Each and every officer of the Government of Pakistan is supposed to act in accordance with the

basic laws constituted under the Constitution of the Islamic Republic of Pakistan. All the orders
and instructions to be issued by any functionary of the Government of Pakistan must conform to
the statutory rules and regulations having the constitutional sanction. The purpose of this
compilation is to inform the functionaries of the Government of Pakistan, of the curbs on their
arbitrary acts and to make them aware of the danger of non-observance of the rules and
regulations quoted herein and deviation from express limits to their power and authority may lead
to the mal-administration. So the checks and balances have been devised to control the exercise
of their authority, and the guidance has been provided to the D. D. Os. Covering all the aspects of
their financial and administrative duties to be performed for the smooth running of the
Government business.

The Drawing and Disbursing Officer (D. D. O.) plays a vital roll in the management of public
funds and control of the expenditure. The need for a Guide to the Pakistan DDOs having an upto-
date and authentic collection of statutory, financial and administrative instructions can hardly be
over-emphasized. The Guide has been compiled mainly on the basis of Account Code, Audit
Code, Audit Manual, Pakistan Financial Rules, Pakistan Civil Services Rules Manual and the
Pakistan Treasury Rules, etc., etc.

Relevant statutory rules and regulations have also been reproduced with upto-date
amendments incorporated in the last portion of the book. While compiling this Guide, efforts have
been made to incorporate all the amendments, circulars and instructions on matters covered
herein. It is hoped that the officers using this Guide will find it more useful for the proper and
expeditious disposal of matters before them. Intimations of errors or omissions and suggestions
for its improvement are eagerly solicited and will be gratefully acknowledged.

Part - I

FINANCIAL MANAGEMENT
FINANCIAL ADMINISTRATION

Definitions:

1. 1 (i) Public Finance. The term comprises two words public and finance. The word public is a
collective noun and means a collection of people. As an adjective it implies belonging to the
people. But recently this word has acquired a specialized sense. Now it is used in
contradistinction to the word "private". The word 'finance' means money. It also signifies money
matters and their management. Taken together the term means money matters pertaining to a
state. The term 'Public Finance' has been defined variously by various economists. A definition
easier to understand is that of Lord Dalton, one time Chancellor of the Exchequer of the United
Kingdom. He says that public finance is one of those subjects which lie on the border line
between Economics and Politics and that it signifies the income and expenditure of public
authorities and adjustment of one with the other. The term "Public Authorities", broadly speaking,
includes Federal Government, Provincial Government, Autonomous organizations and Local
Bodies.

(ii) Fiscal of Public Revenues: Financial; having to do with treasury or exchequer. The
word is derived from the Latin word "fiscus" which means purse'.

(iii) Exchequer: Treasury of a state or nation. The word is derived from old French
"Exchequer Chessboard" because the accounts were kept on a table marked in squares.

Public Finance; Why needed

1. 2 One can ask why a state should need the finance. The answer is not very far to
seek. As human-beings people have certain wants which they can satisfy themselves, such as
eating, drinking and clothing, etc. But there are certain wants such as protection of life and
property, construction of railways, roads, bridges and irrigation canals and establishment of
hospitals, universities and ordnance factories, etc., which one cannot do in his individual capacity
and has to look to the state for doing the needful. In order to perform this task, the state does
require finance, and that is done by means of raising revenue and then incurring expenditure.

1. 3 The finance is a fundamental moulding factor in Public Administration. The public

services have to be paid for and, since with few exceptions, they are paid for by the recipient
of the specific service, the cost must e borne by the Community, usually through the method of
taxation. From times memorial the tax collector has been one of the most active and also the
most ated of officials: While carrying out the orders of a despot, perhaps, his reputation could
be termed as well deserved. But in the present democratic set-up, even if the citizens'
reactions have changed little, the position is very different.

There may be still individuals who consider the state services as entirely non-productive, creating
merely a charge that is to be paid out of the economic resources of private enterprise, but a
moment's consideration of the many essential services that are now provided both by the state
and the various other public authorities, would convince all, except the most partisan one, that
public Administration does provide services for which the term "unproductive" will be misnomer.
Whatever views may be held on the subject it must be agreed that public Administration has to be
paid for and that ultimately the size and quality of a service must rest upon the size and
proportion of the resources that a community can afford to expend upon it. Problems of this
nature relating to the national income and expenditure, methods of public accounting and
principles of taxation fall within the sphere of the 'public finance'.

Operation of Public Finance:

 1.4 The operation of public finance may be termed as involving a series of transfers of
purchasing power. The purchasing power of certain individuals is transferred to "Public
Authorities" by taxation and back again from these authorities to other individuals by way of public
expenditure. Sometimes the transfer of purchasing power is not in cash, but in the form of goods
and Services such as provision of uniforms, education and medical treatment, etc. As a result of
these operations of public finance changes take place in the amount and in the nature of wealth
which is produced and in the distribution of that among individuals and classes. The best system
of public finance is one that secures the maximum social advantages greatest good of the
greatest number from the operations which it conducts.

Tests of Maximum Social Advantages:

1.5 The primary requirement is the security of life and property. The, nation should be
secure against internal disorders and external, attacks. Then comes the promotion of welfare of
the people. They should be well-fed, properly clothed and housed. Facilities for health and
education should be available to all and sundry. This can be achieved by increase in the
production of wealth and its proper distribution. One way of doing it is to transfer wealth from
those who have comparatively more to those who have comparatively less. This is done
by increased taxation on the former and providing more amenities to the latter.

Difference between Public and Private Finance:

1.6 Broadly speaking, an individual's income determines the amount of his possible
expenditure, but a public authority's proposed expenditure determines the amount of its
anticipated income. In other words, while an individual adjusts expenditure to income, a public
authority adjusts income to expenditure. If the expenditure of an individual increases, he tries to
increase his income by working extra hours or by cutting down the expenditure. In such
circumstances a public authority would either scale down the expenditure by retrenching
the establishment and staff or by giving up more ambitious development schemes. They may also
make efforts to find out other avenues of income. In good times, while an individual spends his
savings on luxuries or investments, a public authority would extend more amenities to the people.
In the present times, however, when the development plans are under operation, the income
always falls short of expenditure and the deficit has to be made up by encouraging savings,
raising internal and external loans and by availing of the aids and grants offered by the friendly
countries. The other alternative could be the deficit financing, but that leads to inflation and
should, therefore, be the last resort.

Public Income:

1. 7 The income of a public authority includes all "incomings" and 'receipts'. Even public
borrowings form part of public income. Professor Saligman, a noted writer on Public Finance,
has classified public revenue into three broad categories, namely: -

(i) Gratuitous Revenue.

(ii) Contractual Revenue.

(iii) Compulsory Revenue.

(i) Gratuitous Revenue. Consists of gifts, donations and grants, etc., gratuitously made
without any direct or indirect demand. They do not carry any obligation for goods and services to
be paid in return. Such an income is neither very certain nor uniform.
 (ii) Contractual Revenue. Comprises income derived from public property and industry. The
state owns property in the form of lands and buildings. All rents received from such sources
constitute 'Contractual Revenues'. The state may own industries such as railways, posts,
telegraphs and irrigation canals, etc. The income received from these industries is also
contractual revenue. Professor Saligman has called the contractual income as "Prices" also. This
is because they resemble the prices charged by the producers for the goods and services they
sell.

(iii) Compulsory Revenue. The income under this category is mainly derived by the use of
penal and taxing powers of the state. The taxes are, by far, the most important source of
revenues of a state. The 'Compulsory Revenue' is further subdivided into three heads Fees,
Special Assessment and Taxes:

(a) Fees. A fee is a payment levied by the State in respect of services' performed for the
benefit of the individuals. Court fee, registration fee and licence fee are examples of this kind of
revenue.

(b) Special assessment. It is a payment made by the owners of property in respect of any
improvement made to their property by the public authority. If a park is built, this goes to enhance
the value of the properties in the locality and, therefore, the owners may be required to pay extra
lux in the form of special assessment. Educational cess or any other kind of special cess may
also be covered by this. Iqra tax comes under this category. Toll tax collected on highways and
bridges is another example.

(c) Tax. This is a compulsory charge imposed by a public authority for the purpose of
defraying expenses in accordance with the common interest of all. The taxes can be direct as
well as indirect. Income- tax, corporation-tax and super-tax are direct taxes, whereas import
duties, excise duties and sales tax are indirect taxes.

Public expenditure:

1. 8 The public expenditure may be broadly categorised as under:

(i) Maintenance and equipment of armed forces including police, (a) in peace and (b) in war;

(ii) Administration of Justice;

(iii) Maintenance of the ceremonial head of state and diplomatic representatives abroad;

(iv) Maintenance of the machinery of the civil government including ministries, legislature and civil
servants;
(v) Public debt charges including payment of principal and interest;

(vi) Expenditure directly devoted in fostering industry and commerce; and

(vii) Social Welfare health, education, old-age pensions, famine relief and unemployment
allowance, etc.

Scope of Financial Administration:

1. 9 The financial administration means the operations designed to make funds available
to officials and to ensure their lawful and efficient use. The principal parties involved are:
(i) the executive bodies, which need funds;
(ii) the legislative bodies which alone can grant funds;
(iii) the executive offices that control the expenditure of funds; and
(iv) the auditing offices which determine the legality and propriety of the use of the funds.

In a small organization, the fiscal management is relatively simple but in big organizations
like autonomous bodies, Provincial Governments and Federal Government, the set-up,
procedures and problems are complex. The fiscal organizations deal with all the money aspects.
The earning, saving, borrowing, spending and investing of monetary funds are parts of the fiscal
management. It also consists of providing and utilizing the money, capital rights, credit and funds
of any kind which are required in the operation of an organization.

1. 10 The object, underlying the study of fiscal management, is that of the operating official
or executive who is responsible for the execution and enforcement of legislation and who needs
funds to employ the necessary personnel to purchase equipment and to incur other appropriate
expenditure. The first task of operating official is, therefore, to secure funds. The second task is to
use the funds in the performance of his agency operation. He must also maintain accounts to
show the flow of funds and to indicate the results of the expenditure. Finally, the executive is
required to submit the records for an independent audit to determine the legality and propriety of
their actions. The most important aspect of fiscal management, as a part of Public Administration,
concerns the relationship involved in the series of operations and not in the amount of revenue
and expenditure in general or in particular. The emphasis is on the relationships rather than on
the figures.

General characteristics of Financial Administration:

1. 11 Financial administration has three broad objectives or responsibilities Fiscal policy,

accountability and management.

1. 12 Fiscal Policy. The Fiscal policy includes such matters as taxation theory, the
incidence of specific taxes, the overall effect of taxation and public debt upon the economy, the
deficit financing and probable force of unemployment. No other branch of the economics has
undergone such revolutionary development in recent years as fiscal policy and theory. Although
there have been many developments with reference to advance economies, yet no systematic
and integrated theory of fiscal policy appropriate to an underdeveloped but developing economy
has yet been formulated. This does not mean that problems of fiscal policy in under-developed
economies have not been receiving the due attention. As a matter of fact many individual
agencies have been applying their brains both at the theoretical and at the administrative levels.
In a few words the fiscal policy may be defined as "a policy under which the government uses its
expenditure and revenue Programme to produce desirable effects and avoid undesirable effects
on the national income, production and employment. "

1. 13 In the days gone by the attitude of the economists had been to give little
consideration to the impact of the government finance upon the entire economy. Their Primary
concern had been to find new sources to meet evergrowing demand of expending agencies. The
single objective pursued by them was increasing the revenues. They would not very much
concern themselves with issues which had an overall impact on incidence of taxation and their
general repercussions. Instead of finding out who will ultimately be taxed and whether he can
afford, the main question had been how to get more revenue with the least cost. This approach
can be termed as pragmatic rather than objective. The correct approach would be that
pragmatism must make room for planning. What is necessary is that more and more attention
should be paid to the relation of government expenditure to the economy as a whole.
 1. 14 The Objectives of fiscal policy are more or less the same in developed as in under-
developed countries. In case of under-developed countries, however, the economic objectives of
tax and budgetary policy are to promote investment, to maintain stability and to reduce extreme
inequalities in wealth and income. These objectives are not basically different from the economic
goals of allocative efficiency, economic growth, stability and optimum income distribution which
guide fiscal policy in advanced countries on a free enterprise basis. The great importance of fiscal
policy in many underdeveloped countries arises from the fact that there the state, under the
democratic auspices, is called upon to play an active and important role in promoting economic
development.

For various reasons, especially the low ratio of savings to national income, the government of all
under-developed countries virtually have been forced to play this role. In order to do this
effectively they have to interfere in the economic life of the country, control and regulate economic
activities and compel and induce people to behave in different ways. Another important reason,
why public finance assumes importance in under-developed countries, is the capital accumulation
which is the key problem. Efforts have to be made to achieve a higher ratio of savings to national
income than that exists at present. In the Communist countries this has been achieved by
keeping down the standard of living of the people, by dictatorial restriction of resources allocated
for the production of consumer goods but this method is not open to the under-developed
countries which have chosen the democratic way. The temper of the time simply will not tolerate
great inequality of income and wealth. There is a clamour for higher and higher wages.

It is difficult to resist this clamour as long as the rich are allowed to indulge in conspicuous
consumption. The only way out of the dilemma seems to be to have recourse to public investment
to a significant extent side by side with the private investment. Taxation could be used to ensure
collective saving and at the same time to promote private investment. By this means the
sacrifices involved in capital formation can be distributed more equitably and the poor sections
assured that all classes are making sacrifices in potential consumption.

1. 15 Accountability. The question is who is accountable to whom and for what In matters
of financial accountability both for money and property, such accountability applies not only to the
officers of higher status but also to the rank and file. This problem' of accountability pervades all
activities where funds and property are involved whether the institution is a small shop, a big
store, a corporation or a government department. A store manager must see that his inventory
conforms to the record of income and sale, a cashier must balance his cash, a pharmacist must
all time account for his supply of medicines.

1. 16 Accountability of Such a type is accomplished by a system of internal checks based

upon record keeping. Thus when a store-keeper receives an order to issue a particular item of
store, he makes an entry to that effect in the issue register and obtains the acknowledgement of
the person concerned. Similarly if a cashier has to pay some money, he has to get an
acknowledgment for it and to make necessary entries in the cash book. These entries are
checked and rechecked by the Supervisors.

This procedure may seem quite elaborate to call for shortening the red-tape. But it should be
remembered that unless there is a system of internal checks the correct amount cannot be
vouch-saved. For this reason, in matters of financial transaction there is a tremendous amount of
record keeping whether in private business houses or in Government Offices. Government
environment, however, require and tolerate more record-keeping than private business houses.
This is because Government departments are accountable to the public for the details of their
operations and do not have the same degree of internal freedom as is enjoyed by private firms.
The public business is every body's business, whereas the private business is concern of an
individual or a group of individuals.

1. 17 The main reasons for the government to keep a large number of records may be
explained like this:

(i) Many government records are required by law rather than the needs of management;

(ii) There may be more record-keeping for its own sake in government because of the
stratification of hierarchy which in turn causes resistance to change;

(iii) There may be more record-keeping for its own sake in government record-keeping a. holy
rite, because the rite has the sanction of time and was approved by the fore-fathers, only the
profane would suggest abolition or alteration; and

(iv) A vested interest record-keeping may be easier to defend in government.

1. 18 What is the primary purpose of fiscal accountability, namely democratic responsibility

to the public at large A public official has two types of such accountability:

(i) fiduciary; and

(ii) accountability for the exercise of wisdom and judgement in making fiscal decision.

Fiduciary refers to faith, trust and confidence. This is a quality expected of bankers, trustees
and treasurers. The fiduciary accountability plays a very important role in those areas where
custodianship predominates, the work of treasurers and cashiers, investment of trust funds and
warehousing. Loss in these areas is fairly well-guarded by traditional bonding, auditing, record-
keeping, reporting and regulation by law. The other type of accountability involves more
discretion. It goes farther than custody and stewardship and enlists the dynamic policy
determining quality of management. In other words, this kind of accountability asks whether the
fiscal officers are 'good managers'.

1. 19 Management. One can presume that leaks are more likely to occur as a result of
bad management. While the honesty of man is always a matter of concern, government costs are
now more sensitive to management inaptitude than to defalcation. There can be no denying the
fact that good management is the best antidote and preventive for dishonesty. The costs of
government can be traced to overstaffing. incompetent personnel practices, poor motivation,
unwise spending, poor accounting practices, and unimaginative leadership. The cure for these ills
does not lie in the negative prescription backed up by a paralyzing division of authority. The
proper treatment lies in dynamic and constructive administrative leadership and holding it
responsible for stewardship.

1. 20 The greatest need in this whole area of accountability lies in the realm of standards.
What are people to be held accountable for The answer is obvious for doing a good job. But what
constitutes a good job . The answer is not obvious at all because one does not know what is the
proper standard of performance in the most activities. In the western countries they have
developed certain standards for measuring the performance. In the United States, particularly, the
emphasis is on 'performance budgeting'. But this is more effective for a big industrial house rather
than in the government. The performance budgeting means budgeting units of work rather than
things that are bought and paid for, such as papers and personal services etc. The theory is that
the tax payer can hold the bureaucrat accountable when it is known that a given amount of
money should buy X miles of a street sweeping or Y acres of soil conservation. The object is
laudable but the question is whether Pakistan can adopt this practice in the present day
conditions.

Organization for financial administration:

 1. 21 All administrative systems have much in common irrespective of size, historical
evolution or cultural foundations. Among their universal aspects are machinery and procedures
for collecting revenue, making appropriations, keeping accounts and auditing the records.
Finance and administration cannot be divorced. Every administrative act has its financial
implications, as inseparable as a man and his shadow. Nothing can be done without the
expenditure of money at the very minimum for the compensation of the officials or employees
who act. Finance is, therefore, one of the first and inescapable responsibilities of Government
executives.

1. 22 To carry on fiscal operation a considerable organization is required, part of which lies

within the major operating departments, part of which is outside consisting of budget officers,
directors of finance, comptrollers, accountants and auditors. Organization for fiscal management
is pervasive running all the way from top-management through middle management including line
staff and auxiliary agencies. All top-management chief executives, departmental heads and their
immediate assistants is involved. All middle management has to play its role since estimates and
work programmes are dependent on each other.

1. 23 The present system of the fiscal management is based on checks and balances, in
which control is divided among a number of public authorities. There are three ingredients in this
control, first administrative control, secondly control by the National Assembly and thirdly control
and audit by the Auditor-General of Pakistan. The centre of gravity is, however, the executive
rather than the National Assembly though the latter has always the last word.

1. 24 Administrative Control. The administrative control is exercised by the executive

through the Ministry of Finance. The budget is prepared by the various administrative units, which
is finally consolidated by the Ministry of Finance and then presented to the National Assembly.
After the budget is passed, the execution thereof is the responsibility of the Ministry of Finance. It
is concerned not only with the supervision of all aspects of the nation's finances, as its name
would imply, but also with the economic planning in collaboration with the Planning and Economic
Affairs Divisions. The control of the Ministry of Finance is an all pervasive characteristic of the
public administrative system.

1. 25 Parliamentary Control. The financial business of the National Assembly is divided

into two distinct, but inter-weaving processes, that is authorizing the supply and the raising of
necessary moneys. At the outset, a fundamental accounting arrangement may be mentioned
which is a key influence in the operation of the government finance machine. This is the system
under which the financial year, from July to June, is the standard accounting period and all
authorizations of supply and payments apply specifically to that accounting period.

This means that the unspent moneys have to be surrendered at the end of the financial year and
excess payments, so as to be held valid, must receive specific authorization. Each financial year
is treated as a self-contained period and authority has to be sought for every transaction to be
included therein, whether or not it has already been previously approved. Financial provision
begins with the making of policy which is inescapably conditioned by the resources in terms of
finances and which the implementation of policy is likely to require. All proposals regarding
income and expenditure have to be made to the National Assembly on behalf of the President. It
is for the National Assembly to grant supply at the request of the President and. incidentally
before doing so, to take the most of the opportunity to air the grievances.

1. 26 Independent control.Independent control in the system of finance is embodied in

the functions of the Auditor-General, an official appointed by the President. This control is
exercised by him on the lines of the professional audit adopted by the outside business concerns.

1. 27 The above mentioned controls have been touched here very briefly. The subjects
will be discussed at length later on.
Trends in fiscal organization:

1. 28 The administration in Pakistan is under-going profound and constructive change.

The system inherited from the British was suited to a colonial administration but in no way it
would cater for the needs of an independent and developing country. The changes, however,
could not be introduced overnight. The evolutionary process which has been bringing about a
transformation is not yet complete. The emphasis, on the exploitation of the natural resources for
the benefit of the colonial rulers and maintenance of law and order, in those days, has now been
shifted to a welfare state.

1. 29 The fiscal management at the time of independence was authoritarian and

centralized. It did not meet the requirements of a democratic and developing country. So the
present trend is towards decentralization and democratization of the management. One prevailing
view is that the administrative management constituted the unitary process in which finances,
personnel, planning and direction are blended together. Effective administration is not attained by
compartmentalization and isolation of each management process. The ultimate aim is to secure a
rational distribution of government income, one that has not been distorted by parochial
tendencies, regional loyalties and power pressures. The underlying philosophy should tend
strongly towards genuine democratic concept and practices.

1. 30 In order to achieve the objects mentioned above the greatest emphasis is on

planning. All the development schemes have to be thoroughly planned well in advance. Not only
that the expenditure to be incurred on the plans has to be correctly estimated but the resources
from which the expenditure is likely to be met have also to be taken into consideration. For this
purpose the Planning Commission was established. The Planning Commission prepared the First
Five Year Plan which covered the period from 1955 to 1960 and so on. All types of development
programmes covering the entire field of governmental and private activities' have to be covered
by these plans. The Central and Provincial projects are drawn in the light of the targets fixed
under these plans. So the planning is the sheet anchor of all fiscal activities of the Government.

