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IMF Concerned Over Delayed Audits of State Institutions, Says AGP
IMF raises concerns over 600,000 pending audit cases in Pakistan. AGP blames flawed financial audit system and lack of internal oversight. PAC demands answers from ministries!
ND
by News Desk
2025-03-05
IMF Concerned Over Delayed Audits of State Institutions, Says AGP

The International Monetary Fund (IMF) has expressed serious concerns over delays in the audit process of state institutions, Auditor General of Pakistan (AGP) Ajmal Gondal revealed during a Public Accounts Committee (PAC) meeting on Wednesday.

This development comes amid ongoing discussions between Pakistan and the IMF for the first biannual review of the $7 billion Extended Fund Facility. The global lender is particularly focused on addressing governance issues and corruption vulnerabilities in Pakistan’s financial system.

600,000 Pending Audit Paras Raise Alarms

During the meeting, AGP Gondal disclosed that the IMF had urged Pakistan to expedite the settlement of audit cases. He revealed that nearly 600,000 audit paras related to various ministries and institutions remain unresolved, further complicating the country’s financial accountability.

“The IMF has demanded an early settlement of these cases,” Gondal stated. He pointed out that despite repeated parliamentary directives, no chief internal accountant has been appointed in key institutions, leading to inefficiencies in financial oversight.

Flawed Financial Audit System

Highlighting systemic issues, Gondal criticized the lack of an effective audit framework. “The financial audit system is flawed due to non-implementation of the rules,” he asserted.

He further revealed that:

  • Secretaries and Chief Financial Officers (CFOs) are not clearing audits in several institutions.
  • Only 15 institutions have CFOs, and none have a Chief Internal Accountant.
  • There is no internal audit system in most government departments.

Due to these shortcomings, the backlog of audit cases under PAC has now surpassed 30,000 unresolved cases, further complicating financial accountability.

PAC Demands Urgent Response

In response to the AGP’s concerns, the PAC has sought detailed reports from ministries and institutions within a month to address the alarming backlog of audit cases.

This is not the first time the AGP has sounded the alarm over financial mismanagement. In August last year, he had warned of Pakistan’s worsening fiscal health, highlighting that:

  • Less than 4% of the Rs38.67 trillion budget was available for socio-economic services.
  • 93% of supplementary grants worth over Rs8 trillion were not approved by parliament, leading to significant losses of public resources.

IMF Pressures Pakistan for Financial Reforms

With the IMF closely monitoring governance and transparency issues, Pakistan faces growing pressure to streamline its financial audit system and enhance accountability in public spending.

The resolution of these pending audit cases remains a critical step in restoring financial discipline and securing continued support from the IMF under its loan program.
Tagged:

Pakistan

IMF

PAC

FinancialAccountability

AuditCrisis
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