Embassy Financial Irregularities Exposed by PAC
Embassy financial irregularities worth hundreds of millions of rupees came under sharp scrutiny on Wednesday, as Parliament’s Public Accounts Committee (PAC) examined audit objections against the Ministry of Foreign Affairs.
The committee, chaired by Syed Naveed Qamar, reviewed audit objections for the financial year 2023-24 at Parliament House. Audit officials laid out a string of cases from missions in Austria, Bulgaria, Germany, the United States, Bangladesh and Australia, and the committee demanded fresh investigations and strict deadlines.
Embassy financial irregularities in Austria and Bulgaria
The largest single case involved Pakistan’s Embassy in Austria. Audit officials told the committee that an accountant at the mission had allegedly embezzled Rs165.6 million by transferring the money into personal bank accounts belonging to himself and his wife.
The accused was referred to the Federal Investigation Agency (FIA), and two first information reports were registered. Qamar criticised the lack of progress despite six years having passed since the case emerged. He questioned the FIA’s performance and said the investigation appeared to have made little progress beyond registering cases.
FIA officials told the committee that the accused had been arrested but later released on bail. The committee summoned the FIA director general to its next meeting to explain the progress of the investigation. The Foreign Secretary said the employee had been dismissed, and the PAC directed her to conduct a fresh investigation and report within one month.
In Bulgaria, the committee heard about alleged embezzlement of Rs29 million at Pakistan’s Embassy. An inquiry committee was formed on September 10, 2026, but it had not travelled to Bulgaria because of government restrictions on foreign travel under austerity measures.
The Foreign Secretary told the committee that the employee had initially admitted to the allegations but later challenged his dismissal in court. He was reinstated after a court order.
Student funds and welfare spending questioned
The committee also questioned the use of more than Rs17.2 million from the Community Welfare Fund by the Pakistan Community Welfare School in Abu Dhabi. Qamar asked how spending community funds on the school benefited the wider Pakistani community and whether the spending had received proper approval.
The Foreign Secretary said the school charged low fees, followed the Pakistani curriculum and had a student population made up of 98 per cent Pakistani children. She added that fee collections were insufficient to cover operating costs. She maintained that the spending had been approved through the required process.
Funds meant for Pakistani students abroad drew even sharper questions. Audit officials told the committee that Pakistan’s Embassy in Berlin had withdrawn more than 360,000 euros from funds allocated for education and had not replenished the amount. The Foreign Secretary said the embassy faced financial difficulties and that heads of missions sometimes borrowed funds to meet essential expenses. Qamar objected to the practice, while Auditor General officials said the money belonged to the Higher Education Commission (HEC) and should be returned if it had not been spent for its intended purpose. The committee directed the HEC to recover the amount within three months.
In another case, audit officials revealed that Pakistan’s Embassy in the United States was holding more than Rs1.22 billion in HEC funds that had not been distributed to students. The Foreign Secretary said the HEC was responsible for identifying eligible students. The PAC referred the matter to the Departmental Accounts Committee for further examination.
Wider audit objections at overseas missions
The committee examined several other audit objections. Audit officials said Pakistan’s mission in Dhaka had maintained a bank account since 1986 without providing the required approval documents from the Ministry of Finance or relevant bank statements. The Director General Finance informed the committee that two accounts existed, holding about $98,000 and $1 million. The PAC referred that matter back to the Departmental Accounts Committee.
In another case, rental income generated by Pakistan’s mission in Vienna had been deposited into an unauthorised account. The committee directed the Ministry of Finance to regularise the account. Audit officials also reported that funds allocated for construction work in Australia had not been surrendered. Auditor General officials highlighted a shortage of qualified accounting staff at missions abroad, with assistants sometimes assigned accounting work despite lacking the required experience. The PAC directed the Foreign Office to appoint experienced accountants at overseas missions.
The scrutiny of overseas missions follows earlier reforms to postings abroad, covered in New Rules for Overseas Mission Jobs. Wednesday’s hearing showed that hiring rules alone do not fix weak financial controls, and the committee pressed for accountants with real experience at every mission.
Frequently asked questions
What did the PAC examine on Wednesday?
The Public Accounts Committee examined audit objections involving the Ministry of Foreign Affairs for the financial year 2023-24, covering missions in several countries.
How much was allegedly embezzled in Austria?
Audit officials put the alleged embezzlement at Pakistan’s Embassy in Austria at Rs165.6 million, while the Foreign Secretary put the amount at around 170,000 euros.
What happened to the accused accountant in Austria?
The accused was referred to the FIA, two cases were registered, and he was arrested but later released on bail. He had also been dismissed from service.
How much HEC money is held at the US Embassy?
Audit officials said Pakistan’s Embassy in the United States was holding more than Rs1.22 billion in HEC funds that had not been distributed to students.
What deadlines did the PAC set?
The PAC sought a fresh report on Austria within one month and directed the HEC to recover the Berlin education funds within three months.
