An audit report has revealed large-scale financial irregularities at the Zarai Taraqiati Bank Limited (ZTBL), including the diversion of farmer credit funds into government securities and the unequal distribution of agricultural loans.
According to the report, ZTBL invested Rs414 billion, or 71 percent of its total assets of Rs577 billion, in government securities, earning a profit of Rs81 billion. In contrast, loans extended to farmers were limited to just Rs29.5 billion.
The report found that, of the Rs364 billion disbursed in loans over the past five years, Rs307.5 billion went to Punjab alone. In 2024, Punjab received 85 percent of the Rs72 billion disbursed in loans that year, while Sindh, Balochistan, Khyber Pakhtunkhwa, and Azad Kashmir collectively received only 15 percent.
The audit also uncovered serious lapses in the financial, administrative, and recruitment practices of the bank. Among the findings was the appointment of a 78-year-old IT consultant on a monthly salary of Rs2.47 million.
The non-recovery rate of loans stood at 44 percent, amounting to Rs80.62 billion, while defaulted loans over the past five years exceeded Rs53 billion. Auditors also found evidence that loans had been approved using forged documents, fraudulent insurance claims, and fake paperwork.
The Auditor General of Pakistan raised serious concerns over the credit risk management of the bank and recommended disciplinary action against the responsible officials, along with determining accountability for the losses incurred by the national exchequer.
