- No new position will be created without the prior agreement of the Finance Division.
- The Division requests details of employee-related expenses from departments.
- All ministries must complete the form whose acceptance is linked to ERE affirms.
ISLAMABAD: In its attempt to reduce public expenditure, the Ministry of Finance has asked all ministries, divisions and departments that all vacant and redundant posts lying vacant or unused for more than three years be indicated and removed in accordance with financial management and OAP Powers Regulations, 2021.
According to a circular issued by the Finance Division stating that it has sought clarification on Personnel Related Expenditure (PER) from all ministries and divisions, News reported Saturday.
The ministry has further made it clear that all relevant ministries will be required to complete a form and will only be accepted in those where ERE has been claimed, unless supported by job details.
Further, no new positions will be created in divisions, departments, subordinate offices, organizations and entities except with the prior approval of the Division of Finance.
It can be ensured that the total number of positions reflected in Form X is the same as in Forms BO/NIS. The form must be approved by the Expenditure Wing, Finance Division.
All divisions, departments, subordinate offices, organizations and entities are required to submit copies of sanction letters with the approving authority.
The Finance Division publishes a quarterly strategy for releasing funds for each financial year.
Additionally, the Principal Accountants (PAOs) will prepare a quarterly plan of fund requirements within the allocated budget. Additionally, the Finance Division would review the quarterly requirement plans submitted by the PAOs to frame the budget release strategy for the financial year 2025-26.
Each PAO is required to allocate adequate funds for the operation and maintenance of physical infrastructure/assets. PAOs must also ensure that the maximum possible returns are obtained on each asset under their supervision.
Meanwhile, foreign exchange budgeting (FE) aims to have a fair estimate of outflows in order to streamline the release process.
All ministries/divisions/attached departments/subordinate offices/autonomous agencies and semi-autonomous agencies/PSEs of the Federal Government as well as Provincial Governments are required to furnish FE Budget Estimates for the financial year 2025-26 on prescribed formats (forms FEB XVI-XXI). ). An electronic copy of this may be sent by email to (email protected) before May 7, 2025.
The foreign exchange budget (FY 2025-26), expenditure (FY 2024-25) as well as revised estimates (FY 2024-25) will be prepared on a quarterly basis in Pak Rupee at the exchange rate to be indicated by the Division of finances. The FE budget request must also contain a justification/objective and line item details on the exact amount and date of the foreign currency requirement.
No FE allowance/release will be permitted without provision of equivalent rupee cover. The prescribed FE budget forms (Form XVI-XXI) must be filled separately for development expenditure and current expenditure.
Invisible expenses may include: delegations traveling abroad, interns sent/proposed to be sent abroad, salaries and associated expenses of missions abroad, official donations, subscription fees , salaries of officers abroad on leave, legal fees, demurrage charges, transportation costs, payments to consultants/experts working on development projects, preparation of feasibility studies of development projects, etc. while import expenses may include import of machinery, equipment, raw materials, spare parts, etc.
FE allocation shall be claimed only for development programmes/projects which are included in the Public Sector Development Program (PSDP) and Annual Development Programs (in provinces) after approval from the relevant forum.
No lump sum provision should be proposed and details of all elements included in a request must be provided by each organization/entity, according to the prescribed formats.
No foreign exchange expenditure should be proposed for the importation of items available or manufactured domestically.
Provincial finance ministries will coordinate and certify foreign exchange requirements for the entire province; the development projects included in the estimates are duly approved by the competent authorities; and this corresponding rupee cover will be made available.