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Pakistan Stock Exchange KSE-100 Ends Lower as Middle East Tensions Shake Investor Confidence
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Pakistan Stock Exchange KSE-100 Ends Lower as Middle East Tensions Shake Investor Confidence

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The Pakistan Stock Exchange KSE-100 ended Thursday’s trading session in negative territory as growing geopolitical uncertainty in the Middle East continued to dominate investor sentiment. Although the benchmark index staged a notable intraday recovery after suffering heavy losses earlier in the session, persistent concerns over the escalating U.S.-Iran conflict prevented the market from sustaining gains. The latest market performance reflects how international political developments are increasingly influencing Pakistan’s financial markets. Investors remained defensive as fears of prolonged regional instability, higher oil prices, and disruptions to global energy supplies outweighed positive buying activity in selected sectors. Pakistan Stock Exchange KSE-100 Faces Pressure from Geopolitical Risks Investor confidence remained fragile after Wednesday’s sharp market selloff, with market participants closely monitoring developments in the Middle East. Fresh military strikes carried out by the United States on Iranian targets, following attacks on commercial vessels near the Strait of Hormuz, heightened concerns about a wider regional conflict. The possibility of prolonged disruptions to one of the world’s most important oil shipping routes pushed crude oil prices higher, raising concerns about inflation, import costs, and economic stability for energy-importing countries such as Pakistan. These developments encouraged investors to adopt a cautious approach, resulting in reduced risk appetite across the stock market. By the close of trading, the Pakistan Stock Exchange KSE-100 Index settled at 181,259.67 points, declining by 369.69 points or 0.20 percent. During the session, the benchmark remained highly volatile, swinging nearly 2,900 points between its intraday high and low before recovering a significant portion of its earlier losses. Banking Stocks Drag the Pakistan Stock Exchange KSE-100 Lower Commercial banking stocks emerged as the primary reason behind the market’s decline. Major banking companies including Meezan Bank, MCB Bank, and Askari Bank recorded notable losses, collectively removing hundreds of index points from the benchmark. Oil and gas exploration companies also came under selling pressure as investors assessed the broader economic impact of rising geopolitical uncertainty. Investment companies, insurance firms, and automobile parts manufacturers further contributed to the negative performance. However, the market was not entirely without optimism. Automobile assemblers, refinery companies, fertilizer producers, textile manufacturers, and oil marketing companies attracted buying interest, helping the benchmark recover from its intraday low. Among individual performers, Ghani Glass delivered the strongest gain with a 10 percent increase, followed by Mehtab Industries, Cnergyico, Ghandhara Automobiles, and Honda Atlas Cars, all posting impressive advances during the session. Trading Activity Shows Investors Remain Selective Overall market activity slowed compared with the previous trading session, indicating that investors preferred to stay on the sidelines while monitoring international developments. Nearly one billion shares changed hands across the broader market, while trading value declined significantly from the previous session. Market breadth, however, remained relatively balanced as 263 companies closed higher, 203 declined, and 31 remained unchanged, suggesting that selective buying continued despite the overall cautious environment. Cnergyico remained the most actively traded stock by a considerable margin, recording trading volume of more than 211 million shares. LSE Capital, Pakistan Refinery, Pace Pakistan, K-Electric, WorldCall Telecom, First National Equities, Bank of Punjab, Thatta Cement, and Pak Elektron also featured among the day’s most actively traded companies, reflecting continued investor interest in energy, infrastructure, financial, and industrial sectors. Pakistan Stock Exchange KSE-100 Outlook Remains Positive Despite Short-Term Volatility Despite Thursday’s decline, the broader market trend remains positive. The Pakistan Stock Exchange KSE-100 has gained 958 points during the current fiscal year, representing an increase of 0.53 percent. On a calendar-year basis, the benchmark has advanced more than 7,200 points, delivering a gain of 4.14 percent. Market analysts believe that while geopolitical tensions are likely to keep volatility elevated in the near term, investor focus will gradually shift back toward corporate earnings, economic indicators, monetary policy expectations, and government reforms. Any easing in regional tensions could quickly improve investor confidence and support renewed buying across key sectors of the Pakistan Stock Exchange.

