No.

1 (35)/2018-19-Cash
GOVERNMENT OF PAKISTAN
MINISTRY OF POSTAL SERVICES
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Islamabad the 29th October, 2019.
Subject: AUTHORIZATION OF FUNDS FOR THE 1ST HALF OF CURRENT
FINANCIAL YEAR UNDER BUDGETARY DEMAND FOR GRANT
NO.93-PPOD FOR FINANCIAL YEAR 2019-20;

The undersigned is directed to refer Director General, Pakistan Post,

Islamabad letter No.B.4-2/2019 dated 15th October, 2019, on the subject cited above.

2. In this regard, it is explained that the Federal Government has enforced

“Public Finance Management Act-2019” with effect from 1st July-2019 with view to
elaborate mechanism of public finance management as envisaged in Articles 78 to 88,
118 to 127 and 160 to 171 of the constitution of the Islamic Republic of Pakistan and to
guide budgetary management process, financial and fiscal controls, cash and banking
arrangements, and financial oversight of public entities. According to this Act as well as
“New System of Financial Control & Budgeting-2006” it is the responsibility of the
Principal Accounting Officer (PAO) to ensure that financial considerations are taken into
account at all stages in framing and implementing decisions. The PAO is responsible
not only for efficient and economical conduct of the Ministry and its attached
Department but also be personally answerable before the Public Accounts Committee
(PAC). Beside this, it is the duty of the PAO to examine (I) budgetary proposal prior to
forwarding the same to the Finance Division, (II) maintenance & reconciliation of
accounts, (III) realization of receipts and (IV) holding the meetings of DAC.

3. In order to effective utilization of public resources and strengthen the

financial discipline, the PAO has been decided to authorize funds to its attached
Department into two phases i.e. 1st half (40%) and 2nd half (60%) under their respective
Demand for Grant. The further process/allocation of funds to the subordinate offices is
rest the Director General Pakistan Post as per their budgetary mechanism/policy in
vogue and no such barriers have been imposed by the Ministry to disturb such
budgetary mechanism. The contention of PPOD reveals that there should be no
bindings/ implementation of financial governance over them. The PPO Management
has no concern as their accounts are qualified or adverse. It transpires that PPOD is not
following DDO/Spending Unit Expenses, the situation itself is alarming. How
appropriation registers are maintained, stock registers are kept and for what purpose
this Form A & B Statements are in practice. The Secretary Postal Services has taken a
serious notice of deplorable status of financial statements and asked an explanation
from the DG, PMG and Chief Accounts status where budget is being expended without
spending units as narrated by the Addl. DG (A&F).
4. If there are no spending Unit/DDOs as per government instructions, no
budget can be expensed since how the delegation of financial power is in force. There
are complaints of irrational distribution of funds. The expenditure statement of all
Circles/ Regions/Offices also is reflecting the same where some Circles are
disproportionately awarded extra budget in contingencies and civil works where there
are some which are being allocated a baseline budget even lower to the trash-hold five
years ago. It is also highlighted that the respective PMGs/GMs are Head of Department
and they are bound to exercise the same level of prudence and budgetary control as
Director General Pakistan Post. The procurement on centralized basis and the status of
expenditure over & above the budget, by utilizing the facility of LOC out of Public Funds
are serious audit objections.

5. In view of above, the direction of Principal Accounting Officer is binding

and controlling officer cannot just ignore the explicate direction on evasive answers. If
the Ministry cannot allocate quarter-wise budgetary how Add. DG (A&F) is doing the
same. It is directed to prepare procurement plans, stock registers and implement the
PAO instruction in letter & spirit.

Section Officer (B&C)

Ministry of Postal Services
The Director General,
Pakistan Post Office Department,
Islamabad.