ISLAMABAD: The financial management of the federal government has come under sharp scrutiny after recent audit reports for the fiscal year 2025-26, which cover the accounts of FY2024-25, exposed widespread irregularities, poor financial controls, and the misuse of public funds.
One of the most concerning revelations is that a staggering 92% of supplementary grants, totaling Rs3,177 billion, were approved without prior approval from Parliament. Despite the government securing a total of Rs3,454 billion in supplementary grants during the year, the audit questions the adherence to constitutional and parliamentary procedures governing public expenditure.
Sources within Parliament revealed that the latest reports also identified Rs1,833 billion in supplementary funds obtained for loan repayment purposes, which were approved without adequate assessment of actual needs, leading to unnecessary expenditure. Additionally, Rs187 billion was spent beyond the final authorized parliamentary grants.
The audit also highlighted that various federal agencies requested Rs3,809 billion in budget allocations without proper evaluation of their requirements, raising doubts about the credibility of the budgeting process. Interestingly, despite these large demands, 115 cost centers failed to utilize Rs87 billion, which was eventually lapsed, while Rs41 billion in supplementary grants remained unspent.
The Auditor General flagged violations of constitutional and financial management protocols, including the illegal transfer of Rs7 billion from the Federal Consolidated Fund to the Public Account, contrary to Article 78 of the Constitution. Furthermore, Rs24 billion in unclaimed deposits from deceased individuals were not transferred from their respective accounts to the government’s main account.
The reports also point to systemic weaknesses in government accounting and reporting systems. These include the failure to produce reports on debt and losses, lack of updated records for fixed assets and liabilities, and missing subscriptions in the General Provident Fund (GPF) accounts.
The Auditor General noted that many federal agencies lack functional internal audit units, and numerous Chief Internal Auditor positions remain unfilled. This deficiency in internal oversight has contributed to lapses in control, irregularities, and misappropriation of public funds.
Among the cases uncovered are two instances of embezzlement, misappropriation, and fictitious payments. The audit also identified 82 recoveries due from various entities and 78 cases where internal controls were weak.
Expressing concern over these findings, the Auditor General recommended that cases involving significant embezzlement be handed over to investigative agencies for appropriate action.
These revelations are expected to intensify debates around fiscal discipline, parliamentary oversight, transparency in government spending, and the effectiveness of accountability mechanisms within the federal administration.
