The Public Accounts Committee (PAC) in Khyber Pakhtunkhwa has initiated an investigation into alleged financial irregularities worth Rs32 billion in the Khyber Pakhtunkhwa Cities Improvement Project (KPCIP). This major urban development initiative, aimed at enhancing infrastructure and municipal services in cities like Peshawar, Abbottabad, Kohat, Mardan, and Mingora, has come under scrutiny for suspected mismanagement and procurement violations.
The KPCIP, funded by the Asian Development Bank, the Asian Infrastructure Investment Bank, and the KP government, seeks to modernize urban facilities across the province. However, complaints filed by provincial assembly members, including representatives from both the ruling PTI and opposition parties, have raised concerns about unlawful contract awards and payments made despite limited progress on the ground. Allegations point to potential false certifications of project milestones, inadequate oversight, and possible collusion among project staff and consultants, leading to significant financial disbursements with minimal tangible results.
The PAC, chaired by KP Speaker Babar Saleem Swati, has scheduled a special meeting on July 17, 2025, to address these claims. The committee aims to examine the evidence and determine the extent of the irregularities. A KP government official has defended the project, asserting that the allegations are preliminary and will be thoroughly reviewed by the PAC and Departmental Accounts Committees to ensure accountability.
This development follows a pattern of financial oversight concerns in the region, with recent reports highlighting other significant irregularities in KP government accounts, including a Rs40 billion scam in Kohistan and issues with security and deposit funds. The PAC’s proactive stance signals a commitment to addressing governance challenges in public projects, as the province works to balance development goals with transparency.
Published in SouthAsianDesk, July 13th, 2025
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