AGP Report 2025-26 Reveals Billions in Financial Irregularities Across Pakistan

ISLAMABAD: The Auditor General of Pakistan (AGP) has presented its audit report for the financial year 2025-26 in the National Assembly, which has identified billions of rupees in financial irregularities, weak supervision and poor financial discipline in various institutions and departments of the federal government.

According to the report presented in the House by Finance Minister Muhammad Aurangzeb, there are serious shortcomings in the revenue collection, maintenance of financial records, procurement process and internal monitoring system in several key government institutions.

The report has paid special attention to the performance of the Federal Board of Revenue (FBR). According to audit officials, about Rs 117.8 billion could not be collected under super tax, while a significant decrease was also seen in the recovery of other taxes and duties. The audit report stressed the need for reforms in the revenue system and effective monitoring.

Regarding the Petroleum Division, the report mentions an amount of about Rs 117 billion that is recoverable, while large-scale discrepancies have also been identified in the gas subsidy calculations. According to the auditors, these issues remain a challenge for financial transparency and accurate determination of government liabilities.

In the energy sector, the audit of several DISCOs, including HESCO, LESCO and FESCO, revealed that their financial statements were not completed on time. The internal audit system was also found to be not functioning effectively in some companies, due to which financial monitoring was affected.

Regarding the Pakistan Telecommunication Authority (PTA), the report said that the desired progress could not be made in the regulation of data centres and actions against illegal SIM activation. Similarly, issues of exceeding the scope of the National Telecommunication Corporation (NTC) were also part of the report.

In the audit opinion given to Pakistan Railways, encroachment on government land has been declared a major issue. According to the report, there is illegal occupation of a large area of ​​valuable railway land, which raises questions about the protection of national assets.

The significant increase in the cost of the Dasu Hydropower Project and the continuous closure of the Neelum-Jhelum Hydropower Project in WAPDA development projects have also been described as worrying. According to the auditors, delays and additional costs in these projects are causing pressure on national resources.

The report on the Benazir Income Support Program (BISP) has shown weak data management systems and concerns about payments to some undeserving people, while attention has also been drawn to the possibility of double payments.

The report also highlights the growing financial deficit of PASSCO, shortcomings in the financial records of the National Disaster Management Authority (NDMA) and audit objections pending in various institutions for years.

According to experts, the report reflects the need to further strengthen the system of financial management, accountability and transparency in Pakistan’s government institutions. This report will now be presented before the Public Accounts Committee (PAC), where explanations will be sought from various institutions and corrective measures will be reviewed.