1. 31 The second important change which was brought about in 1960 is regarding the
preparation of budget. The preparation of budget is now a continuous process rather than being a
seasonal activity as was the position upto 1960. Different schemes and projects are processed all
the year round with reference to the targets fixed by the plan and are approved as soon as they
mature.

1. 32 The third important change brought about in Pakistan is in respect of the

decentralization. On the one hand the Provinces have been given more freedom in regard to the
planning and execution of different development projects. On the other hand the Departments
and Ministries have been given more financial freedom. Once the budget has been approved by
the National Assembly, the Ministries are not required any longer, to go to the Ministry of Finance
again and again for getting the expenditure sanction. The operational agencies enjoy more
freedom of action and execution.

Public Accounts and Accounting Control:

1. 33 Accounting is the science of producing promptly and presenting clearly the facts
relating to financial condition and operations that are required as a basis of management. The
primary functions of a system of accounts are:

(i) to make a financial record;

(ii) to protect those handling funds;

(iii) to reveal the financial condition of the organization in all its branches or purposes at any time;

(iv) to facilitate necessary adjustments in rate of expenditure;

(v) to give information to those in responsible positions on the basis of which plans for future
financial and operating programmes can rest; and

(vi) to aid in the making of an audit.

1. 34 From the point of view of the departmental head or the top executive, quick and
accurate accounting reports are necessary in order to direct the course of work and future
expenditure. They also provide top executive with the essential record to demonstrate the
appropriate and legal use of funds making certain that each sub-division of an organization is
actually using money for the purposes for which it was appropriated The accounts and supporting
financial documents provide the evidence on die basis of which each spending officer justifies his
expenditure, either to controlling authority or to the audit. While the accounting system is thus
essential as a means of preventing the wrongful use of funds, it also underlies all other types of
executive control of fiscal operations It is the basis on which executives act to prevent deficit, as
well as the documentary foundation for questioning the care and wisdom with which funds have
been used.

1. 35 Beyond these primarily fiscal purposes, the accounting reports are essential to
management. In the business world the information currently disclosed by the accounting system
is one of the main sources on which policy is predicted. In the Ministries and Divisions, the
monthly, quarterly and annual accounting reports are now relied upon, as in business, for
guidance as to executive policy and program.

Accountability and audit:

1. 36 Much of the business of any government is conducted away from the capital in field
offices and establishments, army installations and civilian institutions. Some of the business of
the Federal Government has always been carried on overseas. In any case, it is convenient and
usually necessary to advance funds to disbursing officers to pay for current services, supplies
and equipment. They are accountable for the funds they receive.

1. 37 Collection of the public revenue also occurs at many points mostly outside the capital
city. Collectors of customs, taxation officers and other receivers of public money are scattered far
and wide. They are accountable for the funds they collect. The general rule is that every official or
employee receiving, collecting or using public money is accountable for its proper application. A
Head of the Department is as accountable as a lower functionary. In modern times, the first
accountability is to the employing agency by means already described, involving agency
accounting and fiscal officers. The second and conclusive accountability is to an independent
audit and National Assembly. Finally everyone is accountable to Almighty Allah.

1. 38 Fiscal accountability in simple terms means that a receiving officer must demonstrate
that his collection was authorized by law, was correct, was supported by authenticating
documents, and was deposited in full; all in accordance with statutory requirements. Similarly, a
disbursing officer must demonstrate that the payments he made were authorized by law,
authenticated by supporting documents, was correct and in strict accord with all formalities. The
proof in each case must be completed, and must satisfy an independent auditing officer whose
business it is to detect errors, irregularities or misrepresentations.

1. 39 Financial transaction must not only be correct in fact, but must be supported by proper
documentary proof. For instance to determine the validity of a disbursement, an auditor will need
to have evidence of the authority of the disbursing officer, the appropriation on the basis of which
the disbursement was made and the effect of any relevant statutory language in the Appropriation
Act, the receipt of the money by the proper person, proof that the service for which payment was
made was actually performed, proof that the charge was not excessive, and presence of the
signatures of the disbursing officer and such of his superiors as may be required. The auditor will
also ascertain that funds were available in proper appropriation head, that all the papers were in
order, that the arithmetical computations were correct, and that the claim was not a duplicate. To
audit a complex transaction is a difficult operation requiring often a knowledge of law. precedents,
and financial regulations and practice as well as the principles of accounting and auditing.

1. 40 The normal sequence of events, seen from the point of view of the accountable
officer, is this:

(i) he receives and acknowledges an advance;

(ii) he disburses particular sums and takes receipts and other evidence of the transactions;

(iii) he submits periodically a statement of his transactions, with all the supporting documents to
the auditor;

(iv) the auditor examines the documents, and if they are in order he settles the account, thus
clearing the disbursing officer of any further responsibility;

(v) if the auditor finds an error or is otherwise not satisfied he raises an objection and reports it to
the disbursing officer;

(vi) the latter then furnishes any further explanation or justification, leading at times to extensive
correspondence;

(vii) if the auditor remains unsatisfied, the disbursing officer has in principle, only two resources: -

(a) to pay the disputed balance out of his personal funds; or

(b) to appeal to the higher authorities to regularise the transaction.

1. 41 The audit is designed to prevent embezzlement frauds, carelessness or innocent

error. Embezzlement is now relatively rare, but the knowledge that an audit is to be made is
doubtless still a necessary deterrent. Most controversies between executive and audit turn on
different interpretations of law and misunderstanding of procedure, less commonly, on lack of
supporting documents.

Basic functions of audit:

1. 42 The audit is a function undertaken on behalf of the appropriating body, and is,
therefore, a legislative, not an executive, task. It is part of the external control over administration
maintained by the representative body not a part of the internal responsibility of official to the
Principal Accounting Officer. In principle, it is unrelated to and independent of any means of fiscal
control which executives may require to facilitate the overhead management and direction of work
for which they are responsible.

Its primary task is to enforce accountability by the independent examination of every financial
transaction. In the words of the Comptroller General of the United States 'one of the important
objectives of the audit is to fix the accountability of the officer of the Government for any illegal,
improper or incorrect payments made resulting from any false, inaccurate, or misleading
certifications made by them, as well as for any payment prohibited by Law or which did not
represent a legal obligation under the appropriation or fund involved. At the same time an audit is
a protection to responsible executives; a double check against malfeasance of subordinates, a
shield against irresponsible charges, and an assurance to a new official taking over a going
concern.

1. 43 Historically, an audit took place subsequent to expenditure. In its simplest form it

was a scrutiny of books and supporting documents (payrolls, vouchers etc. ) at the close of a
fiscal year. The full year's operations, were then available for study and criticism, surpluses or
deficits were disclosed, and the net result of fiscal operations could be ascertained and reported
to the appropriating body.

The deterrent effect upon misuse of funds lay in the danger of ultimate discovery, not in
prohibition at the moment. In its more highly developed form audit became a continuous
operation, the flow of financial transactions through the auditor's office being uninterrupted
throughout the fiscal year. It still remained, however, subsequent to the event. More recently the
pre-audit was invented by which payroll, bills, and claims pass through the auditor's hands before
payment. An audit is still usually, although not necessarily, an operation conducted after payments
have been fully authorised and actually made.

1. 44 Much confusion has existed between the ancient function of audit and the modern
function of administrative examination of accounts. An audit does not replace the operation
involved in administrative control of expenditure, although the procedures are similar in part. The
basic objectives of an audit are to see that:

(a) the funds have been used only for the purpose for which those were intended:

(b) the expenditure was in accordance with the conditions established by law;

(c) to check the accuracy of accounts and inventories;

(d) to ensure against embezzlement or loss of funds; and

(e) to report findings to the proper agency, i. e., the administrative agency, in case of unauthorized
expenditure, the prosecuting officers, in case of wrong-doing and the legislative body in case of
inefficiency or unsatisfactory operation of the fiscal system.

The purpose of administrative examination of expenditure is to ensure care and good

business judgement in the funds, as well as regularity and accuracy and more broadly to enable
the top-executive to bring his influence to bear upon work programmes and administrative policy
as reflected in expenditure. The end of an audit is to ensure legality and correctness of
administrative control to avoid deficits, to supervise current expenditure, and to ensure that all
fiscal programmes are in conformity with the master-plan of the Government. These objectives
overlap in part, but not entirely.

BUDGET

History of Budget:

2. 1 The institution of budget originated in the West. During the days of absolute monarchy
the treasury was at the disposal of the king, who spent out of it in any manner he liked. There was
no control whatsoever on the purse strings. It is a well-known historical fact that struggle for
representative government in England began with the right to control the purse. When this was
acquired, the right to control expenditure through appropriation was asserted. By and by the
executive was required to produce for the approval of the Parliament every year a complete plan
of income and expenditure. Nearer home in the Indo-Pakistan Sub-continent there was the same
story. There was no better way of asserting that control than to require the government to submit
a comprehensive plan for the approval of the legislature showing how much money they needed
for any one year and how they proposed to raise and spend it. This plan was called the BUDGET.

Origin of the word "BUDGET":

2. 2 The word 'Budget' is derived from the French word 'Bougette' a diminutive of the old
French word 'Bouge' meaning a small bag or wallet. In its present sense the word was first used
in 1733 in connection with Sir Robert Walpole's financial scheme in an anonymous pamphlet
entitled 'The Budget Opened' in which Walpole was ridiculed as a conjurer, the budget being his
wallet or bag of tricks and deceptions. The phrase, however, stuck. The meaning of the word
'budget' has now shifted from the bag to the documents containing the financial propolis and is
accepted as such in the parliamentary phraseology.

Budget and budget administration:

2. 3 Gladstone, whose advance in British politics rested in large measure on the brilliant way
in which he filled the office of Chancellor of the Exchequer, once said 'Budgets are not merely
affairs of Arithmetic, but in a thousand ways go to the root of prosperity of individuals, the relation
of classes and the strength of kingdoms'. To this observation might be added another: 'The
efficiency, the reputation and the development of the programme of the government of the day
are advanced or retarded by the effectiveness not only of budget procedures but of devices of
fiscal control".

The purpose of budget:

2. 4 'No man' said Swift "will take counsel, but every man will take money. Therefore,
money is better than counsel". The aphorism with some modification applies to government
agencies. Just as the eventual control of government activities by the legislature stems from the
power of the purse (the revenue system and the appropriation system), so the direction by the
chief executive is aided by his authority over projected and actual expenditure.

2. 5 The budget is a fiscal blue-print of projected government activity put side by side with
the record of past years and joined to an estimate of public revenues. It has been referred to as
"the direction of public expenditure with the purpose of obtaining the maximum estimated social
income". The budget is not only an estimate but a justification. Nor is it merely a loose leaf.
compilation of separate expense sheets; it is corelated master-plan of government outlays. Its
preparation is not the work of isolated agencies; it is a centrally supervised operation.

2. 6 Nor does the budget system end with the drafting of the document. It is followed by a
thorough consideration at the hands of the legislative branch. For it is here that the action of the
executive department must be subjected to scrutiny. Approved, the budget becomes a handbook
of administrators, guiding their courses and fencing their ambitions behind a wall of rupee signs
or dollars or pounds, or francs or roubles.

Budget strategy and tactics:

2. 7 The story of budget procedure and practice gives little indication of the complex
interplay of powerful forces that are involved in reaching budget decisions. These forces are
continuously at work, through the whole process of government policy-making programme
planning, financing and executing and shift their emphasis from the executive to the legislative
branch and back again, or at times seek to build strength by cultivating a favourable public
opinion.

The budget as an equilibrium of competing forces:

2. 8 A budget as finally approved by a chief executive and submitted to a legislative body is a

momentary balance between two sets of forces, one for pending, one against. The appropriation
act or acts represent another equilibrium achieved by the balance of the same pressures at work
in legislative chambers. The balance is only a temporary one, destined to stand at most for a year
or two and once painfully achieved is already an object of sapping and mining. Intertwined with
the equilibrium is another balance between competing expenditure groups. The pressures in
favour of spending are very great. They arise out of acutely felt needs by considerable number of
the people who seek advantages from publicly supported programmes. One large group of such
pressures stems from the demand for improved services or for new services. Characteristic of the
first type are the frequent campaigns for better police work more effective training, more complete
utilization of present resources, friendlier relations with the public. These may mean a bigger
police budget, but the main pressure on public expenditure arises from the claim for more police,
higher salaries, and modern equipment.

2. 9 Demands for new services (and new expenditures) are always pushing forward in
varying degrees of readiness for action, the history of government at all levels has been one of
expanding functions and of new programmes. Over a hundred years ago a frustrated member of
the American Congress exclaimed, "Sir, there are two things that never go back: one the increase
of officers, the other the increase of their salaries. We never decrease officers; we never
decrease salaries.

The eternal problem of values:

2. 10 Although not denying the progress that has been made in the technical realm, critics
would have the budgeteers grapple more effectively with values. They would bring into the
budgetary process those who could deal with the fundamental problems of economics, political
theories and social sciences. Answers must be found to questions such as the following. What is
the effect of different levels of public expenditure upon the private economy ? Is it more desirable
from the standpoint of the nation as a whole to spend money on guns or butter, atomic research
or social welfare What would be the relative effect of financing through borrowing or a new tax ?.
Are the claims of pressure groups in favour of additional appropriations sound from a technical
and "public interest" standpoint ? Is too much expenditure going into special project because of
the political strength of their sponsors ? What are alternatives to the present allocation of funds,
and what are the factual data to support such alternatives ?

Performance budget:

2. 11 Performance budgeting entails adoption of the budget based upon functions, activities
and projects. The essence of this is the development of work load statistics. The argument in
favour of this type of budgeting is that it permits administrators, legislators, and tax-payers to
know what the money is buying and to make some fairly accurate estimates of whether they are
getting value received. It replaces flying by guesswork with flying by navigation instruments, and
thereby provides guide-posts that indicate general direction. This approach should make budget
'padding' more difficult, particularly after there has been sufficient experience to establish norms.
It should make for happier relations between the legislature and administrative agencies because
administrators will be able to present their budget requests in terms of alternate work programme.

The legislature that wants to reduce expenses will be told how it can do so in terms of work units
rather than by a flat percentage cut. The basis for controversy will then be what work is to be
done in terms of the funds available. It puts political decisions in the hands of the political
authorities where they should be. Of course, there will still be plenty of rooms for argument as to
the correctness of the work units, but that should produce beneficial results by encouraging
budget staff agencies to carry on current research. There would be constant efforts to ascertain
better ways of doing things, with the result that a common reservoir of work performance
information would be available. Under such circumstances it would be rather difficult for agencies
to get out of line.

2. 12 The difficulty with this type of budgeting is that people resist its introduction. There are
number of reasons for this, but perhaps the chief one is the insecurity aroused when one's job is
studied. It is the same type of resistance encountered in all efforts to study and analyse work in
administrative research and work simplification. Functionaries right from the head of department
down to the level of a B-l employee, are apprehensive that they will be required to do more work,
will have to learn new methods, will be criticized or will lose their jobs. Performance budgeting
actually does imply continuous study and reappraisal of jobs and methods. From an overall
management view-point, this is all to the good, but individuals resist it. Thus a great deal of
orientation is required to induce an organisation to accept a continuous work review and
measurement.

2. 13 Budget planning as well as all other types of planning must be based upon information
which can be obtained by an orderly gathering of statistical data. Performance budgeting requires
statistical data relative to production and productivity, which in turn is tied into fiscal accounting.
The more complete and accurate these data are, the more effective the planning will be. But this
requires considerable record-keeping.

Decentralization:

2. 14 Another advantage of performance budgeting is that it will force decentralization which

is generally regarded as desirable because it pushes decision-making down to the operating
level. It will do this because the performance units which go into budget planning and control
must be developed at the level where direct production takes place. These performances will be
leased upon study of actual job experience. Delegation will be encouraged by removing one of its
principal obstacles, namely lack "of information at headquarters about performance at the grass
roots.

Delegation and decentralization, perhaps the dominant goals of modem administrative

management, are nourished by performance standards. The formula stated above runs as
follows: headquarters says: (i) what is to be done (ii) what services are to be performed at stated
levels of quality (iii) headquarters develops standards of performance on the basis of field studies,
historical experience, and professional training; (iv) authority commensurate with responsibility is
delegated to the work level, whether at the centre or in the field. The people on the production
level proceed to make the decision necessary to carry out objectives. In doing so they are guided
by standards set by headquarters, these standards being general guide-posts rather than minute
sanctions. Headquarters control by knowing what is going. on rather than by making day to day
operating decisions. It obtains the knowledge necessary for such control by means of written
reports and by planned inspection visit to the field,

2. 15 The pattern of budget planning in most jurisdictions, however, is one of detailed

decisions being made by the Ministry of Finance, it has been held that greater emphasis should
be put on the development of policies to govern the preparation of estimates and on "the
development of adequate budget work in the departments, themselves, and comparatively less
on the review by its own staff of the review of departmental estimates'. The notion that they could
obtain a balanced budget only by detailed review of departmental estimates and by using a blue
pencil on them does not hold ground any longer. But it is also true that it is probably, neither
possible nor desirable to eliminate central scrutiny of departmental estimates. The development
of performance and work load standards should reduce snap decisions made hurriedly on the
basis of inadequate data.

Democratic budgeting:

2. 16 Modern management philosophy tends strongly towards democratic concept and

practices. People understand how and why budget decisions were made even though they may
have been adversely affected.

2. 17 It is highly desirable that the budgetary process be democratized for two reasons: (i) it
is the heart of administrative management (ii) there is a tendency among finance officers to be
authoritarian. As to the first, if one believes in the new philosophy of democratic motivation, he
must also apply it to budgeting. Traditional concepts of management that a manager was helpless
unless he had unlimited power to hire, fire and transfer people at will, is now yielding ground to
the human relations. Organization effectiveness can be obtained only by treating each of the
specialist as an integral member of the management team. Budgeting can never attain its
maximum possibilities until it is regarded as a tool of management rather than the scourge of
God. Moreover, it must be treated as a tool for the remote field supervisor as well as for the
Minister for Finance.

Budgeting and planning:

2. 18 A budget is a proposed work programme, with estimates of the funds necessary to

execute it. A work programme is a plan. The process of preparing estimates and organizing them
into a coherent agency budget necessarily involves planning. The budget may, therefore, be said
to represent a plan or a considerable number of plans in different areas of public functions.

2. 19 The plan represented in a set of annual or biennial estimates is not, however, a

complete plan. It is the annual segment of a plan that normally may require two, three, five or ten
years to bring a fruition. It is consequently related to the annual segments of a plan that was
represented in previous budgets, and that will be represented in future budgets. Once, President,
Harry S. Truman told the Congress, 'The fact is that the financial programme of the Government
cannot be planned in terms of the single year. It must be planned in the light of security,
economic, and budgetary goals not for the ensuing year but for three and even four years ahead.
"

2. 20 It follows that the budget for any fiscal year is an expression both of a part of
programme for the year and also of parts of programmes for several years ahead. The planning
that is represented in budget estimates is the product of the departments and their sub-ordinate
offices, not the work of the Ministry of Finance. No budget agency can do more than review and
criticize the plans of the operating establishments. The initiative does not lie among the budget
examiners.

2. 21 Planning and budgeting are, therefore, two complementary operations. Policy and
programme planning come first: the translation of annual or biennial segments of a plan into
figures follows. The departments take the initiative; the budget men review and criticize and the
legislative bodies decide both on plans and estimates.

2. 22 Much budget-making, however, hardly represents a plan beyond the mere projection of
presently available sums into the next fiscal year. Since the signal for legislature's challenge of
estimates is variation from the existing level of expenditure many figures are justified, because
they are identical with their predecessors. Such reasoning avoids the question whether they
should be more or less. Indeed, in the broader sense of the term, the opportunity for planning on
a comprehensive scale, with a genuine decision on the relative values of spending more or less,
or here rather than there, hardly exists. Some agencies can and do plan for long-range goals
within their speciality, and this is a notable advance. Whether afforestation or soil conservation, or
civil defence is entitled to priority in an overall evaluation of social plans and necessities is a
problem for the final resolution of which no institutional means exist, or probably could exist, other
than those found in the National Assembly.

Financial procedure under the Constitution:

2. 23 Federal Consolidated Fund (Article 78). All revenues received and all loans raised by
the Federal Government in repayment of any loan, shall form part of a consolidated fund to be
known as the Federal Consolidated Fund.

2. 24 AH other moneys received by or on behalf of Federal Government or received by or

deposited with the Supreme Court or any other Court established under the authority of the
Federation should be credited into the Public Account of the Federation. Custody, etc. of Federal
Consolidated Fund and Public Account (Article 79):

2. 25 The custody of the Federal Consolidated Fund, payment of moneys into the fund, the
withdrawal of moneys therefrom, the custody of other moneys received by or on behalf of the
Federal Government their payment into, and withdrawal from, the Public Account of the
Federation and all matters connected with or ancillary to the matters aforesaid, shall be regulated
by Act of Parliament or, until provision in that behalf is so made, by rules made by the President.
Annual Budget Statement (Article 80):

2. 26 (i) The Federal Government shall, in respect of every financial year, cause to be laid
before the National Assembly a statement of the estimated receipts and expenditure of the
Federal Government for that year, in this Part referred to as the Annual Budget Statement.