SEAFOOD EXPORTS HIT RECORD $568M, MARITIME MINISTER
Pakistan

Seafood Exports Hit Record $568 Million, Says Maritime Minister

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Islamabad: Federal Minister for Maritime Affairs Muhammad Junaid Anwar Chaudhry on Thursday said Pakistan’s exports of fish and fish preparations reached a record US$568 million during fiscal year 2025-26. Seafood Exports Reach Historic High The Maritime Minister said seafood exports climbed to a record US$568 million, reflecting improved export performance and the growing competitiveness of Pakistan’s fisheries industry in global markets. The milestone underscores the sector’s increasing contribution to the country’s export earnings and blue economy. Government Focuses on Fisheries Development The minister highlighted the government’s efforts to modernize the fisheries sector through infrastructure upgrades, improved processing facilities, and better compliance with international quality and food safety standards. These initiatives are aimed at expanding market access and increasing the value of seafood exports. Expanding Global Market Access Officials noted that strengthening fisheries management and improving export standards have helped Pakistani seafood gain wider acceptance in international markets. The government also plans to further enhance cold chain infrastructure, port facilities, and regulatory oversight to support sustained export growth. Blue Economy Remains a Key Growth Driver The Maritime Minister said the continued growth of seafood exports demonstrates the untapped potential of Pakistan’s maritime economy. He emphasized that further investment in fisheries, coastal infrastructure, and value-added seafood processing could boost exports, create employment, and strengthen Pakistan’s position in the global seafood trade.

Pakistan Tractor Population Surges to Nearly One Million as Farm Mechanisation Transforms Agriculture
Pakistan

Pakistan Tractor Population Surges to Nearly One Million as Farm Mechanisation Transforms Agriculture

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Pakistan’s agricultural landscape is undergoing one of its biggest transformations in decades. The latest figures from the Pakistan Bureau of Statistics (PBS) reveal that the Pakistan Tractor Population has reached an unprecedented 986,998 units under the 7th Agricultural Census 2024, highlighting the country’s accelerating shift toward mechanised farming. The milestone reflects far more than an increase in machinery. It signals changing farming practices, stronger investment in agricultural technology, rising demand for modern equipment, and new business opportunities across the rural economy. At a time when food security, climate resilience, and agricultural productivity have become national priorities, the rapid expansion of Pakistan’s tractor fleet is emerging as one of the strongest indicators of structural change in the country’s farming sector. Pakistan Tractor Population Records Historic Growth The latest census data shows that Pakistan’s tractor fleet has expanded dramatically over the past three decades. The country had only 252,861 tractors in 1994, which increased to 401,663 in 2004 before almost reaching the one-million mark in 2024. More importantly, the pace of growth has accelerated significantly. Between 1994 and 2004, tractor numbers increased by around 59 percent. However, during the following two decades, growth surged by approximately 146 percent, demonstrating that farm mechanisation has become a central feature of Pakistan’s agricultural development. The figures indicate that farmers are increasingly investing in machinery to improve productivity, reduce dependence on manual labour, and manage larger cultivated areas more efficiently. Punjab Continues to Dominate Pakistan Tractor Population Punjab remains the backbone of Pakistan’s agricultural machinery market. The province accounts for 777,404 tractors, representing nearly 79 percent of the national tractor population. Sindh follows with 85,895 tractors, while Khyber Pakhtunkhwa and Balochistan each account for just over 61,000 units. Within Punjab, the Faisalabad Division holds the largest share of tractors, reflecting its position as one of Pakistan’s most productive agricultural regions. Meanwhile, Dera Ghazi Khan Division contributes a comparatively smaller portion of the provincial fleet. In Sindh, Hyderabad Division leads tractor ownership, whereas Karachi records the smallest share because of its predominantly urban economy. Balochistan Emerges as the Fastest Growing Market Although Punjab remains the largest market, the biggest surprise in the census comes from Balochistan. The province recorded an extraordinary 564 percent increase in tractor numbers between 2004 and 2024. While this expansion started from a relatively small base, it highlights growing investment in agriculture and improving access to mechanised farming across previously underdeveloped farming regions. For tractor manufacturers, financial institutions, and agricultural equipment suppliers, Balochistan is rapidly becoming one of Pakistan’s most promising emerging markets. Individual Farmers Continue to Drive Machinery Investment The census shows that Pakistan’s agricultural machinery market remains overwhelmingly dominated by private ownership. Out of the country’s total tractor fleet, more than 778,000 tractors are individually owned, while around 207,000 are jointly owned. Cooperative societies own only a very small fraction of the total fleet. This ownership pattern suggests that individual farmers continue to make independent investment decisions, creating sustained demand for agricultural financing, tractor leasing, and rural credit programs. Solar Irrigation Creates New Business Opportunities The census also highlights another major transformation taking place alongside the growth of the Pakistan Tractor Population. The number of tubewells and lift pumps has climbed to 1.83 million, representing a 97 percent increase since 2004. More significantly, solar energy has become the leading power source for tubewells, with more than 912,000 solar-powered units now operating nationwide. This exceeds both diesel-powered and electric-powered systems. The growing adoption of solar irrigation reflects rising fuel costs, increasing energy shortages, and government efforts to encourage renewable energy solutions in agriculture. It also opens significant opportunities for banks, solar companies, equipment manufacturers, and agricultural technology providers looking to expand into Pakistan’s rural economy. Digital Agricultural Census Signals Smarter Policy Planning The 7th Agricultural Census marks another milestone as Pakistan’s first fully digital agricultural census. According to the Pakistan Bureau of Statistics, the newly collected mechanisation data will support future policymaking for agricultural machinery manufacturing, import substitution, rural financing, and farm productivity initiatives. Reliable digital data is expected to help both policymakers and private investors make better-informed decisions regarding agricultural development, manufacturing capacity, and technology adoption. Why Pakistan Tractor Population Matters for the Economy The rapid expansion of the Pakistan Tractor Population is more than a statistical achievement. It reflects increasing confidence in mechanised agriculture and signals long-term growth opportunities for tractor manufacturers, auto assemblers, agricultural equipment suppliers, renewable energy companies, banks, and rural financing institutions. As Pakistan moves toward modern farming practices, mechanisation and clean energy adoption are likely to remain central drivers of agricultural productivity, investment, and economic growth. If this momentum continues, the country’s agriculture sector could become significantly more competitive while strengthening food security and creating new opportunities across the rural economy.

