TDAP faces scrutiny over Rs3.65bn financial irregularities

ISLAMABAD – The Trade Development Authority of Pakistan (TDAP) has come under scrutiny after an official audit uncovered financial irregularities, governance shortcomings and weaknesses in internal controls involving more than Rs3.65 billion during the financial year 2024-25. TDAP, established under the TDAP Act, 2013 to promote Pakistan’s exports and facilitate trade development, was found to have committed multiple financial and administrative lapses that auditors said reflected systemic governance issues. The audit report for 2025-26 identified irregularities amounting to Rs3.656 billion, raising concerns over financial management and compliance within the country’s export promotion authority. According to the audit, the largest share of irregularities relates to recoverable amounts exceeding Rs1.6 billion, followed by internal control deficiencies worth Rs1.36 billion. The report also highlighted mismanagement of commercial bank accounts involving more than Rs513 million, along with procurement and administrative irregularities. One of the key observations was TDAP’s failure to prepare mandatory financial statements, including balance sheets, income statements and cash flow statements, despite legal obligations under the TDAP Act, 2013. Auditors termed the omission a violation of statutory requirements that undermines financial transparency and accountability. Although the authority stated that external auditors had prepared financial statements for previous years and work on the 2024-25 accounts was underway, auditors rejected the explanation, describing it as insufficient. The audit further found that Rs513.615 million generated through operations at the Karachi Expo Centre was retained in a commercial bank account instead of being deposited into the designated TDAP Fund, as required by law. While TDAP said the funds were used for operational expenses, including maintenance, utilities and security, auditors maintained that retaining and