Pakistan Public Accounts Committee Flags Millions in Misuse at Embassies in Austria, Bulgaria and Beyond

Pakistan's Public Accounts Committee (PAC) disclosed alleged financial irregularities amounting to millions of rupees at several Pakistani diplomatic missions abroad, including Austria, Bulgaria, the United Arab Emirates, Germany, the United States and Bangladesh.

What the PAC Reported on Wednesday at Parliament House

Chairman Syed Naveed Qamar led the committee's review of audit objections for the Ministry of Foreign Affairs covering the financial year 2023-24. The session took place on Wednesday at Parliament House and focused on four main cases: an alleged Rs 165.6 million embezzlement in Austria, a Rs 29 million loss in Bulgaria, questionable spending of Rs 17.2 million from the Community Welfare Fund in Abu Dhabi, and large sums of Higher Education Commission (HEC) funds held in German and U.S. embassies.

Alleged Rs 165.6 Million Embezzlement in Austria

Audit officials told the committee that an accountant at Pakistan's embassy in Austria allegedly transferred Rs 165.6 million into personal accounts belonging to himself and his wife. The Foreign Secretary said the amount equates to around €170,000. The employee was dismissed, and the case was referred to the Federal Investigation Agency (FIA). Two First Information Reports (FIRs) were registered.

FIA officials confirmed the accused was arrested but later released on bail. PAC Chairman Naveed Qamar criticised the six-year delay since the case first emerged and questioned the FIA's effectiveness, noting that "the investigation appears to have made little progress beyond registering cases." The committee summoned the FIA Director General to the next meeting for a detailed briefing.

Rs 29 Million Alleged Misuse in Bulgaria

The committee was briefed on a second alleged embezzlement of Rs 29 million at Pakistan's embassy in Bulgaria. An inquiry committee was formed on 10 September 2026, but government austerity measures restricting foreign travel prevented the team from travelling to Sofia.

The Foreign Secretary explained that the employee initially admitted to the allegations but later challenged his dismissal in court and was reinstated after a court order. Auditor General officials highlighted a chronic shortage of qualified accounting staff at diplomatic missions, noting that assistants without proper experience are sometimes tasked with accounting duties.

PAC directed the Foreign Office to appoint experienced accountants to overseas missions and to complete a fresh investigation of the Bulgarian case within one month.

Community Welfare Fund Spending in Abu Dhabi Questioned

The committee also examined the use of more than Rs 17.2 million from the Community Welfare Fund by the Pakistan Community Welfare School in Abu Dhabi. Chairman Qamar asked how the spending benefited the broader Pakistani community and whether proper approvals had been obtained.

The Foreign Secretary responded that the school charges low fees, follows the Pakistani curriculum and serves a student body that is 98 percent Pakistani. She added that fee collections are insufficient to cover operating costs, necessitating financial assistance, and asserted that the expenditure had been approved through the required process.

HEC Funds Held in German and U.S. Embassies

Audit officials reported that Pakistan's embassy in Berlin had withdrawn more than €360,000 from funds earmarked for Pakistani students studying abroad and had not replenished the amount. The Foreign Secretary said the embassy faced cash-flow difficulties and that heads of missions sometimes borrow funds for essential expenses.

Chairman Qamar objected to borrowing HEC money for non-educational purposes. Auditor General officials emphasized that the funds belong to the Higher Education Commission and must be returned if not spent for the intended purpose. PAC directed the HEC to recover the amount within three months.

In a separate case, the embassy in the United States was found to be holding more than Rs 1.22 billion in HEC funds that had not been distributed to eligible students. The Foreign Secretary explained that the HEC is responsible for identifying eligible students and that the embassy had not received instructions to release the money.

PAC referred this matter to the Departmental Accounts Committee for further examination.

Other Financial Irregularities at Overseas Missions

Additional audit objections were discussed:

• Pakistan's mission in Dhaka has maintained a bank account since 1986 without required approval documents from the Ministry of Finance or relevant bank statements. The Director General Finance disclosed two accounts holding approximately $98,000 and $1 million. PAC referred the issue back to the Departmental Accounts Committee.
• Rental income generated by the mission in Vienna was deposited into an unauthorised account. The committee directed the Ministry of Finance to regularise the account.
• Funds allocated for construction work in Australia have not been surrendered. PAC instructed the responsible department to account for the missing money.

The committee settled several audit objections during the meeting and issued directives for the Foreign Office, the Ministry of Finance, the HEC and the Departmental Accounts Committee to improve financial oversight at Pakistani missions abroad.

Background: How PAC Oversight Works

The Public Accounts Committee is a parliamentary body tasked with examining reports of the Auditor General and ensuring that public funds are used efficiently and legally. PAC can summon officials, demand documents and recommend corrective action. Its findings often lead to administrative reforms, disciplinary measures or legal proceedings.

Why the Findings Matter for Pakistan's Foreign Service

Financial mismanagement at diplomatic missions can damage Pakistan's international reputation, undermine trust with host governments and jeopardise the welfare of overseas Pakistanis. The highlighted cases also expose systemic issues such as staffing shortages, inadequate internal controls and the impact of broader fiscal austerity on oversight capacity.

What Comes Next: Expected Follow-Up Actions

According to the committee's directives, the Foreign Secretary must submit a fresh investigation report on the Austria and Bulgaria cases within one month. The HEC is tasked with recovering the €360,000 withdrawn in Berlin and the Rs 1.22 billion held in Washington within three months. The Departmental Accounts Committee will review the Dhaka account irregularities and the Vienna rental-income issue. Finally, the Ministry of Finance will ensure that experienced accountants are posted to all overseas missions.

Practical Takeaways for Pakistani Citizens Abroad

Pakistani expatriates and students should monitor communications from the Ministry of Foreign Affairs and the HEC regarding scholarship disbursements. Those with concerns about embassy-related financial matters can lodge complaints with the Auditor General's office or approach the local Pakistani community organisations that liaise with the missions.