According to the Auditor General of Pakistan’s audit report, the government failed to recover Rs2.0849 billion in land lease payments from industrial owners despite court orders.
The non-renewal of commercial land agreements also reportedly resulted in a loss of Rs629.8 million to the public exchequer.
The report identified further losses of Rs1.0774 billion due to the failure to reclaim land in Buner, Mohmand and Jalozai. It also pointed to a loss of Rs174.1 million allegedly caused by the allocation of commercial land for industrial purposes in violation of applicable rules.
In Haripur, plots numbered 185, 186, 187 and 190, covering a total of 10 acres, were allocated to Al-Hadeed Engineering. The failure to recover the required payment reportedly caused a loss of Rs497.8 million to the national exchequer.
The audit report further warned that the company’s potential liabilities had reached Rs14 billion, posing a serious threat to the continuity of its business operations.
Raising concerns over the company’s governance, land allocation procedures, recovery of outstanding dues and financial management, the report attributed the losses to poor administrative decisions and alleged measures that benefited favoured individuals.
The findings highlight the need for scrutiny of the company’s financial affairs and land management practices.