PAC dissatisfied with repayment of foreign loans, interest payment

ISLAMABAD: Expressing dissatisfaction with the system of repayment of foreign loans and interest repayment, the Public Accounts Committee (PAC) Tuesday sought a detailed briefing from the Finance Ministry on foreign loans.

Chairman PAC Junaid Akbar expressed his frustration with the finance secretary for not attending the meeting and directed him to attend the next meeting after negotiations with the IMF delegation. The meeting demanded a detailed briefing on foreign loans.

The Ministry of Economic Affairs’ predictions on dollar’s fluctuations were also called incorrect in the meeting.

Junaid Akbar chaired the committee meeting in which the audit paras of Economic Affairs Division and Ministry of Foreign Affairs 2023-24 were discussed.

The PAC members expressed dissatisfaction with the system of repayment of foreign loans and interest repayment. Committee member and Opposition leader in the National Assembly Omar Ayub said a loan of Rs58 billion had been rescheduled and it must be repaid in any case.

Considering the seriousness of the matter, Junaid Akbar directed that the Ministry of Finance as well as the Ministry of Planning and Development be summoned to the meeting.

The meeting resolved the issue of giving honorarium of Rs52 million to the officers of Ministry of Economic Affairs, while strong annoyance was also expressed over the audit objections of the Ministry of Foreign Affairs.

Taking up the audit para of the foreign affairs, the committee also raised the question of why there was a loss of Rs181 million due to not constructing the embassy building in Kathmandu. Audit officials said approval was given to construct the building in 2008, but the project could not be completed due to lack of funding.

The issue of the Pakistani embassy in Berlin not submitting receipts of Rs97 million to the government treasury was also discussed in the meeting, on which the Foreign Office officials admitted the mistake and assured that it would not happen in future. The disclosure of illegal salary payments of Rs49 million in London and Paris also came to light in the meeting, on which the chairman PAC directed the Ministry of Finance to resolve the issue within 15 days.

The meeting also expressed strong displeasure over the issue of double payments to officers of the Ministry of Foreign Affairs. According to the audit officials, more than 5 million rupees were transferred to officers in unnecessary payments. The audit officials told the committee that one officer was getting double pay despite being posted abroad for 33 months and another for 27 months.

The foreign ministry officials told the committee that they were unaware of the double payment. The committee members reacted strongly to this and said that the officers should have known that they were getting double salaries. The PAC chairman issued instructions for completing the action on this issue within a month.

The audit officials told the committee that Rs11 million deposited in a bank account in Nairobi but not sent to Pakistan. The secretary foreign affairs told the committee that this money cannot reach Pakistan due to banking issues in Kenya. The committee directed verification and adjustment of the amount.

The committee member, Riaz Fatyana, asked whether the pension of officers who settle abroad after retirement was given in Pakistani or foreign currency. The foreign secretary replied that they were given pension in Pakistani rupees.