PESHAWAR: A government audit report has flagged financial irregularities exceeding Rs16.94 billion in Khyber Pakhtunkhwa’s minerals sector during the Pakistan Tehreek-e-Insaf (PTI) government’s tenure, raising serious questions over illegal mining, unpaid royalties and the management of provincial mineral resources.
According to details reported by Express News on October 21, the audit identified substantial revenue losses linked to unauthorised mineral extraction, non-recovery of government dues and alleged irregularities in mining-related contracts.
The report reportedly described the findings as evidence of systematic corruption rather than routine administrative failures and recommended an inquiry to determine responsibility.
Among the major findings, the audit identified more than Rs8 billion in losses attributed to illegal mining activities during 2022 and 2023. It also highlighted Rs4.31 billion in outstanding payments that authorities allegedly failed to recover from defaulting contractors.
The report raised concerns about continued unauthorised mining despite the presence of departmental inspectors and monitoring checkpoints across the province. It attributed a further Rs3.08 billion in losses to failures in preventing illegal mineral extraction.
Another Rs3.07 billion in irregularities was linked to the extraction of sand and gravel associated with road construction and small dam projects.
The audit also identified Rs547.2 million in uncollected excise duty on minerals, alongside more than Rs810 million in outstanding payments related to coal, bauxite, limestone and soapstone mining operations.
In Peshawar, the report questioned the leasing of land belonging to the minerals department at Rs200 per acre against a stated rate of Rs10,000 per acre, resulting in an alleged loss of Rs140 million.
Additional irregularities included more than Rs530 million in unrecovered dues associated with small dam projects in Kohat, Nowshera, Swabi, Haripur and other districts.
In Mardan, the audit flagged Rs63.6 million in outstanding royalty payments.
The Auditor General reportedly recommended an inquiry against those responsible for the identified irregularities.
The findings have prompted calls for accountability and a detailed examination of the decisions that resulted in the alleged losses to the provincial exchequer.
However, audit objections and reported financial irregularities do not, by themselves, establish criminal wrongdoing. Determining whether corruption occurred, and identifying those responsible, would require further investigation and appropriate legal proceedings.
The report also raises broader questions about the effectiveness of mining regulation, revenue collection and oversight mechanisms in Khyber Pakhtunkhwa.
The reported figures have also appeared in other Pakistani news outlets, although some accounts differ on the breakdown of individual irregularities. The original audit documentation and the department’s response would be needed to reconcile those differences.