Senate Panel Slams Finance Division’s Failure to Explain Rs. 3.3 Billion Funds

Lawmakers have raised serious concerns after the Finance Division failed to explain the use of Rs. 3.3 billion in IMF budgetary funds, prompting calls for stronger accountability. The Senate Standing Committee on Economic Affairs noted that officials could not provide a clear audit trail despite repeated requests for year-wise data on loans, repayments, and interest paid under IMF programmes. Committee Chairman Senator Saifullah Abro said Parliament cannot perform oversight when ministries cannot share transparent figures. He asked the Finance Division to submit complete records of IMF facilities received in 2010, 2019 and 2020, including the extended fund facility of SDR 3.334 billion. Members also pushed for full disclosure of Pakistan’s external liabilities. Officials stated that as of June 30, 2025, external public debt stood at USD 82.5 billion, while total external debt and liabilities were USD 126 billion. The Committee directed a full breakdown of project-wise foreign loans contracted from 2008 to 2024. Separately, lawmakers questioned the handling of funds for the restoration of Multan’s historic core. An approved allocation of around Rs. 850 million was made, but Rs. 679 million remained unspent and was reportedly diverted without approvals. The Committee demanded documents and ordered provincial authorities to attend the next session. The Committee has also ordered the Ministry of Energy to halt a major LESCO procurement under an Asian Development Bank–funded grid project worth USD 80 million. Senator Abro said multiple lowest bidders were rejected without following procurement rules. PPRA officials confirmed serious violations. The Committee directed that ADB be formally informed. It also asked for full tender records and action against responsible officers. The next meeting will be held in Chitral to review progress on local road rehabilitation affecting communities and tourism. Senators said transparency in project spending and loan management is essential for Pakistan’s credibility with global lenders.