Pakistan is home to nearly 250 million people. Governing Pakistan and running its complex system is no easy task. Each year, the government prepares a federal budget that outlines where the money will come from and where it will be spent. The 18th Amendment was much discussed, but under the National Finance Commission (NFC) formula, provinces receive their allocated shares. The question remains: how is this money actually spent?
In accounting, a cash book only shows inflows and outflows, but the ledger book is critical—it details exactly how much was spent under each head. Recently, Dr. Saleem Farrukh, a noted economist and accounting expert, presented an eye‑opening analysis on this sensitive issue. He said that between 2010 and 2026, the federal government transferred 56 trillion rupees to Lahore, Karachi, Peshawar, and Quetta. All cities received the funds, yet no one can explain where the 56 trillion went. Over 16 years, that’s about 1.4 million rupees per citizen, yet ordinary Pakistanis never saw it in their pockets.
Provincial governments usually respond vaguely, claiming they spent the funds on public welfare. But what could 56 trillion achieve? It could build 747,000 schools, 107,000 health clinics, and 167,000 kilometers of roads. Yet the questions remain: how many children actually went to school, how many roads were built, and how many people gained access to clean water?
To put it in perspective, 56 trillion rupees equals 200 billion dollars, while Pakistan’s total debt is 93 billion. If bundled in stacks of 100‑rupee notes, the money would stretch 56,000 kilometers—longer than Mount Everest’s height if piled vertically.
After 2010, a system was devised with five financial power sectors: Islamabad collected resources, while Lahore, Karachi, Peshawar, and Quetta operated with little accountability. When the 18th Amendment was enacted, Pakistan’s debt stood at 10 trillion; today it is ten times higher at 100 trillion. Under the NFC formula, Punjab gets 52 out of every 100 rupees, Sindh 25, KP 15, and Balochistan 9. Thus, of the 56 trillion, Punjab received 29 trillion, Sindh 14 trillion, KP 8 trillion, and Balochistan 5 trillion. But what was delivered in return?
The absence of transparent accounting is glaring. At a minimum, they should make detailed ledgers public. In today’s era of AI and online systems, monthly income and expenditure reports should be visible. Each province, district, and tehsil should show exactly how much was spent.
The solution lies in linking money transfers with approvals and accountability. Every expenditure must be tied to the responsible authority. Politicians must show the money trail of their assets; similarly, while in government, they must provide a money trail for public funds.
As the Punjabi proverb goes, “Tali mein aya aur gali mein khaya” (money inherited but squandered recklessly). A recent World Bank report states Pakistan has the highest poverty rate in the region, with 48% of households living below the poverty line. While the country pleads with the IMF for 7–8 billion dollars, it has no credible system to account for trillions already spent.
What is needed is a visible national watchdog—a system that continuously alerts the nation to what is being done right or wrong and ensures accountability for every rupee spent. (Contributed by M Ajaib Malik to media. (ajaibmalik@gmail.com)