(ii) The Annual Budget Statement shall show

(a) the sums required to meet expenditure described by the Constitution as expenditure charged
upon the Federal Consolidated Fund; and

(b) the sums required to meet the other expenditure proposed to be made from the Federal
Consolidated Fund; and shall distinguish expenditure on revenue account from other expenditure.

Expenditure charged upon Federal Consolidated Fund (Article 81):

2. 27 The following expenditure shall be expenditure charged upon the Federal

Consolidated Fund:

(a) the remuneration payable to the President and other expenditure relating to his office, and the
remuneration payable to:-

(i) The Judges of the Supreme Court;

(ii) The Chief Election Commissioner;
(iii) The Chairman and the Deputy Chairman of the Senate;
(iv) The Speaker and the Deputy Speaker of National Assembly;
(v) The Auditor General.

(b) the administrative expenses, including the remuneration payable to officers and servants of
Supreme Court, the department of the Auditor-General and the office of the Chief Election
Commissioner and the Election Commission and the Secretariat of the Senate and the National
Assembly

(c) all debt charges for which the Federal Government is liable, including interest, sinking fund
charges, the repayment or amortisation of capita! and other expenditure in connection with the
raising of loans and the service and redemption of debt on the security of the Federal
Consolidated Fund;

(d) any sums required to satisfy any judgment decree or award against Pakistan by any court or
tribunal; and

(e) any other sums declared by the Constitution or by Act of Parliament to be so charged.

Procedure relating to Annual Budget Statement.

(Article 82):

2. 28 (i) So much of the Annual Budget Statement as relates to expenditure charged upon
the Federal Consolidated Fund may be discussed in, but shall not be submitted to the vote of the
National Assembly. (ii) So much of the Annual Budget Statement as relates to other expenditure
shall be submitted to the National Assembly in the form of demands for giants and the Assembly
shall have power to assent to, or to refuse to, any demand, or to assent to any demand -subject
to a reduction of the amount specified therein, (iii) No demand for a grant shall be made except
on the recommendation of the Federal Government.

Authentication of schedule ofauthorised expenditure (Article 83):

2. 29 (i) The Prime Minister shall authenticate by his signature a schedule specifying:

(a) the grants made or deemed to have been made by the National Assembly under Article 82;
and

(b) the several sums required to meet the expenditure charged upon the Federal Consolidated
Fund but not exceeding, in the case of any sum, the sum shown in the statement previously laid
before the National Assembly.

(ii) The schedule so authenticated shall be laid before the National Assembly, but shall not be
open for discussion or vote thereon.

(iii) Subject to the Constitution, no expenditure from the Federal Consolidated Fund shall be
deemed to be duly authorised unless it is specified in the schedule so authenticated and such
schedule is laid before the National Assembly as required by clause (ii).

Supplementary and excess grants (Article 84):

2. 30 (i) If in respect of any financial year it is found: -

(a) that the amount authorised to be expended for a particular service for the current financial
year is insufficient or that a need has arisen for expenditure upon some new service not included
in the Annual Budget Statement for the year; or

(b) that any money has been spent on any service during a financial year in excess of the amount
granted for that service for that year; the Federal Government shall have power to authorise
expenditure from the Federal Consolidated Fund, whether the expenditure is charged by the
Constitution upon that Fund or not, and shall cause to be laid before the National Assembly a
Supplementary Budget Statement or, as the case may be, an Excess Budget Statement, setting
out the amount of that expenditure, and the provision of Articles 80 to 83 shall apply to those
statements, as they apply to the Annual Budget Statement.

*|(ii) The Finance Division has clarified that if there is excess in the "Other Expenditure"
(voted) the Federal Government has the power, under Article 84 of the Constitution to authorise
expenditure from the Federal Consolidated Fund, and that it is immaterial whether the excess
expenditure is authorised by the Federal Government out of the savings from the 'charged'
expenditure. Similarly, if there is excess in the 'charged' expenditure the Federal Government
has, the power to authorise the excess expenditure by re-appropriation of savings from the 'voted'
expenditure, there being no bar in the Constitution that the savings from the voted expenditure
provided in the Budget cannot be utilized for this purpose. The only condition laid down in
Constitution (Article 84) is that the Federal Government "shall cause to be laid down before the
National Assembly a Supplementary Budget Statement or, as the case may be, an Excess
Budget Statement setting out the amount of that expenditure, and the provision of Articles 80 to
83 shall apply to those statements as they apply to the Annual Budget Statements". ].

Votes on accounts (Article 85):

2. 31 Notwithstanding anything contained in the foregoing provisions relating to financial

matters, the National Assembly shall have power to make any grant in advance in respect of
estimated expenditure for a part of any financial year, not exceeding four months, pending
completion of the procedure prescribed in Article 82 for the voting of such grant and the
authentication of the schedule of authorised expenditure in accordance with the provisions of
Article 83 in relation to the expenditure.

Power to authorise expenditure when Assembly stands dissolved (Article 86):

2. 32 Notwithstanding anything contained in the foregoing provisions relating to financial

matters, at any time when the National Assembly stands dissolved, the Federal Government may
authorise expenditure from the Federal Consolidated Fund in respect of the estimated
expenditure for a period not exceeding four months in any financial year, pending completion of
the procedure prescribed in Article 82 for the voting of grants and the authentication of the
schedule of authorised expenditure in accordance with the provisions of Article 83 in relation to
the expenditure.

Revised System of financial control and budgeting:

2. 33 (i) The system of financial control and budgeting which was carried over to Pakistan
from the Government of India, envisaged a heavy concentration of financial powers in the Ministry
of Finance with a little delegation to the Administrative Divisions and Heads of Departments. The
system was the product of colonial administration under which the country had no defined social
objectives and bulk of expenditure related to administration, with pronounced emphasis on law
and order and defence. This limited purpose enabled control to be exercised by the Finance
Department in two ways: budgetary control and expenditure control. The cumbersome
procedures for release of funds were a great impediment to the execution of the projects
according to schedule. Unnecessary delays in the release of funds resulted in lapsing of the
unspent funds on the close of the Financial Year. The inherent shortcomings of the system and its
incompatibility with socio-economic requirements of an independent and developing nation were
too soon clear to the Government.

(ii) The Administrative Reorganisation Committee (1959) which examined the system in detail
concluded thus:
"(a) The system of financial control, particularly the procedure involving "expenditure sanction" is
unsuited to modern administrative needs and, in particular, has a serious hampering effect on the
implementation of development programmes and execution of approved projects.

(b) The Administrative Ministries at present do not share financial responsibility due to its
excessive centralisation in the Ministry of Finance. They are, therefore, tempted to submit
exaggerated demands to the Ministry of Finance, and to regard the exercise of sound financial
judgement as none of their business.

(c) The system minimizes the importance of the budget as an effective instrument of financial
control and planning".

The Committee, therefore, recommended the scraping of the outmoded system and its
replacement by the 'revised system of financial control and budgeting'. The revised system, as
approved by the Government, was introduced w. e. f. 1st July, 1960, and, with certain
modification, is still in force.

2. 34 Under the system the proposals in respect of establishments and projects submitted by the
Administrative Ministries are carefully scrutinized by the Ministry of Finance/Development
Working Parly/National Economic Council before making provision in the budget. But once the
scheme has been finally approved by the competent authority and provision therefor made in the
budget the Administrative Ministries have full authority to sanction expenditure subject to the
powers delegated to them (within budget giants).

Principal Accounting Officer:

2. 35 (i) The Secretary of a Ministry/Division shall be the Principal Accounting Officer of his
Ministry/Division, its Attached Departments and subordinate offices in respect of the expenditure
incurred against the budget grant (s) by his Ministry/Division. The term Sectary, shall include
Principal Secretary, Acting Secretary, Additional Secretary Incharge or a Senior Joint
Secretary/Join Secretary Incharge of a Division.

(ii) The duties and responsibilities of the Principal Accounting Officer shall be as set out in
Finance Secretary's D. O. letter No. F. 2(2)-206-Exp. 1/62, dated 6th February, 1962 addressed to
all Secretaries etc. of the Ministries/ Divisions (Annex-I). Briefly, the duties and responsibilities of
the Principal Accounting Officer shall be as under: -

(a) Control Over Expenditure. The Principal Accounting Officer shall ensure that the funds allotted
to a Ministry/Division etc. are spent for the purpose for which they are allotted. He should also
ensure that the expenditure falls within the ambit of a Grant or an Appropriation duly
authenticated. Expenditure in excess of the amount of Grant or Appropriation as well as
expenditure not falling within the scope or intention of any Grant or Appropriation, unless
regularised by a Supplementary Grant, will be treated as unauthorized expenditure. The Principal
Accounting Officer is responsible for any laxity in matters of control over expenditure including
that on the part of his subordinates. He should ensure that neither he nor his subordinates
disregard the instructions issued by Government from time to time for the proper utilization of
funds placed at his disposal by the Government.

(b) Observance of Rules, Regulations and Instructions. -While sanctioning expenditure out of the
funds placed at his disposal, the Principal Accounting Officer shall ensure that the requirements
of the relevant rules and regulations are fully met and that the approval of the Finance Division
has been obtained in all cases which are not covered by any standing authorization that may
have been delegated to him.
(c) Maintenance and Reconciliation of Accounts. The Principal Accounting Officer is responsible
for ensuring that the expenditure is not incurred in excess of the budget allocation. He shall also
ensure that all payments are correctly classified under the appropriate heads of accounts and that
the departmental accounts are reconciled every month with the figures communicated by the
Audit Officer. He should, in addition, keep himself well informed not only of the actual expenditure
but also of the liabilities, which have been incurred and must ultimately be met. Any anticipated
excesses and savings should be readjusted by means of re-appropriation to the extent powers
have been delegated to the Principal Accounting Officer under the new procedure. Similarly, the
PAO shall ensure that the accounts of receipts shall be maintained properly and reconciled on
monthly basis. The Principal Accounting Officer will send a summary statement to FA under his
signatures by 15th of every month, which will state the status of reconciliation of expenditure
account with AGPR.

(d) Realization of Receipts. In the matter of receipts pertaining to his Ministry/Division, the
Principal Accounting Officer is expected to ensure that adequate machinery exists for due
collection and bringing to account of all receipts of any kind connected with the functions of the
departments under his control.

(e) Utilization of Services of Financial Adviser. In all matters of payment and matters affecting the
accounts or any matter touching propriety and regularity of the transactions, it is essential that the
Principal Accounting Officer utilizes fully the services of his Financial Adviser.

(f) Meeting of Departmental Accounts Committee. The Principal Accounting Officer shall regularly
hold meetings of Departmental Accounts Committee to watch the processing of relevant Audit &
Inspection Reports and decide upon appropriate measures so as to aid and accelerate their
process of finalization.

Finance and Accounts Officer;

2. 36 (a) In each Ministry/Division there shall at least be a well-trained and experienced

Finance and Accounts Officer, who shall be a Deputy Secretary or a Section Officer/Accounts
Officer, as may be appropriate, to assist the Principal Accounting Officer on all financial,
budgetary and accounting matters. Finance and Accounts Officer shall have such supporting
officers and staff as may be necessary and shall concentrate on his work exclusively. The orders
regarding posting of Finance and Accounts Officer in a Ministry/Division shall be issued by the
Establishment Division in consultation with the Finance Division and the Division concerned. The
officer posted as Finance and Accounts Officer by the Establishment Division shall not be
transferable to any other Section of the Ministry/Division. The Finance and Accounts Officer and
the officers/staff under him shall be under the administrative control of the Ministry/Division to
which he is attached and shall be paid from its budget. He shall work directly under the Principal
Accounting Officer; and if this is not feasible, under the next top ranking officer designated for this
purpose. The Finance and Accounts Officer shall co-ordinate his work with the FA's Organization.

(b) The duties and responsibilities of the Finance and Accounts Officers shall be as under: -

(i) Maintenance and Reconciliation of Accounts. Proper maintenance of accounts and their timely
reconciliation with the actual of the Audit Department and maintenance of 'liability registers' in the
Ministry/Division, its Attached Departments and Subordinate Offices and to watch the progress of
the expenditure and receipts and furnishing monthly figures of departmental expenditure
(Demand wise) to Finance Division through FA's Organization by the 10th of the month following
the month to which the data relates.

(ii) Coordination and Scrutiny of Budget: Expenditure and Receipts. Coordination and internal
scrutiny of the budget estimates of receipts as well as expenditure of the Ministry/Division, its
Attached Departments and Subordinate Offices, including Budget Order and New-Item
Statements in accordance with the "Budget Call Circular" from the Finance Division and
proposals for additional funds to be met out of Supplementary Grant

(iii) Consolidation of PSDP. Consolidation of the PSDP and to ensure that the development
schemes of the Ministry/Division are prepared in accordance with the prescribed procedure and
instructions.

(iv) Advice in Delegated Field. To tender advice in the delegated field, where called upon.

(v) Processing of Cases in Non-delegated Field. To process, in accordance with the prescribed
procedure, all cases relating to the nondelegated field, and matters relating to foreign exchange,
and demands for Supplementary Grants, which are required to be referred to the main Finance
Division through the Financial Adviser concerned.

(vi) Public Accounts Committee. All work relating to Public Accounts Committee, Departmental
Accounts Committee and audit observations on appropriation accounts and ensuring compliance
with the Committee's observations and recommendations.

(vii) Internal Check. To exercise internal checks on irregularities, waste and fraud provided in para
13 of General Financial Rules, Volume-I, which reads: -

(a) rules on handling and custody of cash are properly understood and applied.

(b) effective system of internal check exists for securing regularity and propriety in the various
transactions including receipt and issue of stores etc., if any, and

(c) satisfactory arrangement exists for systematic and proper maintenance of Accounts Books
and other ancillary records concerned with the Initial Accounts. The results of these inspections
should be incorporated in the form of an inspection report, a copy of which should be endorsed to
Audit. The head of the Department should, after scrutiny of the report, communicate a copy of his
remarks and any orders issued in that connection to Audit.

(viii) Compliance with Rules, Regulations and Orders. To ensure compliance of all other rules,
regulations and orders contained in the Federal Treasury Rules, General Financial Rules and
instructions issued by the Finance Division from time to time.

Role of Financial Adviser:

2. 37 (a) The Financial Adviser shall continue to be under the administrative control of the
Finance Division, and, subject to the provisions of sub-para (f) below, shall exercise the powers of
Joint Secretary to the Finance Division in relation to the Ministries/Divisions to which he is
attached. The Financial Adviser shall be a full-fledged representative of Finance Division and will
represent Finance Division in a comprehensive manner. The Financial Adviser shall be
responsible for monitoring the maintenance and reconciliation of monthly accounts of
Ministry/Division to which he is attached and shall report regulany to the Finance Division about
the reconciliation of monthly accounts.

(b) The Financial Adviser shall be assisted by Deputy Financial Advisers depending on the
number of Divisions allocated and the quantum of work entrusted to him

(c) The Financial Advisers/Deputy Financial Advisers and their staff shall be paid from the budget
grant of the Finance Division.
(d) The advice of the Financial Advisers in cases falling outside the field of delegated powers
shall be binding on the administrative Ministries/Divisions. In case of a difference of opinion with
the Financial Adviser, the Secretary of the Ministry/Division concerned may take up the case with
the Additional Finance Secretary (Expenditure)/Finance Secretary, or the Minister concerned may
take it up with the Finance Minister.

(e) The main Finance Division shall continue to deal with matters relating to interpretation,
application and relaxation of service and financial rules and regulations, and allocation of foreign
exchange in accordance with the prescribed procedure. Cases relating to interpretation,
application and relaxation of service rules and regulations shall be sent by the Ministries/Divisions
through the Financial Adviser and in case of Defence through the Additional Secretary, Military
Finance (ASMF). Financial Adviser while forwarding the case, shall give his specific
recommendations in the light of rules/regulations and budgetary implications.

(f) Financial sanctions relating to service rules and regulations which are accorded with the
concurrence of the Regulations Wing of the Finance Division will be endorsed to Audit through
that Wing and not through the Deputy Financial Adviser of the Ministries/Divisions concerned.

Reference to Financial Adviser/ Finance Division:

2. 38 (a) In cases where a reference to the Financial Adviser is necessary, the Finance
and Accounts Officer shall ensure that:

(i) the case is properly examined in accordance with the relevant rules and orders;

(ii) the facts of the case and the point of reference are clearly stated in a self-contained note or
office memorandum which shall be submitted in duplicate.

(b) The Finance and Accounts Officer shall also furnish such further data and provide such further
information as may be asked for by the Financial Adviser/Deputy Financial Adviser for the proper
disposal of the issues referred to him.

(c) Similarly, the Financial Adviser shall make a comprehensive reference to the Wing concerned
of the Finance Division, in accordance with the instructions detailed above.

Responsibilities and Powers of the Financial Adviser:

2. 39 The powers, specified below will be exercised by the Financial Advisers/Deputy

Financial Advisers etc. in respect of Ministries/Divisions to which they are attached: -

(A) Current (Non-Development) Expenditure:

(i) Proposal for Supplementary Grant in respect of unexpected expenditure. Proposals for
Supplementary Grant shall be examined by the Financial Adviser concerned like other
expenditure proposals as per the instructions contained in Annex-II.

(ii) Lump-sum Provision. Expenditure to be financed from lump-sum provision will be examined
and disposed of by the Financial Adviser. He will submit monthly statements of such expenditures
to the AFS(E).

(iii) Re-appropriation of funds. The powers of reappropriation of the Finance Division as set out in
SI. No. 4 of Annex-II to Finance Division Office Memorandum No. F-3(4)Exp-III/20000, dated 30-
6-2000 will be exercised by Financial Advisers, except reappropriation from, to, or within the
Establishment Charges which will be allowed by AFS (E). No reappropriation from utility charges
will be allowed.

(iv) Advance payments. As a general rule, no payment can be made to contractor/supplier except
for work actually done or supplies actually received. Without prejudice to the generality of this
rule, in exceptional cases only, Financial Adviser may permit advance payments to other
government departments and government owned/ government controlled organizations.

(v) Approval of Expenditure and Budget Provision. Powers of the officers of Finance Division to
approve expenditure proposal and also powers to accept Budget Provision will be as indicated
below: -

Approval of Expenditure

1. SOs(Exp. ) uptoRs. 200, 000

2. Dy. Secretary (Exp. )/ upto Rs. 2, 000, 000

DFAs.

3. Joint Secretary (Exp. )/ No limit, except that cases involving

FAs: important issues of policy will be
submitted to the Additional Finance
Secretary (Exp. )/Finance Secretary/
FinanceMinister.

Approval of Budget

1. SOs(Exp. ) uptoRs. 200, 000

2. Dy. Secretary (Exp. )/ upto Rs. 2, 000, 000

DFAs.

3. Joint Secretary (Exp. )/ No limit, except that cases involving

FAs. important issues of policy will be
submitted to the Additional Finance
Secretary (Exp. )/Finance Secretary/
FinanceMinister.

Note. -Financial sanctions, other than sanctions relating to service rules and regulations
mentioned at para 2. 37(f) above, will be endorsed to audit through the Deputy Financial Adviser
of the Ministry/Division concerned.

(B) Development Schemes:

(a) Financial Advisers will be associated with the processing of all development schemes from
beginning to completion. They will be responsible for the following: -

(i) Scrutiny and approval of development schemes of the Federal Government costing below Rs.
20 million (Non-recurring) and Rs. 2 million (recumrning) which do not require submission to the
Central Development Working Party. However, before according approval, FA will consult
Development Wing, where necessary to ensure policy coordination as in (b) below.
(ii) Scrutiny of all other Development Schemes sponsored by the Federal Ministries/Divisions for
consideration of the Central Development Working Party. In case FAs are satisfied with the
financial aspects of the schemes requiring a reference to the Central Development Working Party
(CDWP), they would clear the schemes for submission to the Planning Division (CDWP) and the
Ministries concerned will mention this fact in the proforma of the scheme or in the covering letters
with which the schemes are sent to the Planning Division. However, if the FAs have some
observations/comments on the schemes, these should invariably be communicated to
Development Wing/Additional Secretary (Exp. ) for presentation, discussion in the meeting of the
CDWP.

(b) The policy coordination in regard to development work would be the responsibility of the
Development Wing which will also ensure the following: -

(i) The scheme fits into the overall development plan.

(ii) The scheme does not clash with any other schemes of any other Ministry
/Division/Department either in principle or in detail and that there is no contradictory policy being
followed in schemes of two different Ministries/Divisions/Departments.

(iii) There is no duplication in the schemes of the various Ministries/Divisions/Departments both in

major work and in detailed working.

(c) Meeting of the Departmental Development Working Party (DDWP) and Central Development
Working Party (CDWP) shall be attended by:

(i) The Development Wing and FA concerned in respect of schemes costing below Rs. 20 million.

(ii) The Additional Finance Secretary (Exp. ) in respect of all schemes costing above Rs. 20
million.

(C) Creation of posts:

Authorities competent to create, re-designate and upgrade posts will be as under: -

Post Authority

(i) Upto and including BPS-16 Financial Adviser

(ii) BPS 17 to 19 AFS (E)
(iii) BPS 20 and above Finance Secretary.

Note. :-The proposals for re-designation and up-gradation of posts shall be finalized by FA's
Organization in consultation with the Regulation Wing of the Finance Division.

(D) Write off of Losses:

The cases of writing off of losses may be disposed of by the officers of the Finance Division
as indicated below:

Cases of losses not exceeding

(i) Dy. Secretaries/DFAs/ Rs. 1, 000, 000

OSD of identical rank.
(ii) Joint Secrelary/FAs Rs. 5, 000, 000

(iii) Add!. Finance Secretary. Rs. 10, 000, 000

(iv) Finance Secretary. No Limit.

