PESHAWAR: An audit report has flagged financial irregularities and losses amounting to Rs18.46 billion at the Khyber Pakhtunkhwa Economic Zones Development and Management Company (KPEZDMC) during the 2024-25 fiscal year, raising questions about the company’s financial management and administrative oversight during the Pakistan Tehreek-e-Insaf (PTI)-led provincial government.
According to the report, weak planning and administrative shortcomings contributed to the reported financial impact on the public exchequer.
The audit found that the company failed to recover Rs2.0849 billion in lease payments from industrial land allottees despite court orders.
It also identified a potential loss of Rs629.8 million following the failure to renew commercial land agreements in accordance with a revised lease renewal policy introduced in 2024.
The report further flagged an estimated loss of Rs1.0774 billion due to the failure to reclaim government land in Buner, Mohmand and Jalozai.
In another irregularity, the unlawful allocation of commercial land designated for industrial purposes resulted in a reported loss of Rs174.1 million to the provincial exchequer.
The audit also highlighted a case involving Al-Hadeed Engineering in Haripur. The company was allotted plots numbered 185, 186, 187 and 190, covering a total of 10 acres. The failure to recover the amount due for the allotment resulted in a reported loss of Rs497.8 million, according to the report.
The report estimated the economic zones company’s potential liabilities at Rs14 billion, warning that the amount posed a serious risk to the continuation of its business operations.
The findings raise concerns about land management, revenue recovery and financial oversight at the state-owned company, which is responsible for developing and managing industrial zones across the province.
The audit findings point to significant weaknesses in the company’s administrative and financial controls. Any determination of individual responsibility or criminal wrongdoing would require further investigation and the relevant accountability process.
