• 219 census tablets missing; audit closed after partial recovery
• NLC accused of PPRA rule violations, acting as middleman

ISLAMABAD: The Public Accounts Committee (PAC) on Tuesday directed the planning division’s secretary to conduct an inquiry into additional expenditures and submit a report within a month.

PAC Chairman Junaid Akbar stressed that the planning division should serve as a role model for other ministries. The committee’s member Sanaullah Mastikhel voiced concerns that development funds were being withheld from lawmakers who refused to compromise their integrity.

A case involving the lapse of Rs220 million from the planning division’s development budget also came under scrutiny. The amount had reportedly been earmarked for an event that was cancelled due to the prime minister’s absence. PAC members questioned why such a large sum had been allocated for a single event. Planning Secretary Awais Manzur Sumra clarified that the funds were intended for a social sector project that the prime minister was meant to inaugurate.

MNAs Riaz Fatyana and Sanaullah Mastikhel objected that the planning ministry suffered from poor planning. Mr Fatyana questioned the role of the Planning and Development division, noting that nearly 45 per cent of the country’s population lives below the poverty line.

PAC also reviewed irregularities in the disbursement of funds to district administrations during the census. Audit officials revealed that out of Rs8.69 billion allocated to 157 districts, the leftover funds remained unaccounted for. Mr Sumra noted that accounts for 11 districts were still pending, prompting PAC to order that complete financial records from all remaining districts be collected.

A separate audit found that 219 out of 126,000 tablets purchased for the census were untraceable. The planning secretary said only 24 devices remained missing. PAC decided to close the audit on that matter.

In a separate session, the committee reviewed an audit report on the National Logistics Corp­oration (NLC), focusing on Rs3.2bn in irregularities related to steel procurement.

Audit officials said steel initially contracted at Rs108,000 per tonne was later procured at Rs298,000 per tonne. NLC officials responded that the revised rates were board-approved and aligned with market trends. Audit authorities also flagged a procedural violation in extending a one-year contract with Faizan Steel to three years instead of the permissible two six-month extensions.

The committee also reviewed the Bara Kahu Bypass project, where contractual flaws reportedly led to a Rs2.47bn loss for NLC. The project, awarded without tender under emergency conditions, was initially estimated at Rs6.51bn but ballooned to Rs8.82bn.

The Capital Development Authority (CDA) has yet to approve the additional cost. NLC attributed the overrun to court stay orders and design changes, such as an extension in the length of a bridge.

Committee members observed that the NLC violated Public Procurement Regulatory Authority (PPRA) rules with impunity. “Had any other division or private firm committed such violations, the matter would have been referred to NAB or the FIA,” Mr Mehmood said. The committee condemned the practice of awarding development projects to NLC without tendering and at inflated costs, often 120pc higher than standard estimates. It was also observed that NLC acted as a middleman by subletting projects to third parties at lower rates.

Published in Dawn, July 16th, 2025