TABLE OF CONTENTS

ABBREVIATIONS AND ACRONYMS i

PREFACE xi
EXECUTIVE SUMMARY xiii
SUMMARY TABLES AND CHARTS xix
I. Audit Work Statistics xxi
II. Audit Observations classified by Categories xxi
III. Outcome Statistics xxi
IV. Table of Irregularities pointed out xxii
V. Cost- Benefit xxii

AVIATION DIVISION
CHAPTER-1
(CABINET SECRETARIAT)
1.1 Pakistan International Airlines Corporation
1.1.1 Introduction 1
1.1.2 Comments on Audited Accounts 1
1.1.3 Compliance of PAC Directives 3
1.1.4 AUDIT PARAS 4
1.2 Skyrooms (Pvt.) Limited
1.2.1 Introduction 26
1.2.2 Comments on Audited Accounts 26
1.2.3 Compliance of PAC Directives 27
1.2.4 AUDIT PARAS 28
CHAPTER-2 CABINET DIVISION
2.1 Printing Corporation of Pakistan (Pvt.) Limited
2.1.1 Introduction 30
2.1.2 Comments on Audited Accounts 31
2.1.3 Compliance of PAC Directives 31
2.1.4 AUDIT PARAS 32
2.2 Oil and Gas Regulatory Authority
2.2.1 Introduction 35
2.2.2 Comments on Audited Accounts 35
2.2.3 Compliance of PAC Directives 36
2.2.4 AUDIT PARAS 36
 2.3 Pakistan Bait-ul-Mal
2.3.1 Introduction 41
2.3.2 Comments on Audited Accounts 41
2.3.3 Compliance of PAC Directives 42
2.3.4 AUDIT PARAS 43
2.4 Pakistan Tourism Development Corporation
Limited
2.4.1 Introduction 53
2.4.2 Comments on Audited Accounts 54
2.4.3 Compliance of PAC Directives 54
2.4.4 AUDIT PARAS 55
CHAPTER-3 MINISTRY OF CLIMATE CHANGE

3.1 Pakistan Environmental Planning and

Architectural Consultants (Pvt.) Limited
3.1.1 Introduction 57
3.1.2 Comments on Audited Accounts 57
3.1.3 Compliance of PAC Directives 58
3.1.4 AUDIT PARAS 58
CHAPTER-4 MINISTRY OF COMMERCE
4.1 National Insurance Company Limited
4.1.1 Introduction 61
4.1.2 Comments on Audited Accounts 61
4.1.3 Compliance of PAC Directives 61
4.1.4 AUDIT PARAS 62
4.2 Pakistan Reinsurance Company Limited
4.2.1 Introduction 67
4.2.2 Comments on Audited Accounts 67
4.2.3 Compliance of PAC Directives 68
4.2.4 AUDIT PARAS 69
4.3 State Life Insurance Corporation of Pakistan
4.3.1 Introduction 73
4.3.2 Comments on Audited Accounts 73
4.3.3 Compliance of PAC Directives 74
4.3.4 AUDIT PARAS 75
4.4 Trading Corporation of Pakistan (Pvt.) Limited
4.4.1 Introduction 83
 4.4.2 Comments on Audited Accounts 83
4.4.3 Compliance of PAC Directives 83
4.4.4 AUDIT PARAS 84
4.5 Pakistan Horticulture Development and Export
Company
4.5.1 Introduction 92
4.5.2 Comments on Audited Accounts 92
4.5.3 Compliance of PAC Directives 92
4.5.4 AUDIT PARAS 93
4.6 Quality Review Committee
4.6.1 Introduction 109
4.6.2 Comments on Audited Accounts 109
4.6.3 Compliance of PAC Directives 109
4.6.4 AUDIT PARAS 110
CHAPTER-5 MINISTRY OF DEFENCE PRODUCTION

