The federal government’s financial management has come under intense scrutiny after the Audit Reports for 2025-26, covering the accounts of FY2024-25, revealed widespread budgetary irregularities, weak financial controls and unapproved public spending amounting to Rs3.177 trillion.
According to the audit findings, 92% of supplementary grants obtained during the fiscal year were spent without parliamentary approval, raising serious concerns about compliance with constitutional and financial procedures.
Trillions in Supplementary Grants Unapproved
The audit revealed that the government secured supplementary grants totaling Rs3.454 trillion during FY2024-25.
However, Rs3.177 trillion of these grants remained unapproved by Parliament, prompting questions over adherence to constitutional requirements governing public expenditure.
Loan Repayment Allocations Exceeded Requirements
The report also found that:
- Rs1.833 trillion in supplementary grants was obtained for repayment of loan principal without proper assessment of actual requirements.
- This resulted in significant excess expenditure.
- Spending exceeded Parliament’s final authorised grant by Rs187 billion.
Weak Budget Planning Highlighted
Auditors noted that federal ministries and departments sought Rs3.809 trillion in budget allocations without adequately assessing actual financial needs.
Despite requesting substantial funds:
- 115 cost centres failed to utilise Rs87 billion, which lapsed at the end of the fiscal year.
- Supplementary grants worth Rs41 billion also remained unspent.
The findings raise concerns over the credibility and efficiency of Pakistan’s budgeting process.
Constitutional Violations Identified
The Auditor General highlighted several constitutional and financial management violations, including:
- The irregular transfer of Rs7 billion from the Federal Consolidated Fund to the Public Account, allegedly in violation of Article 78 of the Constitution.
- Failure to transfer Rs24 billion in unclaimed deposits from inactive government accounts back to the national treasury.
Weak Financial Controls
The audit identified major shortcomings in government accounting systems, including:
- Failure to prepare debt and loss reports.
- Non-maintenance of fixed asset and liability registers.
- Missing General Provident Fund (GP Fund) subscription records in employees’ individual accounts.
The report also noted that many federal organisations either lack functional internal audit units or have yet to appoint Chief Internal Auditors, weakening oversight mechanisms.
Embezzlement and Misappropriation Cases
Auditors uncovered multiple cases involving financial misconduct, including:
- 2 cases of alleged embezzlement, misappropriation and fictitious payments.
- 82 cases requiring recovery of public funds.
- 78 cases highlighting weak internal controls and administrative deficiencies.
The Auditor General recommended that serious cases involving public money be referred to relevant investigative agencies for further action.
Calls for Greater Accountability
The audit findings are expected to fuel renewed debate over:
- Fiscal discipline
- Parliamentary oversight
- Transparency in public spending
- Government accountability
- Public financial management reforms
The report underscores the need for stronger internal controls and stricter adherence to constitutional procedures governing the use of public funds.
