Audit Report Uncovers Rs18.46 Billion in Financial Irregularities at KP Economic Zones Company

PESHAWAR:An audit report has reportedly uncovered financial irregularities and suspected misappropriation amounting to Rs18.46 billion at the Khyber Pakhtunkhwa Economic Zones Development and Management Company (KPEZDMC) during the 2024-25 financial year.

The findings relate to the period when Pakistan Tehreek-e-Insaf (PTI) was in power in the province. According to the audit report, serious questions have been raised over the company’s governance, administrative performance and financial management.

The audit observations attribute the reported financial impact to inadequate planning and weak administrative controls, alleging that these shortcomings caused losses to the public exchequer amounting to Rs18.46 billion.

According to the report, the company failed to recover Rs2.0849 billion in lease payments from industrial plot allottees despite court orders.

The report further states that the failure to renew commercial land agreements under a revised lease renewal policy introduced in 2024 resulted in a loss of Rs629.8 million to the provincial treasury.

The failure to reclaim land in Buner, Mohmand and Jalozai also reportedly caused a loss of Rs1.0774 billion to the public exchequer.

In another finding, the report alleges that the illegal allocation of commercial land for industrial purposes resulted in a financial loss of Rs174.1 million.

The audit also identified a case involving Al-Hadid Engineering, which was allotted a 10-acre plot comprising plot numbers 185, 186, 187 and 190 in Haripur. The failure to recover the amount due from the company reportedly caused a loss of Rs497.8 million to the public treasury.

Separately, the report estimates the company’s potential liabilities at Rs14 billion, warning that the financial burden poses a serious risk to the continuation of its business operations.

The findings raise concerns over the management of public assets, land allocation procedures and the recovery of government dues. The report points to the need for stronger financial oversight and accountability to safeguard provincial resources.

The allegations and financial findings cited in the audit report would require examination by the relevant authorities to determine responsibility and establish whether recoveries or other corrective measures are warranted.