AGP Flags Rs. 1.06 Billion Irregularities in Govt Zakat Fund

Pakistan’s government managed Zakat Fund has come under scrutiny after the Auditor General of Pakistan (AGP) identified financial irregularities worth more than Rs. 1.06 billion in the Ministry of Poverty Alleviation and Social Safety across multiple financial years.

According to the audit findings, the AGP has recommended the recovery of more than Rs. 1.04 billion after identifying irregularities in five audit observations related to the ministry’s management of Zakat funds.

The report also found that several public sector organizations failed to deduct Zakat from eligible employees. Among the cases highlighted, the Pakistan Airports Authority (Karachi) did not collect Zakat from seven employees, while the Office of the Accountant General Pakistan Revenues (AGPR), Islamabad, failed to deduct Zakat from 128 employees.

The audit further alleged that Oil and Gas Development Company Limited (OGDCL) granted Zakat exemption to various funds and trusts without obtaining approval from the relevant authority. According to the report, 264 trusts were allegedly granted unauthorized exemptions between 2022 and 2025.

The AGP also pointed to delays by OGDCL and WAPDA in depositing Zakat collected from employees into the government’s official Zakat Fund, raising concerns over compliance with prescribed procedures.

The audit has recommended corrective measures and the recovery of the identified amounts to improve transparency and strengthen oversight of the government’s Zakat Fund management.