Audit Finds Rs18.46 Billion Irregularities at KP Economic Zones Company

An audit by the Auditor General of Pakistan has found irregularities and losses worth Rs18.46 billion at the KP Economic Zones Development and Management Company (KPEZDMC), which manages the Rashakai Economic Zone, for fiscal year 2024-25. The report attributed the findings to poor planning, weak management and financial irregularities.

KP Economic Zones Audit: Key Findings

Key findings of the audit:

• The company failed to recover Rs2.08 billion in lease payments from industrial owners despite court orders.
• Lapsed commercial land agreements caused a loss of Rs629.8 million.
• Land in Buner, Mohmand and Jalozai was not vacated, causing a loss of Rs1.08 billion.
• Rs174.1 million was lost through commercial land allotted for industrial use.
• In Haripur, plots 185, 186, 187 and 190 (about 10 acres) were given to Al-Hadeed Engineering without collecting payment, a loss of Rs497.8 million.

Contingent liabilities reached Rs14 billion, which the report said threatens business continuity. It also questioned governance and land allotments, citing alleged steps to benefit favoured individuals. The findings follow a separate audit of the KP Minerals Department that found Rs16.94 billion in irregularities.

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