(E) Representation of the Finance Division on Committees/Meetings:

FAs accredited to the administrative Ministries/Divisions will represent the Finance Division
at-the appropriate level at various committees/meetings. When the Finance Secretary or the
Additional Finance Secretary (Exp. ) attend a particular meeting, relevant brief shall be prepared
by the FA concerned.

Budgetary Procedure:

2. 40 Budget being an essential instrument of financial control, scrutiny of all proposed

expenditures by Ministries/Divisions through the Financial Adviser for inclusion in the Budget
shall, as far as possible, be undertaken by the Finance Division as a pre-budget exercise. The
budget proposals submitted by administrative Ministries/Divisions shall accordingly be carefully
scrutinized by the Financial Adviser before agreeing to the budget provision. Once provision for
expenditure has been made in die budget and the budget has become affective, the
administrative Ministries/Divisions shall have authority to sanction expenditure from within their
sanctioned budget grants, subject to the powers delegated to them and the fulfillment of the
conditions laid down therefor under this Office Memorandum. To enable Ministries/Divisions to
issue expenditure sanction without further consultation with Financial Advisers in cases within
their financial competence, they shall ensure that object wise details are shown both in Part I and
Part II Estimates. The budgetary procedure shall be as follows :-

(i) Budgeting being a continuous process, the preparation of the budget shall begin well
ahead of the year to which it relates. The proposals for establishment and other items of
expenditure shall be cleared with the Financial Adviser as and when they are ready.

(ii) Part-1 of the budget (which relates to standing and fluctuating charges) and Part-II
estimates (relating to fresh charges) shall be scrutinized finally by the Financial Adviser
concerned who will issue to the Budget Wing of the Finance Division and the Accountant General,
Pakistan Revenues, copies of the budget orders in respect of Part-I estimates and verified copies
of New Item Statements in respect of Part-II estimates in accordance with the instructions
continued in the Budget Call Circular. The admitted Part-I and Part-II estimates shall be compiled
together into "Demands" by the Budget Wing of the Finance Division.

(iii) Estimates of revenue receipts and capital receipts shall also first be coordinated and
scrutinized by the Finance and Accounts Officers and submitted to the Financial Advisers for
approval. The estimates, as approved and verified by the Financial Adviser, shall be furnished to
the Budget Wing of the Finance Division in accordance with the instructions contained in the
"Budget Call Circular".

(iv) Lump-sum provision in the budget shall not be proposed or made except in exceptional
circumstances shell us lump provision for late NIS, late receipt of directives etc. which shall be
recorded. Where such a provision is made in the budget, expenditure sanction shall be given with
the concurrence of the Financial Advisers except in regard to the lump-sum provision made for
temporary posts to the extent of his powers as Joint Secretary of the Finance Division. Cases
which are beyond the power of the Financial Adviser shall be submitted to the Additional Finance
Secretary (Exp.)/Finance Secretary for concurrence.
 (v) As a genera! policy, allocations in the PSDP for new/unapproved development
schemes, in exceptional circumstances, shall be made only after anticipatory approval of such
new schemes by the competent authority and with the prior approval of the FA's Organization
concerned.

(vi) Similarly, no sector wise lump-sum allocation will be made in the PSDP as a general
policy, except in exceptional circumstances which shall invariably be recorded. In respect of such
lump-sum provisions, the sponsoring Ministries/Divisions/Departments concerned shall invariably
furnish a list of approved Schemes indicating bifurcation of the lump-sum allocation against each
scheme to FAs/Planning and Development Division and other organizations concerned. Releases
against this provision will be made with the prior approval of Financial Advisers.

(vii) All releases against the allocations provided in the PSDP for individual schemes as have
already been approved formally by the competent authority or have been given anticipatory
approval by the Chairman, ECNEC, will also be made with the prior approval of FA's Organization
concerned.

(viii) Demands for Supplementary Grants shall not be made, except in extraordinary
circumstances, for which full justification shall be furnished to the Financial Adviser/Finance
Division with reason as to why the additional expenditure could not be foreseen at the time of
submitting proposals for budget provision. Proposals of this nature shall be processed in
accordance with the instructions contained in Annex-II and no expenditure shall be incurred
without the prior concurrence of the Financial Adviser/Finance Division. The last date for
submission of schedule of supplementary grants to the Budget Wing of Finance Division will be
31st May of financial year.

(ix) Foreign Exchange budget shall be prepared in accordance with the; instructions issued
by the External Finance Wing from time to time.

Power of Sanctioning Projects:

2. 41 The existing sanctioning powers of various authorities are indicated below: -

Sl. No. Authority Sanctioning Power

(1) Executive Committee All schemes costing above Rs. 200 million
of National Economic
Council (ECNEC).

(2) Central Development Federal schemes costing upto Rs. 200

Working Party (CDWP) million subject to the condition that the
Ministry of Finance does not disagree.

(3) Provincial Development All schemes costing upto Rs. 200 million.
Working Party (PDWP) The power will be subject to the
following conditions:

(a) The schemes sanctioned by the Provincial

Governments are in the line with the
objectives of the National Plans and there
is no deviation from the principles and
policies laid down in the plan.
 (b) The schemes do not have economic or
other repercussions beyond the province.

(c) A copy of PC-1 Form of the scheme will

be furnished to the Planning Commission
at least 10 days before the meeting of the
Provincial Development Working Party at
which it is proposed to consider the
scheme to enable the Planning Commis-
sion to furnish their views, if they so
desire. The Planning Commission will
also have the right to attend the meeting
of the Provincial Development Working
Party.

(d) A
copy of the scheme finally approved
by the Provincial Development
Working Party will be promptly
furnished to the Planning Commission,
the Development Wing of Finance
Division and other agencies
concerned.

(4) Departmental Develop- All schemes costing upto Rs. 40

ment Working Party million.This power will be subject to
(DDWP) the following conditions:

(i)The Ministry concerned shall create a

proper planning and monitorhg unit
within the organization and set up a
Departmental Development Working
Party, in which a representative of the
Ministry of Finance should be included.

(ii) The Ministry of Finance does not

disagree with the decision of the
Departmental Development Working
Party. In case there is any
disagreement the scheme will be
submitted to the CDWP/ECNEC.

(iii) A copy of PC-1 Form of the scheme

shall be furnished to the Planning and
Development Division at least 10
days before the meeting of the
Departmental Development
Working Party. Planning and
Development Division will also have
the right to express their views on the
PC-1 and to attend the meeting of
the Departmental Development
Working Party.
 (iv) A
copy of the scheme finally
approved by the Departmental
Development Working Party will be
promptly furnished to the Planning &
Development Division and Ministry of
Finance (Development Wing).

(5) Commercial Organiza- All schemes costing upto Rs. 40 million

tions having Finance with the concurrence of the Ministry of
Member/Director ap- Finance. The power is subject to the
pointed in consultation conditions mentioned against S. No. 4
with the Finance Division. above.

(6) Corporations/Non-Com- All schemes costing below Rs. 8 million

mercial Organizations (Non-recurring) and/or Rs. 2 million
having a Director/Mem- (recurring)The power is subject to the
ber Finance approved by condition mentioned against S. No. 4
Finance Division. above.

(7) Azad Government of All schemes costing upto and including

the State of Jammu and Rs. 100 million (Non-recurring). The
Kashmir power will be subject to the conditions
mentioned against S. No.3 above.

(8) Northern Areas Council All schemes costing upto and including
Rs. 100 million (Non-recurring) and/or
Rs. 12 million (recurring). The power will
be subject to the onditions mentioned
against S. No. 4 above.

(9) Islamabad Development All schemes costing below Rs. 20 million

Working Party' (Non-recurring) and/or Rs. 4 million
Recurring). The power will be subject to
the conditions mentioned against S. No.
4 above.

(10) Federally Administered All schemes costing below Rs. 20 million

Tribal Area Develop- (Non- recurring) and/or Rs. 4 million
ment Corporation (recuring). The power will be subject to
the condition mentioned against S. No.
4 above.

(11) Federally Administered Governor NWFP is empowered to

Tribal Area sanction FATA schemes to the extent
permissible in respect of Provincial
Schemes i. e. all FATA schemes costing
upto and including Rs. 60 million (Non
recurring) after they have been
processed by the PDWP.
Note. :-Effective from 19-6-2000 as approved by National Economic Council
vide Planning and Development Division's letter No. 20(l)DA/PC/2000,
dated 19-6-2000.

Clarification:

(a) Except as set out in sub-para (b) below this O. M. supersedes this Division's O. M. No.
F. 1(5)R. 12/80, dated 11th March, 1981. "

(b) In cases that had arisen before the date of the coming into effect of this O. M. the
instructions contained in this Division's O. M. No. F. 1(5)R. 12/80, dated the 11th March, 1981
shall apply.

(c) This system shall not be applicable to Defence Services where the Revised System of
Financial Management for Defence Services as introduced in Ministry of Defence letter No. F.
1/335/8l/D-21 (Budget) dated the 26th December, 1981 shall continue to be in force.

The procedures and Financial limits laid down in this O. M. shall take effect from 1st July,
2000.

Annex-I

See para 3 (II) of Finance Division Office Memorandum

No. F. 3(4)Exp. III/2000, dated 30th June, 2000

No. F. 2(2)-206-Exp. I/62

GOVERNMENT OF PAKISTAN

MINISTRY OF FINANCE

Rawalpindi, the 6th February, 1962

From

Mumtaz Mirza, Esqr, PMAS,

Secretary to the Government of Pakistan,
Ministry of Finance,
(Expenditure and Budget Division)
Rawalpindi.

To

All Secretaries, Acting Secretaries and Joint Secretaries, Incharge of Administrative

Divisions of the Central Government (by name).

Subject: Financial and Expenditure Control

Sir,
 I am directed to invite a reference to Para 7 of the Ministry of Finance's Office Memorandum
No. F. l(40)-Admn. (RWP)/60, dated the 30th June, 1960 and to address you on the subject of
your duties and responsibilities in your capacity as the Principal Accounting Officer for controlling
expenditure from Grant or Grants/Appropriations placed at the disposal of your Ministry/Division
and its Attached Departments and Subordinate Offices

2. The new system of financial control was necessitated by a recognition of the fact that due
regard can never be paid to financial considerations if Finance and Administration are divorced
and finance is kept separate from other factors which enter into policy decisions. Henceforth,
finance will be regarded as an essential element in the consideration of all policy questions from
the very out-set and the administrative head of the Ministry/Division will make sure, as a pre-
requisite for efficient and economical administration, that financial considerations are taken into
account at all stages by his Ministry/Division in framing and reaching decision of policy, and in
their execution. The delegation of the financial responsibilities to the head of the Ministry/Division,
while giving him greater powers for the utilization of funds placed at his disposal, burdens him, at
the same time, with a heavy responsibility in that, as the Principal Accounting Officer, he must be
prepared to answer for the efficient and economical conduct of the Ministry/Division as a whole.
In order to enable him to discharge this heavy responsibility it is desirable to lay down certain
broad principles of financial control.

3. The two main principles to be observed in any system of financial control are economy and
regularity, and the success of any system must depend upon the vigour with which they are
observed in day to day administration . Economy means getting the full value for money and by
regularity is meant the spending of money for the purposes and in the manner prescribed by law.
The two are not necessarily the same thing, for it is conceivable to spend money without
constitutional irregularity and yet wastefully.

4. While the provisions of the General Financial Rules Vol. I contain general and specific
instructions on the subject, the principles on which emphasis is essentially laid may be
recapitulated as follows:

(a) that expenditure is incurred with due regard to high standards of financial propriety;
(b) that funds allotted to a Ministry/Division, its Attached or Subordinate Offices are spent for the
purpose for which they are allocated;
(c) that funds are spent in accordance with relevant rules and regulations;
(d) that the actual expenditure does not exceed the budget allocation;
(e) that the expenditure is not prima facie more than the occasion demands and that every
Government servant exercises the same vigilance in respect of expenditure incurred from public
funds as a person of ordinary prudence would exercise in respect of expenditure of his own
money;
(f) that no authority exercises its powers of sanctioning expenditure to pass an order which will be
directly or indirectly to its own advantage;
(g) that public moneys are not utilized for the benefit of a particular person or section of the
community unless:
(i) the amount of expenditure involved is insignificant; or
(ii) the claim for the amount can be enforced in a court of law; or
(iii) the expenditure is in pursuance of a recognized policy or customs.

(h) that the amount of allowances, such as travelling allowance, granted to meet expenditure of a
particular type is so regulated that the allowances are not, on the whole a source of profit to the
recipient.

5. The requirement that the funds allotted to a Ministry/Division, etc. are spent for the purpose
or purposes for which they are allocated, constitutes an important part of the Legislature's control
over expenditure. This control would be rendered nugatory if the executive authority sanctioned
application of funds for purposes other than those authorized by the legislature, it will, therefore,
be the duty of the Principal Accounting Officer to ensure that the expenditure falls with- in the
ambit of a Grant or an Appropriation duly authenticated. Expenditure in excess of the amount of
Grant or Appropriation as well as expenditure not falling within the scope or intention of any Grant
or Appropriation, unless regularized by a supplementary grant, will be treated as unauthorized
expenditure.

6. While sanctioning expenditure out of the funds placed at his disposal the Principal
Accounting Officer will ensure by issuing necessary written instructions to his subordinates or by
other means available to him hat the requirements of the relevant rules and regulations are fully
met and that the approval of the Ministry of Finance has been obtained in all cases which are not
covered by any standing authorities that may have been delegated to him.

7. The Principal Accounting Officer is responsible for ensuring that expenditure is not incurred
in excess of the budget allocation. He has also to see that the total expenditure under each of the
sub-heads fixed as units of appropriation under a Grant or Appropriation does not exceed the
allotment thereunder. It is clear that this requirement can be met only if the compiled accounts
reflect the correct position of payments. He should, therefore, ensure by issuing suitable
instructions to the controlling and disbursing officers under him, that all payments are correctly
classified under the appropriate heads of accounts and that the departmental accounts are
reconciled every month with the figures communicated by the Audit Officer. He should, in
addition, keep himself well informed not only of the actual expenditure but also of the liabilities
which have been incurred and must ultimately be met. Any anticipated excesses and savings
should be re- adjusted by means of re-appropriation to the extent powers have been delegated to
the Principal Accounting Officers under the new procedure. It is relevant to mention, in this
connection, that any allotment or re-appropriation within a Grant or Appropriation may be
authorized at any time before, but not after, the expiry of the financial year to which such Grant or
Appropriation relates.

8. The powers to sanction expenditure within the budget grants have been delegated to the
Administrative Ministries/Divisions but the finalization of the budget proposals continues to be the
responsibility of the Ministry of Finance. It is, therefore, considered essential that henceforth
budget is used as the most important instrument of financial control. In future no proposals for
expenditure will be included in the budget unless they have been concurred in by the Ministry of
Finance after the necessary scrutiny. Ministries/Divisions should be able to anticipate their
requirements well ahead of the financial year to which the budget relates and obtain the
concurrence of the Finance Ministry thereby eliminating the necessity for supplementary grants. It
may also be stated that the Ministry of Finance will look with disfavour upon any requests for
supplementary grants except in extraordinary circumstances. In such circumstances they would
expect an explanation of the failure to foresee the additional expenditure at the time of
submission of the budget proposals.

9. The Appropriation Accounts of the Central Government and the report of the Comptroller
and Auditor General thereon are scrutinized by the Public Accounts Committee on behalf of the
Legislature, and the Comptroller and Auditor General is specifically encouraged to bring to their
notice any cases of apparent waste and extravagance in administration. The Committee expect
the Principal Accounting Officer to satisfy them that the policy approved by the Legislature has
been carried out with due regard to economy and to furnish them with explanations of any
examples to the contrary to which their attention has been drawn, In all matters of payment and
matters affecting the accounts or any matter touching propriety and regularity of the transactions,
it is essential that the Principal Accounting Officer utilizes fully the services of his Financial
Adviser.

10. In the matter of receipts pertaining to his Ministry/Division, the Principal Accounting Officer
is expected to ensure that adequate machinery exists for due collection and bringing to account
of all receipts of any kind connected with the functions of the departments under his control.

11. the above paragraphs set out, in the main, the duties of the Principal Accounting Officer in
regard to accounting, regularity of expenditure and avoidance of misappropriations. It may be
pointed out that in their Office Memorandum No. 452-Expr. /161, dated the 13th March 1961, the
Ministry of Finance have said that the Secretary in each Ministry will be personally answerable for
laxity in matters of control over expenditure including that on the part of his subordinates. The
Principal Accounting Officer should ensure that neither he nor his subordinates disregard the
instructions issued by Government from time to time for the proper utilization of funds placed at
his disposal.

12. The principle of personal answerability will not be applicable in a case in which a Principal
Accounting Officer has been over-ruled by his Minister. It may some times happen that the
Principal Accounting Officer is over ruled by his Minister on a matter of importance affecting the
financial administration of his Ministry/Division and is required to take a course of action which he
regards as inconsistent with his duties as Principal Accounting Officer. In such cases he should
not hesitate to submit the case to the Minister-in-Charge explaining how that particular course of
action is inconsistent with his duties as the Principal Accounting Officer.

13. It only remains to be added that the Ministry of Finance may often be able, by reason of
its central coordinating position to give helpful advice in the exercise of the functions and
responsibilities of the Principal Accounting Officer. It is, indeed, an essential part of the present
day conception of Government organization that there should be closest contact and cooperation
between the administrative Ministries/Divisions and the Ministry of Finance.

14. Reference to "the Legislature" in the above paragraphs should be construed, while no
Legislature is in existence, as a reference to "the authority sanctioning appropriations".

Yours obedient servant

Sd/-
(MUMTAZ MIRZA)

Annex-II

[See para 9(viii) of the Finance Division's O. M. No. F. 3(4) Exp. III/2000,
dated 30th June, 2000|.

SUPPLEMENTARY GRANTS

The provisions regarding supplementary grants as contained in the Constitution of the

Islamic Republic of Pakistan and General Financial Rules are reproduced below:

Constitutional Provision Regarding Supplementary Grants:

Article 84. If in respect of any financial year it is found

(a) that the amount authorized to be expended for a particular service for the
current financial year is insufficient, or that a need has arisen for expenditure upon some new
service not included in the Annual Budget Statement for that year; or
 (b) that any money has been spent on any service during a financial year in excess
of the amount granted for that service for that year; the Federal Government shall have power to
authorize expenditure from the Federal Consolidated Fund, whether the expenditure is charged
by the Constitution upon that Fund or not, and shall cause to be laid before the National
Assembly a Supplementary Budget Statement or, as the case may be, an Excess Budget
Statement, setting out the amount of that expenditure, and the provisions of Articles 80 to 83 shall
apply to those statements as they apply to the Annual Budget Statement.

General Financial Rules:

Para 98(1) (iv) "If such savings are not available, it should be seen whether special economies
can be effected under other sub-heads. If funds cannot be provided by either of these methods, it
will have to be considered whether the excess should be met by postponment of expenditure or
whether an application for a supplementary grant should be made. In either case, application will
have to be made to the Ministry of Finance through the Administrative Department concerned and
the course recommended by the latter stated. Normally, an application for a supplementary grant
will not be entertained by Government unless the anticipated excess is due to a cause beyond
the control of the authority concerned and funds cannot be found by any legitimate postponement
of expenditure for which provision already exists. All applications for supplementary grants should
be accompanied by a full explanation of the reason for the excess and of the impossibility of
providing funds to meet it".

2. Keeping in view the above principles, the request for a supplementary grant should be
made in a self-contained summary to be signed by the Secretary concerned in his capacity as the
Principal Accounting Officer. The summary should contain the information as indicated in the
enclosed proforma (Appendix).

3. The summary may be forwarded to the Finance Division. If the proposal is approved by the
Finance Division, necessary sanction will be issued by the Division concerned under intimation to
the Budget Wing of the Finance Division. The sanction letter will state that it issues with the
concurrence of the Finance Division and a copy of the sanction will be endorsed to Audit by the
Deputy Financial Adviser concerned.

Appendix

PROFORMA FOR SUPPLEMENTARY GRANTS

(1) Budget Year

(2) Demand No.
(3) Demand Name:
(4) Department Name:
(5) Charged, Other than Charged, Current, Development (Tick the Box applicable)

(6) Total expenditure involved in the proposal in the current year and the following years both
recurring and non-recurring.

(7) An Analysis of the budget grant to which the expenditure is debitable indicating: -

(a) Amount provided detailed object-wise;

(b) Particulars of expenditure already incurred under each detailed object; and
(c) Particulars of commitment (including sanctions already issued) and plan of expenditure
under each detailed object for the remaining part of the financial year.
(8) Reasons why provision was not made in the budget.

(9) The reasons why some of the contemplated expenditure at (7)(c) above cannot be
dropped/curtailed to accommodate the present proposal.

(10) Reasons as to why the proposed expenditure cannot be postponed to a subsequent year;

(11) Detailed justification of the proposal; and

(12) Confirmation that no saving to meet the proposed expenditure is available under all the
demand controlled by Principal Accounting Officer.

Name & Signature of Principal Accounting Officer

General Instructions regarding preparation of Budget:

2. 42 The Annual Budget Statement containing the estimated annual revenue and
expenditure together with the all other receipts and disbursements arising both in Pakistan and
abroad, is laid before the National Assembly. The material on which the Budget and Demands for
Grants are based is obtained by the Ministry of Finance in the form of detailed estimates
submitted by other Ministries, which in turn depend for the material on heads of departments,
heads of offices and other officers, who collect the revenue or incur expenditure. The Accountant
General is responsible for rendering such assistance in the preparation, check and consolidation
of Budget Estimates and Demands for Grants as may be settled by the Ministry of Finance in
consultation with the Auditor General of Pakistan. The form of the Budget and Demands for
grants is laid down by the Ministry of Finance and no alteration of arrangement of or classification
can be made without their approval.

