The Auditor General of Pakistan (AGP) has uncovered financial irregularities worth more than Rs243 billion at the State Bank of Pakistan (SBP), raising sharp concerns over governance failures at the country’s top financial regulator.
The audit for 2022–23 flagged major lapses in oversight, embezzlement, and mismanagement that resulted in massive losses to the national exchequer. It said the SBP failed in its core responsibility to protect public money and regulate the banking system.
One of the most striking revelations was the Rs105 billion loss from selling securities below purchase price. Another Rs26 billion was lost when large funds were kept with international managers instead of being invested profitably.
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The report also criticised the SBP for printing 72 million commemorative currency notes worth Rs9.15 billion to mark Independence Day and its anniversary. The notes caused a loss of nearly Rs2 billion as they were rejected by the public.
Irregular loan practices were also highlighted, including a Rs5 billion loan to a private bank and Rs3.81 billion in housing loans to SBP employees without clearing earlier accounts.
Adding to the controversy, a dual national was appointed as Deputy Governor with an annual salary of Rs120 million, in violation of rules. Meanwhile, embezzlement of Rs63.5 million in medical stock and eight senior officers with unverified educational degrees in Lahore went unaddressed.
The AGP said these irregularities reflected a “systemic breakdown of governance” at the central bank.
