Pakistan Ministry of Finance Cracks Down on Redundant Posts and Streamlines Funding

Pakistan's Ministry of Finance Cracks Down on Redundant Posts and Streamlines Funding

The Ministry of Finance has instructed all federal ministries, divisions, and departments to identify and abolish redundant or vacant posts that have been idle for over three years. This move is mandated by the Financial Management & Powers of PAOs Regulations, 2021.

To ensure efficient use of resources, the Finance Division has outlined several key directives. No new posts can be created without prior approval, and detailed Employee-Related Expenses (ERE) must accompany all claims for funds. These forms must be verified and endorsed by the Finance Division's Expenditure Wing.

The Finance Division has also emphasized the need for synchronization 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 must submit sanction letters endorsed by the approving authority.

To optimize fund utilization, the Finance Division has introduced a quarter-wise strategy for fund releases. Principal Accounting Officers (PAOs) must prepare detailed quarterly plans, ensuring adequate funds for operation and maintenance of infrastructure and assets.

Additionally, the Finance Division has issued guidelines for preparing the foreign exchange budget for FY2025-26. Ministries, divisions, subordinate offices, and public sector entities must provide detailed FE estimates, broken down quarterly in Pakistani rupees, by May 7, 2025