Islamabad: The AGP (Auditor General of Pakistan) has revealed financial irregularities exceeding Rs243 billion in the State Bank of Pakistan (SBP) during the 2022-23 audit. The report highlights mismanagement, embezzlement, and defaults, raising serious concerns about the central bank’s performance as a regulator.
According to the AGP, SBP failed to protect the national exchequer and the interests of consumers. Loans worth Rs59 billion issued by state-owned banks went into default, yet no effective punitive or regulatory action was taken against those responsible.
The audit also criticized SBP for printing Rs75 commemorative currency notes on Independence Day and the bank’s anniversary. This initiative caused a loss of Rs1.96 billion, as 72 million notes worth Rs9.15 billion received little public acceptance. The AGP noted that public response had not been assessed before large-scale printing.
Further findings included the appointment of a dual national as Deputy Governor, which violated regulations. An Australian national received an annual salary of Rs120 million despite the rule breach.
Other irregularities reported by the AGP involved:
- Sale of securities below purchase price, causing Rs105 billion loss.
- Keeping large funds with international managers, resulting in Rs26 billion loss.
- High interest rates of 13% on small borrowers, causing Rs12 billion loss.
- Unauthorized loans and financing facilities totaling billions of rupees.
- Housing loans to SBP employees without clearing previous accounts.
- Embezzlement of Rs63.5 million in medical stock with no inquiry after 16 months.
- Eight senior officers at SBP Lahore office holding dubious educational degrees.
The report concludes that the SBP also failed to provide meaningful relief to genuine borrowers through local institutions, leaving small borrowers burdened by high-interest rates.
The AGP’s findings highlight the urgent need for reforms within SBP to strengthen governance, transparency, and accountability in Pakistan’s central banking system.
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