5.1 Karachi Shipyard and Engineering Works

5.1.1 Introduction 116
5.1.2 Comments on Audited Accounts 116
5.1.3 Compliance of PAC Directives 116
5.2 Pakistan Ordnance Factories
5.2.1 Introduction 118
5.2.2 Comments on Audited Accounts 118
5.2.3 Compliance of PAC Directives 118
5.2.4 AUDIT PARAS 119
5.3 Wah Noble (Pvt.) Limited
5.3.1 Introduction 126
5.3.2 AUDIT PARA 127
5.4 POF Welfare Trust Fund
5.4.1 Introduction 129
5.4.2 AUDIT PARA 129
CHAPTER-6 FINANCE DIVISION
6.1 Non-entertainment of state audit 131
 6.2 House Building Finance Company Limited
6.2.1 Introduction 132
6.2.2 Comments on Audited Accounts 132
6.2.3 Compliance of PAC Directives 132
6.2.4 AUDIT PARAS 133
6.3 Pakistan Security Printing Corporation (Pvt.)
Limited
6.3.1 Introduction 137
6.3.2 Comments on Audited Accounts 137
6.3.3 Compliance of PAC Directives 138
6.3.4 AUDIT PARAS 139
6.4 State Bank of Pakistan
6.4.1 Introduction 144
6.4.2 Comments on Audited Accounts 144
6.4.3 Compliance of PAC Directives 146
6.4.4 AUDIT PARAS 147
6.5 SME Bank Limited
6.5.1 Introduction 157
6.5.2 Comments on Audited Accounts 158
6.5.3 Compliance of PAC Directives 161
6.5.4 AUDIT PARAS 161
6.6 Zarai Taraqiati Bank Limited
6.6.1 Introduction 170
6.6.2 Comments on Audited Accounts 170
6.6.3 Compliance of PAC Directives 173
6.6.4 AUDIT PARAS 173
6.7 Kissan Support Services (Pvt.) Ltd
6.7.1 Introduction 187
6.7.2 Comments on Audited Accounts 187
6.7.3 Compliance of PAC Directives 188
6.8 Pak China Investment Company Limited
6.8.1 Introduction 189
6.8.2 AUDIT PARA 189
6.9 Saudi Pak Industrial & Agricultural
Investment Company
6.9.1 Introduction 191
 6.9.2 AUDIT PARA 192
CHAPTER-7 MINISTRY OF HEALTH

