The Auditor General of Pakistan report 2024-25 exposed large-scale financial irregularities in the Punjab government’s construction contracts, highlighting massive losses to the national treasury due to alleged collusion between officials and contractors. The report points to overpayments worth billions of rupees across various divisions, recommending strict action and recovery of funds.
According to the audit report, in the Faisalabad Division, 13 cases showed contractors paid excessively high rates without any available justification, resulting in overpayments exceeding Rs 330 million. In the Sheikhupura Division, contractors claimed extra steel usage and received Rs 863 million. The report highlighted seven cases under Executive Engineer 5 where inflated expenses for steel, cement, diesel, and labour led to an Rs 843 million loss to the national exchequer.
Further irregularities found in contracts managed by Executive Engineers, where 14 cases involved overpayments of Rs 804 million due to inflated rates for aluminium windows, tiles, woodwork, and bricks. In Sheikhupura Division, an extra Rs 348 million paid for shuttering and RCC work, while contractors in Sheikhupura, Faisalabad, and Okara received Rs 308 million for showing excessive use of excavators.
In Lahore and Sheikhupura Divisions, gravel transportation distances exaggerated to claim Rs 9.3 million more. Gujranwala Division contractors given 20% profit on electrical items instead of the legally allowed 12.5%, adding Rs 7.1 million in excess profit. In Muzaffargarh, excessive steel usage shown to claim Rs 5.5 million extra.
The report also flagged Lahore Division for paying Rs 225 per sq ft for plaster of Paris and ceiling work, against the approved Rs 75, benefiting the contractor by Rs 3.4 million. In Multan, a defaulting contractor failed to complete work, with Rs 87.6 million still unrecovered after two years. In Mianwali, contractors claimed stone supplies from 136 km away instead of the approved 21 km source, causing an illegal payment of Rs 11.3 million.
The Punjab construction scam 2025 audit calls for identification of those responsible and recovery of public funds. The report has raised serious concerns over financial management and public funds misuse in Punjab construction projects.
