ISLAMABAD: Serious financial irregularities have been identified in the management of mineral revenues and the collection of government dues in Khyber Pakhtunkhwa (KP). According to a report by the Auditor General of Pakistan, irregularities amounting to Rs16.94 billion have been flagged in the provincial Minerals Department, while illegal mining has reportedly caused losses of Rs8 billion to the provincial exchequer.
The report highlights gaps in the recovery of government revenue from various activities in the minerals sector. It states that Rs810 million in dues owed by mineral leaseholders remained unrecovered. In addition, the non-recovery of joint venture profits resulted in a further Rs580 million that was not deposited into the provincial treasury.
According to the audit documents, outstanding dues of Rs4.31 billion also remain to be recovered from defaulting contractors. The report further identifies a loss of Rs140 million due to the under-collection of rent on government land.
The findings underscore the need for stronger financial oversight, more effective recovery of outstanding dues and improved enforcement against illegal mining to protect public revenue generated from the province’s mineral resources.