7.1 National Institute of Health

7.1.1 Introduction 194
7.1.2 Comments on Audited Accounts 194
7.1.3 Compliance of PAC Directives 195
7.1.4 AUDIT PARAS 195
MINISTRY OF INDUSTRIES AND
CHAPTER-8
PRODUCTION
8.1 Export Processing Zones Authority
8.1.1 Introduction 199
8.1.2 Comments on Audited Accounts 199
8.1.3 Compliance of PAC Directives 199
8.2 Pakistan Industrial Development Corporation
8.2.1 Introduction 201
8.2.2 Comments on Audited Accounts 201
8.2.3 Compliance of PAC Directives 202
8.2.4 AUDIT PARAS 203
8.3 Pakistan Industrial Development Medical
Centre
8.3.1 Introduction 205
8.3.2 Comments on Audited Accounts 205
8.3.3 Compliance of PAC Directives 206
8.4 Karachi Tools, Dies and Moulds Centre
8.4.1 Introduction 207
8.4.2 Comments on Audited Accounts 207
8.4.3 Compliance of PAC Directives 208
8.4.4 AUDIT PARAS 208
8.5 Pakistan Chemical & Energy Sector Skill
Development Company
8.5.1 Introduction 211
8.5.2 Comments on Audited Accounts 212
8.5.3 Compliance of PAC Directives 212
8.6 National Industrial Parks Development and
Management Company
8.6.1 Introduction 213
8.6.2 Comments on Audited Accounts 214
8.6.3 Compliance of PAC Directives 214
8.6.4 AUDIT PARAS 214
8.7 Pakistan Gems and Jewellery Development
Company
8.7.1 Introduction 220
8.7.2 Comments on Audited Accounts 220
8.7.3 Compliance of PAC Directives 221
8.7.4 AUDIT PARA 221
8.8 Pakistan Institute of Management
8.8.1 Introduction 223
8.8.2 Comments on Audited Accounts 223
8.8.3 Compliance of PAC Directives 223
8.9 Pakistan Steel Mills Corporation (Pvt.) Limited
8.9.1 Introduction 225
8.9.2 Comments on Audited Accounts 225
8.9.3 Compliance of PAC Directives 227
8.9.4 AUDIT PARAS 228
8.10 Pakistan Steel Fabricating Company (Pvt.)
Limited
8.10.1 Introduction 237
8.10.2 Comments on Audited Accounts 237
8.10.3 Compliance of PAC Directives 237
8.10.4 AUDIT PARA 238
8.11 Pakistan Machine Tool Factory (Pvt.) Limited
8.11.1 Introduction 240
8.11.2 Comments on Audited Accounts 240
8.11.3 Compliance of PAC Directives 241
8.11.4 AUDIT PARAS 241
8.12 ENAR Petrotech Services (Pvt.) Limited
8.12.1 Introduction 245
8.12.2 Comments on Audited Accounts 245
8.12.3 Compliance of PAC Directives 246
8.12.4 AUDIT PARAS 247
8.13 Technology Upgradation and Skill
Development Company
8.13.1 Introduction 255
8.13.2 Comments on Audited Accounts 255
8.13.3 Compliance of PAC Directives 257
8.14 Aik Hunar Aik Nagar (AHAN)
8.14.1 Introduction 258
8.14.2 Comments on Audited Accounts 258
8.14.3 Compliance of PAC Directives 259
8.14.4 AUDIT PARAS 259
8.15 Ceramic Development and Training Complex
8.15.1 Introduction 261
8.15.2 Comments on Audited Accounts 261
8.15.3 Compliance of PAC Directives 262
8.16 Pakistan Hunting and Sporting Arms
Development Company
8.16.1 Introduction 263
8.16.2 Comments on Audited Accounts 263
8.16.3 Compliance of PAC Directives 265
8.17 Pakistan Stone Development Company
8.17.1 Introduction 266
8.17.2 Comments on Audited Accounts 266
8.17.3 Compliance of PAC Directives 266
8.17.4 AUDIT PARA 267
8.18 State Engineering Corporation (Pvt.) Limited
8.18.1 Introduction 269
8.18.2 Comments on Audited Accounts 270
8.18.3 Compliance of PAC Directives 272
8.19 Heavy Mechanical Complex (Pvt.) Limited
8.19.1 Introduction 273
8.19.2 Comments on Audited Accounts 273
8.19.3 Compliance of PAC Directives 276
8.20 Heavy Electrical Complex (Pvt.) Limited
8.20.1 Introduction 277
8.20.2 Comments on Audited Accounts 277
8.20.3 Compliance of PAC Directives 279
8.20.4 AUDIT PARA 280
8.21 Pakistan Engineering Company Ltd
8.21.1 Introduction 281
8.21.2 Comments on Audited Accounts 281
8.21.3 Compliance of PAC Directives 283
8.21.4 AUDIT PARA 283
8.22 National Fertilizer Corporation Limited
8.22.1 Introduction 285
8.22.2 Comments on Audited Accounts 285
8.22.3 Compliance of PAC Directives 287
8.23 National Fertilizer Marketing Limited
8.23.1 Introduction 288
8.23.2 Comments on Audited Accounts 288
8.23.3 Compliance of PAC Directives 288
8.23.4 AUDIT PARAS 289
8.24 NFC Institute of Engineering and
Technological Training (Pvt.) Limited, Multan
8.24.1 Introduction 294
8.24.2 Comments on Audited Accounts 294
8.24.3 Compliance of PAC Directives 295
8.24.4 AUDIT PARA 296
8.25 NFC Institute of Engineering and Fertilizer
Research (Pvt.) Limited, Faisalabad
8.25.1 Introduction 297
8.25.2 Comments on Audited Accounts 297
8.25.3 Compliance of PAC Directives 297
8.25.4 AUDIT PARA 298
8.26 Small & Medium Enterprise Development
Authority
8.26.1 Introduction 299
8.26.2 Comments on Audited Accounts 299
8.26.3 Compliance of PAC Directives 299
8.26.4 AUDIT PARA 300
8.27 Utility Stores Corporation of Pakistan (Pvt.)
Limited
8.27.1 Introduction 302
8.27.2 Comments on Audited Accounts 302
8.27.3 Compliance of PAC Directives 303
8.27.4 AUDIT PARAS 303
 MINISTRY OF INFORMATION,
CHAPTER-9 BROADCASTING AND NATIONAL
HERITAGE

9.1 Pakistan Television Corporation Limited

9.1.1 Introduction 312
9.1.2 Comments on Audited Accounts 313
9.1.3 Compliance of PAC Directives 316
9.1.4 AUDIT PARAS 317
9.2 Shalimar Recording and Broadcasting
Company Limited
9.2.1 Introduction 336
9.2.2 Comments on Audited Accounts 336
9.2.3 Compliance of PAC Directives 339
MINISTRY OF INFORMATION
CHAPTER-10 TECHNOLOGY AND
TELECOMMUNICATION

