Audit objections on government land liabilities in Khyber Pakhtunkhwa

The audit of the Khyber Pakhtunkhwa Economic Zones Development and Management Company for the financial year 2024-25 has identified financial irregularities worth Rs 18.46 billion. The report highlights shortcomings related to the company’s administrative affairs, land lease agreements and recovery of government dues.

According to the audit report, poor planning and weak administrative supervision have raised questions about the protection of government resources and transparency of financial transactions.

The report states that despite court orders, Rs 2.849 billion could not be recovered as dues for land leased for industrial purposes.

Similarly, a financial loss of Rs 629.8 million has been identified due to non-renewal of commercial land agreements under the lease renewal policy introduced in 2024.

According to the audit, a loss of Rs 1.774 billion was identified in the case of non-recovery of government land in Buner, Mohmand and Jalozai. The report also mentioned irregularities of Rs 174.1 million related to the allocation of commercial land for industrial purposes.

The issue of allotment of plots numbered 185, 186, 187 and 190, consisting of 10 acres, to Al-Hadeed Engineering in Haripur is also part of the audit report. According to the report, the government treasury faced a loss of Rs 497.8 million due to non-recovery of the relevant amount.

The report estimates the company’s potential financial liabilities at Rs 14 billion. This amount is considered a significant risk to the company’s financial position and business continuity.

These audit observations highlight the need to review the management of government lands, collection of liabilities and financial monitoring procedures. However, the final status of these objections, determination of liability and possible recovery will be clear only after the relevant authorities investigate and take action.