AGP finds violations in SBP worth Rs243 billion.

During the 2022–2023 audit, the Auditor General of Pakistan discovered financial irregularities at the State Bank of Pakistan (SBP) totalling more over Rs243 billion. These irregularities indicate widespread mismanagement, embezzlement, and defaults.

According to the research, SBP repeatedly failed to protect the national exchequer and consumer interests, raising severe concerns about the central bank’s regulatory performance.

The audit found that no adequate regulatory or disciplinary measures were taken against the state-owned banks that issued the Rs59 billion in loans that went into default.

A loss of Rs1.96 billion resulted from the issuing of commemorative Rs75 currency notes on Independence Day and SBP’s anniversary.

72 million notes totalling Rs9.15 billion were created, however because the bank had not gauged public opinion prior to mass production, the notes were not well received.

The nomination of a dual national as the State Bank’s deputy governor was also noted in the report as being outside the norms. In breach of laws, an Australian national was appointed to the role and received an annual salary of Rs120 million.

Additional violations included selling securities below purchase price, which resulted in a loss of Rs105 billion, and holding substantial sums of money with foreign managers, which led to a loss of Rs26 billion rather than a profit.

According to the audit, the SBP failed to offer genuine borrowers through local institutions any real relief because tiny borrowers were charged a hefty 13 percent interest rate, resulting in a loss of Rs12 billion.

Unauthorised financing facilities of Rs2.59 billion to various institutions, an irregular loan of Rs5 billion to a commercial bank, and housing loans totalling Rs3.81 billion to SBP staff without prior account clearance were among the other infractions.

The audit further disclosed that SBP officers embezzled Rs63.5 million worth of medical stock, but no investigation was started even after 16 months. Furthermore, it was discovered that eight top personnel at the SBP Lahore branch held questionable, unconfirmed degrees.