The issue came under discussion at a PAC meeting chaired by Pakistan Peoples Party (PPP) MNA Naveed Qamar, where audit officials presented details of alleged financial misconduct and questioned the ministry’s financial management.

Misappropriated in Austria

Audit officials informed the committee that Salman Qureshi, an accountant at Pakistan’s embassy in Austria, allegedly embezzled Rs165.6 million and transferred the money into his and his wife’s personal bank accounts.

The case was referred to the Federal Investigation Agency (FIA), which has registered two FIRs. FIA officials told the committee that the suspect had been arrested but was subsequently released on bail.

Expressing dissatisfaction with the investigation, PAC Chairman Naveed Qamar questioned why no substantial progress had been made despite six years having passed since the case emerged.

He criticised the FIA’s performance, saying its response was disappointing and giving the impression that the agency was primarily focused on politically motivated cases.

Foreign Secretary Asim Iftikhar Ahmed informed the committee that the official involved had been dismissed immediately and that the Foreign Ministry had initiated legal proceedings even before the audit identified the irregularity. He said the amount allegedly misappropriated was 170,000 euros.

The PAC directed the foreign secretary to conduct a fresh inquiry and submit a report within one month. The committee also summoned the FIA director general to its next meeting to explain the investigation's progress.

Committee members questioned how such a substantial amount could have been misappropriated by an accountant acting alone.

Rs29 Million Allegedly Embezzled in Bulgaria

The committee also examined allegations that an accountant at Pakistan’s embassy in Bulgaria had misappropriated Rs29 million.

According to audit officials, an inquiry committee was established on September 10, 2026, to investigate the matter. However, austerity measures had prevented the committee from travelling abroad to conduct its investigation.

Officials told the PAC that the accountant had initially admitted to the allegations but later changed his statement after being dismissed and approached the court. Following a court order, he was reinstated in his position.

The PAC expressed concern over the delay and recommended that the inquiry committee be allowed to travel abroad to complete its investigation.

Questions Over Diplomatic Missions and Community Funds

The meeting also exposed a lack of satisfactory responses from Foreign Ministry officials regarding several audit objections.

Officials failed to provide convincing answers about the suspense account of Pakistan’s High Commission in Dhaka and the ownership of a community school in Abu Dhabi.

Audit officials informed the committee that millions of rupees had been paid from the embassy’s Community Welfare Fund to a privately owned community school in Abu Dhabi.

The PAC chairman asked Foreign Secretary Asim Iftikhar whether he was satisfied with his officers’ responses. The foreign secretary acknowledged that he was not.

HEC Scholarship Fund Loan Remains Unpaid

Another major issue concerned Rs100 million borrowed by Pakistan’s embassy in Berlin from the Higher Education Commission’s (HEC) scholarship fund.

Audit officials told the committee that the amount had not been returned to the HEC despite the passage of three years.

The foreign secretary explained that the funds had been temporarily obtained because of delays in the government's budgetary allocations.

However, Naveed Qamar questioned who had authorised the Foreign Ministry to use the HEC scholarship fund, describing the action as tantamount to misappropriation.

PAC Calls for Stronger Financial Controls

Expressing serious concern over financial management within the Foreign Ministry, the Public Accounts Committee called for clear rules and regulations to prevent similar incidents in the future.

The committee directed the ministry to strengthen financial oversight, ensure accountability and take effective measures to address the audit objections.