A new audit report by the Auditor-General of Pakistan (AGP) for the fiscal year 2024-25 has highlighted serious concerns over financial management and accountability within the Pakistan Telecommunication Authority (PTA), exposing audit observations worth Rs97.43 billion.
The Audit Report on the Accounts of Public Sector Organizations (Telecommunication Sector) points out glaring issues in receivable management and lapses in following public directives, raising questions over PTA’s internal controls.
Key Findings of the PTA Audit Report
Receivable Management Lapses
One of the major revelations is a 160% increase in “mark-up receivable on license renewal fees,” which jumped from Rs2.54 billion in 2023 to Rs6.62 billion in 2024. The report attributes this significant rise to weak receivable management, identifying it as a major financial leakage that, if addressed, could contribute substantially to public funds.
Audit Observations Totaling Rs97 Billion
The AGP report flags audit observations amounting to Rs97.43 billion. Out of this, potential recoveries of Rs90.25 billion were noted, emphasizing the need for immediate corrective action to reclaim these funds.
HR and Banking Irregularities
The audit also unearthed financial discrepancies worth Rs60.83 million in HR-related irregularities and an equal amount linked to the management of accounts with commercial banks.
Inconsistent PAC Compliance
The report reviewed PTA’s track record of implementing Public Accounts Committee (PAC) directives and found inconsistent compliance. While some years recorded 100% compliance, others fell to 0%, contradicting the report’s closing remark of “adequate interest” in following PAC recommendations.
Prepared under the AGP’s mandate to ensure transparency and good governance, the audit report offers an in-depth examination of the regulatory body’s financial operations. Established in 1996, PTA is responsible for regulating Pakistan’s telecommunication sector, but the findings indicate a need for stronger financial controls and accountability mechanisms.
The report is likely to prompt a response from oversight bodies, including the PAC, to ensure the identified irregularities are addressed, and recoveries are made promptly.