Malpractices in AGPR cause Rs175b annual loss to exchequer

Federal for Information and Broadcasting Senator Shibli Faraz acknowledged that mismanagement and malpractices in office of the Accountant General Pakistan Revenue (AGPR) were causing a loss of up to Rs175b per annum to exchequer.

"The estimated purchases made by the federal government were around Rs1 trillion every year but Rs150b to Rs175b was paid at above the market rates in these purchases," he revealed at a press conference addressed also by PM's Inspection Commission chairman Ahmed Yar Hiraj.

The information minister reiterated that the PTI government was introducing a number of reforms in all national institutions to

Minister ensure transparency as this was promised in the party's election manifesto.

He added that the AGPR was an important institution which made payments for all public sector procurements and it was noted that public sector purchases were significantly costlier than similar procurements made in the private sector, which was because of corruption in the AGPR. The contractors had to pay bribes for clearance of their bills in this department to get payments.

Says PTI govt introducing reforms in all institutions to ensure transparency "The suppliers added the over and above amount that was the expected payment rate in the AGPR in their quotations," the minister said.

He said that similar conditions existed at the provincial level, resulting in colossal loss to the national exchequer as the share of the provincial budget was around 58 per cent of their purchases amounted to around Rs1 trillion annually. Therefore, he added, the level of corruption in official purchases was up to Rs350bn.

"But the serious issue is that this does not include public sector corporations and independent institutions, like the Pakistan International Airlines, National Highway Authority and Sui gas," the minister said.

"During the past 10 years the national exchequer suffered around Rs4 trillion losses mainly due to malpractices in the AGPR, while the governments of the time took no action to stop these practices as they were also receiving commissions and kickbacks from the system."