PNN: The Auditor General of Pakistan (AGP) has uncovered alleged financial irregularities amounting to Rs17.76 billion in the annual accounts of the Faisalabad Industrial Estate Development and Management Company (FIEDMC) during audits covering the period from 2015-16 to 2023-24.
FIEDMC, a subsidiary of the Punjab Industries Department, was established on July 16, 2004 under a public-private partnership framework to promote planned industrialisation in Punjab and across Pakistan.
The company manages large-scale industrial zones in Sahianwala, Tehsil Chak Jhumra, where the Punjab government later developed projects such as the Allama Iqbal Industrial Estate, Garments City, Value-Added City and a Special Economic Zone under the China-Pakistan Economic Corridor (CPEC).
According to AGP sources, the FIEDMC management failed to submit audited annual accounts for the years under review by the December 31, 2024 deadline. Additionally, no meeting of the Public Accounts Committee (PAC) has so far been convened to examine the audit observations.
The audit report highlights a wide range of alleged irregularities, including a Rs500.26 million loss due to the irregular sale of plots to a ceramic factory at M-3 Industrial City, Rs324.20 million in unrecovered dues from production units and Rs3.29 billion in non-recovery of plots from defaulters. Other observations include Rs3.34 billion in non-imposition of development charges, Rs1.39 billion in unpaid extra electricity and gas load charges, and Rs2.49 billion loss from the sale of plots at rates lower than those approved in the business plan.
The audit also pointed out Rs4.18 billion in losses linked to terminated contracts, Rs469.60 million in unpaid non-utilisation charges, Rs181.42 million in unrecovered maintenance charges and Rs156.67 million loss to the exchequer due to non-deduction of Punjab Sales Tax from civil contractors.