An audit report has identified financial irregularities and losses totalling Rs18.46 billion at the Khyber Pakhtunkhwa Economic Zones Development and Management Company (KPEZDMC) for the 2024-25 fiscal year, bringing the company’s financial practices and administrative supervision under scrutiny during the Pakistan Tehreek-e-Insaf (PTI)-led provincial government.
The report attributed the financial impact on the public exchequer to inadequate planning, administrative weaknesses and shortcomings in the company’s management.
According to the audit, the company failed to collect Rs2.0849 billion in outstanding lease payments from industrial land allottees, despite court directives for recovery.
The auditors also pointed to a potential loss of Rs629.8 million resulting from the non-renewal of commercial land agreements in line with a revised lease renewal policy introduced in 2024.
Another estimated loss of Rs1.0774 billion was highlighted due to the company’s failure to retrieve government-owned land in Buner, Mohmand and Jalozai.
The report identified a further irregularity involving the unauthorised allotment of commercial land earmarked for industrial use, which reportedly caused a loss of Rs174.1 million to the provincial exchequer.
The audit also examined the case of Al-Hadeed Engineering in Haripur, which had been allotted plots numbered 185, 186, 187 and 190, spanning a combined area of 10 acres. According to the report, the failure to recover the outstanding amount against the allotment led to a reported loss of Rs497.8 million.
The report placed the company’s potential liabilities at an estimated Rs14 billion, cautioning that this financial burden could pose a significant threat to the continuity of its business operations.
The findings have raised questions about the management of industrial land, collection of government revenue and effectiveness of financial controls at the state-owned company, which oversees the development and administration of industrial zones across Khyber Pakhtunkhwa.
Overall, the audit points to substantial deficiencies in the company’s administrative procedures and financial safeguards. However, establishing individual accountability or determining whether any criminal misconduct occurred would require additional investigation and proceedings through the relevant accountability mechanisms.
