A staggering Rs354 billion in financial irregularities have been uncovered in Khyber Pakhtunkhwa’s (KP) local governments between 2002 and 2024. Despite over two decades of audits, only Rs3.2 billion has been recovered. The lack of a strong accountability system has prevented resolution of the audit objections, allowing mismanagement of public funds to go unchecked.
Experts blame the Pakistan Tehreek-e-Insaf (PTI) government for failing to establish Tehsil Accounts Committees, as required under the 2019 Amendment Act. These committees were meant to review budgets and audit reports but have yet to be activated. In contrast, other provinces like Punjab and Sindh have functional oversight systems that regularly review financial matters.
Between 2013 and 2024, audit records showed a clear pattern of rising objections and minimal recoveries. For example, in 2021-22, Rs52.4 billion in irregularities were reported, but only Rs0.5 million was recovered. Similar gaps persisted across other years, highlighting inefficiencies in local governance.
Officials from the Auditor General’s office warn that audit objections will keep growing unless immediate reforms are introduced. They also noted that the current law does not allow audit paras before 2019 to be settled, leaving a massive backlog unaddressed. This has raised serious concerns about transparency and accountability in KP’s financial system.
Meanwhile, the Local Government Department claims it has not received audit reports from the Auditor General. Even if reports were received, they argue that Tehsil Accounts Committees — which have not yet been formed — are responsible for reviewing them. This bureaucratic deadlock has made it nearly impossible to recover billions of rupees in public funds.