A KP Economic Zones audit report has recorded irregularities and losses of Rs18.46 billion at the Khyber Pakhtunkhwa Economic Zones Development and Management Company (KPEZDMC) for fiscal year 2024-25. The Auditor General of Pakistan attributed the hit to the public purse to poor planning, weak management, and financial irregularities at the company that runs the province’s economic zones, including the Rashakai Economic Zone.
Lease dues and land that stayed unpaid
Auditors said KPEZDMC did not recover Rs2.08 billion in lease money from industrial owners for allotted land, even though court orders required recovery. Failure to renew agreements for commercial land added a further loss of Rs629.8 million to the exchequer.
In Haripur, plots 185, 186, 187 and 190—more than 10 acres—were allotted to Al-Hadeed Engineering, but the payment was not collected, leaving a loss of Rs497.8 million. Separately, commercial land illegally allotted for industrial use caused a loss of Rs174.1 million.
Vacant land and disputed allotments
The KP Economic Zones audit report also found that land was not vacated in Buner, Mohmand and Jalozai, producing a loss of Rs1.08 billion. Taken with the unpaid leases and allotment shortfalls, the figures point to long-running gaps in recovery and land control rather than a single accounting error.
The findings come days after another audit recorded Rs16.94 billion in irregularities in the KP Minerals Department, underlining pressure on provincial public finances in more than one sector.
Liabilities and questions over governance
According to the report, contingent liabilities—sums the company may have to pay if claims or guarantees crystallise—have reached Rs14 billion. Auditors said that level of exposure poses a serious risk to the continuity of the company’s business.
The same report raised questions about governance, land allotments, recovery of dues and overall financial affairs. It linked serious damage to public resources to poor administrative decisions and alleged steps that benefited favoured individuals. How the company closes the recovery gaps and contains those liabilities will shape whether provincial economic zones can operate as planned.
Aasan alfaaz mein
Khyber Pakhtunkhwa ke economic zones chalane wali company KPEZDMC ke audit mein 18.46 arab rupay ki be-zabtigiyan aur nuqsan nikle hain. Auditor General ki report ke mutabiq lease ke paise wasool nahi hue aur zameen ke mamlat mein bari kamiyan hain. Company par lagbhag 14 arab rupay ke contingent liabilities bhi hain, jis se us ke kaam jari rakhne ka khatra hai. Ye public ke paise aur industry ke zones dono ke liye bura ishara hai.
