Pakistan’s newly appointed Auditor General, Maqbool Ahmed Gondal, is stepping into office amid one of the most controversial episodes in the country’s financial oversight history. Sworn in as the 22nd Auditor General of Pakistan (AGP) during a ceremony at the Supreme Court, Gondal faces the immediate challenge of managing the fallout from what many have called the “most expensive typo” in the federal government’s audit records.
The controversy stems from the Auditor General’s Consolidated Audit Report of Federal Government for Audit Year 2024-25, released in August. The report claimed that irregularities in public spending amounted to an eye-watering Rs376 trillion — a figure more than three and a half times Pakistan’s entire gross domestic product. The report alleged procurement irregularities worth Rs284 trillion, defective civil works totaling Rs85.6 trillion, receivables of Rs2.5 trillion, and unresolved circular debt of Rs1.2 trillion.
The astronomical numbers sparked disbelief across government circles, the media, and financial experts. Critics were quick to question how such figures had passed internal checks and how they could possibly reflect the realities of Pakistan’s finances. Initially, the AGP’s office doubled down on defending the numbers, but after mounting pressure, it admitted the report contained “typos.”
A revised version uploaded on the AGP’s website last week stated that the word “trillion” had mistakenly been used instead of “billion” in two places. The corrected figure now stands at Rs9.769 trillion, which, although far smaller than the original claim, still represents nearly two-thirds of the federal budget for FY2023-24. The revised report also noted that the irregularities included long-standing issues such as circular debt, unresolved land disputes, and corporate accounting lapses.
The episode has sparked serious debate about Pakistan’s auditing practices. Economists and governance experts argue that the inflated figures were less about financial corruption and more about systemic weaknesses in how audits are conducted. According to economist Dr Vaqar Ahmad of the Sustainable Development Policy Institute (SDPI), the Rs376 trillion claim was likely an exaggerated aggregation of audit observations rather than verified losses. He explained that procedural or regulatory deviations are often recorded as irregularities, which multiplies the numbers beyond actual expenditure levels.
A former provincial auditor general added context, noting that audits often judge projects against dozens of overlapping regulations, from procurement authority rules to finance ministry protocols. As a result, one project may be flagged for multiple irregularities, artificially inflating totals. Similarly, revenue shortfalls are frequently included as irregularities, further distorting the scale of reported financial lapses.
Other officials pointed to outdated audit practices. A senior Punjab government officer argued that audits in Pakistan often focus on creating numerous audit objections rather than examining actual budgetary expenditures. Housing and Works Division Secretary Hamed Yaqoob Sheikh emphasized that the AGP’s office should evolve beyond transactional oversight to assess “value for money” — a standard adopted in many developed economies.
Despite the correction, the controversy has damaged public confidence in one of Pakistan’s most important accountability institutions. With the former Auditor General Muhammad Ajmal Gondal criticized for defending the original report, the responsibility now falls on Maqbool Ahmed Gondal to restore credibility. His challenge will be not only to correct the errors of the past but also to modernize audit practices so that future reports accurately reflect financial realities.
The “typo scandal” underscores the urgent need for reform in Pakistan’s auditing system, both to improve transparency and to provide reliable data for governance and policymaking. As Gondal begins his four-year tenure, the credibility of the AGP’s office hangs in the balance, and how he addresses this issue will define the institution’s standing in the years to come.
Follow the PakBanker Whatsapp Channel for updated across Pakistan’s banking ecosystem.