Govt directs ministries, divisions to abolish posts vacant for over three years

• No new post to be created sans prior approval of Finance Division.
• Division seeks details on employee-related expenses from ministries.
• All ministries to fill form whose acceptance is linked to ERE claims.
  

ISLAMABAD: In its bid to cut down on government expenses, the Ministry of Finance has instructed all ministries, divisions, and departments that all vacant, redundant posts lying vacant or idle for more than three years to be indicated and abolished as per Financial Management and Powers of PAOs Regulations, 2021.

According to a circular issued by the Finance Division stating that it has sought details on employee-related expenses (ERE) from all the ministries and divisions, , The News reported on Saturday. 

The ministry further made it clear that all relevant ministries will have to fill form and will only be accepted in which ERE has been claimed unless supported with details of posts.

Additionally, no new post shall be created in the divisions, departments, subordinate offices, organisations and entities except with the prior approval of Finance Division.

It may be ensured that the total number of posts reflected in Form-X is the same as in BO/NIS forms. The form shall be endorsed by the Expenditure Wing, Finance Division.

All divisions, departments, sub-ordinate offices, organisations, and entities are required to submit copies of the Sanction Letters along with the Approving Authority.

The Finance Division issues a quarter-wise strategy for the release of funds every financial year.

Furthermore, the Principal Accounting Officers (PAOs) shall prepare a quarter-wise funds requirement plan within the allocated budget. Furthermore, the Finance Division would consider the quarterly requirement plans submitted by PAOs to frame the Budget Release Strategy for FY2025-26.

Each PAO is required to allocate adequate funds for operation and maintenance of physical infrastructure/assets. PAOs shall also ensure that maximum possible returns are achieved on each and every asset falling under their oversight.

Meanwhile, the foreign exchange (FE) budgeting aims to have a fair estimate of outflows for streamlining the process of releases

All Ministries/Divisions/Attached Departments/Subordinate Offices/Autonomous bodies & Semi-autonomous bodies/PSEs of federal government as well as provincial governments are required to provide FE budget estimates for FY2025-26 on the prescribed formats, (FEB Forms XVI-XXI). Soft copy of the same may be e-mailed to [email protected] by May 7, 2025.

Foreign Exchange Budget (FY2025-26), Expenditure (FY2024-25) as well as Revised Estimates (FY2024-25) shall be prepared on quarterly basis in Pak Rupee at exchange rate to be intimated by Finance Division. Request for FE Budget should also contain justification/purpose and item wise details of exact amount and date of requirement in foreign currency.

No FE allocation/release will be allowed without the provision of equivalent rupee cover. The prescribed FE Budget forms (Form XVI-XXI) should be filled in separately for Development Expenditure and Current Expenditure.

Invisible Expenditure may include: delegations going abroad, trainees sent/proposed to be sent abroad, salaries and associated expenditure of missions abroad, official donations, subscription fees, salaries of officers abroad on leave, legal fees, demurrage charges, freight charges, payments to consultants/experts working on development projects, preparation of feasibility studies of development projects etc. whereas Import Expenditure may include import of machinery, equipment, raw material, spare parts, etc.

FE allocation should be requested for only those development programmes/schemes which are included in the Public Sector Development Programme (PSDP) and Annual Development Programmes (in provinces) after approval of the competent forum.

No lump sum provision should be proposed and detail of all items included in a demand should be given by each organisation/entity, as per prescribed formats.

No provision for expenditure in foreign exchange should be proposed for import of items which are available or are manufactured in the country.

Provincial Finance Departments will co-ordinate the foreign exchange requirements for the whole province and certify that; the development schemes included in the estimates are duly approved by competent authorities; and that corresponding rupee cover shall be made available.