The Auditor General of Pakistan (AGP) has exposed significant financial irregularities causing substantial losses to the national treasury.
The report highlighted poor financial management, unauthorized spending, and non-transparent procurement processes as major issues contributing to these losses.
The AGP’s detailed audit report, over 300 pages, examined expenditures totaling Rs566.29 billion. This includes Rs330.66 billion from the second phase of the audit covering 2022–2023, and Rs335.63 billion from the first phase in 2023–2024, as reported by Dawn News.
The audit also uncovered 32 additional cases of financial mismanagement, including “misappropriation and embezzlement of public funds and fictitious payments,” raising serious concerns about accountability and transparency within government departments.
The report further noted that the Ministry of Defense operates under a single-line financial allocation system, which is distributed among the Strategic Planning Division, Services Headquarters, Ministry of Defense Production, and various Inter-Services Organizations.
The armed forces, including the Army, Navy, and Air Force, fall under the administrative purview of the Ministry of Defense, which is responsible for safeguarding the country’s territorial integrity and supporting civil authorities when required.
One of the alarming findings was that certain sectors within the military bypassed established rules by awarding contracts to preferred bidders without publicly advertising these opportunities.
Even when procurements were classified as “secret” for security purposes, the required approvals from the defense secretary were not obtained, breaching standard procedures.
The audit also highlighted several instances where procurement rules were ignored, with contracts being granted without formal agreements with the contractors, further amplifying concerns about the lack of accountability and oversight in defense spending.
