The Public Accounts Committee (PAC) of Parliament, while reviewing audit objections related to the Pakistan Atomic Energy Commission (PAEC) and the Federal Board of Revenue (FBR), has expressed dissatisfaction over the shortcomings in the system and procedures, which have resulted in a loss of billions of rupees to the government treasury.
According to audit officials, irregularities worth Rs1.15 billion were identified in the spot procurement for the Karachi Nuclear Power Plant during a meeting chaired by Junaid Akbar.
PAEC Chairman Dr. Raja Ali Raza Anwar defended the procurement and said that all purchases were made in accordance with the rules and regulations of the National Command Authority.
PAC members expressed dissatisfaction over the absence of representatives of the Law Ministry in the meeting and directed the concerned secretary to ensure their participation in future meetings.
The committee also reviewed the agreement with China for the supply of lifetime stores for the nuclear plant.
PAEC officials explained that due to COVID-19 related constraints, essential items had to be procured from the local market, assuring the committee that all purchases were made transparently through tenders.
Furthermore, the PAC stressed the importance of strict adherence to procurement rules and regulations by all government agencies and ministries, and directed that disciplinary action be taken against officials found violating procurement rules.
Auditor General of Pakistan Ajmal Gondal stressed the need for transparency in financial management in all departments. Speaking on the backlog in audit reports, the committee was informed that 5 to 6 lakh audit papers were yet to be resolved.
According to Dawn.com, Ajmal Gondal told the meeting that the delay in the audit process of state institutions has worried the International Monetary Fund (IMF), which has expressed reservations over the pending audit papers.
He said that the IMF has demanded the speedy disposal of the audit cases of the institutions, and 500,000 to 600,000 audit papers related to ministries and institutions are pending.
He said that despite the orders of the parliament, the chief internal accountant has not been appointed, and the financial audit system is poor due to non-implementation of laws.
He said that the secretaries and chief financial officers of the institutions are not clearing their audits, 15 institutions have only chief financial officers and none of them has a chief internal accountant, he reiterated that there is no internal audit system in the institutions.
The AGP said that the number of pending audit cases in the PAC has increased to more than 30,000, the PAC sought details of the matter from ministries and institutions within a month, the members stressed the need for an accountability system to ensure improvement.
FBR shortcomings
Regarding audit objections related to the Federal Board of Revenue, the PAC reviewed 25 significant paragraphs worth Rs 807 billion.
Chairman FBR Rashid Mahmood Langrial revealed that an attempt to commit fraud of Rs 312 billion was foiled, but a fraud of Rs 640 million was successful.
The committee criticized the FBR’s reluctance to provide records related to the Common Pool Fund and raised the question of whether this institution is functioning as a private institution.
The PAC also reviewed the Rs312 billion sales tax evasion case and expressed concern over the delay by the agency.
Senator Afnanullah Khan raised the question of how the FBR detected such a large-scale fraud. The committee directed the agency to provide a complete record of the matter for further scrutiny.
The meeting also reviewed the performance of the PAC and officials said that Rs30 billion has been recovered since the establishment of the PAC on February 4, 2025.
The members highlighted the effectiveness of the PAC in making recoveries as soon as the PAC meetings began.
In addition, the case related to the transfer of a female officer of the FBR was discussed, where the PAC raised questions on the reasons for the decision.
The FBR Chairman said that although she is a competent officer, her choice of words is unacceptable for the Finance Minister.
The meeting concluded with a directive to the FBR to submit a monthly recovery report, and emphasized the need for a thorough inquiry before disciplinary action against officers.
