The Auditor General of Pakistan has uncovered significant financial irregularities in the transfer of Research and Development (R&D) funds by Ignite National Technology Fund Management, which operates under the Ministry of IT and Telecom (MoITT).
According to the audit report, a total of Rs. 9,152 million was transferred to the Finance Division in two separate instances during 2013 and 2023.
Audit findings reveal that Rs. 4,152 million were moved from the R&D Fund in 2013 to clear circular debts. This amount has not been recouped to date. Similarly, Rs. 5,000 million were transferred to the Finance Division in December 2023 following a resolution passed during the 40th meeting of the R&D Fund Policy Committee. Despite commitments to recover the funds by the last quarter of FY 2023-24, no recovery has been made so far.
The report stated that these fund transfers violated Section 33D (2) of the Pakistan Telecommunication (Re-organization) Act, 1996, and the R&D Fund Rules, 2006, which strictly limit the use of the fund to ICT-related research and development activities. The misuse of resources not only disrupted ongoing projects but also jeopardized the financial liquidity of Ignite Company.
Audit observations further noted that similar irregularities were reported earlier in Audit Year 2014-15, involving Rs. 6,760.742 million. The recurrence of such practices was described as a matter of “serious concern,” raising questions about governance and transparency in the utilization of telecom operators’ contributions intended for innovation and ICT development.
Ignite informed ProPakistani that the R&D Fund is managed by the Ministry of IT, and the decision to transfer the funds to the Finance Ministry was made by the federal government, which the Ministry of IT implemented accordingly.
The Departmental Accounts Committee (DAC), in a meeting held on December 12, 2024, directed Ignite management to recover the transferred funds and have the recovery verified through an audit. However, the management’s response, citing cabinet decisions and policy committee recommendations, was deemed “untenable” by auditors.