Bank Alfalah Successfully Raises PKR 20 Billion Tier 2 Term Finance Certificate
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Bank Alfalah Raises Record PKR 20 Billion Through Pakistan’s Largest Banking TFC Issuance

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Bank Alfalah has successfully raised PKR 20 billion through the issuance of a AAA-rated Tier 2 Term Finance Certificate (TFC), marking the largest TFC issuance in Pakistan’s banking industry and the Bank’s first AAA-rated TFC. The successful issuance follows approval from the State Bank of Pakistan and received strong participation from institutional investors, reflecting the market’s confidence in Bank Alfalah’s financial strength, sound governance and long-term growth strategy. Landmark AAA-Rated Tier 2 TFC Strengthens Capital Base Issued under the Basel III regulatory framework, this Tier 2 Issue is a key element of the Bank’s growth strategy and will further complement its growth capital, allowing Bank Alfalah to continue its aggressive expansion, particularly in the SME, ESG initiatives and consumer banking segments. The landmark transaction will also enable the Bank to increase its core profitability and enhance long-term shareholder returns. Strong Financial Performance Supports Investor Confidence The successful issuance builds on Bank Alfalah’s strong financial performance and disciplined balance sheet management. As of December 31, 2025, the Bank reported a profit after tax of PKR 28.34 billion, total deposits of PKR 2.49 trillion and gross advances of PKR 1.15 trillion, while maintaining a Capital Adequacy Ratio (CAR) of 15.87%, comfortably above the regulatory minimum. Serving more than 9.7 million customers through a nationwide network of 1,200 branches across more than 245 cities, Bank Alfalah continues to strengthen its position as one of Pakistan’s leading financial institutions through prudent financial management, innovation and a customer-centric approach. The Bank’s financial strength is further reinforced by PACRA’s decision to maintain its long-term rating at AAA and short-term rating at A1+ with a Stable outlook. Bank Alfalah Highlights Strategic Milestone Commenting on the successful issuance, Aasim Wajid Jawad, Group Head Strategy, Transformation, Customer Experience and VC Investments, said the transaction represents a defining milestone in Bank Alfalah’s capital markets journey. He noted that successfully completing Pakistan’s banking industry’s largest TFC issuance and the Bank’s first AAA-rated TFC reflects investors’ confidence in its financial strength, strategic direction and disciplined growth strategy. He added that the strengthened capital base will enhance the Bank’s ability to support customers, capture future growth opportunities and contribute to Pakistan’s economic progress. Strong Institutional Participation Marks Successful Transaction Pervez Shahbaz Khan, Group Head, Global Markets & Treasury, Bank Alfalah, said the successful execution of the landmark transaction demonstrates the depth of investor confidence in the Bank’s credit quality and financial resilience. He added that strong participation from institutional investors enabled Bank Alfalah to successfully complete the largest TFC issuance ever undertaken by Pakistan’s banking industry.

