The Auditor General of Pakistan (AGP) has revealed that the National Telecommunication Corporation (NTC) failed to deposit Rs. 16.67 million in non-tax revenue into the Federal Consolidated Fund (FCF) during the fiscal year 2023–24.
According to the audit report, NTC operates under the Ministry of Information Technology and Telecommunication (MoITT) and violated the Public Finance Management (PFM) Act, 2019. The law requires that all non-tax revenues be deposited promptly into the federal account under Sections 40B and 40C of the PFM Act.
The un-deposited funds were collected from liquidated damages, private phone calls, and deductions from house requisitions. Instead of transferring these funds to the federal account, the corporation retained them. Auditors described this as a serious lapse in financial discipline, warning that such practices undermine transparency and weaken fiscal oversight.
When questioned, NTC management claimed that under the Pakistan Telecommunication (Reorganization) Act, 1996, the collected revenues were part of its internal income and could be managed as part of annual surplus or deficit. However, the Auditor General rejected this explanation, stating that Section 45 of the PFM Act supersedes all other laws related to public finance and must be implemented without exception.
The issue was discussed at a Departmental Accounts Committee (DAC) meeting on December 13, 2024, but was deferred for further review due to time constraints.
The AGP has recommended that the NTC immediately deposit the full Rs. 16.67 million into the Federal Consolidated Fund. The report emphasizes that compliance with financial laws is critical to restore accountability and ensure proper fiscal management.
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This incident highlights the need for stricter enforcement of financial regulations and stronger oversight of public sector organizations like NTC. The government aims to prevent similar lapses in the future to maintain transparency and trust in public finances.