2. 43 In framing budget estimates the estimating authorities should exercise the utmost
foresight. All items of receipts and expenditure that can be foreseen should be provided for under
the proper heads. This exhortation to show foresight should not, however, be taken as an
invitation to provide for unnecessary items of expenditure. While care shall be taken to see that
all items of expenditure that can be foreseen are provided for, it is equally essential that the
amount of the provision is restricted to what is really necessary. The Ministry of Finance can and
does exercise its right to excise or reduce the provision for any item which it thinks unjustifiable,
(a scientific basis has to be evolved to scmtinise the budget proposals). The past level of actual
expenditure/provision is no doubt, by and large, the usual yardstick for determining the provisions
for the next year but it has its limitations when it comes to abnormal expenditure and justification,
therefore, needs to be examined on merits. Pay and allowances (including recreation allowance)
can be subjected to straight arithmetical calculation. In providing for stores and equipment it is
necessary to ensure that the estimates are based on approved and workable norms for the
supply and replacement of consumable stores and spare parts, as well as for the supply of new
equipment, and that they are properly tied up with their price schedules. The estimates in all
cases should take into account that items already in stock. The aim is that the budget provision
should have a rational basis and should be worked out with prudence and all precaution.

2. 44 The basic rules for the preparation of the detailed estimates are as follows: -

(i) the estimates should be prepared on the basis of what is expected to be actually received or
paid (under sanction) during the ensuing year, including arrears of previous years and not only
the demands or the liability falling due within the year. In other words the estimates should include
all receipts and payments during the coming year, irrespective of the fact that such receipts or
payments relate to the transactions of that year or the previous years. For instance, materials to
be ordered in August, 1987 but not expected to be paid for till August, 1988 will be provided for in
the budget estimates for the year 1988-89 and not in the estimates for the year 1987-88. Similarly
revenue due in August, 1987, but not expected to be received in the Treasury till August, 1988 will
be provided for in the receipt estimates for the year 1988-89 and not 1987-88.

(ii) the estimates should not show merely the net receipts or net charges. The gross transaction in
the case of both receipts and charges in each department should be shown separately. Receipts
are to be estimated as receipts on the receipt side of the estimates and expenditure on the
expenditure side. It is not permissible to deduct receipts from charges or charges from receipts
and frame estimates of net receipts or net charges. The practice of framing estimates on a gross
and not on a net basis enabled the Legislature to exercise control over expenditure which it could
not do if the executive approached the Legislature for authority merely for that part of the
expenditure which could not be met from receipts. Yet in certain cases budgeting is on a net
basis. For instance, refunds of revenue are deducted from gross collection and the estimates are
prepared only for the net receipts, the reason being that refunds do not really represent the
expenditure;

(iii) no provision should be made in Part I for items of expenditure not covered by sanction, either
general or specific. If any provision is considered necessary for any unsanctioned item, it should
be included in Part II. It should on no account be incorporated in Part I (Standing and Fluctuating
Charges);

(iv) under the provision 'Pay of officers' and 'Pay of Establishment' details should be furnished in a
separate form (GFR-I) showing names, designation, increments due, etc.;

(v) in the case of sanctioned establishment, whether permanent or temporary, full amount of the
pay including increments which are likely to be drawn by the incumbents on duty during the
period should be provided;

(vi) where no Leave Reserve exists provision should be made for leave salary both for the officers
and the establishment on the basis of past actuals, regard being paid to any new factor;

(vii) provision should not be made for those who are on deputation or are otherwise absent and
are not likely to return in the year for which estimates are being prepared, but the names of such
personnel should be shown in Form GFR I;.

(viii) no provision should be made for posts which it has been decided to leave unfilled or which
have been kept in abeyance as a measure of economy. If it is desired to revive any of such posts
prior consent of the Ministry of Finance should be obtained before making any provision in the
estimates on this account;

(ix) for all fixed recoveries and fixed payments (other than establishment charges) the sanction
fixing the amount should be quoted;
(x) every department should provide for the whole receipts and charges with which it deals finally;

(xi) no lump sum provision should be made except, with the concurrence of Ministry of Finance, in
most exceptional circumstances, the reasons for which should be recorded in writing;

(xii) provision for losses should not be made in the estimates. If however, the nature of work of a
department is such that losses must be regarded as inevitable each year, provision may be made
with the special sanction of the Ministry of Finance in each case;
(xiii) the estimates of receipts and varying charges should not be merely arithmetical average of
the last three years' figures, the average is a guide, but it should not be taken absolutely; and

(xiv) a lump deduction should be made if savings are anticipated for posts likely to remain vacant
or for other reasons.

Time Table and detailed procedure for preparation of budget estimates:

2. 45 The annual budget estimates should be prepared in accordance with the 'Budget Call' letter
issued by the Ministry of Finance in October every year. Separate estimates have to be prepared
in respect of: -

(i) Receipts;
(ii) Non-Development Expenditure;
(iii) Development Expenditure.
The following detailed procedure is to be followed:

Receipts:

The estimates are to be prepared in accordance with the following heads of receipts: -

Heads of Receipts Estimating Authorities

Principal Heads of Revenue Central Board of Revenue.

Other Revenue Receipts/ Administrative

Capital Receipts Ministries/Divisions.

Foreign Aid Economic Affairs Division.

Debt, Deposits and Remit- Financial Advisers, Ministries

of Defence and
Communications, State Bank
of Pakistan, Central
Directorate of National
Savings and Administrative
Ministries/Divisions.

The first preliminary, second preliminary and final estimates should be submitted to the Ministry of
Finance on the prescribed dates. These will include both internal and external resources and will
form the basis for determining the size of Annual Development Plan for the next year.

2. 46 Estimates of foreign loans and credits are required to be supported by details of

individual projects and purposes and are to be drawn up separately for each of the following
categories: -

Category I. Loans for Federal Projects

Category II. Loans for purchase of Non project commodities.

Category III. Loans for Provincial Projects.

Category IV. Loans for Railways.

Category V. Loans for Autonomous Bodies, Local Funds, etc.,

under the Federal Government.

Category VI. Loans for Autonomous Bodies, Local Funds etc.

under the Provincial Governments.

Category VII. Loans for credit Agencies for Private Sector

Projects.

Estimates of guaranteed loans and credits are, however, to be shown separately from other
foreign loans and these should also be supported by details of individual projects.

2. 47 Estimates for foreign aid grants from Countries and specialised agencies such as those
mentioned below are to be submitted with complete details: -

(a) Australia,
(b) Canada,
(c) Ford Foundation.
(d) U. N. and its specialised Agencies,
(e) U. S. AID, and
(f) Other countries (Agencies to be shown separately).

The estimates of foreign project assistance, both loans and grants have to be fully tied up with
the relevant projects and wholly reflected in the Annual Development Programme and the budget
of the concerned agencies of the Federal or Provincial or Autonomous Bodies. This aspect will
need to be fully taken care of by the Economic Affairs Division by preparing the relevant
estimates in close consultation with the executing agencies of those projects. The executing
agencies are required to afford all assistance to the Economic Affairs Division in this regard so as
to enable them to submit the estimates in time.

The projection of all financial outlays developmental or non-developmental, calls for a

correct estimation of resources and that the time schedule for the various stages of budget
making is strictly adhered to. These aspects should be borne in mind by all estimating authorities.
Further it will facilitate the task of the Finance. Division if the estimates of revenue and capital
receipts are prepared and furnished in the prescribed proforma. The estimates in respect of Debt,
Deposits and remittances and other capital receipts will continue to be prepared as at present.

Administrative Division should coordinate the estimates of the different estimating authorities
under them and to submit the verified and consolidated estimates to their Financial Adviser. The
Financial Advisers will scrutinize the estimates and forward them with their comments to the
Budget Wing by the prescribed date addressed to Deputy Secretary (Resources).

2. 48 Estimates of receipts accruing to Government by way of dividends on investments

made in various autonomous bodies/corporations, etc., on preference and ordinary shares should
be submitted with details mentioning the rate of dividend fixed by the Government on such
shares, if any. The reasons for non-inclusion of such receipts in the estimates on any shortfall in
the estimates on account of dividend receipt should be fully explained.

Non-Development expenditure:
 2. 49 Budget preparation has to begin well ahead of the year to which it relates. The
proposals for establishments and other items of expenditure are required to be cleared by the
administrative agencies with their Financial Advisers as and when they are ready without waiting
for the 'Budget Call' circular from the Ministry of Finance. It should be ensured that the Budget
Estimates submitted to the Financial Adviser for scrutiny and acceptance contain only the agreed
items of expenditure. The classification of expenditure in items of functions and objects should be
correctly shown in the NISs. Due to computerization a new format of BO/NIS has been adopted.
The instructions to fill this format should be followed strictly.

Revised Estimates for the current year:

2. 50 The preparation of Revised Estimates for the current year should precede the framing
of Budget Estimates for the next year. The following factors have to be taken into account in
preparing the Revised Estimates:

(i) actuals for the first 4 months of the current year;

(ii) the actuals for the last 8 months of the previous years;

(iii) the 12 months' actuals of the past three years;

(iv) order issued or proposed to be issued regarding -

(a) appropriation or reappropriation within the sanctioned grant;

(b) new items of expenditure sanctioned through supplementary grants; and

(c) surrenders already made or likely to be made during the yeas.

(v) any other relevant factors.

Any information required from the Accountant General in connection with these estimates should
be obtained from him separately.

2. 51 Where Revised Estimates of expenditure for the current Financial year exceed the
sanctioned grant, it should be stated whether the increase has been authorised by competent
authority and, if so, attested copies of the relevant orders should be appended to the estimates. It
should also be indicated how the increase is proposed to be met (i. e. by reappropriation of
savings with the grant or through supplementary grant). The revised estimates should be
accompanied by a list of supplementary grants already sanctioned and included in the said
Revised Estimates. When the revised estimates are less than the authorised grant reasons for
savings should be given. These requirements are applicable to both Part I & Part II Estimates.

Budget Estimates for the ensuing year:

2. 52 The estimates are to be prepared in two parts:

Part I: Relates to standing charges which though may vary from year to year are
not dependent on the volition of the Head of Department, e. g.,
permanent establishments (both officers and staff), travelling and other
fixed allowances and other ordinary contingent expenditure.
 Part II: Relates to fresh charges which may include new items of expenditure,
such as temporary additions to existing establishments or to services,
facilities and organizations which are either continued from year to year
on a temporary basis or have been newly sanctioned and have not been
provided for in the current year's budget. Only those proposals should
be included which have already been cleared with the Financial Adviser.
These should be submitted through the Financial Adviser in the form of a
self-contained note/memoranda, accompanied by supporting details to
facilitate scrutiny. Lump sum provision in the budget should not be made
or proposed except in most exceptional circumstances which should be
invariably recorded. As far as possible items under the object
classification should be proposed according to the prescribed detailed
heads of expenditure so that the number of references to the Financial
Advisers/Finance Division is reduced to the minimum.

Part I Estimates are prepared on printed forms supplied by the Accountant General in whose
circle of account the expenditure is to be booked. These forms contain separate columns to
show:

(i) code No. (major, minor and detailed objects).

(ii) the actuals of the last three years under each sub-head and detailed head. These actuals are
required to be filled in by the Accountant General.

(iii) actuals for the last eight months of the previous year and the first four months of the current
year.

(iv) the sanctioned budget for the current year.

(v) the revised estimates for the current year; and

(vi) the budget estimates for the ensuing year.

The actuals of the last three years are noted by the Accountant General in the relevant columns
of the forms sent out by him to the estimating authorities. The estimating authorities fill in the rest
of the columns. Since the revised estimates, like the past actuals, are one of the material factors
to be taken into account in preparing the budget estimates, the revised estimates should be
prepared with great care and should include or omit the commitments that are likely to materialize
or not likely to materialize during the year.

The Budget Estimates of non-development expenditure for ensuing year should be

accompanied by such details as nominal rolls in the prescribed form, calculation of Allowances,
Honorarium, etc. and other charges so as to permit proper scrutiny. They should further be
supported by a comparative statement in Form S-203 showing the position of past three years
actuals, the sanctioned grant and the Revised Estimates for current year and the proposed
Budget Estimates for the next year.

Break-down of estimates to be included in the Demands for Grants and Appropriation:

2. 53 The estimates of expenditure included in the Budget Estimates should be broken

down into 'Charged' and 'Other than Charged' expenditure and also should show Revenue
Account Expenditure separately from Development Expenditure.
Budget Estimates in respect of development expenditure:

2. 54 The revised estimates for the current year should not exceed the original budget
estimates, plus supplementary grants already sanctioned minus surrenders and shortfalls in
utilization of foreign projects assistance. These should be accompanied by a list of
supplementaries already sanctioned and included in the Revised Estimates.

2. 55 The estimates should not include any scheme which has hot been approved in
accordance with the prescribed procedure. Simultaneously with the formulation and submission
of their Annual Development Programme to the Planning Division, the administrative
Ministries/Divisions should supply a copy of their programme to their respective Financial Adviser.
This should be accompanied by detailed expenditure estimates for budget provision in respect of
individual projects. Other relevant information or material should be supplied according to the
time-table.

2. 56 In the case of on-going projects, the estimates should also be accompanied by

relevant files in which the budget provisions for the current year was admitted. All new projects for
which budget provision is proposed for the first time should be supported by the relevant PC-I or
PC-II Form. If any provision is to be made for works expenditure a separate statement in PPWD
Form 4 should also be submitted. The Works Division will compile them according to individual
development projects included in the ADP and furnish a copy to the Budget Wing of the Finance
Division within three days after the finalization of budget estimates in respect of development
project.

2. 57 (i) When proposing budget estimates for projects/schemes in the ABP it should be
ensured that there is no overlapping as to the nature and scope of project/scheme between items
proposed in the development and non-development budget. Where certain activities/operations
are to be carried out partly through the development budget and partly from non-development
budget a consolidated picture should be presented to the Financial Adviser while submitting the
budget estimates for development expenditure.

(ii) In order fully to support the provision for development expenditure, the estimating
authorities should furnish separate information under the following headings alongwith the
estimates of individual projects/scheme to their Financial Adviser who after scrutiny will pass it on
to the Budget Wing:

(a) Name of the project/scheme.

(b) Expected date of completion.

(c) Physical targets envisaged in the project/scheme.

(d) Expenditure to the end of the previous years.

(e) Percentage of completion till 30th June of the previous year.

(f) Revised Estimates and targets likely to be achieved.

(g) Budget estimates for next year.

(h) Targets proposed for next year.

 (i) Basis for determining targets for the current and next year (i. e. unit cost or any other
unit of measurement). When furnishing the above information the estimating authorities should,
as far as possible, specify the physical targets in quantitative terms (e. g., road mileage to be
constructed, hospital beds to be provided, number of new school seats to be made available,
acreage to be covered by Plant protection measures, etc., etc. ). in cases where quantitative
assessment of physical targets is not feasible, the likely achievements should be specified in
broad details.

2. 53 (i) Fair copies of New Item Statements in respect of accepted estimates of

development expenditure should be distinctly marked to indicate that the provision relates to
development expenditure. The classification of expenditure in terms of functions and objects
should be correctly shown on the NISs. Due to computerization a new format to NIS has been
adopted. The instructions to fill this should be followed strictly.

(ii) Budget orders in respect of Part I estimates relating to all Circles of account issued by
the Financial Advisers should be addressed to the Accountant General, Pakistan Revenues,
Islamabad Budget orders issued thereafter, if any, should be addressed to the; Finance Division
(Budget Wing), Islamabad. Copies of all Budget Orders issued in respect of Part I estimates
whether before or after the 15th March should invariably be sent to the Finance Division (Budget
Wing) Islamabad in duplicate alongwith copies of the relevant Part I estimates and a
memorandum explaining the variations between:

(a) current year's sanctioned grant and the Revised Estimates as admitted; and
(b) the admitted Budget Estimates for the current year and those for the next year.

(iii) The budget orders should not be in the form merely of modifications to the estimates.
Such orders on Part I Estimates for the next year should invariably give details of accepted
provision that will appear in the Details of Demands for Grants and Appropriations and should
also show:

(a) the number of posts in each grade and related provision under the Establishment Charges;(b)
the provision for different objects of expenditure under the 'Regular Allowances' and other items
of expenditure formerly classified as contingent charges; and

(c) the details of recoveries, if any, should invariably be shown by specific nomenclature.
(iv) Fair copies of all NISs should be sent to the Finance Division (Budget Wing) as well as to the
Accountant General Pakistan Revenues, Islamabad, accompanied by a copy of memorandum
explaining the variation between (a) the Budget Estimates and the Revised Estimates for the
current year and (b) the Budget Estimates for the current year and the admitted Part I Budget
Estimates for the next year. No Budget Order or NIS would be accepted without the approved
Memorandum explaining the variation.

Communication and distribution of grants:

2. 59 The Grants voted by the National Assembly, together with any sums sanctioned for
non-votable expenditure are communicated by the Ministry of Finance to the administrative
Ministries/Divisions/Departments, and the Accountant General concerned in the shape of lump
sums known as primary units of appropriation. The administrative Ministries and Departments
then arrange the distribution of sanctioned funds, where necessary among the controlling and
disbursing officers subordinate to them. The whole or part of the appropriation for a primary unit
may be placed at the disposal of controlling or a disbursing officer. The primary units may also be
broken up into a number of secondary units and the appropriation for any of these wholly or in
part, may be placed at the disposal of a subordinate officer. An appropriation is intended to cover
all the charge, including the liabilities of any previous year, to be paid during the year or to be
adjusted in the accounts thereof. It can be authorised by competent authority at any time before,
but not after the expiry of the financial year.

Control of Expenditure:

2. 60 The authority administering a grant is ultimately responsible for watching the

progress of expenditure on public services under its control and for keeping expenditure within
the grant. In order to keep an effective control over the expenditure the administrative
Ministries/Departments should adopt the procedure laid down in Rule 89 of the GFRs Vol. I, so
that the position of expenditure from month to month, viz-a-vfe, the appropriation may be kept
under constant review and suitable action may be taken in respect of savings and excess.

Surrender of anticipated savings:

2. 61 During the course of financial year Head of a Department or a Disbursing Officer

may find that expenditure under a particular object is likely to be less than the provision in the
budget due to the following causes: -

(a) actual postponement of expenditure;

(b) real savings due to economy; and
(c) normal savings due to original over-estimating or on account of the usual administrative
causes.

2. 62 The savings under (a) above should not be utilised by re-appropriation to meet
new items of expenditure without the sanction of the competent authority. If savings under (b)
have been effected deliberately to provide for an unforeseen emergency, these should not
ordinarily be utilized for new items of expenditure. All anticipated savings should be surrendered
to the Government immediately they are foreseen *but not later than 31st March of each year in
any case, unless they are required to meet excesses under some other unit or units which are
definitely foreseen at the time (see para 98, GFR, Vol. I). However, savings accruing from funds
provided after 31st March shall be surrendered to Government immediately they are foreseen but
not later than 30th June of each year. The savings should not be held in reserve to meet possible
future excesses.

2. 63 It is never desirable to spend the money in a hurry or in ill- considered matter merely
because it is available or in order to avoid the lapse of a grant. It is in the interest of public service
that if a grant cannot be utilised profitably it should be surrendered. A rush of expenditure
particularly in the closing months of the financial year is a breach of the principle of financial
propriety.

Re-appropriation of funds:

2. 64 Re-appropriation means the transfer of funds from one unit of appropriation to

another such unit. The reappropriation may be sanctioned by a competent authority in terms of
the powers delegated to the Ministries/Divisions vide item 4 of the Annex II to the Ministry of
Finance O. M. No. F. 3(4) Exp-III/2000, dated 30th June, 2000.

Supplementary Grants:

2. 65 (i) Normally no expenditure should be incurred for which no provision has been
made in the original estimate. If, however, at any stage it is found that an excess is likely to occur
owing either to an unforeseen emergency or under-estimating or on account of insufficient
allowance for factors leading to growth of expenditure, the expenditure, if possible, should either
be postponed, or met through re-appropriation provided the officer concerned is competent to do
so. If neither the savings are available nor the expenditure can be postponed, an application
should be made to the Ministry of Finance, for supplementary grant. The application should be
accompanied by a full explanation of the reason for the excess and of the impossibility of
providing funds. to meet it from within the sanctioned budget grant.

(ii) The application should be made by the date as may be prescribed by the Ministry of
Finance from time to time. The Ministries/Divisions/Departments should not, however, hold up
applications till the last date, but forward each application to the Ministry of Finance as soon as it
is known that a Supplementary Grant will be necessary. On receipt of an application, the Ministry
of Finance will review the position of the grant as a whole with reference to the known actuals of
the year to-date and actuals and estimates for the previous years. If after the examination of the
Ministry of Finance is convinced that the expenditure can neither be postponed nor can be met
from savings under other objects and that a supplementary grant is necessary, a demand will be
placed before the National Assembly as soon as it is practicable.

2. 66 (a) Keeping in view the above principles, the request for a Supplementary Grant
should be made in a self-contained summary to be signed by the Secretary concerned in his
capacity as the Principal Accounting Officer The summary should contain the following
information:

(i) Total expenditure involved in the proposal in the current year and the following years both
recurring and non-recurring.

(ii) Classification of the expenditure whether it is 'Charged on the Federal Consolidated Fund' or
"Other Expenditure" and also whether it is Revenue expenditure or development expenditure.
(iii) An analysis of the budget grant to which the expenditure is debitable indicating:

(a) amounts provided object-wise;

(b) particulars of expenditure already incurred under each object; an
(c) particulars of commitments (including sanctions already issued) and plan of expenditure under
each object for remaining part of the financial year.

