A recent audit of Pakistan’s Ministry of Foreign Affairs (MoFA) has brought to light financial irregularities amounting to approximately Rs9.6 billion during the fiscal year 2024–25. The audit raises concerns about financial management, procurement practices, budget compliance, and internal oversight, while recommending further inquiries and corrective measures.
Billions in Question
According to the audit, the reported irregularities span several areas of the ministry’s operations. The largest concerns involve over Rs2.1 billion linked to cash collections and funds maintained in unauthorized private bank accounts. Auditors also identified more than Rs508 million in spending that exceeded approved budget allocations, around Rs117 million related to procurement issues and vendor overpayments, and over Rs821 million in questioned expenditures at Pakistan’s foreign missions.
In addition, the audit states that approximately Rs84.6 million may be recoverable through official proceedings.
Budget Overspending Raises Concerns
The report notes that while the ministry’s headquarters finished the fiscal year with modest savings under one budget grant, overseas missions exceeded their approved allocation by more than Rs508 million under another grant. Auditors concluded that this excess spending had not received the required authorization.
Questions Over Apostille Fee Collections
One of the most significant findings relates to the collection of apostille certification fees. Auditors state that the ministry increased service charges for various document categories without obtaining the necessary statutory approval or clearance from the Finance Division.
The report further alleges that courier companies collected nearly Rs956 million in cash from applicants, with the funds reportedly remaining in private bank accounts instead of being deposited promptly into the Federal Treasury. Auditors also questioned two privately held accounts containing over Rs1.14 billion, saying they lacked the required government approval.
Procurement Process Under Review
The audit also highlights concerns regarding procurement procedures. It questions the outsourcing of apostille courier services to private firms without open competitive bidding, including the selection of a newly established company that reportedly lacked a formal business profile and sales tax registration.
Another observation focuses on an Rs86 million agreement awarded to the National Information Technology Board without what auditors describe as a transparent tendering process. The report also raises concerns about a Rs200 per-document transaction fee charged under the arrangement.
Overpayments During International Summit
Auditors examined expenditures related to the 23rd Shanghai Cooperation Organization (SCO) Summit and reported that an events management company claimed more than it was entitled to receive. The report identifies an alleged excess claim of Rs14.47 million and recommends recovering additional unpaid taxes associated with the contract.
Spending at Overseas Missions
Several observations relate to Pakistan’s diplomatic missions abroad. The audit questions millions of dollars spent on health insurance premiums and medical reimbursements without a standardized government-approved policy.
It also highlights expenditures on leased official vehicles at missions in cities including Houston, Los Angeles, Chicago, and Belgrade, arguing that these arrangements conflicted with existing federal restrictions.
Additional findings include litigation expenses incurred by Pakistan’s mission in Geneva in connection with a personal employment dispute, as well as alleged financial losses involving a rental arrangement at the embassy in Havana. Auditors also flagged various payments for medical treatment and educational subsidies across missions in Europe and Asia that they believe require further review.
Weak Internal Controls
Beyond the financial figures, the audit points to broader governance issues within the ministry. It notes that hundreds of audit observations accumulated over several years remain unresolved, with the ministry’s compliance rate standing at only 43 percent.
The report cites missing records, weak financial controls, suspected overpayments, and instances where auditors were unable to verify transactions due to incomplete documentation.
What Happens Next?
The Departmental Accounts Committee has instructed the Ministry of Foreign Affairs to conduct detailed fact-finding inquiries, seek formal approval where expenditures require regularization, and recover public funds wherever financial losses or overpayments are confirmed.
It is important to note that audit observations represent findings that require explanation or further examination. They do not, on their own, establish legal liability or misconduct. The ministry will have an opportunity to respond to the audit, and any subsequent investigations or decisions by oversight authorities will determine the final outcome.
The audit nevertheless highlights the importance of strong financial oversight, transparent procurement, and effective internal controls in managing public resources. As the review process continues, the findings are likely to remain a significant topic of discussion regarding accountability and governance within Pakistan’s public sector.