, was not approved by Parliament, prompting questions about compliance with constitutional and parliamentary requirements governing public spending.
One of the key findings relates to debt servicing, where supplementary grants amounting to Rs1.833 trillion were obtained for principal debt repayments. The audit noted that the actual funding requirements had not been properly assessed, resulting in excess allocations and expenditures.
The report also revealed that federal institutions spent Rs187 billion beyond the final grants approved by Parliament. Additionally, budget demands totaling Rs3.809 trillion were submitted without adequate assessment of actual financial needs, casting doubt on the credibility of the budgeting process.
Despite requesting substantial funds, 115 government organizations failed to utilize Rs87 billion allocated to them, leading to the lapse of those funds. Furthermore, supplementary grants worth Rs41 billion remained unused.
Auditors highlighted several constitutional and financial management violations, including the transfer of Rs7 billion from the Federal Consolidated Fund in a manner deemed inconsistent with Article 78 of the Constitution. Another concern involved Rs24 billion in unclaimed funds that were not transferred from dormant accounts into government accounts as required.
The report also pointed to weaknesses in government accounting systems, including the absence of records related to liabilities, assets, debt reporting, and General Provident Fund contributions. Many federal institutions were found to lack functioning internal audit units and chief internal auditors.
The Auditor General further identified cases involving embezzlement, corruption, and fraudulent payments, along with dozens of instances requiring recovery of public funds. The findings are expected to intensify debate over fiscal discipline, transparency, accountability, and parliamentary scrutiny of government expenditures.