The Ministry of Finance has directed all federal ministries, divisions, and departments to identify and abolish redundant or vacant posts that have been idle for over three years, as mandated by the Financial Management & Powers of PAOs Regulations, 2021.
The Finance Division, in a circular, instructed that no new posts may be created without prior approval. Additionally, detailed Employee-Related Expenses (ERE) must accompany any claims for funds, with all forms duly verified and endorsed by the Finance Division’s Expenditure Wing.
The instructions also highlighted the necessity for synchronisation between the total number of posts reflected in Form-X and those listed in Budget Order/New Item Statement (BO/NIS) forms. All relevant entities are required to submit sanction letters endorsed by the approving authority.
The Finance Division also outlined a quarter-wise strategy for fund releases, requiring Principal Accounting Officers (PAOs) to prepare detailed quarterly plans. These plans must ensure adequate funds for operation and maintenance of infrastructure and assets while maximizing returns on government resources.
In addition, the Finance Division has issued guidelines for preparing the foreign exchange budget for FY2025-26. Ministries, divisions, subordinate offices, and public sector entities are required to provide detailed FE estimates, broken down quarterly in Pakistani rupees, by May 7, 2025.
Requests must include justifications, item-wise details, and expected expenditure dates, supported by rupee cover for all allocations.Â
Provincial finance departments have been tasked with consolidating foreign exchange requirements for their regions, certifying the approval of development schemes and availability of corresponding rupee cover.
