Peshawar: An audit report for the financial year 2024 to 25 has identified financial irregularities amounting to Rs 18.46 billion at the Khyber Pakhtunkhwa Economic Zones Development and Management Company (KPEZDMC), raising questions about financial oversight, land management and the recovery of government revenue.
According to the audit findings obtained by QOM, weaknesses in planning, financial management and administrative controls contributed to losses and uncollected revenue across the company's operations.
The report identified failures to recover payments from industrial plot holders, renew commercial land agreements and recover possession of land in several economic zones.
What did the audit uncover?
One of the findings concerns the company's failure to recover Rs 2.0849 billion in lease payments from industrial land allottees despite court orders. The audit also identified a revenue loss of Rs 629.8 million after commercial land agreements were not renewed under the lease renewal policy introduced in 2024.
In Buner, Mohmand and Jalozai, the company's failure to recover possession of land resulted in reported losses of Rs 1.0774 billion. Another Rs 174.1 million in losses was attributed to the allocation of commercial land for industrial purposes in violation of applicable requirements.
In Haripur, the audit identified Rs 497.8 million in uncollected payments relating to four plots, numbered 185, 186, 187 and 190, covering 10 acres allocated to Al Hadeed Engineering. The findings raise questions about the enforcement of lease agreements, recovery procedures and the company's management of land allocated for industrial development.
Rs 14bn in potential liabilities raises financial concerns
The audit report also estimated the company's potential liabilities at Rs 14 billion, warning that these obligations could pose a risk to its ability to continue operations. KPEZDMC is responsible for developing and managing economic zones in Khyber Pakhtunkhwa, including providing industrial land and infrastructure to support investment and manufacturing.
Its operations depend on financial management, lease recoveries and the administration of land allocated to industrial and commercial enterprises.The reported irregularities therefore have implications beyond individual transactions, particularly for the management of public resources and the financing of industrial development projects
The audit findings identify weaknesses in revenue collection, land allocation and administrative oversight that require examination by the relevant authorities.
However, the reported Rs 18.46 billion represents the overall amount flagged by the audit, and the findings do not establish that the entire sum was stolen or permanently lost. Uncollected payments, estimated liabilities and other financial irregularities require separate assessment.
The information provided does not establish whether recovery proceedings, disciplinary action or investigations have been initiated against the officials concerned. T
The company's response to the audit observations and any subsequent action by provincial authorities will be relevant in determining accountability and the recovery of public funds.
