ISLAMABAD: The Ministry of Finance has directed all government departments and ministries to identify and eliminate vacant or unused posts that have been empty for more than three years. This is in line with the Financial Management & Powers of PAOs Regulations, 2021.
The Finance Ministry also stated that no new positions can be created in any division, department, or organization without prior approval from the Finance Division.
A circular issued by the Finance Division asks all ministries and divisions to provide details about their employee-related expenses. They must submit forms that include information about the posts, and these will only be accepted if they are supported with post details.
Additionally, ministries must ensure that the number of posts in the forms matches the data in other official records. The Expenditure Wing of the Finance Division must approve the forms.
All departments and organizations must submit copies of their Sanction Letters and the authority that approved them.
The Finance Division will prepare a strategy for releasing funds each quarter of the financial year. PAOs must submit their budget plans for each quarter within the allocated budget. The Finance Division will use these plans to create the Budget Release Strategy for the 2025-26 financial year.
PAOs are required to allocate enough funds for the operation and maintenance of physical assets and infrastructure. They must also ensure the best returns on the assets under their management.
The Finance Division also called for Foreign Exchange (FE) budget estimates for the 2025-26 fiscal year. All federal and provincial ministries, departments, and organizations need to submit their FE budget estimates by May 7, 2025. These estimates must be in Pak Rupees and include a detailed breakdown of amounts needed in foreign currency.
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Foreign exchange budgets will only be approved if the equivalent amount in rupees is also provided. The FE Budget forms must be filled out separately for development and current expenditures.
The Finance Ministry outlined that invisible expenses such as overseas delegations, training abroad, legal fees, and consultant payments must be detailed. Similarly, import expenses like machinery, equipment, and raw materials should also be clearly outlined.
Foreign exchange requests should only be made for approved development projects in the Public Sector Development Program (PSDP) and Annual Development Programs, and no lump sum provisions should be proposed. Provincial finance departments will coordinate the foreign exchange needs for their respective regions. They must ensure that the development schemes are approved and that rupee cover is available.
