Auditor General’s report creates a stir, questions are raised even on such surprising figures, irregularities worth Rs 375,000 billion identified

Commerce Reporter, Daily Dawn, Dawn TV Report

Islamabad: The latest report of the Auditor General of Pakistan (AGP) regarding the accounts of the federal government has not only created a stir but also raised questions on the disclosures and calculations.

This is perhaps the first time in Pakistan’s financial history that such surprising figures have come to light. The report has identified irregularities worth Rs 375 trillion, or Rs 375,000 billion, in the federal finances.

This is also surprising in the sense that Pakistan’s gross national product (GDP) is barely Rs 110 trillion, while the federal budget for the fiscal year 2023-24 was only Rs 1.45 trillion. Then, how did these irregularities become 27 times more than the national budget?

The report lists incredible irregularities, including Rs284.17 trillion (284,000 billion) in procurement-related issues, Rs85.6 trillion (85,600 billion) in defective, delayed or incomplete civil works, Rs2.5 trillion (2,500 billion) in dues and recoveries, and Rs1.2 trillion (12,000 billion) in circular debt.

In addition, billions of rupees were lost to weak internal controls, poor asset management, misuse of contracts and encroachment on government lands.

In the documents, it looks as if Pakistan is handling the finances of several countries at once, but in reality, it points to something else: either a catastrophic accounting error, or the country’s financial recording and auditing system has collapsed, or the national financial system has completely collapsed.

Interestingly, the Appropriation Accounts show final approval of Rs 40.3 trillion (40,000 billion) while the actual expenditure was Rs 39.9 trillion (39,900 billion). That is, a difference of only Rs 370 billion, but somehow these irregularities reached Rs 375 trillion. This calculation is not understood by anyone, even within the government itself.

When asked about this, the spokesperson of the AGP Office shared a note from an expert in the institution. This note showed that the AGP Office was not surprised by these shockingly large amounts of irregularities.