AGP detects Rs8.32bn mismatch in interior ministry’s accounts
ISLAMABAD: The Auditor General of Pakistan (AGP) has detected financial embezzlement, mismanagement, and irregularities worth billions of rupees in the accounts of the Ministry of Interior and Narcotics Control.
According to the report, audit observations amounting to Rs8.32 billion were raised during the audit year 2025-26.
The audit observed that the Ministry of Interior and Narcotics Control provided a list, containing 149 No Objection Certificates (NOCs) that were issued to armoured vehicles of different individuals and 15 private companies in the financial year 2023-24.
Audit observed that the individuals and retrofitting companies did not pay the annual renewal fee and penalty for delay in renewal of NOCs, which resulted in a loss of Rs22.43 million to the public exchequer.
It says that the National Database Registration Authority (Nadra) deposited a fee of Rs22,095 for issuing an arms licence in the government treasury instead of Rs25,615. Furthermore, 99 arms licences (16 Prohibited Bore and 83 Non-Prohibited Bore) were modified; however, no record was available regarding the nature/type of these modifications, the Ministry’s approval, and the deposit of any fees earned from these modifications.
The Audit is of the view that the government suffered a loss due to non-deposit of receipts on account of arms license fees.
The report says that the Ministry of Interior and Narcotics Control provided a list showing that 724 licenses/NOCs were issued to different private security companies across the country till the calendar year 2018.
Audit observed that the private security companies did not pay their annual renewal fee. Further, the details of private security companies registered during the period from 2019 to June 30, 2024 were not provided by the concerned Section of the Ministry. It was observed that Rs27.99 million on account of renewal fee was not recovered from the private security companies.
The report says that management of the National Police Foundation (NPF), Islamabad, advertised in five national dailies in December 2023 for the auction of 4,977 Square Yards of commercial land at NPF Housing Scheme in Sector E-11, Islamabad. In response, two firms participated, and M/s SMB Pvt. Ltd. quoted a rate of Rs217,000 per Sq. Yards, amounting to Rs1,085 million for 5,000 square yards, including parking space. The bidder deposited Rs168.78 million, which 15 percent of the bid amount.
The Audit observed that neither the remaining amount of Rs922.25 million was deposited by the bidder nor the advance payment of Rs168.78 million was forfeited. Further, a complete record of the auction, including bidding documents, was also not provided to ascertain the transparency of the bidding process.
The report observed that the revised fee structure of Islamabad Traffic Police (ITP) reflects abnormally high increases ranging from 100 percent to 733.33 percent over the previously notified rates of 2018. Further comparison with the National Highways and Motorway Police (NH&MP) revealed that ITP fees are 200 percent to 700 percent higher for identical services. These increases were excessively high and disproportionate, without any documented cost-based justification.
The audit is of the view that such an abnormal increase has placed an undue financial burden on the general public, compelling citizens to bear high costs for obtaining a statutory/legal document.
It says that non-collection of fines through e-challan of Rs21.11 million government receipts not only caused loss to the public exchequer but also is a serious lapse on the part of management.
The report says that the Anti-Narcotics Force (ANF)incurred an expenditure of Rs1,223.63 million during the financial year 2024-25 on the overhauling of two MI-171-E helicopters.
Audit scrutiny revealed that, as per the minutes of the meeting dated May 5, 2024, the helicopters were sent abroad for overhauling instead of being repaired locally. It was further observed that the overhauling services were obtained from an overseas company because the required equipment and facilities were not available with local bidders.
Copyright Business Recorder, 2026