The Auditor General of Pakistan (AGP) has overhauled its audit reporting process following a major controversy over massively inflated financial irregularity figures worth Rs375 trillion.
The audit watchdog published a report claiming irregularities of Rs375 trillion, a figure far exceeding the entire GDP of the country and many times larger than the federal budget.
Officials later admitted the original report contained typographical errors, revising the figure sharply downward to Rs9.769 trillion, triggering widespread institutional criticism.
The new Auditor General, appointed after the controversy last year, has introduced a revised methodology for preparing the annual audit reports of institutions.
Under the new system, only fully vetted and approved audit observations, described by officials as “solid paras”, will be included in the final published documents.
Annual audit reports are expected to be significantly shorter than in previous years, as only the most rigorously cleared observations will now be retained for publication.
Reports will no longer include cumulative totals of alleged irregularities, mismanagement, corruption, wasteful spending, or financial violations across government departments.
Officials said aggregating audit observations across multiple years and categories had repeatedly created misleading impressions, exposing the institution to credibility-related criticism.
The figure of Rs375 trillion cited in the report last year drew immediate and sharp criticism from economists, bureaucrats, and financial experts across Pakistan and beyond.
Critics argued the figure was economically and fiscally impossible, noting it vastly exceeded the total GDP and bore no relation to any plausible audit finding.
The report was initially defended by officials before it was later revised, with the Auditor Genera office acknowledging the figures contained significant typographical errors.
Sources say the methodology changes are part of a broader internal effort to restore the credibility of Pakistan’s supreme audit institution after the damaging episode in 2025.
The new system is designed to improve accuracy, eliminate duplication, and reduce any risk of inflated or questionable figures appearing in future official audit publications.
Officials said the reforms represent a structural shift in how the audit watchdog produces, reviews, and publishes its findings on government financial management.
