FIEDMC Faces Rs17.76 Billion Audit Irregularities

The Auditor General of Pakistan has reportedly flagged alleged financial discrepancies amounting to Rs17.76 billion in the financial records of the Faisalabad Industrial Estate Development and Management Company (FIEDMC) spanning fiscal years 2015-16 through 2023-24. These findings, highlighted in a recent news report, raise significant governance and compliance concerns.

FIEDMC, operating under the administrative control of the Punjab Industries Department, was incorporated in July 2004 as a public-private partnership aimed at fostering structured industrial development. The company administers multiple industrial zones in Sahianwala, Tehsil Chak Jhumra, including the Allama Iqbal Industrial Estate, Garments City, Value-Added City, and a Special Economic Zone established under the China-Pakistan Economic Corridor (CPEC).

Audit sources indicate that FIEDMC failed to submit its audited annual financial statements for the relevant period by the statutory deadline of December 31, 2024. Furthermore, the Public Accounts Committee has yet to schedule proceedings to scrutinize the audit observations.

The audit reportedly outlines multiple instances of financial irregularities, including an alleged loss of Rs500.26 million arising from the sale of plots to a ceramic manufacturing unit at M-3 Industrial City. It also points to Rs324.20 million in outstanding recoveries from operational units and Rs3.29 billion attributed to failure in reclaiming plots from defaulting allottees.

Additional observations include Rs3.34 billion linked to non-levy of development charges, Rs1.39 billion in unpaid enhanced electricity and gas load charges, and an estimated Rs2.49 billion loss resulting from the sale of plots below the rates sanctioned under the approved business plan.