Pakistan Software Export Board (Guarantee)

10.1
Limited
10.1.1 Introduction 340
10.1.2 Comments on Audited Accounts 340
10.1.3 Compliance of PAC Directives 342
CHAPTER-11 MINISTRY OF INTERIOR
11.1 National Database Registration Authority
11.1.1 Introduction 343
11.1.2 Comments on Audited Accounts 343
11.1.3 Compliance of PAC Directives 346
11.1.4 AUDIT PARAS 347

MINISTRY OF NATIONAL FOOD

CHAPTER-12
SECURITY AND RESEARCH
12.1 Pakistan Agricultural Storage and Services
Corporation Limited
12.1.1 Introduction 362
12.1.2 Comments on Audited Accounts 362
12.1.3 Compliance of PAC Directives 364
12.1.4 AUDIT PARAS 365
 12.2 Livestock and Dairy Development Board
12.2.1 Introduction 383
12.2.2 Comments on Audited Accounts 384
12.2.3 Compliance of PAC Directives 385
NATIONAL HISTORY AND LITERARY
CHAPTER-13
HERITAGE DIVISION

13.1 National Book Foundation

13.1.1 Introduction 386
14.1.2 Comments on Audited Accounts 386
13.1.3 Compliance of PAC Directives 389

MINISTRY OF OVERSEAS PAKISTANIS AND

CHAPTER-14
HUMAN RESOURCES DEVELOPMENT
14.1 Employees’ Old-Age Benefits Institution
14.1.1 Introduction 390
14.1.2 Comments on Audited Accounts 390
14.1.3 Compliance of PAC Directives 391
14.1.4 AUDIT PARAS 392
14.2 Overseas Employment Corporation (Pvt.) Ltd.
14.2.1 Introduction 409
14.2.2 Comments on Audited Accounts 409
14.2.3 Compliance of PAC Directives 411
MINISTRY OF PETROLEUM AND
CHAPTER-15
NATURAL RESOURCES
15.1 Pakistan Petroleum Limited
15.1.1 Introduction 412
15.1.2 Comments on Audited Accounts 413
15.1.3 Compliance of PAC Directives 414
15.1.4 AUDIT PARAS 415
15.2 Pakistan State Oil Company Limited
15.2.1 Introduction 417
15.2.2 Comments on Audited Accounts 418
15.2.3 Compliance of PAC Directives 419
15.2.4 AUDIT PARAS 420
 15.3 Saindak Metals Limited
15.3.1 Introduction 437
15.3.2 Comments on Audited Accounts 437
15.3.3 Compliance of PAC Directives 439
15.4 Sui Southern Gas Company Limited
15.4.1 Introduction 440
15.4.2 Comments on Audited Accounts 440
15.4.3 Compliance of PAC Directives 440
15.4.4 AUDIT PARAS 441
15.5 Lakhra Coal Development Company Limited
15.5.1 Introduction 468
15.5.2 Comments on Audited Accounts 468
15.5.3 Compliance of PAC Directives 469
15.5.4 AUDIT PARA 469
15.6 Oil and Gas Development Company Limited
15.6.1 Introduction 471
15.6.2 Comments on Audited Accounts 471
15.6.3 Compliance of PAC Directives 476
15.6.4 AUDIT PARAS 476
15.7 Sui Northern Gas Pipelines Limited
15.7.1 Introduction 497
15.7.2 Comments on Audited Accounts 498
15.7.3 Compliance of PAC Directives 498
15.7.4 AUDIT PARAS 499
15.8 Pakistan Mineral Development Corporation
(Pvt.) Limited
15.8.1 Introduction 514
15.8.2 Comments on Audited Accounts 515
15.8.3 Compliance of PAC Directives 517
15.8.4 AUDIT PARA 518
15.9 Inter State Gas Systems (Pvt.) Limited
15.9.1 Introduction 519
15.9.2 Comments on Audited Accounts 519
15.9.3 Compliance of PAC Directives 521
15.10 Mari Petroleum Company Limited
15.10.1 Introduction 522
 15.10.2 AUDIT PARA 523