NBP and 1LINK Hold Bank Activation to Accelerate Digital Payment Adoption
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NBP and 1LINK Hold Bank Activation to Accelerate Digital Payment Adoption

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The National Bank of Pakistan (NBP) and 1LINK have organized a Bank Activation initiative aimed at accelerating the adoption of digital payments and expanding access to secure, convenient financial services across Pakistan. Initiative Promotes Digital Payment Adoption The activation brought together representatives from the banking sector to encourage greater use of digital payment solutions and strengthen Pakistan’s transition towards a cashless economy. The initiative focused on increasing awareness of digital financial services while promoting seamless and secure payment options for individuals and businesses. Collaboration Supports Financial Inclusion NBP and 1LINK highlighted the importance of collaboration among financial institutions to improve access to digital banking services and enhance financial inclusion across the country. The activation also emphasized the role of innovative payment technologies in making financial transactions faster, safer, and more accessible for customers. Strengthening Pakistan’s Digital Financial Ecosystem The event underscored the commitment of both organizations to supporting Pakistan’s evolving digital financial ecosystem through modern payment infrastructure and customer-centric solutions. Officials noted that expanding the use of digital payments can improve efficiency, reduce reliance on cash, and contribute to broader economic growth. Continued Focus on Digital Transformation NBP and 1LINK reaffirmed their commitment to working with industry stakeholders to promote digital payment adoption and support the State Bank of Pakistan’s vision of a more inclusive and digitally connected financial sector.

TikTok Removes Over 22.5 Million Videos in Pakistan in Q1 2026
Business

TikTok Removes Over 22.5 Million Videos in Pakistan in Q1 2026

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TikTok has released its Q1 2026 Community Guidelines Enforcement Report, reaffirming its commitment to maintaining a safe and welcoming environment for its global community. Covering the period from January to March 2026, the report highlights the platform’s continued efforts to proactively identify and remove content that violates its Community Guidelines, helping create a safer experience for users worldwide. Pakistan Sees More Than 22.5 Million Videos Removed During the first quarter of 2026, TikTok removed 22,535,523 videos in Pakistan for violating its Community Guidelines, representing a 0.8% removal rate of all videos published. Of these, 99.6% were detected and removed proactively, with 95.5% taken down within 24 hours of being posted. Meanwhile, 690,557 videos were restored following further review. Global Content Moderation Efforts Continue Globally, TikTok removed 184 million (184,012,576) videos during the quarter, representing approximately 0.5% of all content uploaded to the platform. Of these, 178,014,154 videos were detected and removed through automated detection technologies, while 8,838,710 videos were reinstated following further review. The platform maintained a proactive removal rate of 99.3%, with 94.4% of violating content removed within 24 hours of upload. Millions of Fake and Underage Accounts Removed As part of its ongoing efforts to protect platform integrity, TikTok also removed 86,288,705 fake accounts, along with an additional 25,764,372 accounts suspected of belonging to users under the age of 13 during the reporting period. Sensitive Content Tops Enforcement Categories The report indicates that 18.6% of the total removed videos contained sensitive or mature themes that did not align with TikTok’s content policies. An additional 12.6% violated the platform’s safety and civility standards. Of the removed videos, 16.5% were identified as containing dangerous activities and challenges, while 12.9% involved body exposure and sexualized behaviors. Meanwhile, 2.1% of the videos removed were flagged as edited media and AI-generated content (AIGC). TikTok Reaffirms Commitment to Transparency The quarterly publication of the Community Guidelines Enforcement Report reflects TikTok’s commitment to transparency by providing insights into the scale and nature of its content moderation and enforcement efforts. For more information about the Q1 2026 Community Guidelines Enforcement Report, as well as TikTok’s Community Guidelines, safety tools, and policies, visit the TikTok Transparency Centre, available in both Urdu and English.

