Audit findings cite illegal mining, unpaid dues and revenue losses during the PTI tenure, with the Auditor General recommending inquiries into those responsible.
PESHAWAR, PAKISTAN — WEB DESK: An audit report has identified Rs16.94 billion in financial irregularities and reported losses in Khyber Pakhtunkhwa’s minerals sector, highlighting alleged illegal mining, unrecovered government dues and weaknesses in revenue collection during the period associated with the Pakistan Tehreek-e-Insaf (PTI) government’s tenure.
According to Geo News Urdu, the audit findings cover the 2022–2023 period and identify several areas in which the provincial government reportedly suffered financial losses. The Auditor General recommended inquiries to determine responsibility and establish the circumstances surrounding the irregularities.
The findings raise questions about the enforcement of mining regulations, the collection of royalties and duties, and the supervision of contractors operating in the province’s mineral-rich districts.
Illegal mining linked to billions in reported losses
The audit report attributed more than Rs8 billion in losses to illegal mining. It also identified a further Rs3.08 billion in losses linked to illegal mining activities that reportedly continued despite the presence of departmental checkpoints, inspectors and other staff.
The findings point to potential weaknesses in monitoring and enforcement. However, the audit allegations do not, by themselves, establish criminal responsibility on the part of any specific official or individual.
Billions in contractor dues reportedly remain unpaid
The report identified Rs4.31 billion in outstanding dues from defaulting contractors that had reportedly not been recovered.
It also cited Rs547.2 million in uncollected excise duty on minerals. Separately, more than Rs810 million in outstanding amounts related to coal, bauxite, limestone and soapstone mines were reportedly waived.
Such findings raise concerns about whether the department adequately protected provincial revenue and enforced the financial obligations attached to mining operations. The reasons for the non-recovery or waiver of each amount require further examination.
Illegal extraction of sand and gravel highlighted
The audit also identified Rs3.07 billion in reported losses associated with the illegal extraction of sand and gravel for road and small-dam construction.
The findings suggest that oversight of construction-related mineral extraction may require closer scrutiny, particularly where materials are taken from sites used for publicly funded infrastructure projects.
The audit figures, however, do not independently establish which contractors or officials were responsible for the alleged activity.
Government land leased below prescribed rates
Another finding concerned government land in Peshawar administered by the minerals department.
According to the report, land that was supposed to be leased at Rs10,000 per acre was reportedly rented out at only Rs200 per acre, resulting in an estimated loss of Rs140 million to the provincial treasury.
The discrepancy identified in the audit raises questions about how the rental rate was determined, who authorised the arrangement and whether the relevant rules were followed
The report also cited losses exceeding Rs530 million linked to the non-recovery of small-dam dues in Kohat, Nowshera, Swabi, Haripur and other districts. In Mardan, Rs63.6 million in royalties was reportedly not collected.
Auditor General recommends inquiries
The Auditor General recommended inquiries into the reported irregularities to determine who was responsible and establish the extent of the financial damage to the provincial treasury.
The next steps will be important in distinguishing administrative shortcomings, recoverable government dues and any conduct that may warrant disciplinary or legal action.
An audit finding is not the same as a judicial determination of wrongdoing. Any responsibility attributed to particular individuals or departments should be based on the results of formal inquiries and the opportunity for those concerned to respond.