CHPTER-16 MINISTRY OF PLANNING,

DEVELOPMENT AND REFORM

16.1 National Logistic Cell

16.1.1 Introduction 524
16.1.2 Comments on Audited Accounts 524
16.1.3 Compliance of PAC Directives 524
16.1.4 AUDIT PARAS 525
16.2 Pakistan Institute of Development Economics
16.2.1 Introduction 532
16.2.2 Comments on Audited Accounts 532
16.2.3 Compliance of PAC Directives 534
CHPTER-17 MINISTRY OF PORTS AND SHIPPING
17.1 Gwadar Port Authority
17.1.1 Introduction 535
17.1.2 Comments on Audited Accounts 535
17.1.3 Compliance of PAC Directives 535
17.1.4 AUDIT PARAS 536
17.2 Korangi Fisheries Harbour Authority
17.2.1 Introduction 540
17.2.2 Comments on Audited Accounts 540
17.2.3 Compliance of PAC Directives 540
17.2.4 AUDIT PARAS 541
17.3 Pakistan National Shipping Corporation
17.3.1 Introduction 546
17.3.2 Comments on Audited Accounts 546
17.3.3 Compliance of PAC Directives 548
17.3.4 AUDIT PARAS 549
17.4 Port Qasim Authority
17.4.1 Introduction 554
17.4.2 Comments on Audited Accounts 554
17.4.3 Compliance of PAC Directives 554
17.4.4 AUDIT PARAS 555
 MINISTRY OF SCIENCE AND
CHAPTER-18
TECHNOLOGY
18.1 Pakistan Science Foundation
18.1.1 Introduction 570
18.1.2 Comments on Audited Accounts 570
18.1.3 Compliance of PAC Directives 572
18.1.4 AUDIT PARAS 573
18.2 Pakistan Scientific and Technological
Information Centre
18.2.1 Introduction 577
18.2.2 Comments on Audited Accounts 577
18.2.3 Compliance of PAC Directives 579
18.3 Pakistan Museum of Natural History
18.3.1 Introduction 580
18.3.2 Comments on Audited Accounts 580
18.3.3 Compliance of PAC Directives 583
CHAPTER-19 MINISTRY OF TEXTILE INDUSTRY
19.1 National Textile University
19.1.1 Introduction 584
19.1.2 Comments on Audited Accounts 584
19.1.3 Compliance of PAC Directives 587
CHAPTER-20 MINISTRY OF WATER AND POWER
20.1 National Engineering Services Pakistan (Pvt.)
Limited
20.1.1 Introduction 588
20.1.2 Comments on Audited Accounts 588
20.1.3 Compliance of PAC Directives 588
20.1.4 AUDIT PARAS 589
Annexures:
1 MFDAC 599
2 Non-submission of Audited Accounts 610
3 Companies under liquidation/closed 613
4 Recoveries made at the instance / pursuance of 614
Audit
5 Statement showing the detail of excess payments 616
in PIAC
6 Statement showing the detail of payments made on 617
account of retainership in PIAC
7 Statement showing the detail of payment of the 618
allowances made in Skyroom (Pvt.) Ltd
8 Statement showing the recoverable amount from 619
tenants of NICL
9 Details of calculation of excess amount paid as 620
commutation in NICL
10 Detail of non-recovery of premium from insurance 621
companies in PRCL
10 A Statement showing loss of rental income of PRCL 622
11 Statement showing the detail of vacant space of 623
SLIC’s building
12 Non-recovery of outstanding amount from various 624
tenants of SLIC Building
13 The detail of surplus staff working under different 625
categories in TCP
14- List of Customers defaulters Zonal Office Multan 626
A&B and Islamabad, HBFC
15 Non-recovery from Ex-employees of HBFC 627
16 Karachi Tools Dies & Mould Center, Karachi 629
Detail of Imported Raw Material for the year
ended 30th June, 2015
17 Statement showing the detail of loss due to sale 630
below the cost of production in PSM
18 Statement showing the detail of the allotment of 631
two accommodations in PSM to the same
employees
19 Non-recovery of fee on account of services 632
provided by EPSL
20 Statement showing the irregular payment of 633
service charges by EPSL
21 Non production of record by PASSCO 634
management
22 Non-recovery of loan from Employees of EOBI 638
23 Short receipt of contribution due to non- 639
reconciliation by EOBI
24 Statement showing the details of irregular 640
promotions from Grade-06 to Grade-07 in EOBI
25 Payment of higher freight charges by PPL 641
26 Detail of irregular award of contracts by SSGCL 643