Key Takeaways
- Auditor General of Pakistan (AGP) has flagged financial irregularities worth over Rs. 1.06 billion in the government’s Zakat Fund.
- Recommendations include recovery of Rs. 1.04 billion and corrective measures to improve transparency.
- Multiple public sector organizations failed to deduct Zakat from eligible employees, raising concerns.
The Auditor General of Pakistan (AGP) has identified significant financial irregularities in the government-managed Zakat Fund, amounting to over Rs. 1.06 billion across multiple audit observations spanning several years.
According to AGP’s findings, the ministry is required to recover more than Rs. 1.04 billion from these irregularities, with recommendations for corrective measures aimed at enhancing transparency and accountability in Zakat Fund management.
The report highlights specific instances of non-compliance, such as the Pakistan Airports Authority (Karachi) failing to collect Zakat from seven employees, while the Office of the Accountant General Pakistan Revenues (AGPR), Islamabad, did not deduct Zakat from 128 employees.
Additionally, Oil and Gas Development Company Limited (OGDCL) has been accused of granting unauthorized Zakat exemptions to various funds and trusts without obtaining approval from relevant authorities. Between 2022 and 2025, 264 such trusts allegedly received unapproved exemptions.
The audit further pointed out delays by OGDCL and Water and Power Development Authority (WAPDA) in depositing Zakat collected from employees into the government’s official Zakat Fund, raising concerns over compliance with prescribed procedures.
In response to these findings, AGP has recommended immediate corrective actions and the recovery of identified amounts. These measures are intended to ensure that the government’s Zakat Fund is managed transparently and in accordance with established guidelines.
