Significant news has emerged following reports that • AGP ’ s report laid before NA, will now be taken up by PAC • Auditors flag irregularities in Discos, petroleum division • NTC serving private clients ‘ beyond its mandate ’ • Railways ‘ encroaching ’ 1,500 kanals • Defence Services spent nearly all of Rs2.2tr allocation ISLAMABAD: Finance Minister Muhammad Aurangzeb on Wedne­sday laid before the National Asse­mbly the report of the Auditor General of Pakistan ( AGP) for the year 2025-26, highlighting massive irregularities across the accounts of various divisions and departments of the federal government, amounting to billions of rupees. The report, finalised under the aegis of AGP Maqbool Ahmad Gondal, spans dozens of entities, from commercial corporations and the tax machinery to the authority, telecommunications, railway and social protection sectors.

Key Plays

To put this in perspective, analysts point to a number of relevant factors.

The findings are observations representing the auditors ’ position and include departments ’ responses presented during Departmental Accounts Committee ( DAC) meetings.

The report will now be taken up by the Public Accounts Committee ( PAC) of the Nationwide Assembly.

Of particular significance is the fact that while examining the accounts of the Federal Board of Revenue ( FBR), auditors identified Rs117.8bn in under-realised super tax alone, alongside more irregularities such as un-recovered duties.

Top Performers

Experts and analysts have begun weighing in on what this means going forward.

Electricity distribution companies, such as Hesco, Lesco and Fesco, were reported to be operating with unaudited accounts for 2023 – 25 and without internal audits, against a backdrop of withheld subsidy claims and stalled transmission projects.

Adding to the complexity of the situation, the Pakistan Telecommunication Authority ( PTA) was criticised for failing to bring data centres under its licensing regime and for not penalising Ufone ’ s operator despite established cases of illegal SIM activation.

Observers have also noted that meanwhile, the Capital Devel­opment Authority ( CDA) had prepared no annual financial statements for the years under audit and showed weaknesses in its land directorate that auditors linked to the alteration of compensation instruments.

The Stats

Policymakers, citizens, and institutions will all need to grapple with what comes next.

Whereas reviewing the accounts of the National Disaster Management Authority ( NDMA), auditors hiked 10 findings, four of them rated critical.

In what observers are describing as a key detail, they reported regarding Rs952 million in bank balances omitted from the accounts, more than Rs1bn in undisclosed Sindh sales tax liabilities linked to two Karachi storm-water drain contracts, Rs752 million in misclassified expenditure, and various Rs10.8bn in relief stock held without any inventory-tracking system.

It has also emerged that the report also highlighted cumulative losses of Rs21.34bn suffered by the Pakistan Agricultural Storage and Services Corporation ( Passco) between 2021 and 2025, with financing costs exceeding revenue.

Observers have also noted that recurring themes Across the reports, the same themes recur: receivables owed but not collected; financial statements unaudited or unfinalised; procurement awarded outside competitive rules; boards and oversight functions falling short of statutory requirements; and audit recommendations left unimplemented year in the wake of year.

Alongside the primary story, in most cases, departments had not provided responses at the time of finalisation or had given undertakings whose implementation, audit

Next Up

The situation is far from resolved, and additional details are expected to emerge as the story develops. Officials have indicated that further statements may be forthcoming, and observers will be watching closely.