Another Financial Controversy in PTI-Ruled KP? Audit Reports Rs18.46 Billion in Irregularities

An audit report has flagged alleged financial irregularities and mismanagement amounting to Rs18.46 billion at the Khyber Pakhtunkhwa Economic Zones Development and Management Company during the 2024–25 financial year, raising questions about the organisation's administration and handling of public resources. The findings relate to the period when the Pakistan Tehreek-e-Insaf (PTI) was in power in the province. According to the audit report, weak planning and poor administrative management contributed to financial losses and unresolved liabilities. The report identified several issues involving the recovery of lease payments, renewal of commercial land agreements, possession of industrial plots and the allocation of land for industrial purposes. Rs2.08 Billion in Lease Payments Remain Unrecovered According to the audit findings, the company failed to recover Rs2.0849 billion in lease payments from industrial allottees despite court orders requiring recovery. The report also highlighted the financial consequences of a new lease-renewal policy introduced in 2024. Failure to renew commercial land agreements under the policy reportedly resulted in a loss of Rs629.8 million to the public exchequer. Land Issues in Buner, Mohmand and Jalozai The audit report identified another alleged loss of Rs1.0774 billion linked to the failure to recover or reclaim land in Buner, Mohmand and Jalozai. It also reported that the illegal allocation of commercial land for industrial purposes caused a loss of Rs174.1 million. These findings raised concerns about the management of land under the company's control and compliance with the applicable allocation and leasing procedures. Haripur Industrial Plot Case The report also highlighted the allocation of a 10-acre plot in Haripur to Al-Hadeed Engineering. The land comprised plots numbered 185, 186, 187 and 190. According to the audit findings, the company failed to recover the relevant amount from the allottee, resulting in a reported loss of Rs497.8 million to the public exchequer. The report cited this case among the issues requiring scrutiny of the company's land-allocation and revenue-recovery practices. Potential Liabilities Estimated at Rs14 Billion The audit report estimated the company's potential liabilities at Rs14 billion, warning that the amount posed a serious risk to the continuation of its business operations. The findings raised broader questions about the company's financial management, internal controls and ability to collect revenues due from industrial allottees. The report attributed the identified losses and irregularities to weak planning and administrative shortcomings. It also raised concerns about whether public resources had been managed in a manner that favoured certain individuals' interests. The supplied findings do not include a response from the company or the former provincial government, nor do they establish whether the alleged irregularities resulted in any criminal convictions.