The Auditor General of Pakistan identified irregularities and losses totaling Rs18.46 billion within the Khyber Pakhtunkhwa Economic Zones Development and Management Company (KPEZDMC). These financial discrepancies occurred during the 2024-25 fiscal year.
The Auditor General attributed the losses to a combination of weak management, poor planning, and various financial irregularities. KPEZDMC, which oversees the province's economic zones including the Rashakai Economic Zone, failed to collect Rs2.08 billion in lease payments from industrial owners for allotted land.
The company also lost Rs629.8 million because it did not renew agreements for commercial land. Failure to vacate land in Buner, Mohmand, and Jalozai resulted in an additional loss of Rs1.08 billion.
Illegal allotment of commercial land for industrial use caused a loss of Rs174.1 million. In Haripur, Al-Hadeed Engineering was allotted 10 acres across four plots, but the company failed to pay for the land, costing the state Rs497.8 million.
Contingent liabilities for the company have now reached Rs14 billion. A separate audit discovered Rs16.94 billion in irregularities within the KP Minerals Department.
