The TDAP Audit Report has exposed what could become one of the most significant governance controversies involving Pakistan’s premier export promotion organization. Audit findings for the financial year 2024-25 have uncovered financial irregularities worth Rs. 3.656 billion, exposing widespread weaknesses in financial management, poor internal controls, and repeated violations of statutory requirements.
The findings have placed the Trade Development Authority of Pakistan (TDAP) under intense scrutiny at a time when Pakistan is relying heavily on exports to stabilize its economy, improve foreign exchange reserves, and attract international investment. Instead of strengthening exporters, the country’s leading export promotion institution now finds itself facing serious questions over transparency and accountability.
TDAP Audit Report Highlights Massive Governance Breakdown
According to the audit for 2025-26, auditors identified irregularities totaling Rs. 3.656 billion across multiple financial and administrative areas.
Rather than representing isolated incidents, the observations point toward deep-rooted governance failures affecting the authority’s financial operations.
The audit identified three major categories of concern.
Recovery-related issues accounted for more than Rs. 1.6 billion, making them the largest area of financial exposure.
Internal control deficiencies totaled approximately Rs. 1.36 billion, indicating serious weaknesses in oversight and monitoring.
Mismanagement of commercial bank accounts contributed another Rs. 513.6 million, raising concerns over compliance with legal financial procedures.
Together, these findings paint a troubling picture of an institution struggling to maintain effective financial discipline.
Failure to Prepare Financial Statements Raises Serious Legal Questions
Among the most alarming findings is TDAP’s failure to prepare legally required financial statements under the TDAP Act, 2013.
The audit states that the authority did not prepare balance sheets, income statements, or cash flow statements even years after the close of the financial period. These documents are fundamental for any public institution because they provide transparency regarding assets, liabilities, revenues, and expenditures.
Management argued that previous financial statements had been prepared by external auditors and that work on the 2024-25 accounts was still underway.
Auditors rejected this explanation, describing it as inadequate and inconsistent with statutory obligations. The absence of complete financial statements makes it difficult for oversight institutions to accurately assess TDAP’s financial health and operational performance.
Karachi Expo Centre Income Kept Outside Official TDAP Fund
Another major observation involves Rs. 513.615 million generated through operations at the Karachi Expo Centre.
Under the TDAP Act, all revenues are required to be deposited into the designated TDAP Fund. Instead, auditors found that the authority retained these funds in a commercial bank account maintained with the National Bank of Pakistan.
Out of the total amount, approximately Rs. 400.625 million was spent on maintenance, security, utilities, and operational expenses.
While TDAP management argued that it was legally permitted to operate bank accounts, auditors maintained that the income should first have been transferred to the official TDAP Fund before any expenditure took place. Bypassing this process weakened financial transparency and reduced institutional oversight.
Karachi Expo Centre Pricing Lapse Caused Revenue Loss
The audit also revealed a direct revenue loss of Rs. 29.546 million linked to the Karachi Expo Centre.
Auditors found that the Defence Export Promotion Organization (DEPO) used the exhibition facility for additional setup and dismantling days beyond the standard free period.
According to applicable pricing rules, these additional days should have been billed at half the normal rental rate. TDAP failed to recover these charges, resulting in a significant loss of public revenue.
The auditors recommended immediate recovery of the outstanding amount and called for responsibility to be fixed on the officials involved.
Unpaid Water Bills Added Fresh Financial Burden
Another lapse identified in the TDAP Audit Report concerns unpaid water charges amounting to Rs. 24.163 million owed to the Karachi Water and Sewerage Board.
The authority failed to clear utility bills for the Karachi Expo Centre, allowing liabilities to accumulate over time.
Management attributed the issue to billing discrepancies and problems with a non-functional water connection. However, auditors concluded that the matter had not been properly reconciled and reflected weak financial planning and poor engagement with service providers.
The failure to resolve utility obligations also exposes the authority to additional penalties and surcharge risks.
Procurement Irregularities Deepen Accountability Concerns
Procurement practices also came under criticism.
The audit identified procurement-related irregularities exceeding Rs. 144 million. Although individual cases differed, auditors observed recurring weaknesses, including violations of procurement rules, insufficient documentation, and inadequate competitive bidding.
Such practices reduce transparency, weaken public confidence, and increase the possibility of inefficient use of government resources.
Weak Internal Controls Continue to Fuel Financial Risks
Throughout the report, auditors repeatedly pointed to weak internal controls as the central factor behind many of the financial irregularities.
Several transactions lacked proper documentation, reconciliation procedures remained incomplete, and financial monitoring systems failed to identify or prevent irregular practices.
Without stronger oversight mechanisms, the audit warns that similar governance failures may continue in future financial years.
Public Accounts Committee Directives Remain Largely Ignored
The audit also criticized TDAP’s poor compliance with directives issued by the Public Accounts Committee (PAC).
Out of 92 audit paragraphs carried forward from previous years, only a small number have been fully resolved. Many observations remain pending despite repeated recommendations for corrective action.
The continued backlog suggests that audit findings are not being addressed effectively, raising broader concerns about institutional accountability.
Why the TDAP Audit Report Matters for Pakistan’s Economy
The findings extend well beyond accounting issues.
TDAP plays a central role in promoting Pakistani exports, supporting exporters, organizing international trade exhibitions, and improving the country’s global trade competitiveness.
Persistent governance failures could reduce the authority’s effectiveness at a time when Pakistan urgently needs export growth to strengthen economic recovery, improve foreign exchange earnings, and attract foreign investors.
Weak governance within the country’s principal export promotion agency risks undermining confidence among exporters, investors, and international trading partners.
Audit Calls for Immediate Structural Reforms
The audit has recommended several corrective measures to strengthen TDAP’s governance framework.
These recommendations include preparing legally compliant financial statements without further delay, depositing all revenues into the official TDAP Fund, strengthening internal financial controls, reconciling outstanding accounts and liabilities, fully implementing Public Accounts Committee recommendations, and fixing responsibility on officials involved in financial irregularities.
Beyond these immediate steps, the audit signals the need for broader institutional reforms focused on transparency, accountability, and stronger governance practices.
As Pakistan continues to pursue export-led economic growth, restoring confidence in the country’s leading export promotion institution may prove just as important as increasing exports themselves.