ISLAMABAD
Economic Affairs Division has failed to recover commitment charges of Rs 1.347 billion from the institutions which have obtained foreign loan. Audit authorities directed to form effective system for making recovery.
According to auditor general report Economic Affairs Division has not maintained separate or coherent record for recovery of commitment charges of Rs 1.347 billion paid by government of Pakistan on 71 foreign loans while system for recovery of fixed administrative charges is completely missing .
As per audit report the scrutiny of recovery data till June 30, 2025 reflected that EAD did not maintain separate or overall record of assessment of 0.25 percent fixed charges from institutions obtaining loans, recovery or outstanding amount.
Likewise government of Pakistan paid Rs 1.347 billion as commitment charges to 71 donors in return for 71 loans. But EAD did not work out a separate or collective statement for recovery of these charges from respective borrowers.
Audit report said that according to Foreign Office loans manual that one vital responsibility of loan management wing is to ensure timely recovery of foreign loans.
It has been said in clear terms in February 8, 2021 office memorandum (policy for relending of foreign loans -2020 that borrowing institutions will pay fixed administrative charges 0.25 percent once on distribution of loan and this amount will be required to be deposited in treasury within seven days of every disbursement.
Commitment charges will too be deposited with payment of original amount with interest in treasury within fixed dates.
According to audit it is responsibility of EAD to maintain these charges with borrowing institutions. It should assess and recover.
Audit has recommended that proper account of distribution of foreign loans and commitment charges be maintained.
