PESHAWAR, November 2, 2026: An audit report has revealed major financial irregularities in Khyber Pakhtunkhwa during the Pakistan Tehreek-e-Insaf (PTI) government’s tenure, identifying Rs72.46 billion in public expenditure that could not be fully verified during the 2024-25 financial year.
The findings raise concerns over financial accountability in the province, with auditors identifying discrepancies in government spending, development allocations, budget records and foreign loan accounts.
According to the audit report, Rs104.26 billion was recorded in the government’s SAP financial management system beyond the budget approved by the Khyber Pakhtunkhwa Assembly. The discrepancy has raised questions about budgetary controls and the accuracy of provincial financial records.
Auditors also identified Rs153.68 billion in development expenditure that had been incorrectly classified under current expenditure. The misclassification resulted in significant discrepancies in the government’s financial statements.
The report further highlighted a negative balance of Rs39.58 billion in the province’s public account, indicating that payments exceeded recorded receipts.
Foreign loan management emerged as another major area of concern, with accounting records for Rs98.89 billion in external borrowing found to be incomplete.
The audit noted that comprehensive details of foreign loan receipts, repayments and grants were unavailable. Additionally, payments amounting to Rs51.85 billion against foreign loans and interest could not be fully verified.
The findings also exposed longstanding weaknesses in the province’s debt record management.
According to the report, Khyber Pakhtunkhwa’s domestic debt records had not been updated since the 2017-18 financial year, while records relating to loans obtained from the federal government remained outdated since 2013-14.
Auditors identified further discrepancies involving Rs20.20 billion in additional entries under a provincial development budget category.
Similar irregularities involving billions of rupees were reported in budget allocations for several government departments, including health, education, police, roads and other public services.
The audit findings highlight significant weaknesses in financial reporting, expenditure verification and debt management within the provincial administration.
The report raises questions about the transparency of public spending under the PTI-led provincial government, particularly the reliability of financial records used to monitor development funds and government liabilities.
While the audit identifies substantial accounting discrepancies and unverified expenditures, the findings do not establish that the entire amounts were misappropriated.
The report underscores the need for financial reconciliation and stronger oversight to address discrepancies in Khyber Pakhtunkhwa’s public accounts and ensure greater accountability in provincial spending.