PAC orders return of billions in unused funds

DCs of Gwadar, Dera Bugti told to transfer amounts in six months

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QUETTA:

The Public Accounts Committee (PAC) has directed deputy commissioners (DCs) of Gwadar and Dera Bugti to transfer billions of rupees lying unused in dormant accounts back to the government treasury.

The meeting, chaired by PAC Chairman Asghar Ali Tareen, addressed financial irregularities and the misuse of public funds, emphasising accountability in Balochistan's administration.

During the session, DG Audit Balochistan revealed that 50 accounts under the administration of DC Gwadar held more than Rs 14.5 billion in unused funds, with billions already refunded.

The committee instructed that funds in dormant accounts be transferred to the treasury within six months unless rightful landowners claim compensation.

Public advertisements will be published to notify eligible claimants. Unclaimed funds will be returned to the government treasury.

In Dera Bugti, an inactive account containing Rs 25.820 million was identified. PAC ordered the immediate deposit of these funds into the treasury to address decades-long financial mismanagement.

The committee further directed that DCs submit detailed reports on fund utilisation within two months. The PAC chairman stressed that succession certificates must be obtained by heirs to ensure rightful beneficiaries receive their dues.

The PAC's actions highlight a commitment to enforcing financial transparency and resolving longstanding issues of mismanagement in Balochistan.

Financial mismanagement in Balochistan remains a critical issue, severely impacting the province's development and its ability to address pressing socioeconomic challenges.

Despite substantial financial allocations, misallocation, underutilisation, and irregularities in expenditure have hindered progress in key areas such as education, health, and infrastructure.

Recent statistics highlight the depth of the problem. In the fiscal year 2022-23, the Auditor General of Pakistan identified financial irregularities amounting to over Rs26.54 billion in Balochistan.

Although the province generated approximately Rs491.93 billion in revenue, it incurred expenditures of Rs503.944 billion, resulting in a budgetary deficit of around Rs12 billion. This reflects a consistent trend of inefficient financial management and a lack of strategic planning.

The province's development funds also reveal stark imbalances. Nearly 74% of the Public Sector Development Programme (PSDP) funds were allocated to just four departments—Public Health Engineering, Communication and Works, Local Government, and Irrigation—while the remaining sectors, including education and healthcare, were left with a mere 26%.

Financial experts say that even more concerning is the fact that less than 1% of the funds were directed toward other critical areas, raising concerns about equitable distribution of resources.

Moreover, only 30% of the allocated development funds were utilised, reflecting inefficiencies in planning and execution. This underutilization undermines the province's ability to address basic needs and develop sustainable infrastructure, further exacerbating the challenges faced by its population.

For the fiscal year 2024-25, the Balochistan government presented a budget of Rs930 billion, claiming a surplus of Rs25 billion.