The Trade Development Authority of Pakistan (TDAP) has come under scrutiny after an audit for FY2024-25 uncovered financial irregularities worth Rs3.656 billion, highlighting serious governance failures, weak internal controls, and violations of statutory requirements.

According to the audit report for 2025-26, the irregularities include Rs1.6 billion in recovery-related issues, Rs1.36 billion in internal control deficiencies, Rs513.6 million linked to mismanagement of commercial bank accounts, along with procurement and administrative lapses.

A key finding was TDAP's failure to prepare mandatory financial statements, including balance sheets, income statements, and cash flow statements, as required under the TDAP Act, 2013. Auditors termed the omission a direct violation of legal obligations that undermines financial transparency and accountability.

The audit also found that Rs513.6 million generated from Karachi Expo Centre operations was retained in a commercial bank account instead of being deposited into the official TDAP Fund, as required by law. While part of the amount was used for operational expenses, auditors ruled that the practice violated statutory provisions.

Other observations included a Rs29.5 million revenue loss due to failure to charge additional setup and dismantling fees at Karachi Expo Centre, and Rs24.16 million in liabilities arising from delayed water payments to the Karachi Water and Sewerage Board (KWSB).

The report further highlighted procurement irregularities exceeding Rs144 million, unresolved audit observations from previous years, and weak compliance with Public Accounts Committee (PAC) directives.

Auditors recommended immediate preparation of statutory financial statements, routing all revenues through the designated TDAP Fund, strengthening internal controls, timely reconciliation of accounts, strict implementation of audit recommendations, and fixing responsibility on officials involved in the irregularities.

The findings underscore the need for broader institutional reforms to improve governance, transparency, and financial accountability at Pakistan's export promotion authority.