Ministry of Industries and Production: PAC panel questions irregularities

ISLAMABAD: The Public Accounts Committee’s (PAC) sub-committee on Tuesday questioned financial irregularities related to the Ministry of Industries and Production, taking strong exception to the failure to renew an agreement for an Rs1 billion industrial park project and scrutinising expenditures by Pakistan Steel Mills (PSM), including special advances and spending on a guest house despite the mill’s prolonged shutdown.

The sub-committee, chaired by Syed Naveed Qamar, reviewed audit observations relating to the Ministry of Industries and Production for the financial years 2011-12 to 2022-23, directing the ministry and its attached organisations to resolve long-pending audit objections.

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The committee first examined an audit objection concerning the failure of the Pakistan Industrial Development Corporation (PIDC) to extend a Memorandum of Understanding (MoU) with the Sindh government for an industrial park project.

Audit officials informed the committee that despite spending around Rs1 billion on the project, the MoU with the Sindh government had expired and was never renewed, while the industrial park itself remained incomplete. PIDC officials acknowledged that the project had yet to be completed and said the corporation had written to the Sindh government, seeking an extension of the agreement.

Questioning the arrangement, Qamar asked why the MoU had been signed for a limited duration.

When officials replied that the Sindh government had been approached for renewal, Qamar remarked, “They have already provided you the land; what role remains for them now?”

The committee decided to write to the Chief Secretary of Sindh and directed that the issue be resolved before its next meeting.

The PAC sub-committee then took up an audit objection regarding Rs62 million in special advances paid to various departments of Pakistan Steel Mills.

Questioning the payments, Qamar asked, “If the mill is closed, what are these advances being paid for?”

PSM officials replied that certain service departments were still operational despite the closure of production activities.

Qamar further questioned whether the organisation still had employees.

Officials informed the committee that 695 employees remained on the payroll.

Secretary Industries and Production told the committee that more than Rs56 million had already been recovered.

However, Qamar observed that the department had failed to satisfy the audit authorities.

“The institution that has to be satisfied has not been convinced,” he remarked.

The committee directed that the audit objection would only be settled after the relevant record was produced and verified by the audit authorities.

In another audit observation, the committee questioned more than Rs10 million spent by Pakistan Steel Mills on its guest house, terming the expenditure unjustified given the financial condition of the state-owned enterprise.

“You are rendering people jobless, yet your lavish spending continues,” Qamar told PSM officials.

He further remarked, “I don’t know how you obtained a licence to run what appears to be a hotel.”

The committee directed that the guest house accounts be subjected to a detailed audit and also sought complete details regarding the legal status of the facility.

Copyright Business Recorder, 2026