Universal Service Fund Fails to Complete Legally Required Audit

Pakistan’s Universal Service Fund (USF) failed to conduct its legally required financial audit by a chartered accountant for FY2024-25, prompting audit authorities to recommend a high level investigation into the matter.

According to an audit report, the Pakistan Telecommunication Act requires the USF’s annual accounts to be audited by both a chartered accountant and the Auditor General of Pakistan. However, the mandatory audit by a chartered accounting firm was not carried out despite repeated observations by audit authorities.

The auditors directed USF management to immediately complete the pending statutory audit through a chartered accounting firm and recommended identifying the officials responsible for failing to comply with the legal requirement.

The report also highlighted a sharp decline in the fund’s spending during FY2024-25. Total expenditures fell 30 percent to Rs. 11.66 billion, down from Rs. 16.64 billion in the previous fiscal year.

Despite lower spending, the fund recorded stronger revenue collections. USF receipts increased 17 percent to Rs. 11.05 billion during FY2024-25, compared with Rs. 9.45 billion a year earlier.

According to the audit report, higher levy collections contributed to the improvement in the fund’s financial position. However, auditors stressed that completing the pending statutory audit is essential to ensure transparency, accountability, and compliance with the law in the management of public funds