The recently released KPITB Audit Report 2021-22 has painted a disappointing picture of the Khyber Pakhtunkhwa IT Board’s performance in advancing the province’s digital transformation. Despite receiving significant funding and setting ambitious targets, the board failed to meet many of its key objectives, raising serious concerns about governance, management, and transparency.
KPITB Audit Report 2021-22 Highlights Major Shortcomings
According to the KPITB Audit Report 2021-22, the IT Board managed to digitise only 10 departments, including Higher Education and Local Government, within the given timeframe. This progress fell far short of expectations, especially considering that the board had received over Rs40 million in subsidies for IT companies. The audit concluded that the board was unable to provide effective leadership in digitisation initiatives, which limited the province’s ability to modernize government services.
Decline in IT Parks and Registered Companies
One of the most concerning findings in the KPITB Audit Report 2021-22 relates to the decline of IT Parks in Peshawar and Abbottabad. In Peshawar’s IT Park, 57 companies were registered in 2015, but the number dropped to just 26 by 2021. Similarly, Abbottabad’s IT Park, which had 16 registered companies in 2015, showed no growth by 2021.
The financial impact was also severe. Company revenues that stood at Rs570 million in 2017 declined sharply to Rs289 million by 2021. This decline highlights not only stagnation but also the board’s inability to retain and attract businesses to the IT Parks.
Unrealized Growth Targets
The KPITB Audit Report 2021-22 revealed that the board had set ambitious targets, including an annual 35% increase in the number of IT companies and a 25% annual increase in IT exports. However, poor management interest and lack of strategic planning prevented these goals from being achieved.
The audit noted that the board’s failure to achieve these targets limited the province’s ability to capitalize on the global growth in IT exports. Pakistan’s IT exports as a whole reached $2.6 billion in 2022, but KPITB’s underperformance meant Khyber Pakhtunkhwa lagged behind other provinces in contributing to this growth.
Mismanagement and Governance Issues
The KPITB Audit Report 2021-22 also pointed out serious governance issues. The board failed to develop a mobile app for timely payments and recoveries, leading to financial losses for both institutions and the public exchequer.
Even more troubling were instances of conflicts of interest and irregular appointments. Training contracts for tribal youth were awarded to a company owned by the board’s former managing director. Additionally, illegal recruitment of directors and deputy directors caused losses amounting to Rs90 million. These findings raise questions about accountability and transparency within KPITB’s operations.
Recommendations of the KPITB Audit Report 2021-22
The KPITB Audit Report 2021-22 recommended immediate steps to improve the board’s performance and restore credibility. Key recommendations include:
- Digitisation of all government departments to ensure transparency, efficiency, and timely decision-making.
- Strict merit-based appointments in the IT Board to eliminate favoritism and conflicts of interest.
- A joint investigation into those responsible for making the board ineffective, ensuring accountability for financial and managerial lapses.
These recommendations highlight the urgent need for reforms to align KPITB with the province’s digital economy ambitions.
Why the KPITB Audit Report 2021-22 Matters
The findings of the KPITB Audit Report 2021-22 are critical for several reasons. First, they show how poor governance can derail even well-funded projects. Second, they highlight the gap between ambitious policy goals and actual implementation. Finally, they underline the need for accountability in public institutions managing large budgets and overseeing key sectors such as IT and digitisation.
Digital transformation is essential for improving governance, attracting investment, and creating employment opportunities. With Pakistan’s IT exports on the rise nationally, provinces like Khyber Pakhtunkhwa cannot afford to lag due to mismanagement.
To move beyond the failures identified in the KPITB Audit Report 2021-22, the provincial government must take decisive action. A transparent review of KPITB’s structure, leadership, and project management processes is essential. Moreover, collaboration with private sector IT companies and international partners could help bridge the gaps in expertise and implementation.
Restoring trust in KPITB will require accountability for past mistakes, clear performance benchmarks, and regular audits to monitor progress. By addressing the concerns raised in the audit, Khyber Pakhtunkhwa can still harness its potential to become a regional hub for IT innovation and services.
The KPITB Audit Report 2021-22 serves as a wake-up call for policymakers, government officials, and citizens. The findings reveal a disappointing track record in digitisation, declining IT Parks, missed growth targets, and governance failures. However, with timely reforms and accountability measures, KPITB can realign itself with Pakistan’s broader digital transformation goals.
The lessons from this audit are clear: sustainable growth in the IT sector requires vision, leadership, transparency, and effective implementation. Only then can Khyber Pakhtunkhwa play its full role in strengthening Pakistan’s digital economy.
