PAC directs Cabinet Division to resolve ambiguities in Toshakhana law

ISLAMABAD: The Public Accounts Committee (PAC) here on Tuesday reviewed audit objections related to Toshakhana and directed the Cabinet Division to resolve legal ambiguities and submit a final report on missing records within a month.

Audit officials informed the committee that irregular amendments to Toshakhana rules were made in 1973 through Statutory Regulatory Orders (SROs)—a process the Cabinet Division Secretary acknowledged was legally improper. He stated that recent changes had been formally approved by the cabinet and that the matter had been referred to the Law Ministry for further opinion.

The secretary admitted that many officials had failed to declare gifts, prompting the Foreign Office’s Chief of Protocol to oversee reporting. He added that only the Cabinet Division Secretary now has the authority to approve gift sales, unlike the past when even deputy secretaries could do so. Although the secretary claimed no financial loss had occurred, Syed Naveed Qamar, who chaired the session, stressed that the real issue was procedural irregularity. He instructed the Cabinet Division to compile a comparative chart of past gifts and relevant rules, and publish it online.

The committee was told that Toshakhana records prior to 1997 were missing, though data from 1997–2001 was submitted and it was uploaded online 2002 onwards. The PAC instructed that efforts be made to retrieve earlier records. The Cabinet Division also shared that new Toshakhana rules had been sent to the prime minister for approval, including proposals to ban the acceptance of expensive gifts. On the 2018 Toshakhana auction, the secretary claimed no irregularities were found, but Qamar questioned how that could be determined in the absence of clear rules. All Toshakhana-related audit objections were deferred and referred back to the Departmental Accounts Committee for review, with a report due within a month.

The PAC also deferred examination of audit objections relating to the Pakistan Cricket Board (PCB) due to the absence of its Principal Accounting Officer. The committee directed that Chairman Mohsin Naqvi be summoned to a future session at a fixed time. “PCB’s chairman has not appeared,” noted Senator Bilal Mandokhail, while Syed Naveed Qamar added, “I saw him out of town on television.” Mandokhail added, “He won’t give us time even next year.” PCB officials stated the chairman was attending a meeting with a visiting Belarusian delegation, but the committee chose to postpone the audit review until his appearance.

During a review of the Oil and Gas Regulatory Authority (OGRA) audit report, the PAC criticised the authority for failing to determine RLNG prices for an entire year, leading to Rs103 billion in losses.

OGRA Chairman Masroor Khan explained that price-setting attempts in 2017 led to litigation, causing gas companies to issue interim bills. The issue was resolved in 2024, and OGRA has since directed Sui Northern and Sui Southern to stop interim billing. The PAC instructed OGRA to formally notify decisions on resolved cases. Audit officials also noted OGRA approved Rs10.5 billion in additional expenditures for SNGPL and extended a gas pipeline to 230km—instead of the planned 100km—to connect the Bannu gas field, citing security reasons. Syed Naveed Qamar ordered an inquiry and a report.

The committee expressed concern over OGRA’s failure to regulate the LPG sector. MNA Moin Amir Pirzada criticised the authority, citing frequent cylinder explosions. The chairman admitted to staff shortages and weak cylinder standards but said laws were being strengthened, including proposals to raise fines for illegal filling to Rs2 million and empower local administrations. He added LPG consumption had doubled to 5,000 metric tonnes daily.

OGRA was also criticised for violating Finance Ministry austerity measures by purchasing vehicles worth Rs25 million. Qamar questioned the Ministry’s inaction. The Cabinet Division Secretary argued that while regulators are autonomous, they must comply with cabinet decisions. Audit officials noted the new vehicles had not improved enforcement.

On oil tanker safety, OGRA claimed the matter fell under the DG Explosives, but audit officials insisted technical regulation remained OGRA’s responsibility. “You cannot abdicate your responsibility,” Qamar told the authority. OGRA reported that 15,000 oil tankers were being connected to a tracking and tracing system, with further safety measures to follow.

The Public Accounts Committee directed recovery of Rs11 million in excess payments made to former Pakistan Telecommunication Authority chairmen and members during fiscal year 2022–23, beyond the limits of MP-I and MP-II pay packages. Syed Naveed Qamar remarked, “If such payments are not covered under the rules, they must be recovered. They are not poor people in any case.” The committee instructed authorities to initiate the recovery process.