ISLAMABAD: The Public Accounts Committee (PAC) on Tuesday scrutinised audit reports for the Economic Affairs Division and the Ministry of Foreign Affairs for the fiscal year 2023-24, showing significant financial irregularities.

During the session, officials disclosed that the Economic Affairs Division had received a grant of Rs12.97 billion, with Rs122 million returned. The committee directed officials to address outstanding audit objections. It was further revealed that the division utilised an additional Rs46.19bn in the fiscal year 2022-23 due to exchange rate fluctuations. Secretary of Economic Affairs attributed this increase to currency depreciation.

Criticising financial planning, PAC member Omar Ayub Khan said the finance ministry’s foreign exchange predictions had failed completely, pointing out that the dollar had surged from Rs180 to Rs256. Expressing concern over economic management, he said the government appeared to have lost control over financial matters.

Public Accounts Committee (PAC) Chairman Junaid Akbar questioned the absence of the finance secretary, stating that despite previous calls, he had neither attended the session nor responded to official letters. Ministry of Finance officials confirmed that the secretary had responded in writing, but PAC members insisted that he must appear in person for accountability.

Uncovers major financial irregularities in Economic Affairs Division, Ministry of Foreign Affairs

PAC members also voiced dissatisfaction over the management of foreign loans and their repayments. Mr Ayub highlighted that Rs58bn in loans had been rescheduled and still required repayment. Mr Akbar labelled the matter serious and suggested summoning the planning and finance ministries for further deliberations.

Additionally, the Public Accounts Committee reviewed the issue of Rs991m in outstanding dues related to the Pakistan Community Welfare and Education Fund. Audit officials disclosed that the amount had been obtained from the National Database and Registration Authority (Nadra) but lacked transparency in its reconciliation. The committee instructed the Ministry of Foreign Affairs and Nadra to resolve the matter and submit a report within a month.

The committee also examined financial irregularities within Pakistan’s foreign missions. The audit report revealed that Pakistan’s embassy in Kathmandu had purchased a 32-kanal plot in 1984 for $458,496, with an approved plan to construct a residential complex in 2008 for $4.71m. However, despite available funds, construction had yet to commence, leading to the government incurring Rs181.17m in rental expenses over the years.

PAC members expressed concern over the delay and questioned why the project was abandoned midway. Former foreign minister Hina Rabbani Khar criticised the government’s financial mismanagement, suggesting that Pakistan should have opted for mortgage options to avoid rental expenses.

The committee also discussed financial mismanagement in Pakistan’s Berlin mission, where Rs97m collected in consular receipts had not been deposited in the national treasury for over a year. Similarly, the London and Paris missions had unauthorised expenditures of Rs49m on contingent staff salaries without prior approval. The committee expressed strong discontent over the finance ministry’s delay in addressing these cases and instructed immediate resolution within 15 days.

Double payments

Another major issue brought to light was the overpayment of salaries to Ministry of Foreign Affairs officials, resulting in an excess payment of Rs5m. PAC members criticised the justification that officials were unaware of receiving double salaries.

Committee member Afnan Ullah dismissed this explanation, with Ms Khar humorously questioning how someone at such a senior level could be unaware of receiving extra funds.

The PAC ordered that all excess payments be recovered in one instalment and demanded an action report within a month.

The PAC meeting concluded with directives for immediate corrective measures on financial mismanagement across various government divisions and a renewed commitment to maintaining transparency in public finances.

Published in Dawn, March 5th, 2025