(iv) Detailed justification of the proposal and reasons why provision was not made in the budget.

(v) The reasons why some of the contemplated expenditure at (iii) (c) above cannot be
dropped/curtailed to accommodate the present proposal.

(vi) The reasons why the proposed expenditure cannot be postponed to a subsequent year.

(b) The summary may be forwarded to the Financial Adviser concerned who will examine the
proposal and submit it to the Additional Finance Secretary (Expenditure) with his
recommendations. If the proposal is approved by the Ministry of Finance, necessary sanction will
be issued by the Ministry/Division concerned under intimation to the Budget Wing of the Ministry
of Finance. The sanction letter will state that it issues with the concurrence of the Finance
Division and a copy of the sanction will be endorsed to Audit by the Deputy FinancialAdviser
concerned.

Audit Report and Appropriation Accounts:

2. 67 (i) Under Article 171 of the Constitution, the Auditor-General of Pakistan is required
to submit to the President the reports relating to the accounts of the Federation, who causes them
to be laid down before the National Assembly. Accordingly an Audit Report and the audited
accounts in the form of appropriation Accounts of the entire expenditure (Voted or Charged) of the
Government for each financial year are prepared. The Audit Report contains such comments on
the regularity and propriety of expenditure as are deemed necessary and proper as a result of
audit investigates. It also brings to the notice of the Legislature the result of audit of all trading,
manufacturing and profit and loss accounts and balance sheets kept in respect of Government
commercial or quasi-commercial undertaking. Besides, it includes the report which the Auditor-
General is required to make on his examination of any receipts and accounts of stores and stock
with such comments as he may think fit on any important irregularity discovered in the course of
audit of such receipts and accounts.

(ii) The appropriation accounts mainly depend on explanation furnished by the

Ministries/Divisions/Departments to the Accountant General as to the cause of variations between
the appropriation and expenditure. The explanation in respect of variations between appropriation
and expenditure and of any apparent failure to exercise adequate financial control over
expenditure should be concise, accurate and fully informative. Vaguely worded phrases as due to
"over-estimating" "covered by reappropriation" or "reappropriation proved inadequate or
unnecessary" should be avoided. In any case, the Public Accounts Committee is interested to
know whether the variation was inevitable and whether it could not have been foreseen.

Public Accounts Committee:

2. 68 At the commencement of each session, a Standing Committee of the Legislature, at

the Centre and in the Provinces respectively, is constituted for the purpose of scrutinising the
appropriation accounts and the audit report thereon in terms of Article 171 of the Constitution.
The Committee consists of members elected by the Legislature. The term of office of members of
the Committee is one year, but any member is eligible for re-election. The Chairman is elected by
the Committee from among its members In the case of an equality of votes on any matter, the
Chairman has a second or casting vote. In England, the convention is that a well known member
of the Opposition is elected as Chairman so that there may be proper opportunity for review and
criticism, if necessary, of the financial proceedings of Government of the day.

2. 69 The Accountant General is not a member, but is usually invited to attend the meetings
of the Provincial Public Accounts Committee. In the case of the Central Public Accounts
Committee the Auditor General is similarly invited.

2. 70 The main function of the Committee is to see that the money granted by the
Legislature has been spent by the Executive within the scope of the demand. This means that the
Committee has to satisfy itself that

(i) the money recorded as spent against the grant was actually spent and is not larger than the
amount granted;

(ii) the money has not been spent for a purpose not approved by the Legislature; and

(iii) there are no other irregularities in the spending of public money by the Executive.

2. 71 Strictly speaking, the Committee is concerned only with voted expenditure, but by a
convention which has been observed ever since the introduction of Public Accounts Committee,
the Committee deals with both voted and non voted expenditure. In case where accounts of
receipts and of stores and stock are audited by the Auditor General the Committee also considers
the audit reports thereon in much the same details as in the case of expenditure.

2. 72 The Committee has the power to examine the representatives of the departments
concerned and to summon the officers more directly responsible whenever necessary. The
Committee is entitled to offer criticism and recommendations upon any matter discussed in an
appropriation account or in the audit report thereon. But the Committee is not an executive body.
It has no power, even after the most minute examination and on the clearest evidence, to disallow
any item or to issue an order. It can only call attention to an irregularity of failure to deal with it
adequately and express its opinion thereon and record its findings and recommendations.

2. 73 After it has completed its examination of the accounts the recommendations of the
Committee are embodied in a report which is laid before the Legislature. A day is usually allotted
for the discussion of the report when several important points are raised which are of great
interest to the general public. In respect of accounts spent over and above the grant authorised
by the Legislature votes are taken in each case.

AUDIT

Functions and powers of the Auditor General of Pakistan:

3. 1 In terms of Article 168 et. seq. of the Constitution of the Islamic Republic of Pakistan,
there is an Auditor-General, who is appointed by the President. He performs such functions and
exercises such powers and prepares such reports in relation to the expenditure and accounts of
the Federation and of the Provinces as may be determined by an Act of the Parliament and, until
so determined,, by Order of President. In pursuance of Articles 168 and 169 of the. Constitution,
the terms and conditions of service of the Auditor General and his functions and powers, in
relation to the accounts of the Federal, the Provinces and accounts of the any authority or body
established by the Federation or a Province are laid down in the Pakistan (Audit and Accounts)
Order, 1973 promulgated as the President's Order No. 21 of 1973 and as further amended from
time to time.

3. 2 The functions and powers of the Auditor General as laid down in Article 9, 10 and 11 of
the President Order No. 21, 1973, as amended from time to time, are as under: -

A-ACCOUNTS

(i) Auditor General shall be responsible for the keeping of the accounts of the Federation of
each Province, other than the accounts of the Federation relating to Defence or Railways:

Provided that the President may, by any general or special order, require the Auditor General
to keep the accounts of the Federation relating to Defence or Railways or the accounts of any
authority or body established by the Federation or a Province.

(ii) As respects accounts of the Federation, the President and as respects accounts of a
Province, the Governor may, after consultation with the Auditor General, make provision by rules
for relieving the Auditor General of responsibility for the keeping of the accounts of any particular
service or department.

(iii) The President may, after consultation with the Auditor General, make provision by rules
relieving the Auditor General, of responsibility for keeping accounts of any particular class or
character.

(iv) The Auditor General shall, from the accounts kept by him and by other persons
responsible for keeping public accounts prepare in each year accounts (including) in the case of
accounts kept by him, appropriation account showing the annual receipt and disbursement for the
purposes of Federation and of each Province, distinguished under the respective heads thereof,
and shall submit those accounts to the Federal Government, or as the case may be, to the
Government of the Province on such dates as he may, with the concurrence of the Government
concerned, determine.

(v) the Auditor General shall comply with any general or special orders of the President or,
as the case may be, a Governor as to the head of account under which any specified transaction
or transactions of any specified class is, or are to be included:

Provided that, before issuing any such order as aforesaid, the President or, as the case may
be, the Governor shall consult the Auditor-General.

B-GENERAL FINANCIAL STATEMENT

It shall be the duty of the Auditor General to prepare annually in such form as he, with the
concurrence of the President, may determine and to submit to the President a General Financial
Statement incorporating a summary of the accounts of the Federation and of all the Provinces for
the last preceding year and particulars of their balances and outstanding liabilities and containing
such other information as to their financial position as the President may direct to be included in
the statement.

C-AUDIT

I. It shall be the duty of the Auditor-General: -

(i) to audit all expenditure from the revenues of the Federation and of the Provinces and to
ascertain whether moneys shown in the accounts as having been disbursed were legally
available for and applicable to the service or purpose to which they have been applied or charged
and whether the expenditure conforms to the authority which governs it;

(ii) to audit all transactions of the Federation and of the Provinces relating to debt, deposits,
sinking funds, advances, suspense accounts and remittance business;

(iii) to audit all trading, manufacturing and profit and loss accounts and balance sheets kept by
order of the President or of the Governor of a Province in any department of the Federal
Government or of a Province; and

(iv) to audit the accounts of any authority or body established by the Federation or a Province;
and in each case to report to the President or, as the case may be, to the Governor on the
expenditure transactions or accounts so audited by him.

II. The Auditor-General may, with the approval of. and shall, if so required by, the President or
the Governor of any Province, audit and report on

(a) the receipts of any department of the Federal Government or, as the case may be, of the
Province; and

(b) the accounts of stores and stock kept in any office or department of the Federal Government
or, as the case may be, of the Province.

III. The President or the Governor of a Province may, after consultation with the Auditor General
make regulations with respect to the conduct of audits under clause (2).
3. 3 The Pakistan Audit Department performs all such duties and functions as have been
assigned to or are undertaken by the Auditor General, but subject to such special or general
instructions that may be issued by him from time to time.

3. 4 In order to enable the Auditor General to discharge his functions properly he should be
supplied free of charge annual budget estimates of the Federation and Provinces and all other
publications issued by them. He should also be furnished with information or documents or books
which may be required by him for preparation of reports or accounts. The Auditor General has
also the authority to inspect any treasury or office responsible for the keening of initial and
subsidiary accounts.

3. 5 The reports of the Auditor General, relating to the accounts of Federation and Provinces are
submitted to the President and Governors respectively, who cause them to be laid before the
Legislature concerned. The accounts and audit reports so submitted embrace, besides the
Appropriation Accounts, the whole of the accounts of the Federal Government or of the Provinces
including accounts of receipts and of all transactions relating to Debt and Remittance heads.

General principles of audit:

3. 6 The primary function of audit is to verify the accuracy and completeness of accounts so as to
ensure that all revenue and receipts have been brought to account under proper head and that all
expenditure and disbursements have been authorised, vouched and correctly classified. The
Audit is also required to see that the final account represents a complete and true statement, of
the financial transactions it purports to exhibit. This object can be achieved through an
independent scrutiny. Accordingly the statutory provisions pertaining to functions of the Auditor
General fully recognize his independence in the sphere of audit.

3. 7 The public audit has a dual role. Firstly on behalf of the Executive Government to check
whether its officers and authorities subordinate to it comply with the orders issued by it in the
discharge of its responsibility to the Legislature. Secondly, on behalf of the Legislature, to secure
that the Executive Government acts in accordance with the law.

3. 8 It is essential that there should be a clear cut demarcation between the auditorial and
administrative functions. It is the Executive Government which makes financial rules and orders
and its subordinate officials apply them. The Audit has to see that the rules and orders satisfy the
provisions of the law and are properly applied so as to be free from audit objections. It is not the
function of audit to prescribe as to what the rules or orders should be. The criticism offered by the
Audit should be limited to financial aspects and based on the accounts.
It should not extend to administrative or other aspects. Nor the audit should offer any
suggestions as to how Government may be better conducted. Although the Executive
Government is itself responsible for enforcing economy in the expenditure of public money yet the
Audit can bring to its notice any instance of wastefulness or infructuous expenditure. Government
also welcomes suggestions to promote economy, based on information from the accounts. In
short the audit of the Auditor General is a financial and not an administrative audit.

Audit of classification:

3. 9 One of the primary duties of Audit in examining an account is to verify that all financial
transactions are properly recorded in the accounts and are allocated to the proper codes. It
should be ensured that no "Charged" expenditure should be debited to the "Voted", "charged" and
vice-versa. Although the ultimate authority for determining the function cum-object code under
which a transaction is to be included rests with the President, but Audit, in its auditorial capacity,
has every right to criticise the validity of a classification, which is inconsistent with the provision in
the budget or which renders the accounts incorrect or misleading representation of the facts.
3. 10 It should also be remembered that the decision whether expenditure should be met from
current revenues or from borrowed money rests with the Executive -cum Legislature. It is
nevertheless, the duty of Audit to point out the occasions on which the classification of
expenditure between revenue and development expenditure or its distribution between current
revenue and loan funds appears to be contrary to the dictates of sound and prudent financial
administration.

Audit of expenditure.

3. 11 The audit of expenditure on Government account is the responsibility of the Pakistan Audit
Department but it will facilitate the work of the Executive to a great extent if the essential
requirements of Audit are known to it. There can be a lot of saving in the time and labour and
substantial correspondence avoided, if the sanctions issued by the Executive are in conformity
with the basic requirements of Audit.

3. 12 There should be provision of funds authorised by competent authority fixing the limits within
which expenditure can be incurred. This is the most important point which the Audit should see. It
should be ascertained that the money expended applied to the purpose or purposes for which the
Grants and Appropriation were intended to provide and that the expenditure so incurred does not
exceed the amount of the Grant or Appropriation. It is no doubt true that the responsibility for
watching the progress of expenditure and keeping it within the limit of a Grant or Appropriation
devolves on the Executive but Audit is expected to render all legitimate assistance to the
Executive in the matter. It should also see that the suitable and adequate arrangements exist in
all Departments of Government for the control of expenditure.

3. 13 The Audit should also see that the expenditure incurred should conform to the relevant
provision of the Constitution or of the Orders made there under and should be in accordance with
the financial rules and regulations framed by competent authority. While examining the financial
rules or orders the Audit has to ensure that those are intra vires and are not inconsistent with any
provisions of the Constitution or orders issued thereunder. Further the orders should be
consistent with the essential requirements of audit and accounts as determined by the Auditor
General. Moreover, the orders should not conflict with the orders or rules issued by a higher
authority. The responsibility of Audit in relation to regularity of expenditure is of a quasi judicial
character. It involves the interpretation of statute, rules and orders with reference to the case law
or previous decisions and precedents, interpretation by Audit should be based on the plain
meaning of the section, rule or order. In such a case the inconsistency should be referred to the
competent authority for resolution or removal. In no case the interpretation by Audit should ever
verge on legislation.

3. 14 The next important consideration is that there should exist a sanction, either special or
general accorded by competent authority, authorising expenditure. In this behalf Audit has not
only to see that the expenditure is covered by a sanction but has also to satisfy itself that the
authority sanctioning an expenditure is competent to do so by virtue of the powers vested in it by
the provisions of the Constitution or by the Rules or Orders made thereunder or by the rules of
delegation of financial authority made by a competent authority. Further it should be seen that the
sanction is definite and needs no reference to the sanctioning authority or a higher authority.

3. 15 Finally comes the audit against propriety. It is an essential function of Audit to bring to light
not only case of clear irregularity, but also every matter which in its judgement appears to involve
improper expenditure or waste of public money or stores. It is equally important to see that the
broad principles of orthodox finance are borne in mind not only by the disbursing officers but also
by sanctioning authority. The crux of the matter is that no burden should be imposed on the
revenues of the Federation or Provinces except for the purposes of Pakistan or some part of
Pakistan.
Audit Report:

3. 16 In terms of Article 171 of the Constitution the report of the Auditor-General relating to the
accounts of the Federal Government or Provinces are submitted by him to the President or the
Governor as the case may be who causes them to be laid before the respective Legislatures. Two
separate reports Audit Report on the Appropriation Accounts and Audit Report on the Finance
Accounts are compiled in this behalf. In the case of the Federal Government the Audit Report on
Appropriation Accounts is submitted in four separate volumes:

(i) Audit Report on the Appropriation Accounts of the Defence Services;

(ii) Audit Report on the Appropriation Accounts of the Posts and Telegraphs;

(iii) Audit Report on the Appropriation Accounts of Railways; and

(iv) Audit Report on the Appropriation Accounts Civil, i. e., for the remaining Departments of the
Federal Government.

3. 17 The Audit Report on the Appropriation Accounts contains the audited accounts in the form of
appropriation accounts of the entire expenditure "Voted" or "Charged" for each financial year. It
also, includes such comments on the regularity and propriety of expenditure which are deemed
necessary as a result of audit investigation. The report bring to the notice of National Assembly
the result of audit of all trading,. manufacturing profit and loss accounts and balance sheets in
respect of Government Commercial or quasi-commercial undertakings. The results of audit of
receipts and accounts of stores and stock are also incorporated in the report and suitable
comments made, where necessary.

3. 18 The Audit report on the Appropriation Accounts is self-contained in respect of all matters
with which it deals. It gives a detached, dispassionate and technical presentation of the audited
accounts and is free from bias or a political opinion. The report, as a matter of fact, has been
designed to serve a dual purpose. To the Government concerned the report shows the extent to
which its subordinate officials and authorities are complying with its rules and orders and can be
amplified or modified-with advantage. To the Legislature the report reveals the extent to which the
Executive Government have complied with the views expressed by the Legislature, through the
Public Accounts Committee, in matters of importance and in particular how far moneys placed at
the disposal of the Government were regularly and properly spent. In order to perform adequately
the latter function, the report, in addition to the points arising out of the audit against provisions of
funds brings to the notice of the Legislature the important financial irregularities such as
deficiencies of sanction, failure to enforce prescribed rules or procedure, offence against
universally accepted standard of official conduct or financial administration or any other class of
irregularity. It also points out cases of losses, writes off or nugatory expenditure,

3. 19 Before an irregularity or overpayment, etc., is incorporated 'in the Audit Report it is desirable
that the Government concerned should be given an opportunity of making observations and
comments, it deems necessary. The draft paragraph should be shown to the Ministry/Division
concerned before final inclusion in the report so that the department may get an opportunity to
suggest a correction or modification. In predominantly administrative and technical matters the
question of financial propriety can be raised by the Accountant General only if he is fully satisfied
that the raising of such a point is a legitimate audit function and it is likely to serve some practical
purpose.

On such important matters it is better to hold a discussion between the Accountant General and
the Department. The discussion should be for the purpose of clarifying issue and eliminating
points of controversy The points which remain unsolved are then stated in a definite form as may
be agreed to between the Accountant,, General and the Ministry/Division concerned. Even if the
Ministry/Division does not agree to the inclusion of a paragraph in a particular form the
Accountant General has every right to incorporate it in the Audit Report as he may deem fit. It is,
however, not advisable to initiate a premature and widel ranging controversy in the Audit Report.

3. 20 The object of the Audit Report on "Finance Accounts" is to present to the Legislature a
report on the financial result disclosed by the different accounts and other data coming under
examination. It includes accounts of the receipts and expenditure of the Government for each
financial year, the Revenue and Capital accounts, the accounts of the Public Debt, and the
accounts of the assets and liabilities of the Government as deduced from the balance recorded in
various books. The Audit Report on Finance Accounts, as a matter of fact, supplements the Audit
Report on the Appropriation Accounts;

3. 21 The "Finance Accounts" is an auditor's presentation of the general state of accounts of the
Government to the Legislature giving some elucidation and narrative presentation of new or
salient features. There is nothing in the report by way of financial appreciation, praise or blame,
nor there are any comments on the merits of the financial administration of the Government. In
short, the sole purpose of the report is to convey a just and impartial picture of the financial
position of the Government.

3. 22 Both these reports are laid before the Legislature which gets them scrutinized through the
Public Accounts Committee. The observations and recommendations of the Public Accounts
Committee are circulated by the Ministry of Finance and the Ministries concerned are expected to
comply with them. A compliance report for the previous years is submitted to the Public Accounts
Committee in its next meeting.

FEDEEAL AND PROVINCIAL ACCOUNTS

Federal and Provincial Accounting Systems:

4. 1 The Federal Government and the Provincial Governments have separate Public
Accounts of their own into which moneys received on account of the revenue of the Federal
Government or of the Provinces, are paid or credited and from which all disbursements of or on
behalf of the Federal Government or of the Provinces are met. The procedure to be followed for
the payments into, and the withdrawal, transfer, disbursement of money from the Public Account
and for the custody of money standing in that account is regulated by the rules contained in the
General Financial Rules, Treasury Rules and Audit Code and Accounts Code, etc.

4. 2 The Federal Government and each Provincial Government have made separate
agreements with the State Bank of Pakistan by virtue of which the general banking business by
these Governments is carried on and transacted by the State Bank. The Federal Government
operates on every office and branch of the State Bank of Pakistan and on every branch of the
National Bank of Pakistan acting as agent of the State Bank of Pakistan. The operations of the
Provinces are, however, confined to the offices and branches of the two banks which fall within
the area of the respective Provinces. Where there is no branch of the Bank, the cash business is
conducted by the Treasury.

4. 3 Each branch of the Bank keeps two separate accounts of the transactions undertaken
by it on behalf of the Government one for the transactions of the Federal Government and the
other for the transactions of the Provincial Government within whose area it is situated. Separate
statements of transactions in the Federal and Provincial Governments Accounts together with all
the supporting vouchers, etc. are transmitted by each office and branch of the bank daily to the
Treasury Officer or to the Accountant General, as the case may be. At the close of each month
the balances of the two accounts are transferred to the Central Accounts section of the State
Bank of Pakistan, Karachi. The Central Accounts Section of the State Bank of Pakistan, Karachi,
acts as a general clearing house for; he adjustment of transactions between the different
Governments.

4. 4 At the beginning of each month, each Accountant General receives from the Treasuries
under his jurisdiction monthly accounts supported by schedules, vouchers, etc. in respect of the
transactions which took place in the Treasury during the previous month. From the accounts
furnished by the Treasury and other Civil Departmental officers accounts are compiled by Civil
Accounts Offices showing the monthly receipts and the payments pertaining to each Department
for the whole accounts circle classified under the Functions cum- Objects. Separate accounts are
maintained for each Department, each group of small Departments or each major function. The
transactions relating to Debt and Remittances appearing in the Treasury cash accounts are
collected for the whole circle of accounts under each Code head from month to month. The final
stage of compilation is the preparation of the accounts by major functions totals showing the
receipts and disbursements under relevant code during and to the end of the month. From these
consolidated accounts are compiled the monthly and the annual accounts of the Federal and
Provincial Governments.

