Audit finds FBR missed billions in super tax potential

A comprehensive audit report for the fiscal year 2025-26 has exposed billions of rupees in financial irregularities and mismanagement across multiple federal government divisions in Pakistan. The report, presented to the National Assembly, highlights significant lapses in revenue collection, project execution, and operational oversight.

The Federal Board of Revenue (FBR) is singled out for failing to collect Rs117.8 billion in super tax, with further unrecovered duties also noted. The Petroleum Division faces scrutiny over a disputed gas subsidy balance amounting to hundreds of billions of rupees. Electricity distribution companies, including Hesco, Lesco, and Fesco, operated with unaudited accounts for two years, alongside withheld subsidy claims and stalled transmission projects.

Further issues were identified in the Pakistan Telecommunication Authority (PTA) for not bringing data centers under its licensing regime and penalizing Ufone's operator. Pakistan Railways was flagged for encroaching on over 1,500 kanals of land. Wapda's projects, such as the Dasu Hydropower Scheme, saw a 257% cost increase, while the Neelum-Jhelum plant remains offline. The Benazir Income Support Programme also faces warnings regarding weak data controls, potentially leading to ineligible beneficiaries and duplicate payments.

The report, compiled by the Auditor General of Pakistan Maqbool Ahmad Gondal, will now be reviewed by the Public Accounts Committee of the National Assembly. The findings represent the auditors' position, with departments' responses included from prior meetings.