Gilgit-Baltistan 100MW Solar Project Moves Forward as PC-1 Sent for Approval
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Gilgit-Baltistan 100MW Solar Project Moves Forward as PC-1 Sent for Approval

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ISLAMABAD: The Gilgit-Baltistan 100MW Solar Project has taken a significant step forward after the PC-1 for its 82-megawatt (MW) utility-scale component was formally submitted to the Executive Committee of the National Economic Council (ECNEC) for approval. The development came during a high-level meeting chaired by Prime Minister Shehbaz Sharif on Wednesday to review progress on the solar energy initiative, which is expected to improve electricity supply and reduce load shedding across **Gilgit-Baltistan>. According to an official statement, the project forms part of the federal government’s efforts to expand renewable energy, improve energy security and provide reliable electricity to underserved regions. PC-1 for 82MW Solar Component Submitted Officials informed the prime minister that the PC-1 for the project’s 82MW utility-scale solar component has been submitted to Executive Committee of the National Economic Council for approval. Once approved, the project will move into the implementation phase. The government estimates that the 82MW solar facility will benefit around 1.3 million people by improving electricity availability and significantly reducing power outages across Gilgit-Baltistan. The project is expected to increase the share of clean energy in the region while lowering dependence on conventional power sources. PM Calls Solar Energy a National Priority During the meeting, Prime Minister Shehbaz Sharif stressed that expanding solar power remains a national priority because it provides clean, affordable and environmentally friendly electricity. He said renewable energy projects are essential for Pakistan’s long-term energy security and economic development. The prime minister described the Gilgit-Baltistan 100MW Solar Project as “a gift from the federal government to the people of Gilgit-Baltistan”, highlighting the government’s commitment to improving living standards in the region. He directed the Power Division to ensure that the project is installed and completed within the scheduled timeframe. Transparency in Procurement Ordered Prime Minister Shehbaz Sharif also instructed officials to maintain complete transparency throughout the procurement process. He directed that all procurement activities should follow established procedures to ensure fairness and accountability. The prime minister further ordered that payments to contractors should only be made after comprehensive third-party verification of completed work. The directive aims to ensure quality standards are maintained while safeguarding public funds allocated for the project. 18MW Rooftop Solar System Also Planned Officials also briefed the meeting on another major component of the initiative. Besides the 82MW utility-scale solar plant, the government plans to install an 18MW rooftop solar system, supported by battery storage, on 499 government buildings across Gilgit-Baltistan. The rooftop installations are expected to be completed by December. The government believes this component will improve the quality of electricity services, reduce energy costs for public institutions and strengthen the region’s energy self-sufficiency. Battery storage systems will also help provide a more reliable electricity supply during periods of lower solar generation. Project Aims to Reduce Load Shedding The Gilgit-Baltistan 100MW Solar Project is expected to play an important role in addressing electricity shortages in the mountainous region. Gilgit-Baltistan has long faced power supply challenges, particularly during winter months when electricity demand rises and hydropower generation declines. By adding 100MW of solar capacity, the government hopes to reduce load shedding, improve energy reliability and support economic activity across the region. The project also aligns with Pakistan’s broader strategy to increase renewable energy generation and reduce reliance on imported fossil fuels. Senior Ministers Attend Review Meeting The meeting was attended by several senior government officials, including Federal Minister for Power Sardar Awais Ahmad Khan Leghari, Minister of State for Finance and Railways Bilal Azhar Kayani, along with other officials from relevant ministries and departments. Participants reviewed the project’s progress, implementation timeline and procurement arrangements to ensure the initiative remains on schedule. Project Builds on Earlier Federal Initiative The latest progress follows an earlier decision made by Prime Minister Shehbaz Sharif in September 2025, when he approved a plan to use confiscated solar panels for public energy projects in Gilgit-Baltistan. That initiative allocated 100MW of solar capacity for distributed solar photovoltaic projects across remote locations in the region. The current project represents the implementation of that commitment and is designed to improve electricity access in some of Pakistan’s most geographically challenging areas. Once completed, the Gilgit-Baltistan 100MW Solar Project is expected to provide cleaner, more reliable and affordable electricity to communities while supporting the country’s transition toward renewable energy and sustainable development.

