Peshawar (The COW News Digital) A government audit report has alleged major financial irregularities in Khyber Pakhtunkhwa’s minerals sector during the Pakistan Tehreek-e-Insaf (PTI) government, estimating that the provincial treasury suffered losses exceeding Rs16.94 billion in a single year.
According to the report, the findings point to more than administrative failures, alleging systematic irregularities in mineral extraction, royalty collection and the recovery of government dues. The allegations require investigation to establish responsibility and determine whether any laws were violated.
The audit report states that more than Rs8 billion was lost through illegal mining during 2022 and 2023. It also alleges that outstanding dues of Rs4.31 billion were not recovered from defaulting contractors, raising questions about the enforcement of financial obligations within the department.
Despite the presence of checkpoints, inspectors and officials from the provincial minerals department, illegal mining reportedly continued across the province. The report estimates that this resulted in an additional loss of Rs3.08 billion to the provincial exchequer.
The report also identifies the alleged illegal extraction of gravel and sand under projects involving highway construction and small dams. According to the audit findings, irregularities linked to these activities accounted for an estimated Rs3.07 billion in losses.
Further discrepancies were reported in the collection of duties and outstanding payments. The audit found that Rs547.2 million in excise duty imposed on minerals had not been collected. It also identified more than Rs810 million in outstanding dues associated with coal, bauxite, limestone and soapstone mines that were reportedly waived.
In another finding, the report highlighted the leasing of minerals department land in Peshawar at a rate of Rs200 per acre instead of the stated rate of Rs10,000 per acre. The audit estimated that this arrangement resulted in a loss of Rs140 million.
The report also pointed to the non-recovery of dues linked to small dams in Kohat, Nowshera, Swabi, Haripur and other districts, estimating the resulting loss at more than Rs530 million. In Mardan, royalty payments amounting to Rs63.6 million were also reportedly withheld.
The Auditor General has recommended an inquiry into the matter and called for accountability regarding the identified discrepancies. The report’s findings raise questions about oversight, revenue collection and the monitoring of mineral resources in the province.
Experts cited in the report have called for investigations into the officials and individuals identified in the audit. They argue that a transparent inquiry is necessary to determine how the alleged losses occurred and whether negligence, misconduct or deliberate wrongdoing was involved.
The allegations concern the management of a significant provincial revenue source. However, the audit findings alone do not establish criminal liability. Any determination of responsibility would depend on further investigations and the findings of the relevant authorities.
