The Auditor General of Pakistan (AGP) has revealed that the National Telecommunication Corporation (NTC) failed to deposit Rs. 16.67 million in non-tax revenue into the Federal Consolidated Fund (FCF) during the fiscal year 2023–24.
The audit report found that the NTC, which operates under the Ministry of Information Technology and Telecommunication (MoITT), violated provisions of the Public Finance Management (PFM) Act, 2019, which mandates that all non-tax revenues be promptly transferred to the federal account.
According to the report, the amount was received from recoveries of liquidated damages, private phone calls, and deductions from house requisitions.
But the corporation retained the funds instead of depositing them into the FCF as required under Sections 40B and 40C of the PFM Act.
The auditors described this as a serious lapse in financial discipline, warning that such practices undermine transparency and weaken fiscal oversight.
When questioned, NTC management argued that under the Pakistan Telecommunication (Reorganization) Act, 1996, the collected revenues were part of its internal income, managed as part of the annual surplus or deficit.
However, the Auditor General rejected this explanation, clarifying that Section 45 of the PFM Act supersedes all other laws regarding public finance and must be implemented without exception.
The report emphasized that the failure to comply demonstrated non-adherence to federal financial regulations and required immediate correction.
The issue was discussed in a Departmental Accounts Committee (DAC) meeting held on December 13, 2024, but due to time limitations, it was deferred for later review.
The Auditor General’s office has since recommended that the full Rs. 16.67 million be deposited into the Federal Consolidated Fund immediately to ensure compliance with financial law and restore fiscal accountability.