Probe Sought Into KP Economic Zones Irregularities
Adviser to the Khyber Pakhtunkhwa Governor on Information and Public Relations Samar Haroon Bilour has called for an impartial inquiry into alleged financial irregularities worth Rs18.46 billion in the province’s economic zones company. The KP economic zones irregularities were flagged in an audit of the Khyber Pakhtunkhwa Economic Zones Development and Management Company for the 2024-25 fiscal year.
In a statement issued on Saturday, Bilour said the findings warranted serious attention, and called for a comprehensive and transparent investigation to establish the facts and fix responsibility.
“Public resources are a trust, and transparency and accountability in their use must be ensured at all costs,” she said.
Bilour said the allegations must be examined objectively and on evidence, and that weaknesses in controls, planning, and oversight should be addressed to prevent losses.
What the audit found
The audit report raised questions about the company’s financial management, industrial land, and administrative oversight. It linked the financial impact on the public exchequer to weak management systems, poor planning, and a failure to recover financial liabilities.
| Audit finding | Figure reported |
|---|---|
| Total irregularities flagged | Rs18.46 billion |
| Outstanding receivables not recovered | Rs2.82 billion |
| Lease agreement violations | Rs629.89 million |
| Potential liabilities from land disputes | Rs14 billion |
| Al-Hadeed Engineering dues not recovered | Rs497.8 million |
The report also pointed to an inactive board, which left the company without strategic direction or effective oversight. It described an unsustainable revenue model and heavy reliance on interest income.
The audit raised questions over government land in Buner, Mohmand, and Jalozai, and over the allotment of commercial land for industrial use against the rules. In the case of Al-Hadeed Engineering in Haripur, the company had been allotted four plots covering 10 acres, and the report put the loss from unrecovered dues at Rs497.8 million.
The report warned that potential liabilities of about Rs14 billion from land compensation disputes could threaten the company’s ability to sustain its business operations.
Why the KP economic zones irregularities matter
The company manages industrial zones that are meant to attract investment and create jobs in Khyber Pakhtunkhwa. When lease dues go unrecovered and land is allotted against the rules, the province loses revenue that could fund public services.
The case also fits a wider push for cleaner business rules in Pakistan. Pakistan has moved to scrap business rules that discourage foreign investors, with officials saying a large share of unnecessary or duplicative regulations could go.
Investment confidence depends on how public bodies manage land and money. Pakistan and Canada concluded the third round of talks on a bilateral investment treaty, a step meant to give investors clearer rules. The province’s trade picture adds context. Pakistan’s trade gap with Gulf states narrowed in the latest quarter, while industrial growth still depends on zones that work as planned. A Karachi industrial park was approved as a federal special economic zone.
What Bilour asked for
Bilour called for a detailed review of audit observations concerning potential outstanding dues of about Rs14 billion. She stressed the need to recover government revenue, safeguard public assets, and strengthen financial management in public-sector institutions.
She said safeguarding the province’s resources was a fundamental duty of all government institutions, and urged the authorities to ensure transparency in the management of public funds.
Her statement did not name any individual as responsible. It called for an inquiry to establish the facts first, with action to follow the evidence.
An audit observation is not a court finding, and an allegation is not proof of wrongdoing. Bilour asked for an objective examination rather than a verdict in advance.
What happens next
No inquiry had been announced in the reports available on Saturday. The next step rests with the relevant authorities, who must decide whether to open the impartial inquiry Bilour has called for.
If an inquiry opens, it must answer how much can be recovered, how land was allotted and why dues went unpaid, and what controls must change so the gaps do not recur.
Until those questions are answered, the audit figures remain allegations under examination, not settled findings against any person or firm.
Who called for the inquiry?
Samar Haroon Bilour, adviser to the Khyber Pakhtunkhwa Governor on Information and Public Relations, called for an immediate and impartial inquiry.
How much money is involved?
The audit flagged irregularities worth Rs18.46 billion in the Khyber Pakhtunkhwa Economic Zones Development and Management Company for 2024-25, including potential liabilities of about Rs14 billion.
What did the audit find?
It found unrecovered receivables of Rs2.82 billion, lease violations worth Rs629.89 million, an inactive board, and questions over land and allotments.
