An audit has uncovered irregularities and losses totalling Rs. 18.46 billion in the Khyber Pakhtunkhwa Economic Zones Development and Management Company (KPEZDMC) for the fiscal year 2024-25.
The Auditor General of Pakistan's report attributes the loss to poor planning, weak management and financial irregularities within the firm.
Lease Money Not Recovered Despite Court Orders
The audit states the company did not collect Rs. 2.08 billion in lease payments from industrial owners of allotted land, even though court orders existed.
It also failed to renew commercial-land agreements, costing the exchequer Rs. 629.8 million.
Land Issues in Buner, Mohmand, Jalozai, and Haripur
Auditors found the firm could not vacate land in Buner, Mohmand and Jalozai, leading to a Rs. 1.08 billion loss. An additional Rs. 174.1 million was lost when commercial land was illegally allotted for industrial purposes.
In Haripur, plots 185, 186, 187 and 190 covering 10 acres were allotted to Al-Hadeed Engineering, but payment was not collected, causing a Rs. 497.8 million loss.
The findings follow a separate audit that identified Rs. 16.94 billion in irregularities in the KP Minerals Department.
Liabilities Threaten Company's Future
The report notes KPEZDMC's contingent liabilities have risen to Rs. 14 billion, posing a serious risk to its continued operations.
It raises concerns over governance, land allotments, dues recovery and financial management, saying poor administrative choices and alleged favouritism have harmed public resources.
KPEZDMC oversees the province's economic zones, including the Rashakai Economic Zone.
