Senators slam Pakistan government institutions for hoarding billions in profits

Members of Pakistan's Senate Standing Committee on Finance and Revenue expressed frustration after it was revealed that several government institutions, including the National Database and Registration Authority (NADRA), are holding billions of rupees in profits without transferring them to the federal consolidated fund, as mandated under public finance laws.

During a review of the Public Finance Management Act, 2019, it was disclosed that NADRA alone has retained PKR 43 billion in its accounts. Other public-sector entities have similarly accumulated large sums through public service fees, property sales, and additional revenue streams, none of which have been remitted to the national treasury.

Senator Anusha Rehman strongly criticized the practice, calling it “unacceptable and financially irresponsible”.

She added, “The government is borrowing its own money from commercial banks and paying interest on it, while state institutions are sitting on public funds and profiting from them.”

In response, the Senate committee directed the Establishment Division and the Ministry of Finance to provide a comprehensive report. The report must include detailed account statements of all public-sector entities holding surplus funds, a full list of investments made and profits earned by these institutions, and the legal rationale for retaining revenue that should otherwise be transferred to the central treasury.