A startling revelation from the Auditor-General of Pakistan’s latest report has exposed that prominent firms Attock Petroleum Limited and Pakistan Telecommunication Limited (PTCL) have blocked attempts to audit zakat deductions and collections, sparking fears of potential misuse of millions intended for the needy.
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According to audit para 6.4.6 for the fiscal year 2022-23, the Auditor-General’s office requested detailed records from these companies under the Service Ordinance, 2001, which mandates providing affordable facilities and complete information for audit inspections. Specific requests were sent to Attock Petroleum on July 22, 2022, and August 29, 2022, seeking documentation on zakat deductions and collections as per the Zakat Collection and Refund Rules, 1981. Similar demands were made to PTCL.
However, both firms outright refused compliance, citing a Supreme Court ruling that they claim restricts the Auditor-General’s authority over private entities. The audit report notes that without access to these records, verifying the authenticity of zakat amounts deducted or collected—managed under the Central Zakat Fund by the Zakat Collection Controlling Agency (ZCCA)—becomes impossible, raising red flags for potential embezzlement.
“Zakat is a sacred obligation, and these funds are public money meant for the vulnerable,” the report states, labeling the refusal a violation of longstanding ordinances and rules. It emphasizes that zakat rules place such institutions under the Main Office in Pakistan’s oversight for directing voluntary zakat payments, grants, atiyat, and other deductions.
In their defense, the management of both companies referenced a High Court judgment, later upheld by the Supreme Court, asserting that the Auditor-General lacks jurisdiction over private enterprises. A key excerpt states: “It becomes clear from the perusal of above notification that the President of Pakistan has required the Auditor General of Pakistan to audit the receipt of Federal Government… and not the record of the private enterprises/industrial units licensed/registered under DRRA in the sales Tax/Central; Excise Laws. Thus, the whole exercise conducted is Coram non judice.”
The report counters that zakat collections involve public funds withheld on behalf of the Federal Government, necessitating transparency. The issue escalated to a Departmental Accounts Committee (DAC) meeting on August 7, 2025, following directives from a Public Accounts Committee (PAC) session on April 12, 2023, which focused on Corporate Social Responsibility (CSR). The Securities and Exchange Commission of Pakistan (SECP) was instructed to provide a comprehensive briefing, responding via a letter dated June 12, 2023, directing CSR officers, zakat collection offices, and disbursement units to comply.
The DAC referred the matter to the PAC for a final decision, recommending that the Principal Accounting Officer (PAO) assign responsibility and initiate disciplinary action against those at fault.
This refusal has ignited outrage among transparency advocates, who warn it could enable the “eating” of zakat money—slang for embezzlement—depriving Pakistan’s poor of vital aid. Zakat, a pillar of Islam, is collected to support the underprivileged, and any obstruction in auditing poses serious ethical and legal concerns.
As the PAC prepares to deliberate, demands for stricter enforcement are growing to ensure every rupee of zakat reaches its intended recipients. Neither Attock Petroleum nor PTCL responded to requests for comment by press time.
