Islamabad, Aug 24 : The Auditor General of Pakistan's (AGP) latest report is a charge sheet against the weak economic and fiscal governance of the state, with the scale of mismanagement and expenditure lapses of (Pakistani) Rs 375 trillion mentioned in the report is mindboggling, local media reports said.

Irregularities linked to procurement account for Rs 284 trillion, topped by huge losses to the exchequer due to delayed civil works, defective contracts, and non-recovery of dues at the expense of the public good. The audit demonstrates that the irregularities flagged in the report showcase a recurring pattern and reflect the systemic rot in governance caused due to weak oversight, poor controls and a tendency to bypass parliamentary approval of expenditures through large supplementary grants, Pakistan's leading daily Dawn reported.

Public funds are demanded without considering actual needs, and allocations are blocked, leaving billions in unspent funds, a practice that highlights bureaucracy's habit of ticking boxes instead of implementing financial discipline or achieving the intended results outcome. This explains Pakistan's fiscal and development crisis, as per the report.

The report highlights not only the mismanagement of public expenditure but also the regulatory lapses and financial misconduct in the affairs of market regulators. The report has showcased a troubling picture of weak regulatory governance in the telecom industry of Pakistan. This is evident in the partially privatised Pakistan Telecommunication Company Ltd (PTCL) denial of an audit of its accounts, the identification of financial irregularities of Rs 3.54 billion in buying equipment at inflated rates, excessive operational spending in the accounts of the state-owned SCO, and Jazz's PKR 6.58bn consumer overcharging in FY24.

In addition, it demonstrates the telecom regulator's failure to address the Rs 53.54 billion Zong spectrum case. The financial irregularities identified in the SCO accounts stem are due to weak corporate governance that has nearly pushed most SOEs to the brink, while the excessive charges to consumers by the leading mobile operator highlight inadequate regulatory oversight and the penchant of regulatory agencies to prioritise corporate interests over those of consumers, the Dawn report said.

The audit report highlights the need to implement strict financial discipline for better fiscal management to divert scarce funds for the welfare of people and improve regulatory governance to protect consumers from the unjust practices of corporations. These goals can be fulfilled only if parliament and the judiciary choose to implement accountability. Without accountability, these AGPs' audit reports are just an annual practice.

/IANS