4. 5 The transactions in Government accounts represent the actual cash receipts and
disbursements during the financial years as distinguished from amounts due to or by Government
during the same period. The book adjustment may also be authorized by any general or special
orders issued by the Government.

4. 6 The accounts are maintained in Pakistan currency. The transactions occurring in the U.
K. are, however, in terms of Sterling in certain cases. Accounts in the Pakistan Foreign Missions
are maintained in two currencies the local currency as well as Pakistan currency. All accounts
are, however, rendered in terms of the Pakistan Currency.

4. 7 The following are the four divisions of the Government Accounts:

1. Revenue.

2. Capital

3. Debt.

4. Remittance.

4. 8 The Revenue deals with the proceeds of taxation and other receipts classed as revenue
and the expenditure therefrom. The Capital deals with expenditure met usually from borrowed
funds, the expenditure being incurred with the object of either increasing concrete assets of
material character or of reducing recurring liabilities. It also includes final receipts of a capital
nature intended to be applied as a set off to the capital expenditure. The debt comprises receipts
and payments, in respect of which Government becomes liable to repay the money received or
has a claim to recover the amounts paid together with the repayments of the former and the
recoveries of the latter. The Remittance embraces merely the adjusting heads under which the
remittances between treasuries and items in transit between the different accounts officers
appear. The initial debits or credits under the remittance heads are cleared eventually by
corresponding receipts or payments either within the same circle of account or in another
accounts circle.
Chart of Classification of the Federal and Provincial Governments Receipts &
Disbursements:

4. 9 The Auditor-General of Pakistan has issued a new chart of classification with the
approval of the President, under Article 170 of the Constitution of the Islamic Republic of
Pakistan, 1973 in superession of the existing "List of Major & Minor Heads of Accounts". The
need for issuing the new chart was that since Independence, Governments have undertaken
much wider responsibilities effecting the economic growth of the country and the welfare of the
people. With these added responsibilities, the need to improve the knowledge about the
economic and social effects of their actions for taking well-informed and well conceived policy has
increased.

Hence the chart of classification, which in addition to classifying receipts and expenditure on a
functional basis for purposes of accountability, reflects a plan of grouping transactions according
to their economic character in a readily comprehensible form. This plan facilitates the
determination of aggregates of national income and expenditure apart from bringing out the inter-
relationship between major sections of the economy. The chart also seeks to provide a scientific
information base for national policy decisions with a view to facilitating judicious allocation of
available resources amongst competing demands and their economic use. The new classification
is readily adaptable to data processing methods and will facilitate processing of accounts on the
Computer.

4. 10 The Chart is divided into two parts namely the Consolidated Fund and the Public
Account. All revenues received by a Government, all moneys received by it in repayment of any
loans and the Public Debt raised by it are credited to the Consolidated Fund. The expenditure on
revenue or capital account or on servicing the Public Debt is debited to it. The Public account
comprises all other moneys received by or on behalf of the Government or those deposited with
the courts of law and the remittances, suspense accounts etc.

4. 11 In Part I, i. e., Consolidated Fund, the receipts are to be classified by assigning a

Major Head, a Minor Head and a Detailed Receipts Head. The expenditure is classified in two
parts, 'namely, 'Functional Classification' and 'Object Classification'. The functions are divided into
Major, Minor and Detailed Functions and an item of expenditure will be assigned a Major, a Minor
and a Detailed Function. The objects are divided into Major, Minor and Detailed Function. The
objects are divided into Major, Minor and Detailed Objects and an item of expenditure, in addition
to functions, will bear a Major, a Minor and a Detailed Object. Thus the expenditure is to be so
classified that it will at once show both the government functional responsibility for which it is set
apart and the object or purpose which it tends to serve. In part II, i. e.. Public Account the
transactions are divided into Major, Minor and Detailed Heads of Accounts.

4. 12 The Function-cum-Object Classification has been introduced by the Federal

Government with effect from the 1st July, 1979 and by the Provincial Government from the 1st
July, 1980.

4. 13 The proper classification of accounts under the appropriate heads is very important.
As a general rule classification of transactions should have closer reference to Department in
which the revenue or expenditure occurs, then to the object of the revenue expenditure or grant
on which it is sanctioned, e. g., expenditure in the Public Works Department on buildings which
are under the administrative control but are in the use of other Department, is debitable to the
Public Works Accounts rather than the Department benefited by the expenditure.

4. 14 As for the classification of pay and allowances, the whole pay and allowances of a
Government Servant holding a post should be taken against theDepartment and the post in which
he is actually serving. When a Government servant whose main duties and post fall under one
head of charge is entrusted with additional duties coming under another head, no portion of pay
and allowances. should be debited to the latter head, unless there are specific orders of the
Government to the contrary. The transit pay and allowances of a Government servant should, in
the absence of pay special orders to the contrary, debited to the office to which he is proceeding.
The traveling advance of a Government servant is charged to the same head of account as his
pay. In the following cases, however, the traveling allowance may be debited to a different head: -

(i) in case a Government servant is required to travel on duty connected with outside body or
fund;

(ii) when Government consider it necessary to show separately the cost of special services; and

(iii) in cases covered by general or special orders of the Government authorizing deviation from
the general rule.

4. 15 The advance of pay and Travelling Allowance on transfer paid to a Government

servant are debited under the Major Head "4000 Advances not bearing interest". The advance for
house building and for purpose of conveyances are charged to Major Objects "800 Loans and
Repayments bearing interest". The accounts of G. P. Fund are kept under the head "1000
Unfunded Debt".

PART II

FINANCIAL RULES AND INSTRUCTIONS

CHAPTER V-SIND FINANCIAL RULES

SECTION I- INTRODUCTION AND DEFINITIONS

INTRODUCTION

5. 1 "The Sind Financial Rules" primarily deal with the procedure which should be
followed in the treasuries including offices or agencies of the State Bank of Pakistan conducting
the cash business.

5. 2 These rules also provide vital principles and important safeguards of general
applicability for the Departments which generally deal with the receipt, custody and disbursement
of the Government money.

DEFINITIONS

5. 3 In these rules, unless the context otherwise requires, the following words and
phrases have the meanings hereby assigned to them.

(1) 'Accountant General' means the head of an office of accounts 'and audit or of accounts, who
keeps the accounts of the Federal and Provincial Governments.

(2) 'Audit Officer' means an officer subordinate to, or under the superintendence of the Auditor-
General of Pakistan, who exercises audit functions.
(3) 'The Bank' means the State Bank of Pakistan or any office or agency of the State Bank of
Pakistan and includes any branch of National Bank of Pakistan, acting as the agent of the State
Bank of Pakistan.

(4) 'Competent authority' means the Government or any other authority to whom the relevant
powers may be delegated by the Government.

(5) 'Collector means the head of district or an officer nominated by the Government to be the
collector.

(6) 'District' includes any area whether described as District, a Political Agency, a consulate or
otherwise, which is served by a treasury placed in the direct relation with an Accountant General
and the term 'District Treasury' shall be construed accordingly.

(7) 'Treasury' includes a 'sub-treasury' 'Bank treasury' means a treasury the cash business of
which is conducted by the Bank and a Non-Bank-Treasury means a treasury other than a
treasury.

(8) 'Abstract bill' means a bill without details either for contingent or traveling allowance
expenditure, paid at a treasury with the scrutiny and countersignature of a controlling authority to
save delay in the discharge of a claim.

(9) 'Appropriation' means a sum of money assigned for expenditure on a specific item or object or
a group of items or objects. It is intended to cover all the charges including the liabilities of past
years to be paid during the year or to be adjusted in the accounts of that year.

(10) Five Canons of Financial Propriety are 'laid down below: -

(a) Every public officer should exercise the same vigilance in respect of expenditure incurred from
the Government revenues as a person of ordinary prudence would exercise in respect of
expenditure of his own money.

(b) Money borrowed on the security of allotted revenues should be expended on those objects
only for which, as provided by rules. If the money is utilized on works which are not productive,
arrangements should be made for the amortization of the debt.

(c) No authority should exercise its powers of sanctioning expenditure to pass an order which will
be directly or indirectly to its own advantage.

(d) Government revenues should not be utilised for the benefit of a particular person or section of
a community unless the amount of expenditure is significant or a claim for the amount could be
enforced in a Court of Law or the expenditure is in pursuance of a recognized policy or custom.

(11) 'Cash Order' means a payment order issued by a Treasury on a Sub-Treasury under its
jurisdiction.

(12) 'Central Revenue and Expenditure' includes revenue and expenditure administered by the
Government of Pakistan.

(13) 'Controlling Officer' in relation to expenditure under any head of account, the authority
responsible for control over expenditure, as specified in Appendix 2 of Budget Manual, Fin. Pub.
No. 10.
(14) 'Detailed Bill' means a bill setting forth details of either contingent or traveling allowance
expenditure and subject to countersignature by a controlling authority. It is marked 'not payable at
the Treasury' when it is prepared in support of a charge already drawn on an abstract bill.

(15) 'Disbursing Officer' means an officer who can draw money either by bills or cheques and
can expend or disburse Govt. money accordingly, vide subsidiary Rules under Treasury Order
No. 16.

(16) 'District Officer' means the officer in charge of a "District" the unit of administration in
Pakistan.

(17) 'Head of a Department' means an authority declared to be such under Rule 9 (23) of the
said C. S.R.

(18) 'Non-recurring Expenditure' means an expenditure sanctioned as a lump sum charge,

whether the money be paid as a lump sum or by installments.

(19) 'Pre-audit Cheque' includes a cheque issued by the Principal Auditor or any officer of the
Pakistan Audit Department in payment of a civil claim at the Provincial Capital, after audit.

(20) 'Principal Auditor' means a head of an office of accounts and audit in the Audit Department
who is immediately subordinate to the Auditor General.

(21) 'Proposition Statement' means a statement setting forth the financial effect of a proposal in
the creation, alteration or abolition of appointments on an establishment.

(22) 'Provincial Revenue and Expenditure' means the revenue and expenditure entrusted to
the control of the Local Government of a Province.

(23) 'Recurring expenditure' means all expenditure which is not non-recurring. It includes all
establishment or other monthly charges sanctioned for a period extending beyond the financial
year or for a period of more than six months within the financial year.

(24) 'Sub-Treasury' includes a Government Treasury for a taluka in direct subordination to the
Treasury of a District.

(25) 'Suspense Head of Account' means the head of account which records transactions of a
temporary character which are not adjustable in accounts as final outlay or the correct
classification of which cannot be determined at once.

(26) 'Treasury Orders' deal with the rules regarding the procedure to be followed in the payment
of moneys into and in the withdrawal, transfer and disbursement of moneys from, the public
account, and for the custody of moneys standing in the account.

(27) The term "work", when by itself, is used in a comprehensive sense, and applies not only to
works of construction or repair, but also to other individual objects of expenditure connected with
the supply, repair and carriage of tools and plants, the supply or manufacture of other stores, or
the operation of a workshop.

(28) 'Works Expenditure and Works Outlay' means to indicate respectively the expenditure,
and the capital charges, on the special services connected with the construction, repair and
maintenance of works. The charges falling under these categories may be net when, under the
rules, any receipts are taken in reduction of the charges, but they do not include the cost of the
general services, tools, plants, establishment, or any charges not taken to the final heads of
account, but kept under one of the suspense accounts.

(29) 'Consolidated Fund' means the consolidated fund of which all revenues received and all
loans raised by the Federal and Provincial Governments and all moneys received by the Federal
and Provincial Governments in repayment of any loan, form part thereof.

(30) 'Public Account' means the account to which are credited all moneys other than those
forming part of Consolidated Fund including those received by or deposited with Supreme Court
or any other Court established under the Federal or Provincial authority. It would include
unfunded debt and, unless the contrary intention appears, such receipts of a banking or deposit
nature as by virtue of any statutory provision or of any general or special executive order of the
Government have to be held in the custody of the respective Government.

(31) 'Subsidiary Rules' are issued by the Finance Department of Government under Treasury
Orders.

(32) 'Detailed Head' means a sub-division of a primary unit, which is the lowest accounting unit
below the "Primary Unit".

(33) 'Major Head' means a main head of account for the purpose of recording and classifying in
the receipts and expenditure of the revenues of the Province. '

(34) 'Minor Head' means a head subordinate to a major head or a sub-major head.

(35) 'Major Work' means an original work, the estimated cost of which, exclusive of departmental
charges, exceeds the limit of amount prescribed from time to time under rules.

(36) 'Minor Works' means an original work the estimated cost of which, exclusive of
departmental charges does not exceed the prescribed limit of amount under rules.

(37) 'Voted Expenditure' means expenditure which is subject to the vote of the Legislative
Assembly and contrary to that is called 'Non-Voted Expenditure'.

(38) 'Re-appropriation' means the transfer of savings from one unit of appropriation to meet
excess expenditure anticipated under another unit within the same item in the authenticated
schedule.

(39) 'Recurring charge' is a charge which involves a liability beyond the financial year in which it
is originally sanctioned.

(40) 'Units of appropriation or Primary Unit' is a division below a sub-head.

(41) 'Administrative Approval' of a scheme, a proposal, or a work it the formal acceptance

thereof by the administrative department concerned for the purpose of incurring expenditure on
as and when funds permit.

(42) 'Annual Financial Statement or Budget' means the statement or budget of estimated
receipts and expenditure of the Province in respect of each financial year to be laid before the
legislature.

(43) 'Authenticated Schedule' means the schedule of authorised expenditure authenticated by

the Governor under section 80 of the Government of India Act, 1935.
(44) 'Budget Estimates' are the detailed estimates of the receipts and expenditure of the
financial year.

(45) 'Budget or Financial Year' means the year commencing on the 1st July and ending with the
30th June or as prescribed under rules.

(46) 'Charged Expenditure' means such expenditure as is not subject to the vote of the
Legislative Assembly.

(47) 'Demand for Grant' is a proposal made to the Assembly on the recommendation of the
Governor for appropriation of Provincial revenue to expenditure other than charged.

(48) 'Departmental Estimate' means the estimate of receipt or expenditure submitted to the
Government by the head of a department.

(49) 'Estimating Officer' is the officer who is primarily responsible for preparing the estimate of
receipt or expenditure.

(50) 'Excels Grant' means a grant passed by the Assembly to meet the expenditure which at the
close of the year is found through the appropriation accounts to have been incurred in excess of
the authorised expenditure under a grant.

(51) 'Revised Estimate' is an estimate of the probable receipt or expenditure for a financial year
framed in the course of that year with reference to the transaction already recorded and
anticipations for the remainder of the year in the light of orders already issued or contemplated or
any other relevant facts.

(52) 'Statement of Excess Expenditure' means the statement of excess expenditure over total
final appropriations under the several items in the authenticated schedule, presented to the
Assembly after the close of the year to which it relates.

(53) 'Supplementary Appropriation' means an addition to the amount included in the schedule
or in the supplementary schedule of authorized expenditure.

(54) 'Supplementary Grant' means a grant passed by the Assembly on the supplementary
statement of expenditure presented to it within the current financial year.

(55) Supplementary Schedule of Authorized Expenditure' means the schedule authenticated

by the Governor with reference to the supplementary statement of expenditure presented to
Legislative Assembly.

(56) 'Supplementary Statement of Expenditure' means the statement to be laid before the
Assembly showing the estimated amount of further expenditure necessary in respect of a
financial year over and above the expenditure authorized for that year.

(57) 'Technical Sanction' is the sanction of the competent authority to a properly detailed
estimate of the cost of work.

SECTION II- GENERAL PRINCIPLES AND RULES

RECEIPT OF GOVERNMENT MONEY (Rules 1 to 7):

5. 4 Government servants receiving moneys on behalf of the Government must give the payer a
receipt which should be signed by a responsible officer who should satisfy himself at the time that
the amount has been entered in the cash book. Receipt books in Financial Rules Form No. 1
should be used in all cases and the blank receipt books should be kept in the safe custody of the
officer who issues them.

5. 5 Where under special sanction, a Government servant deals with both the Government and
non-Government money in his official capacity, the Government money should be kept in a cash
box separate from the; non-Government money.

5. 6 Departmental receipts may ordinarily be realised by currency notes, but in certain cases
cheques payable on demand including cross cheques, remittance transfer receipts and blank
drafts may be accepted.

5. 7 Cheques received by a branch or agency of the State Bank of Pakistan in payment of

Government dues must be crossed in all cases, nd until, however, a cheque has been cleared,
final receipt will not be ranted.

5.8 Public money in the custody of the department should be kept in trong chests and secured by
two locks of different patterns. All the keys ust be kept in the same person's custody and where
there is a police guard the incharge of the guard should usually be the custodian of one set of
keys and the chest should never be opened without both custodians being present.

5.9 The officer incharge of the chest will count the cash in the hands of each cashier at least once
a month. The balance by actual count should move over and be compared with the cash book
balance and excess or deficit, if any, to be noted in the cash book and reported to the immediate
superior.

5. 10 The counting should be made on the last working day of each month immediately after
closing the cash account of the month, but where this is not possible, the cash balance may be
counted on the first working day of the following month before any disbursement is made.

RECEIPT OF NON-GOVERNMENT MONEY (Rule 7A).

5. 11 If a Government servant receives in his official capacity moneys which are not Government
dues, the deposit of which in the custody of the Government has not been authorised by the
Government, he must open an account with a bank for their deposit. No sanction of the
Accountant General, Sind is necessary to open such account and the Government servant will be
personally responsible that they are expended in strict conformity with the rules and regulations.

DEPOSIT OF CASH CHESTS AND VALUABLES IN THE TREASURY (Rules 8 and 9):

5. 12 No department may require that funds pertaining to it be received in the treasury for safe
custody and kept out of account or be received at all except under ordinary rule. (Vide Fin. R.
341).

5. 13 Cash chests or sealed bags of other department may be lodged in the treasury for safe
custody with a slip or memoranda of its contents and receipt should be obtained from the
Treasury officer. The keys of the chests or sealed bags should be kept by the depositing officer
and shall be held responsible for the contents thereof.
Cash chests of Local Boards and Municipalities may be kept in the treasury for safe custody on
the same conditions.
Cash chests or strong box of Co-operative Societies or of Co-operative Banks may at the request
of the Registrar be lodged in the treasury for safe custody on the same conditions except in case
of loss by fire, theft, fraud or any other cause whatsoever, in order to exonerate the Government.

PAYMENTS (Rules 10 to 22B):

5. 14 Drawing of money from the Treasury. Detailed procedure for the preparation of bills and the
method of obtaining money from the treasury for subsequent disbursements is laid down in the
Subsidiary Rules framed under Treasury Order No. 16 Financial Publication No. II.

5. 15 Government servants of the Forest Department draw money from the treasury by cheque
and disbursing officers of. the Public Works Department in two way viz., directly by bills or by
means of cheques. Government servants of other departments get their cash by bills on the
treasury.

5. 16 Divisional Officer in the Public Works Department being a disbursing officer of the Division
may delegate this function to his Sub-Divisional Officer in certain cases at his discretion.

5. 17 Executive Engineers, Assistant Executive Engineers, Assistant Engineers and Executive

subordinates in charge of the Sub-Division, are competent to prepare or examine the contractor's
bills without any limit.

5. 18 Executive Engineers and Sub-Divisional Officers are competent to make payments on

contractor's bills, in cash upto certain prescribed limit and by cheques upto any extent.

5. 19 In the Forest Department, Range Forest Officers are authotised to make payments for work
done or supplies made by contractors or piece-works upto a prescribed limit on a single bill. Bill in
excess of the prescribed limit should be pre-audited and passed for payment by Divisional Forest
Officers.

5. 20 Cheques. Disbursing Officers authorised to draw cheques on treasuries, sub-treasuries or

on the State Bank of Pakistan, should obtain tlieir cheque books from the Treasury Officer
concerned. Not more than one cheque book should be obtained on a simple requisition. Cheques
from cheque book obtained from a particular treasury should not be drawn on other treasuries.

5. 21 Each cheque book must be kept in safe custody of the drawing officer and in case of loss of
a cheque book, it should be notified promptly to the Treasury Officer concerned.

5. 22 As a general rule cheques should not be issued for a sum of less than the prescribed limit.

5. 23 An Officer drawing the cheques on sub-treasuries, should give prior notice to the Treasury
Officer, so that the funds may be provided as far as possible.

5. 24 In cases of Forest and Public Works Departments where funds are issued from the treasury
on cheques, the drawings are to be regulated by budget grants and appropriations.

5. 25 For petty disbursements of the Forest and the Public Works Departments, lump sum may
be drawn from the treasury by cheques.

5. 26 The prescribed monthly limit set by the Public Works or Forest Divisional Officer on the
drawings of a Sub-Divisional Officer should be entered on the reverse of the counterfoil of the
cheque book for the guidance of that treasury and the S. D. O. should be watchful not to exceed
the limit.
5. 27 In order to exercise an independent check of the postings of his cash book, the drawing
officer should record on the reverse of the counterfoil of each cheque, the amount of the next
cheque drawn and carry forward their total to the next counterfoil to maintain the total of drawings
during the month.

5. 28 In case the cheque expires owing to its not being presented for payment within three
months, it may be received back by the drawer for destruction and issue of a new cheque in lieu
thereof. The reason for destruction with the number and date of the new cheque should be
recorded on the counterfoil of the old cheque and the number and date of the old cheque should
be entered on the counterfoil of the new one.

5. 29 The cancellation of a cheque should be recorded on the counterfoil and the cheque should
be destroyed, if in the drawer's possession. If the cheque is not in the drawer's possession, he
should stop the payment at the treasury and should write back the entry in the cash book. A
cheque remaining unpaid for any reason for twelve months, should be similarly cancelled and its
amount written back.

