The Auditor General of Pakistan has highlighted widespread financial irregularities, weak oversight and governance failures across several federal institutions in its 2025-26 audit of civil accounts. The detailed 399-page report identifies billions of rupees in questionable expenditures, unrecovered public funds and administrative lapses, raising serious concerns about financial accountability and transparency within government departments.
Among the audited organisations, the Higher Education Commission recorded the highest number of audit observations with 31 objections, followed by the Trade Development Authority of Pakistan with 18 and the Ministry of National Food Security with 17. Additionally, the Ministry of Science and Technology, Pakistan Atomic Energy Commission, National Health Ministry and several other departments also faced significant audit scrutiny over financial management and compliance issues.
One of the report’s most significant findings questioned the utilisation of Rs75 billion allocated under the Sustainable Development Goal Achievement Programme. Auditors found that the Cabinet Division failed to maintain proper monitoring records, including mandatory progress reports and completion certificates, making it impossible to verify whether development funds were distributed and spent fairly across different regions of the country.
The audit also revealed that liabilities worth Rs1.927 trillion under foreign relent loans remained unrecovered by the Economic Affairs Division. Furthermore, Quaid-e-Azam University faced objections over illegal occupation of nearly 298 acres of land, delayed tax deposits, investment of scholarship funds and financial decisions made without approved policies. Meanwhile, Pemra was questioned over Rs87 million in outstanding recoveries, while NAB faced audit objections amounting to Rs324 million.
Several other ministries also came under criticism for procurement irregularities, delayed inquiries, unauthorised investments and poor financial controls. The Ministry of National Health Services was questioned over vaccine purchases, medicine procurement and consultant payments, while the Ministry of Science and Technology faced observations involving Rs59 billion in delayed payment losses, surplus funds, matured investments and unauthorised bank accounts outside the Federal Consolidated Fund.
Overall, the audit report presents a troubling picture of financial governance across multiple federal entities. Auditors stressed the need for stronger internal controls, transparent monitoring systems, timely recovery of public funds and greater institutional accountability. The report also noted that several departments either failed to respond to audit observations or provided explanations that did not satisfy auditors, leaving many accountability concerns unresolved.