Key Takeaways
- Pakistan’s Universal Service Fund (USF) failed to conduct its legally required financial audit for FY2024-25.
- The fund's spending fell by 30 percent, while revenue collections increased by 17 percent.
- Audit authorities recommend a high-level investigation into the matter.
Pakistan’s Universal Service Fund (USF) has failed to complete its legally required financial audit for the fiscal year 2024-25, according to an audit report. The Pakistan Telecommunication Act mandates that the USF's annual accounts be audited by both a chartered accountant and the Auditor General of Pakistan.
Despite repeated observations from audit authorities, the mandatory audit by a chartered accounting firm was not carried out. The auditors have directed USF management to immediately complete the pending statutory audit through a chartered accounting firm and recommended identifying officials responsible for failing to comply with the legal requirement.
The report highlights a significant decline in the fund’s spending during FY2024-25, which fell by 30 percent to Rs. 11.66 billion from Rs. 16.64 billion in the previous fiscal year. However, revenue collections improved, increasing by 17 percent to Rs. 11.05 billion compared with Rs. 9.45 billion a year earlier.
According to the audit report, higher levy collections contributed to the improvement in the fund’s financial position. Nevertheless, auditors stressed that completing the pending statutory audit is essential for ensuring transparency, accountability, and compliance with the law in the management of public funds.
The audit authorities have recommended a high-level investigation into the matter to identify any potential irregularities or mismanagement. The USF has been directed to take immediate corrective action to address these issues and ensure future compliance with legal requirements.
