The Public Accounts Committee of the National Assembly has directed the National Bank of Pakistan to initiate formal legal proceedings for the recovery of Rs27.85 million that has remained outstanding from one of its executive vice presidents for the past four years, according to a report.
The instruction was issued during a meeting convened to review audit briefs of the Finance Division for the fiscal year 2023-24. Officials from the Auditor General’s office informed the parliamentary panel that despite the passage of considerable time, the amount in question had not been recovered, raising concerns over internal accountability and financial governance within one of the country’s largest commercial banks.
During the session, lawmakers sought clarity on the steps taken so far to address the matter and pressed for concrete recommendations. The finance secretary suggested that penal action be initiated within the bank’s management structure against individuals deemed responsible. However, members of the committee underscored that internal administrative measures alone would not suffice given the prolonged delay in recovering public funds.
The committee instructed NBP President Rehmat Ali Hasnie to file a formal recovery suit through the appropriate legal forum and to submit a compliance report within 15 days. The directive places the onus on the bank’s leadership to ensure that recovery efforts move beyond internal processes and into the judicial domain.
Members of the PAC expressed dissatisfaction over what they described as an extended lapse in action. They emphasised that funds associated with state-owned institutions must be protected through timely enforcement mechanisms and that delayed recoveries undermine financial discipline. The committee reiterated that public sector entities, particularly banks handling public deposits and government-related transactions, are expected to maintain strict oversight over financial liabilities and staff-related recoveries.
The issue surfaced during scrutiny of audit observations linked to the Finance Division’s accounts for 2023-24. Audit reviews conducted by the Auditor General’s office often flag irregularities or pending recoveries, which are then examined by the PAC to determine administrative or legal follow-up. In this instance, the unresolved amount tied to a senior official drew pointed questions from lawmakers.
The PAC’s intervention reflects a broader push toward reinforcing accountability frameworks across public financial institutions. With heightened parliamentary oversight over state-owned enterprises and financial bodies, committees have increasingly sought documented timelines and verifiable compliance reports to ensure corrective action is not deferred indefinitely.
By directing the filing of a recovery suit, the committee signaled that legal recourse should be pursued where administrative remedies fail to yield results within a reasonable timeframe. The requirement to submit a compliance report within 15 days establishes a defined accountability checkpoint, potentially setting a precedent for how similar cases are handled in the future.
The development also places renewed attention on governance practices within public sector banks. As financial institutions navigate evolving regulatory and compliance landscapes, oversight bodies appear intent on ensuring that internal controls and recovery mechanisms operate effectively and transparently.
The committee concluded that safeguarding public resources requires consistent enforcement of financial rules and timely resolution of audit observations. The forthcoming compliance report from the National Bank of Pakistan will determine the next course of action in the matter.
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