Page 59 - CMA Journal (Sep-Oct 2025)

Articles Section

The constitutional foundation of financial accountability The Expanding Scope of Public Sector
was further reinforced through Pakistan’s successive Auditing and the Evolving Role of
constitutional frameworks. The 1956 Constitution Accountability Institutions
(Article 124), the 1962 Constitution (Article 198)
required, and the 1973 Constitution (Article 171) Over the years, public expenditure has steadily increased,
requires, the Comptroller and Auditor-General to submit driven by several key factors: the expansion of existing
audit reports on the accounts of the Federation to the public services, the introduction of new public service
President, who lays them before both Houses of the areas, rising government revenues, a more engaged public
Majlis-e-Shoora (Parliament)—the National Assembly demanding efficient and improved service delivery,
and the Senate. Reports concerning provincial accounts heightened media scrutiny, growing civic awareness, and
are submitted to the Governor, who presents them the enforcement of right-to-information legislation have
5
before the Provincial Assembly . raised public expectations. In response, the scope and
complexity of public sector auditing have broadened
In the case of the Federation, the Speaker of the National
significantly. Today the Supreme Audit Institutions (SAIs)
Assembly, and in the case of the provinces, the respective
across the globe perform different types of modern audits
Speakers of the Provincial Assemblies, refer the Audit
– particularly Public Participatory Audit, Value for Money
Reports to their respective Public Accounts Committees Audit, Thematic Audit, Concurrent Audit, Environmental
6
(PACs) for examination.
Audit, Impact Audit and Forensic Audit to gauge the use
This enduring constitutional and legislative framework government makes of public money.
continue to underpin Pakistan’s public financial
Supreme Audit Institutions, or SAIs, are public
accountability architecture.
oversight institutions which audit a government’s use of
Historical Timeline of PACs: public funds. They are a critical link in a country’s
From the House of Commons to Pakistan accountability chain. In Pakistan, the Office of the Auditor
General of Pakistan (AGP) serves as the Supreme Audit
1857 1861 1921 1948 Institution, mandated by the Constitution of Pakistan to
conduct independent audits of the receipts and
e
• A select • The first PAC, in • Pakistan
m
committee of the House of • The first PAC in established expenditures of the federal and provincial governments,
the Indiaal
the House of Commons, wwas subcontiinent
m
Commons constituted to its first PAC ensuring transparency, accountability, and the
o
o
recommended examine the followingg the at the responsible use of public resources. 8
implemeentatio
the creation of use national level .
a committee to Government n of Monntagu-
o
Chelmsfoford
e
oversee makes of Reforms,, was This evolution in public sector accountability has also
v
government public moneyy.
accounts. constitutted. significantly affected the way the legislative bodies
c
perform the oversight function. Now, the PACs, in the
While the structure, authority, powers, size, and Commonwealth countries have to scrutinize an
membership of Public Accounts Committees (PACs) vary increasingly diverse categories and vast volume of audit
across the federal and provincial levels in Pakistan, their reports issued by their respective SAIs.
fundamental role remains consistent: ensuring oversight This rising complexity and increased workload have
7
of public expenditure. uncovered the limitations of outdated manual processes
in PACs and oversight bodies. These challenges underline
The PAC Cycle in Pakistan
an urgent and global need for modernization of
1. Auditor General Pakistan governance and accountability processes - most critically,
conducts Audit of the
Accounts of Federal and through the adoption of digital solutions.
Provincial Governments.

[Article 170 (2) of the
The Case for Digitalizing PAC Proceedings
Constitution]
6. The Federal PAC submits its report 2. Auditor General Submits Across the Commonwealth and Beyond
to the Majlis-e-Shoora and the Audit Reports to the President
Provincial PACs to the respective and respective Provincial
Provincial Assemblies [Rules of Governors [Article 171 of the Despite the growing pressure placed on oversight

Procedure & Conductt of Business of Constitution]

National Assembly and respective institutions, most PACs across the Commonwealth and
Provincial Assemblies]
similar accountability bodies in other countries continue
to conduct their proceedings manually. These legacy
3. The President causes the
5. The PACs Examines the Audit Audit Reports to be laid beofe methods are not only time-consuming, costly, and
Reports [Rules of Procedure & both houses of Majlis-e-Shoora
Conductt of Business of and the Governors beofre the inefficient but also heavily dependent on paper, making
National Assembly and respective Provincial
respective Provincial Assemblies [Article 171 of the the entire accountability process vulnerable to delays
Assemblies] Constitution]

and the environment to pollution. Given the volume of
4. The Speaker National Assembly
refers the Audit Report to the audit reports issued by SAIs, often containing thousands
Federal PAC and the Speakers of
respective Provincial Assemblies to of audit observations across diverse sectors, PACs face a
the respective Provincial PAC [Rules
of Procedure & Conductt of Business significant administrative burden.
of National Assembly and respective
Provincial Assemblies]

ICMA’s Chartered Management Accountant, Sep-Oct 2025 57