EDITORIAL: The culture of extravagance, disregard for fundamental principles of financial probity, and failure to adhere to basic rules and regulations related to public spending have long been widespread across government departments and ministries.
A report in this newspaper now highlights that several of our diplomatic missions have also been guilty of similar reckless behaviour, even as the country finds itself in the throes of a precarious economic situation.
A recent audit report by the Auditor General of Pakistan, which scrutinised the expenditure patterns of various diplomatic missions, has revealed alarming findings related to unauthorised payments, violations of procurement rules and financial mismanagement, pointing towards a pervasive lack of oversight, transparency and accountability within these institutions.
Among the most egregious findings were those from the Pakistani embassy in Berlin, which was found involved in a range of irregularities, including the failure to adhere to procurement protocols when acquiring various items, the absence of competitive bidding and tender notices, and the failure to maintain critical records such as receipts, distribution logs, invoices, approvals and vendor acknowledgements.
Despite repeated directions to the foreign ministry to provide the missing documents, it failed to do so. Specific concerns were raised regarding the embassy purchasing gift items valued at Rs7.28 million between fiscal years 2019 and 2022 without following prescribed procedures.
Furthermore, the Pakistan Community Welfare and Education Fund, which is intended solely to provide assistance to overseas Pakistanis, was misappropriated for the payment of Rs2.97 million in honorariums to 198 security and janitorial staff employed by private firms, that too in cash, and without the requisite receipts or acknowledgements, further compounding the misuse of the Fund.
If this infraction of protocols wasn’t enough, the foreign ministry then reportedly defended the breach, claiming the payments were intended to support the well-being of low-paid workers.
The AGP’s report highlights a clear pattern of our foreign missions and other institutions failing to obtain necessary approvals from relevant authorities before proceeding with significant expenditures.
This is evident from the Pakistani embassy in Bangkok paying Rs4.1 million to a translation services firm without prior approval from the foreign ministry or the Law and Justice Division.
Similarly, the Institute of Religious Studies in Islamabad was found to have violated Treasury Single Account rules by maintaining a welfare bank account holding over Rs3 million without the prior approval of the Finance Division, rendering the account’s operation irregular.
To further exacerbate matters, several embassies failed to carry out as basic a function as claiming VAT refunds from host governments, leading to significant losses to government coffers amounting to over Rs64 million.
Despite repeated admonitions by the authorities urging corrective action, no substantial measures have been taken in the last few years to address these issues.
It is evident that senior personnel manning our diplomatic missions, including ambassadors, must be held accountable for failing to comply with financial regulations, neglecting to perform basic record-keeping functions, and disregarding frequent reminders to adhere to established protocols.
As things stand, Pakistani embassies haven’t exactly covered themselves in glory when it comes to carrying out their primary function of effectively managing diplomatic relations with the host country and representing Pakistan across various domains, including political, economic and cultural. Nor have they always been competent caretakers of the interests of overseas Pakistanis.
The fact that this incompetence extends to basic administrative and financial functions, especially when there is an urgent need to cut down on excessive government spending, is highly concerning and counterproductive to the broader goals of maintaining efficient, responsible governance.
The relevant authorities must take immediate, decisive action to address these indiscretions as the public cannot be expected to bear the cost of such major dereliction of duty.
Copyright Business Recorder, 2025
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