A staggering Rs354.12 billion in financial irregularities have been uncovered across Khyber Pakhtunkhwa’s (KP) local bodies between 2002 and 2024, according to a detailed audit report issued by the Auditor General of Pakistan (AGP).
The report, highlighted by ARY News, reveals that during the fiscal year 2013–2014, irregularities worth Rs75 billion were recorded. In 2015–2016, further discrepancies of Rs70.52 billion surfaced. Despite the enormous financial gap, only Rs32.3 billion has been recovered to date.
The audit attributes these irregularities to a fragile administrative framework in the local governance system. According to the AGP, many issues stem from delayed action, poor record-keeping, and the non-functional status of Tehsil Audit Committees, which were formed in 2019 but have yet to become operational.
Secretary Local Government Saqib Raza clarified that audit objections (paras) are directed not to the provincial department but to individual tehsil administrations. “The AGP has not directly addressed these findings to us but to the tehsils,” he noted.
The report calls for swift and indiscriminate accountability of those responsible for the mismanagement, urging reforms to activate audit mechanisms and ensure transparency in fund disbursement.
This comprehensive audit raises serious questions about the capacity of KP’s local government structure to handle public funds effectively. The findings come at a time when calls for financial transparency and decentralization are gaining momentum across Pakistan.

