An official audit report has flagged Rs16.94 billion in financial irregularities and potential losses in Khyber Pakhtunkhwa’s Minerals Department during the Pakistan Tehreek-e-Insaf (PTI) government.
The report highlights several issues, including illegal mining, failure to recover government dues from contractors, illegal extraction of sand and gravel, unpaid mineral duties and the leasing of government land at low rates.
According to the details provided, the financial year 2022-23 alone saw audit objections involving Rs16.94 billion. These included an estimated Rs8 billion in losses linked to illegal mining.
The report also raised questions about weak monitoring, poor revenue collection and failure to take legal action against those involved. However, audit objections do not automatically establish corruption. The final findings depend on official responses, investigations and decisions by the relevant authorities.
The report identified Rs4.31 billion in outstanding payments from defaulting contractors. It also flagged Rs810 million in unpaid dues from mineral leaseholders.
Around Rs580 million in profits from joint ventures had reportedly not been deposited into the government treasury. The report also pointed to losses of about Rs140 million due to low rent charged for government land.
Another audit report, covering cases up to July 2024, identified around Rs1.678 billion in outstanding amounts linked to illegal mining. It also raised concerns about weak monitoring, failure to register cases and delays in recovering dues.
Since this was a separate report covering a different period, its figures should not be added to the Rs16.94 billion total without further verification.
The audit also flagged around Rs530 million in unpaid dues linked to minerals extracted for small dam projects. It identified a potential loss of Rs250 million due to the failure to award mineral contracts. In Mardan, Rs63.6 million in outstanding royalty payments reportedly remained unrecovered.
The details provided also mention losses of Rs3.07 billion linked to the alleged illegal extraction of sand and gravel for road and dam projects. They further cite Rs547.3 million in unpaid excise duty on minerals and Rs810 million in dues reportedly waived for coal and other mineral mines. These figures require verification against the original audit records to determine whether they overlap with other objections.
The leasing of government land in Peshawar also came under scrutiny. According to the details, rent was set at just Rs200 instead of Rs10,000, causing an estimated loss of Rs100 million to Rs140 million. A published report separately cited a loss of Rs140 million over the low rent.
The audit objections have raised questions about the management of mineral resources, revenue collection and efforts to prevent illegal mining during PTI’s tenure in the province.
Mineral revenues could support public services, including education, healthcare and development projects. Failure to collect government dues or prevent illegal extraction can deprive the province of much-needed income.
The findings call for a detailed investigation, recovery of outstanding dues and accountability where wrongdoing is established. Authorities also need to clarify how much money has been recovered, how many cases have been investigated and what action has been taken against those responsible.
The final outcome will depend on the department’s response, further audit proceedings and decisions by the relevant oversight bodies, including the Public Accounts Committee. Until then, the reported figures should be treated as audit objections rather than proven corruption.
