Shehbaz Sharif cites three alleged corruption cases in KP

Prime Minister Shehbaz Sharif referred to three major alleged corruption cases in Khyber Pakhtunkhwa during a meeting of the federal Apex Committee in Peshawar, citing reported financial irregularities in the Cities Improvement Project, the Kohistan accounts scandal and the auction of placer gold mining blocks.

PESHAWAR: Prime Minister Shehbaz Sharif referred to three major alleged corruption cases in Khyber Pakhtunkhwa during a meeting of the federal Apex Committee in Peshawar, citing reported financial irregularities in the Cities Improvement Project, the Kohistan accounts scandal and the auction of placer gold mining blocks.

The prime minister said that even a few examples from what he described as a “mountain” of corruption in the province pointed to serious concerns. He cited alleged financial irregularities in the Cities Improvement Project, the reported misappropriation of billions of rupees through the Upper Kohistan District Accounts Office and allegations that gold mining contracts had been awarded to favoured individuals.

An audit of the Cities Improvement Project identified financial irregularities amounting to Rs8.4853 billion, according to reports published in 2025. The audit raised objections to alleged unlawful payments, funds released for work that had not been carried out, increases in contract costs and other financial discrepancies. The project aims to improve water supply, sanitation and urban facilities in five cities in the province.

The Kohistan accounts scandal involves the alleged misappropriation of more than Rs37 billion in public funds. Investigative reporting in 2025 said large sums had allegedly been withdrawn from government accounts and that about Rs4.5 billion was held in bank accounts linked to a dumper driver. The National Accountability Bureau (NAB) froze the funds, according to those reports.

In June 2026, NAB said it had traced more than Rs37 billion in the case and transferred assets worth more than Rs6 billion to the Khyber Pakhtunkhwa government as part of the first phase of recovery. The investigation and recovery process involved assets allegedly linked to the suspected fraud.

The third case concerns alleged irregularities in the auction of placer gold mining blocks along the Indus and Kabul rivers. Reports published in 2025 raised questions about the reserve prices set for the blocks, the awarding of contracts and alleged violations by leaseholders.

Following those reports, the Khyber Pakhtunkhwa government ordered an inquiry into the auction process, including the determination of reserve prices and possible violations.

The cases cited by Sharif have renewed attention on allegations of financial misconduct and the oversight of public funds and mineral resources in the province. The allegations have not, by themselves, established criminal liability on the part of any individual.