ISLAMABAD: The latest audit by the Auditor General of Pakistan (AGP) has sharply criticized the Ministry of Defence for failing to comply with audit recommendations over a nine-year period, exposing deep-rooted issues in governance and accountability.
According to the AGP’s audit report for FY 2023-24, the Defence Ministry did not act on a single one of the 51 audit paras or the one “actionable point” issued between 2011-12 and 2021-22. A detailed table under the section “Status of Compliance with PAC Directives” shows zero compliance — a clear indication of systemic disregard for financial accountability.
The report also sheds light on 30 years of regulatory failure by the Pakistan Maritime Security Agency (PMSA), an arm of the Defence Ministry. Since its formation under the 1994 PMSA Act, the agency has not framed any of the mandatory rules required under Sections 18 and 19. These legal provisions obligated the federal government and PMSA’s director general to publish such rules in the official gazette, which remains undone.
Auditors termed this a “serious lapse” and violation of statutory duties. Following a meeting on December 9, 2024, the Departmental Accounts Committee (DAC) instructed PMSA to immediately begin the rule-making process.
The audit also uncovered financial discrepancies, noting that PMSA failed to deposit Rs6.95 million into the Federal Consolidated Fund — part of Rs37.53 million earned from auctions of seized Indian boats and fish. Only Rs30.58 million was deposited, violating both the Public Finance Management Act, 2019, and TSA rules enforced by the Finance Division since 2020.
However, not all findings were negative. The Defence Ministry recorded Rs314 million in budgetary savings during 2023-24 from its Rs1.9 trillion allocation. These savings came primarily from lower-than-expected expenditures in both development and operational areas.
When asked to comment on the AGP’s findings, the Information Minister had initially committed to issuing a response on Thursday. However, no reply was received. In previous remarks, a government spokesman had stated that audit irregularities often get settled at the DAC level before going to the Public Accounts Committee (PAC).
“The PAC has asked all Principal Accounting Officers to convene DAC meetings monthly so most issues can be resolved early,” the spokesman said, suggesting that many audit flags may not be as serious as they initially appear.