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KP IT Board fails to deliver on digitalization goals, Audit Report reveals

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PESHAWAR: The Auditor General’s report for 2021–22 has criticized the performance of the Khyber Pakhtunkhwa Information Technology (KP IT) Board, calling its progress on digitalization of government departments disappointing.

According to the audit findings, the IT Board managed to digitize only 10 departments, including Higher Education and Local Government, within the given timeframe, despite receiving over Rs. 40 million in subsidies for IT companies. It also failed to meet its targets of establishing IT parks.

The report highlights that in 2015, 57 companies were registered at Peshawar IT Park, but by 2021 the number had dropped to 26. Similarly, Abbottabad IT Park had 16 registered firms in 2015, with no growth recorded by 2021. The income of these companies also declined drastically—from Rs. 570 million in 2017 to just Rs. 289 million in 2021.

The audit noted that while company numbers were supposed to grow by 35% annually, mismanagement and lack of interest prevented this growth. The Board also failed to achieve the annual target of increasing IT exports by 25%.

In addition, the Board was unable to develop an app for timely receipts and payments, causing losses to both institutions and the government treasury. The report further disclosed that a training contract for tribal district youth was awarded to a company owned by the former MD of the IT Board, raising conflict-of-interest concerns. Illegal appointments of directors and deputy directors also caused losses worth Rs. 90 million.

The audit recommended that the government ensure transparency, merit-based appointments, and timely digitalization of departments. It also suggested a joint investigation to identify officials responsible for making the Board ineffective.

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