In Pakistan’s complex fiscal ecosystem, the Public Accounts Committee (PAC) stands as a constitutional bulwark against mismanagement of public funds. Established under Article 170 of the Constitution, the PAC scrutinizes the Auditor General of Pakistan’s (AGP) reports to hold ministries, divisions, and agencies accountable for expenditures. With public debt surpassing ₨60 trillion and development spending often marred by inefficiencies, the committee’s role in enforcing transparency has never been more critical. Over the past decade, the PAC has evolved from a ceremonial body to an active oversight mechanism, recovering billions in misused funds—but systemic challenges persist in bridging the gap between audit findings and corrective action.
The PAC’s Workflow: From Scrutiny to Accountability
The PAC operates as a bipartisan parliamentary body, chaired by an opposition member to ensure impartiality. Its process begins with the AGP’s audit reports, which flag irregularities such as unauthorized spending, procurement violations, and accounting discrepancies. During hearings, accounting officers from relevant departments are summoned to explain lapses. For instance, in FY 2022-23, the PAC examined 1,450 audit paras (specific audit objections), directing recoveries of ₨18.7 billion from entities like the National Highway Authority and Pakistan Railways. Key stages include:
- Evidence Review: Cross-referencing audit objections with departmental records.
- Public Hearings: Grilling officials on fund misuse, often televised to enhance transparency.
- Follow-Up: Monitoring compliance with recovery orders and procedural reforms.
PAC’s Impact (2018–2023)
| Fiscal Year | Audit Paras Addressed | Recoveries Directed (₨ billion) | Major Sectors Involved |
|---|---|---|---|
| 2018-19 | 1,120 | 9.2 | Energy, Health |
| 2022-23 | 1,450 | 18.7 | Transport, Education |
Unmasking Systemic Weaknesses
While the PAC has intensified scrutiny, recurring audit objections reveal entrenched issues. Between 2020 and 2023, 62% of irregularities were linked to poor procurement planning, including non-competitive bidding and contract manipulation. The 2022 audit of the Higher Education Commission, for example, exposed ₨2.1 billion in unauthorized grants to unapproved universities. Similarly, the Pakistan Steel Mills case highlighted how lax oversight enabled a ₨26 billion loss from asset mismanagement. Common challenges identified include:
- Delayed Audits: AGP reports often reach the PAC 2–3 years after the fiscal year, weakening timely accountability.
- Weak Compliance: Only 35–40% of recovery orders are fully implemented due to bureaucratic resistance.
- Capacity Gaps: Departments lack trained staff to address technical audit objections, leading to defensive hearings.
Strengthening the Chain of Accountability
To enhance efficacy, the PAC has adopted reforms such as digitizing hearing records and prioritizing high-impact cases. Recent initiatives include:
- Real-Time Audits: Piloting concurrent audits of mega-projects like the Sukkur-Hyderabad Motorway.
- Stakeholder Collaboration: Partnering with the National Accountability Bureau (NAB) to fast-track criminal cases.
- Public Engagement: Publishing simplified audit summaries on the Parliament’s website to boost citizen oversight.
However, structural hurdles remain. Political interference in hearings, particularly for defense-related departments, often shields powerful entities from scrutiny. Legal ambiguities also limit the PAC’s power to enforce sanctions beyond recoveries.
The Road Ahead: Institutionalizing Outcomes
The PAC’s potential lies in transforming audit findings into systemic change. This requires:
- Legislative Backing: Amending the Audit Act 2023 to empower the PAC to impose penalties on non-compliant officers.
- Capacity Building: Training departmental staff on public financial management and audit response protocols.
- Tech Integration: Using AI tools to analyze expenditure patterns and predict high-risk areas for targeted audits.
As Pakistan navigates fiscal tightening and donor conditionalities, the PAC’s ability to convert scrutiny into smarter spending will define public trust in governance. By closing the accountability loop—from audit to action—the committee can ensure every rupee spent aligns with national priorities.
This article was published on PublicFinance.pk.
