ISLAMABAD: Minister for Finance and Revenue Senator Muhammad Aurangzeb presented a report in the National Assembly regarding the audit reports for the last three years.
It included 143 Audit Reports prepared by the Auditor General of Pakistan on Appropriation Accounts approved by the President and subsequently laid before Parliament.
Although in his written reply the Finance Minister did not provide details of the total amount of irregularities, losses, and misappropriations, he did mention the recoveries of over Rs 855 billion made during the last three fiscal years.
In response to a question by Dr Nafisa Shah, the Finance Minister stated that it was not possible to provide a single figure for the total amount of irregularities, losses, and misappropriations, as they pertain to different financial years and state-owned enterprises, which fall outside the government budget. He further explained that the irregularities include land disputes involving land prices, as well as out-of-budget financial amounts like circular debt.
According to the reply recoveries amounted to Rs 422.52 billion (Rs 422,520.58 million) in 2022-23, Rs 210.54 billion (Rs 210,541.60 million) in 2023-24, and Rs 222.749 billion (Rs 222,749.01 million) in 2024-25. The figures include amounts related to adjustments in accounts receivable in addition to actual recoveries, as per the reporting practice.
In response to another question from Shahida Rehmani regarding the revenue or financial benefit that has accrued to the national exchequer from the privatisation of Pakistan International Airlines (PIA), the Minister for Privatisation stated that the successful bidder, a consortium led by Arif Habib Corporation Limited has so far deposited Rs 5.0 billion with the Privatisation Commission. This amount includes Rs 2.0 billion as earnest money and Rs 3.0 billion as an escrow deposit. The remaining proceeds, amounting to Rs 130 billion, will be paid as per the provisions of the bid documents for the financial closure of the transaction.
Furthermore, the bid price of Rs 135 billion is for 75% of the stakes. With this injection, the overall value of 100% equity stakes rises to Rs 180 billion, meaning the government will have an upside of Rs 45 billion and will also benefit from reducing the annual losses it is currently incurring. Lastly, the successful bidder has the option to exercise a 25% call option by paying Rs 45 billion plus a premium (12% per annum after the first closing).