US Strikes Over 80 Iranian Targets After Hormuz Tanker Attacks
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US Strikes Over 80 Iranian Targets After Hormuz Tanker Attacks

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The United States military has carried out fresh strikes on more than 80 Iranian targets. The operation was launched early Wednesday in direct response to attacks on commercial tankers in the Strait of Hormuz. US Justifies Strikes to Defend International Waters The US Central Command said the strikes aim to impose heavy costs on Iran.Tehran’s actions targeted commercial shipping crewed by innocent civilians in an international waterway. Three vessels were hit overnight near Oman. One tanker suffered a fire after being struck by an unknown projectile.At least one other vessel was attacked by a drone.Qatar confirmed one of the ships was its LNG tanker.Doha described the attack as unacceptable and blamed Iran. The US Treasury Department revoked a temporary oil sanctions waiver hours before the strikes.The waiver had allowed Iran to produce, sell and deliver crude oil until August.US officials called Iran’s moves in the Strait wholly unacceptable. They warned that such violations would face firm consequences.The US-Iran memorandum of understanding is performance-based, officials stressed. Tehran would see benefits only through demonstrated good behaviour. Iran Retaliates and Warns of Further Escalation Iran’s Revolutionary Guards and army launched a joint missile and drone operation.They struck US military sites in Bahrain and Kuwait.The Sheikh Isa Air Base in Bahrain’s Fifth Naval District was targeted. Ali Al Salem Air Base in Kuwait also came under attack. Iran claimed its air defences shot down a US MQ-9 drone.The interception took place over Khormoj in Bushehr province. Iranian state media reported the drone was destroyed during what Tehran called aerial aggression. US authorities have not yet commented on the claim. Iran’s army said it had earlier targeted a US base in Jordan and 21 other sites in the Gulf. The action responded to alleged US hostile aggression against military and civilian areas in southern Iran. Iran warned that all American bases in the region are now legitimate targets for its drones. This would apply if Washington continues violating the ceasefire agreement. Explosions Reported Across Southern Iran Explosions rocked several areas of southern Iran on Wednesday morning. Six blasts were reported in the port city of Bandar Abbas. Ten explosions were heard in Sirik. Four more occurred in Misin village on Qeshm Island. Iranian state television and Fars News Agency carried the reports. Situation Remains Fluid No casualties or damage have been confirmed at the sites so far.

