The State Bank of Pakistan (SBP) has come under scrutiny after the Auditor General of Pakistan reported financial irregularities exceeding Rs243 billion in its 2022–23 audit.
The report pointed to risky financial decisions, including selling securities at a loss of Rs105 billion and depositing funds abroad that resulted in Rs26 billion in losses instead of profits. It said such practices raised questions about SBP’s credibility as a regulator.
The bank’s decision to print 72 million commemorative currency notes worth Rs9.15 billion was also criticised. The notes, meant to celebrate Independence Day and the SBP’s anniversary, failed to gain public acceptance and caused a Rs1.96 billion loss.
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Loan defaults also surfaced as a major concern, with Rs59 billion in state-owned bank loans going unpaid. Meanwhile, Rs5 billion was irregularly loaned to a private bank, and Rs2.59 billion was extended to institutions without approval.
Adding to governance concerns, the report flagged the appointment of a dual national as Deputy Governor with an annual package of Rs120 million, in violation of rules. It also uncovered embezzlement of Rs63.5 million in medical stock and housing loans of Rs3.81 billion given to SBP employees without clearing past balances.
The audit noted that small borrowers were charged higher interest rates, leading to losses of Rs12 billion, while eight senior officers were found with unverified academic credentials.