Karachi: In a sweeping accountability move, the Public Accounts Committee (PAC) has ordered the blacklisting and cancellation of licenses of eight non-governmental organizations (NGOs), including HANDS and SRSO, for failing to submit audit records, expenditure invoices, and other documentation related to over Rs. 800 million in funding received under the Sindh government’s Community Development Program.
The directive was issued during a PAC meeting held on Tuesday at the Committee Room, chaired by Nisar Khuhro, and attended by committee members Khurram Karim Soomro, Makhdoom Fakhar-uz-Zaman, and Taha Ahmed, along with Planning and Development Secretary Sajjad Abbasi and other senior officials.
The meeting reviewed audit paras of the Planning and Development Department for the fiscal years 2019 and 2020, during which it was revealed that eight NGOs failed to provide any record of expenditures made from the large funds disbursed to them for health and skill development projects.
The PAC Chairman Nisar Khuhro questioned the department about the names of NGOs funded under the program and the scope of the projects. Officials from the People’s Poverty Reduction Program (PPRP) under the Planning Department informed the committee that a total of 16 NGOs were funded in 2018, out of which eight had not submitted their audit documentation despite repeated notices.
The NGOs identified for non-compliance include HANDS, SRSO, IBA Karachi, Health Education Literacy Program (HELP), Engro Foundation, Women and Children Medical Care Trust, and District Development Association Tharparkar.
The committee was told that HANDS received Rs. 18.5 million for a health project, SRSO Rs. 25.4 million for skill training, HELP Rs. 22.7 million for health-related activities, Engro Foundation Rs. 935,000 for education, Women and Children Medical Trust Rs. 10.2 million for health, IBA Karachi Rs. 1.18 million for skill education, and District Development Association Tharparkar Rs. 22.7 million for skill development.
Despite being issued three notices to furnish audit trails, vouchers, invoices, and Sindh Revenue Board registration certificates, the NGOs failed to respond.
PAC Chair Nisar Khuhro ordered the Social Welfare Department to cancel the registration and licenses of the defaulters and blacklist all eight NGOs for violating transparency and accountability norms.
The meeting also uncovered a disturbing revelation regarding SRSO, which received Rs. 1 billion under the Union Council-Based Poverty Reduction Program for three districts—Kandhkot-Kashmore, Jacobabad, and Shikarpur.
Instead of issuing interest-free micro-loans of Rs. 10,000 each to widows for sewing and embroidery businesses as intended, SRSO reportedly charged 8–10 percent interest on the loans.
In a written response to the PAC, the SRSO CEO admitted the markup but claimed it was mistakenly recorded in the official minutes and that funds had been disbursed through village organizations. PAC ordered a fact-finding inquiry into whether SRSO indeed charged interest on loans meant to be interest-free.
Furthermore, the committee was informed that under the PPRP, SRSO had received Rs. 9.67 billion from 2018 to 2024 for poverty reduction initiatives in six districts—Khairpur Mirs, Sanghar, Mirpurkhas, Badin, and Thatta.
Despite the program ending in June 2025, SRSO has not returned Rs. 380 million in unspent interest money to the Sindh government. The CEO stated the funds were available and would be returned upon receiving a formal letter from the Planning Department. PAC directed the department to initiate a fact-finding investigation into the delay and full utilization of the Rs. 9.67 billion funding.
In a related decision, PAC also reinstated the suspended PPRP Project Director Pervez Ahmed after he apologized for delays in providing audit records.
The developments mark one of the most serious crackdowns on NGO mismanagement in Sindh’s recent history, as the provincial legislature tightens oversight on public funds and demands greater transparency from civil society partners handling development projects.
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