The Auditor General of Pakistan (AGP) has highlighted major financial irregularities of more than Rs243 billion in the State Bank of Pakistan (SBP) during its 2022-23 audit. The findings point towards large-scale mismanagement, embezzlement, and regulatory lapses at the central bank.
According to the audit report, state-owned banks issued loans worth Rs59 billion that eventually went into default. Despite the losses, no meaningful action was taken against the defaulters. The AGP noted that SBP failed to act as an effective regulator and did not safeguard the national exchequer or consumer interests.
The report also criticized SBP for printing Rs75 commemorative notes on Independence Day and the bank’s anniversary. A total of 72 million notes, valued at Rs9.15 billion, were issued. However, due to poor planning and low public acceptance, this exercise caused a loss of Rs1.96 billion.
Another major violation involved the appointment of a dual national as Deputy Governor. An Australian citizen was given the post with an annual salary of Rs120 million, in direct violation of rules.
The AGP further highlighted that the sale of securities below their purchase price resulted in a Rs105 billion loss. In addition, keeping funds with international managers instead of generating profit caused another Rs26 billion loss.
Small borrowers also suffered under SBP’s policies. They were charged high interest rates of 13 percent, which led to a loss of Rs12 billion. The report also mentioned irregular loans worth billions, including Rs5 billion to a private bank and Rs2.59 billion in unauthorized financing facilities.
Other findings revealed Rs63.5 million in medical stock embezzlement by SBP officers, while eight senior employees at the Lahore office were found to hold unverified educational degrees.
The AGP concluded that these irregularities reflect weak oversight and poor governance in SBP’s operations, raising serious concerns over the central bank’s credibility and regulatory performance.
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