ISLAMABAD – The Trade Development Authority of Pakistan (TDAP) has come under scrutiny after an official audit uncovered financial irregularities, governance shortcomings and weaknesses in internal controls involving more than Rs3.65 billion during the financial year 2024-25.
TDAP, established under the TDAP Act, 2013 to promote Pakistan’s exports and facilitate trade development, was found to have committed multiple financial and administrative lapses that auditors said reflected systemic governance issues.
The audit report for 2025-26 identified irregularities amounting to Rs3.656 billion, raising concerns over financial management and compliance within the country’s export promotion authority.
According to the audit, the largest share of irregularities relates to recoverable amounts exceeding Rs1.6 billion, followed by internal control deficiencies worth Rs1.36 billion. The report also highlighted mismanagement of commercial bank accounts involving more than Rs513 million, along with procurement and administrative irregularities.
One of the key observations was TDAP’s failure to prepare mandatory financial statements, including balance sheets, income statements and cash flow statements, despite legal obligations under the TDAP Act, 2013. Auditors termed the omission a violation of statutory requirements that undermines financial transparency and accountability.
Although the authority stated that external auditors had prepared financial statements for previous years and work on the 2024-25 accounts was underway, auditors rejected the explanation, describing it as insufficient.
The audit further found that Rs513.615 million generated through operations at the Karachi Expo Centre was retained in a commercial bank account instead of being deposited into the designated TDAP Fund, as required by law.
While TDAP said the funds were used for operational expenses, including maintenance, utilities and security, auditors maintained that retaining and spending the money outside the prescribed mechanism violated legal provisions.
The report also pointed to a revenue loss of Rs29.546 million after TDAP failed to recover charges for additional setup and dismantling days used at the Karachi Expo Centre. Auditors recommended recovery of the amount and action against officials responsible for the lapse.
Another observation involved liabilities of Rs24.163 million arising from unpaid water charges owed to the Karachi Water and Sewerage Board. Auditors noted that delayed payments resulted in accumulated dues and reflected poor financial planning and account management.
The audit also highlighted recurring weaknesses in internal controls, including inadequate documentation, weak financial oversight and poor reconciliation of accounts, increasing the risk of financial mismanagement.
In addition, auditors found unsatisfactory compliance with directives issued by the Public Accounts Committee (PAC), noting that many audit observations from previous years remain unresolved despite repeated recommendations.
Procurement irregularities exceeding Rs144 million were also identified, with auditors citing violations of procurement rules, inadequate documentation and weaknesses in competitive bidding procedures.
The report warned that governance deficiencies and inefficient resource management could undermine TDAP’s ability to effectively promote exports, support businesses and attract foreign investment.
To address the issues, auditors recommended immediate preparation of financial statements in accordance with legal requirements, deposit of all revenues into the designated TDAP Fund, stronger internal financial controls, timely reconciliation of accounts, strict implementation of PAC directives and accountability for officials responsible for the identified irregularities.
The audit concluded that broader institutional reforms are necessary to strengthen governance, improve transparency and enhance accountability within the country’s export promotion authority.