Water Ministry, WAPDA Face Rs7bn Financial Irregularities in AGP Audit
Pakistan

Water Ministry, WAPDA Face Rs7bn Financial Irregularities in AGP Audit

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An audit conducted by the Auditor General of Pakistan (AGP) has uncovered Rs7.02 billion in financial irregularities in the Ministry of Water Resources and its affiliated organizations, including the Water and Power Development Authority (WAPDA), during the financial year 2024-25. The findings have renewed concerns over the management of delayed and over-budget public sector development projects, particularly major water and hydropower schemes that are considered vital to Pakistan’s energy and water security. Audit Reviews Rs554 Billion in Transactions The audit examined the financial affairs of 112 formations under the Ministry of Water Resources. During the review period, auditors scrutinized Rs359.6 billion in expenditure and Rs194.2 billion in receipts, representing a total financial review of more than Rs553 billion. Despite identifying irregularities amounting to Rs7.02 billion, the audit noted that only Rs2.821 million had been recovered and verified between January and December, indicating limited progress in addressing the financial issues highlighted by auditors. The report stated that the low recovery rate reflected weaknesses in accountability mechanisms and follow-up action. Financial Management Emerges as Biggest Concern The WAPDA Audit Irregularities report revealed that financial management accounted for the largest number of audit observations. Auditors recorded 24 separate cases involving delayed construction of powerhouses, electricity generation losses, unrecovered receivables and the failure to establish dedicated bank accounts for retention money. The report warned that such weaknesses increase financial risks and may result in unnecessary losses to the national exchequer. It also noted that repeated financial irregularities raised concerns about the effectiveness of internal audit systems operating within both the Ministry of Water Resources and WAPDA. Contract Management Problems Highlighted Contract administration was identified as another major area of concern. The audit documented 18 cases related to poor contract management practices. Among the issues highlighted were projects initiated without proper feasibility studies or detailed engineering designs, excessive use of variation orders beyond original contract values and project scope changes that lacked the required approvals. According to the auditors, these shortcomings contributed to project delays, cost escalations and inefficient use of public funds. They stressed that stronger planning and oversight mechanisms are essential before launching large-scale infrastructure projects. Procurement Rules Violated The report also identified several violations of procurement regulations. Auditors recorded four procurement-related cases involving departures from the Public Procurement Regulatory Authority (PPRA) rules and Pakistan Engineering Council (PEC) guidelines. The violations included non-compliance with standard bidding procedures as well as excess and overpayments made to contractors. The audit recommended strict enforcement of procurement laws to improve transparency and prevent financial losses in future government projects. Human Resource and Asset Management Issues The audit further highlighted weaknesses in human resource management. Five cases involved employee-related issues, including recruitment processes lacking transparency and payments of unauthorized or non-compliant allowances. Asset management also emerged as a concern. Auditors identified four cases involving weak monitoring of government land and buildings, unresolved property disputes and poor inventory management. The report emphasized that stronger controls are required to safeguard public assets and prevent misuse or encroachments. Project Planning Failures Led to Delays Poor planning was another recurring issue identified during the audit. The report documented four cases where unrealistic surveys, inadequate planning and weak project execution resulted in significant cost overruns and delays. In addition, auditors reported three operational weaknesses affecting civil, electrical and mechanical works. The findings indicate that deficiencies at the planning stage continued to affect project implementation throughout the execution phase. Recovery Ordered From Contractors The Departmental Accounts Committee (DAC) has directed the management of the concerned organizations to immediately recover and adjust Rs1.339 billion from defaulting contractors. The committee also instructed officials to strengthen financial controls and ensure that future contracts comply with applicable rules and regulations. The audit noted that timely recoveries are essential to minimize losses to the public treasury. Major Hydropower Projects Behind Schedule The WAPDA Audit Irregularities report also expressed concern over the slow pace of work on several strategic water and hydropower projects. Among the projects highlighted were the Diamer-Bhasha Dam, Dasu Hydropower Project, and Mohmand Dam. The audit revealed that the Dasu Hydropower Project had achieved only 26.08% physical progress, compared with the planned target of 70.60% by the end of the review period. The slower-than-expected progress raises concerns over future project timelines, additional financing requirements and the timely completion of key infrastructure needed to address Pakistan’s growing energy demand. AGP Recommends Stronger Oversight The Auditor General has advised the Principal Accounting Officer to establish a strict monitoring system for all ongoing projects. The report recommends closer supervision of project timelines, strict enforcement of procurement regulations, improved contract management and faster resolution of land acquisition and legal disputes affecting project execution. The audit also called for stronger internal audit mechanisms to detect financial irregularities at an earlier stage and reduce the risk of losses to public funds. The findings underscore the importance of improving governance, financial discipline and project management across the Ministry of Water Resources and WAPDA as Pakistan continues to invest heavily in critical water and energy infrastructure.

The Boardroom PK delivers trusted business news, analysis, and insights from Pakistan and beyond, keeping readers informed, inspired, and ahead in the evolving world of business and leadership.

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