5. 30 The cheques drawn in favour of contractors and others should be made over to them by the
disburser direct, but he may be assisted in disbursements by a cashier appointed by him.

5. 31 Payments due to contractors may be made to financing Banks instead of direct payments
provided that the contractor extends his legal authorisation and. acceptance to the Department.

5. 32 Counterfoils of the used cheque books should be returned promptly by the S. D. O. to the
Divisional Officer for record and the cheques cannot be used for the transfer of funds from one
division to another.

5. 33 In case a cheque drawn by the disbursing officer has been lost, he may instruct the treasury
officer who will stop the payment even afterwards the original cheque is presented. The
disbursing officer will enter in his account the original cheque as cancelled, and may issue
another.

5. 34 If a cheque issued by Government is honoured on presentation.The payment shall be

deemed to be made on the date the cheque is handed over to the payee or his authorised
messenger or on the date when the cover containing the cheque is posted to the payee, as the
case may be.

5. 35 Government is not held responsible for any fraud or misappropriation in respect of cheques
in payment of an officer's pay, leave salary, travelling allowance bills, etc., made over by him to a
messenger.

VOUCHERS FOR DEPARTMENTAL PAYMENTS (Rules 23 to 27):

5. 36 Each and every payment for whatever purpose, must be supported by a voucher with full
and clear particulars of the claim. A particular form of voucher applicable to the case should be
used. Supplier of stores and others should submit their bills and claims in proper departmental
forms, but if the bills are not prepared in such forms they should not be rejected if they are
provided with necessary details of the claim.

5. 37 Except as provided in Rule 19A, every voucher should bear an acknowledgment duly
signed by the payee, otherwise no payment will be made.
5. 38 When the payee signs the voucher, he should note the amount acknowledged in his own
handwriting, which should be reproduced in English.

5. 39 The disbursing officer is responsible that the full name of the work or the name of
component part or the head of account, to which the charges admitted on a voucher are debitable
or to which the deductions or other credits shown in the voucher are creditable, is clearly
indicated on it.

5. 40 Payments to suppliers of stores of amount of less than the prescribed limit under rules, may
be made by postal order at the public expense, where the Remittance Transfer Receipts cannot
be issued by the Treasury Officers.

PERMANENT ADVANCE OR IMPREST ACCOUNT (Rules 28 to 29A):

5. 41 Advances are granted to Government servants who have to meet certain essential
expenditure, fixed by the competent authorities in consultation with the Accountant General, Sind.

5. 42 An imprest is a standing advance of a fixed sum of money given by the Divisional Officer or
the S. D. O. to an individual in the Public Works Department, which should not exceed the limit as
prescribed by the authorities.

5. 43 The holders of permanent advance or an imprest, is responsible for the safe custody of the
money and he must be ready to produce the total of the money in vouchers or in cash.

5. 44 In case of transfer of charges and also at the end of every year, officer having permanent
advance must send an acknowledgment to the Comptroller/Accountant General, Sind, under
Financial Rule 28.

5. 45 Application for the grant or revision of imprest must be submitted to the sanctioning
authority through the Comptroller/Accountant General, Sind.

5. 46 A subordinate officer of the Forest Department who is not authorised to draw cheques, may
be given a cash advance to enable him to make the disbursements entrusted to his charge.

RULES REGARDING ADVANCES FOR TRAVELLING EXPENSES TO

NON-GAZETTED POLICE OFFICERS (Rule 29A):

5. 47 Travelling allowance is admissible under the Sind C. S. R. to all the non-gazetted police
officers, travelling by road or train.

5. 48 Advances may be made by S. P. out of his permanent advance to a non-gazetted police

officer for payment of his railway fare or expenses by road according to the rales stated in the
Sind C. S. R. 414 or rule 2 of Appendix XX to the Sind C. S. R. or as prescribed by the competent
authority from time to time.

5. 49 Heads of Police Offices may draw advances for travelling expenses on tour under Financial
Rule 299 (c) for their non-gazetted police subordinates. Such advances shall be treated as final
charges, which shall be passed by travelling allowance bills from which the amount advauced will
be deducted.

5. 50 District Police Superintendent may at his discretion, grant advances to his Head Constable
and Constables, when suddenly ordered to proceed from their head-quarters upto the maximum
limit of one month's pay, which should be recovered by adjustment with the travelling allowance
due for the journey.

CLAIMS TO ARREARS ON INCREASES OF PAY OR ALLOWANCES (Rule 30) : -

5. 51 No claim, not preferred within the prescribed limit of six month's time, can be paid with out
the sanction of the Comptroller/Accountant General, Sind, but this condition does not apply to
payments made by the Forest disbursing officers nor does it apply to the payment of claims on
account of pension which are governed by special rules.

5. 52 Where no special orders exist, it will be left to the Treasury Officer, when he feels no doubt
to make arrear payments without pre-audit, but all claims in arrear require special care in
examination and the Treasury Officer may or may not send such bill for pre-audit to the
Accountant General, Sind.

5-53 The reason for delay must be stated in the bill, if the claims are more than three months old
or as prescribed under rules.

5. 54 Such claim will again require the sanction of the A. G., Sind, if it is presented for payment on
six months or more after the date of preaudit.

5. 55 A claim for an amount of fine deducted on pay bills by the head of an office, and remitted by
him, may, if the claim is not six months old, be paid without the sanction of the A. G., Sind.

5. 56 The above mentioned rules do not apply to claims for refund of revenue.

5. 57 Claims of Govt. servants, to arrears of pay or allowances, or to increments put in obeyance.

exceeding one year cannot be investigated by the Comptroller/A. G., Sind, except under special
orders by the competent authority..

CLAIMS AGAINST GOVERNMENT BARRED BY TIME (Rule 30A)

5. 58 A claim against Government which is barred by time under any provisions of law is to be
refused except with the sanction of the Government under Financial Rule 30 or under rule 8 (b) of
the Civil Account Code, Vol. I. Audit will refuse payment of all claims found to be time-barred until
the sanction of Government has been obtained thereof.

ISSUES OF DUPLICATES OR COPIES OF DOCUMENTS (Rule 31):

5. 59 No Govt. servants may issue duplicates or copies of receipts, bills or other documents for
the payment of money already paid, on the plea that originals have been lost. In case of any
necessity, a certificate in this connection may be given. This prohibition does not apply to cases in
which duplicates are prepared and tendered with the originals under any provision of the rules-In
case the original bill or voucher is lost before payment at a treasury the respective officer should
ascertain that the payment has not been made, before the issuance of duplicate which should be
distinctly marked "duplicate" in red ink. (See Fin. Rule 339).

RESPONSIBILITY FOR OVERCHARGES (Rule 32).

5. 60 A drawer of bills for pay or allowances, etc., will be held respossible for any overcharge, and
responsibility of countersigning officers will be that of controlling officers and the Treasury Officer
who makes such payment without pre-audit will be held for checking any palpable errors, and is
also required to examine the accuracy of the arithmetical computations in a bill. So, the primary
responsibility will be that of the drawer of the bill and failing recovery from him, the overcharge will
be recovered from the Treasury Officer or the Countersigning Officer, only in the case of culpable
negligence on the part of either of them.

AUDIT OBJECTIONS (Rule 33):

5. 61 Every Government servant should attend promptly to all the objections and orders
communicated to him by the Comptroller/Accountant General and reply to objections within a
fortnight. In the case of Forest Department, the objection statement should be returned in original
with-in a week, and some of the objections are still under reference is no reason for keeping back
the statement.

CASH BOOK (Rules 34 to 37):

5. 62 A single cash book should be kept as in Fin. Rule Form No. 2 in all departments except in
Forest and Public Works Departments, where for recording, separate columns for all moneys
received by Govt. servants in their official capacity and their subsequent remittance to the
treasury or to the bank, or money withdrawn from the treasury of the bank by bills or cheques and
their subsequent disbursement, are maintained.

5. 63 The cash book should be closed and balanced each day, and the balance of each column at
the end of the month should be verified with the balance of cash in hand and a certificate to that
effect recorded in the cash book under the signature of the D. D. O. or of any Government
servant responsible for the money.

5. 64 An erasure or overwriting of any entry once made in the cash book is strictly prohibited. If a
mistake is discovered, it should be corrected by drawing the pen through the incorrect entry and
inserting the correct one in red ink between the lines. The D. D. O. or the head of office should
initial every such correction with date.

5. 65 The D. D. O. or the head of office, making the payments in the treasuries or the Bank
should compare the Treasury Officer's or the Bank's receipt on the Challan or his Passbook, with
the entry in Cash Book before attestation. At the end of each month he should obtain from the
treasury or the Bank a consolidated receipt for all remittances which should be compared with the
postings in the Cash Book.

5. 66 Cash Book of the Forest Department. All revenues and expenditure must be recorded at
once and the adjustments must be made between the different divisions when revenue is
collected or expenditure incurred in one division on account of another. Inter-divisional adjustment
should also be made in case of advance of pay, travelling allowance, etc., made to Government
servants on transfer from one division to another, which should be on monthly basis. Such bills
are paid by the Divisional Officer and not at the treasury.

5. 67 Earnest Money Deposits. -Contractors should pay the earnest money direct into the
treasury or sub-treasury and the Treasury Officer should be authorised by the Departmental
Officer concerned for the repayments. Same procedure should be followed in Police Department
in case of deposits and in case of Government Promissory Notes as security. It should be dealt
with in accordance with the rules in Chapter VIII of the Government Security Manual.

5. 68 Contrary to the above procedure, the earnest money of tenders tendered from outside the
Province of Sind, received by the Director of Public Instructions for the printing and publication of
Departmental Books, should be paid in the treasury for credit to Revenue Deposits.

When it is impossible for the contractors to pay the earnest-money into the treasury and the
amount is received by the officer of the Public Works Department and returned on the same day
as the tenders are opened, it need not be passed by the Divisional Officer through the Divisional
Accountant.

Claims on behalf of the deceased contractors regarding earnest money should be dealt with in
the manner prescribed in Financial Rule 52 (b), except that indemnity bonds as prescribed in
Appendix I, should be taken in all cases before payment is made.

FINANCIAL CONTROL OVER DEPARTMENTAL ACCOUNTS (Rules 38 and 39):

5. 69 The Chief Conservator of Forests exercises a strict control over conservancy and work and
charges of travelling and contingencies, and is also furnished monthly by the Divisional Officer
with duplicate copies of the Abstracts of Receipts and Expenditure, submitted to audit.

5. 70 The Chief Conservator of Forests also required to control the adjustment of advances and
for this purpose the monthly abstracts of the contractors, and disbursers, ledger should be
submitted to the audit by the Divisional Officer through the Chief Conservator. He should see that
the accounts returns are submitted to the A. G., Sind regularly by the Divisional Officers. He can
delegate all Or any portion of his powers to the Gazetted Government Servant in the respective
office regarding the control of accounts.

He should sign personally the letters of sanctioning expenditure and appointments and may
delegate the powers to a Gazetted Officer but not to head clerk or any other office employee.

5. 71 The Chief Engineer, Public Works Department should extend full support and cooperation
to Accountant General, Sind, in enforcing strict attention to the regulations concerning
disbursement of money, the custody of stores and submission of accounts, etc. and in case of
any financial irregulariiy, the Finance Department should be consulted.

The Superintending Engineer is responsible for the maintenance of prescribed system of

accounts through-out his circle. He should see the Divisional Officers submit their accounts
regularly to the A. G, Sind, examine the books of accounts of Executive Engineers and their
subordinates, examine the registers of works according to the sanctioned estimate.

SECURITY DEPOSITS (Rule 40)

5. 72 Cashiers, Store-keepers and other Government servants entrusted with the collection or
custody of cash, stores, stamps or any other property may be required to furnish security, the
amount being regulated according to the circumstances and local conditions in each case, as
prescribed by the competent authority.

5. 73 The security may either be, by execution of personal security bond with two surities in the
prescribed Form in Appendix I-B, or fidelity guarantee policies in the form prescribed in Appendix
I-II, which should be from a company approved by the Government, or in the form of cash, either
in lump sum in the form prescribed in Appendix I-D or by monthly deductions from pay in the form
prescribed in Appendix I-E. Government Securities, Post Office Cash Certificates or Deposits in
Post Office Saving Bank may be accepted as cash security in lieu of cash.

DESTRUCTION OF ACCOUNTS RECORDS (Rule 40A):

5. 74 The detailed procedure for the destruction of Accounts records is prescribed in Appendix-16
in Sind Financial Rules, Vol. II on Page No. 71.

GENERAL RULE FOR PAYMENT AGAINST GRANTS (Rule 40A):

5. 75 Expenditure can be incurrred on a work or any other object, if the sanction of competent
authority has been obtained; if the funds to cover the charges during the year have been provided
by competent authority; or if no breach of any of the canons of financial propriety is involved.

Note. Canons of Financial Propriety have been laid down under the heading "Definitions",
paragraph 5. 3.

RESPONSIBILITY FOR LOSSES SUSTAINED BY GOVT THROUGH

FRAUD, NEGLIGENCE OF GOVT. SERVANTS (Rule 40B):

5. 76 General Rules for the enforcement of responsibility for losses sustained by Government
through fraud or negligence of Government servants are contained in Appendix 18-A in the Sind
Financial Rules, Vol. II, on Page No. 93.

MEASURES TO PREVENT EMBEZZLEMENTS (Rule 40C)

5. 77 In order to eliminate or minimise the risk of embezzlements, the head of office should adopt
preventive measures at his discretion. He may send a peon to cash the bills of establishments or
send money with him for crediting it into the Treasury or for any other purpose, but the work is to
be entrusted to a trustworthy peon of a long service. When the heavy amount in the opinion of the
head of office, is involved, arrangements should be made to send two persons.

SECTION III-REVENUE RECEIPTS AND THEIR CHECK

REVENUE RECEIPTS (Rules 41 and 41A):

5. 78 The head of office should ascertain that all the sums due to Government are regularly
received and paid into the Treasury and the figures should be checked and compaired with the
figures in the statements supplied by the Comptroller or the Accountant General as the case may
be. In case of any wrong credits or any credits are claimed, correction should be made
accordingly with information to the Accountant General, Sind.

5. 79 Treasury Officer's receipt on the Challan should be compared with the entry in the Cash
Book and a monthly list of payments issued by the Treasury should be compared with the posting
in the cash book.

REVENUE RECEIPTS OF THE PUBLIC WORKS DEPARTMENT (Rule 42):

5. 80 Divisionsi Officers of the Public Works Department are responsible for the prompt
realisation of all revenues and that proper records are kept in this connection, and no debt should
be remitted or written off except under the orders of competent authority.

IRRIGATION REVENUE COLLECTED IN THE CIVIL DEPARTMENTS (Rules 43 and 44): -

5. 81 When revenue from irrigation and navigation works is realised in the Civil Departments the
Divisional Officers should receive from the Collectors monthly statements of the amounts realised
in order to watch the progress of recovery and he should submit a half-yearly detailed statement
comprising monthly realisations as compared with assessments to the Accountant General, Sind.

RECOVERIES OF RENTS ON BUILDINGS AND LANDS (Rules 45 to 50)

5. 82 Where a bungalow, flat or other building or land belonging to Government is let to a person
not in Government service, full rent should be recovered in advance, provided that in case the
property if remaining vacant is likely to fall or is likely to remain vacant resulting loss of revenue,
the condition of advance rent may be relaxed and the rent may be allowed to be paid at the end
of each month.

5. 83 The question of taking deposit and fixing the amount shall be at the discretion of the
concerned authority in the form of promissory notes or postal cash certificates or a sum of money
at the tenant's option.

5. 84 The tenant should execute a tenancy agreement or lease with (he Governor of Sind in
Appendix I-C. The arrears shall be recovered as arrear of land revenue, and all costs and
expenses in preparation and execution of the lease, shall be paid by the lessee.

5.85 In case, the lessee is a Government servant, the recovery of rents should be deducted from
his pay bills through the Treasury Officer or other disbursing officer concerned.

5.86 In case, a lessee is a Government pensioner, he should be treated as private individual, but
if he desires to make such payments by deduction from his pension, he may submit written
request authorising such deduction.

5. 87 A bill should be sent to the tenant on or before the last day of each month, if the rent is
recoverable in cash, which will be paid before the expiry of the following month.

5.88 In case, the recoveries of rent are to be effected from a Gazetted Officer, a demand in
statement of rent recoverable, should be sent in duplicate to the Treasury Officer and in the case
of non-gazetted Government servant, to the Drawing Officer, in Public Works Account Form No.
48 or in Sind Financial Rules Form No. 3.

5. 89 The amount due on Government servant may be recovered, incase he vacates the quarter,
before his departure on transfer, leave or retirement.

5.90 Pending decision on a representation against the officer assessing the rent, the amount
assessed must be paid by the tenants, and in case the representation prove successful, the
excess amount charged should be adjusted in the subsequent monthly rent or by an actual
repayment.

RECOVERIES OF FINES (Rule 50A):

5.91 The responsibility of checking the monthly return of receipts and remittances of all lines
transmitted by every Court having the power to fine, lies on the Accountant General.
Compensation fines due to an injured party will be excluded from the return.

Collective return collected from every Court of the district, must be based on the records or
accounts of the Courts and not on those of treasury, though it should be compared with the
treasury figures.

SECTION IV- GENERAL RULES FOR PAY AND

ALLOWANCES
 DUE DATE (Rule 51):

5. 92 Pay bills payable at Provincial Head Quarters and those payable at Distt. Treasury may be
signed and presented for payment, five and four days respectively before the last working day of
the month.

5. 93 Separate bills must be presented for pay and/or pension and be paid before the end of the
month, in case a Government servant proceeds out of Pakistan on deputation or on leave or on
vacation; when a Government servant is transferred to another or the same audit circle, from one
department to another, from the Public Works Division to another, from one district to another,
from one Forest Division to another; when a Government servant finally quits the service or is
transferred to Foreign service; and when a pensioner is allowed to commute a part of his pension.

Note. -Rules regarding the preparation last pay certificates and the circumstances in which they
are to be granted are given in subsidiary rules 113 to 114 below Treasury Order 22.

PAY AND ALLOWANCES OR PENSION ON DEATH OF THE PAYEE (Rule 52):

5.94 Pay and allowances or pension can be drawn for the day of a payee's death.

Pay and allowances claimed on behalf of a deceased Government servant may be paid without
the production of usual legal authority to the extent of certain prescribed amount and in excess
thereof payment should be made on execution of an indemnity bond prescribed in the Sind
Financial Rules, Vol. II, Form No. 3A.

BOND OF INDEMNITY FOR DRAWING LEAVE SALARIES, ETC. (Rule 53):

5.95 Government servants should appoint their agents to draw their leave salaries, vacation pay
or pensions either by granting them powers of attorney or leaving their bills duly signed in the
agent's custody and in return thereof the agents shall give a bond of indemnity duly stamped in
the prescribed form in Appendix I, as security in case of overpayment.

SECTION V - CLAIMS ON THE TREASURY

BILLS OF GAZETTED GOVERNMENT SERVANTS (Rules 54 to 58):

5. 96 Pay and allowances may be paid only upon the personal claim of the Gazetted Government
servant concerned and to his personal receipt or at his written request, the pay bill may be made
payable to a banker or agent.

TRANSFER OF CHARGE (Rule 58):

5.97 Every transfer of charge of a Gazetted Government servant should be reported by post on
the same day to the Accountant General, Sind.

5.98 The Cash book should be closed on the date of transfer and a note recorded in it over the
signature of both the relieved and the relieving officers, showing the cash and imprest or
permanent advance balances and the number of unused cheques, if any, made over and
received in transfer by them respectively.

5. 99 The relieving officer while reporting that the transfer has been completed, should also report
anything irregular or objectionable, that may come to his notice. He should examine the accounts,
count the cash, inspect the stores, etc. etc.: to test the accuracy of the returns.

5. 100 In case of any sodden emergency, the next senior officer will take the charge. When the
person taking the charge is not a gazetted officer, he mutt at once report the circumstances to his
nearest departmental superior and obtain orders as to the cash in hand, if any.

SPECIAL RULES FOR TRANSFER OF CHARGE IN PUBLIC WORKS

DEPARTMENT (Rules 60 to 67A):

5.101 The relieving officer will take up the expenditure of cash and stores on the first day of the
month and submit the next monthly accounts in the manner as if he has been incharge of the
whole month, but the relieved officer remains responsible for the transactions during his
incumbency.

5. 102 The relieving officer will be held responsible, if he fails to bring to notice within a
reasonable time, any deficiency or defect in the work or stores taken over from the relieved.

5. 103 The cash book or imprest account will be closed on transfers of divisional and sub-
divisional charges and both the relieving and relieved officers will sign a certificate, to be
forwarded to the next higher authority alongwith the documents of transfer report in Form No. 146
and receipts of stock, tools and plant and a detailed report in P. W. D. Form No. 42-E.

5. 104 The relieving officer should alongwith the relieved officer, inspect the records, cash stores,
works and material at site of work.

He should also examine the accounts, count the cash, inspect the the stores, etc. to test the
accuracy of the returns, and should also examine the works in progress in accordance with the
sanctioned plans and estimates.

5.105 The relieved officer should furnish, a complete statement of unadjusted claims with the
reasons of not having adjusted, to the relieving officer.

5.106 The relieving officer while reporting that the transfer has been completed should also bring
to notice anything irregular or objectionable.

5. 107 The relieving divisional officer should also mention specially in his transfer report whether
the accounts may be considered fairly to represent the progress of the works

5. 108 Except in the case of divisions and the sub-divisioni, the Executive Engineer should issue
directions as to the works to be jointly inspected by the relieved and relieving officers.

5. 109 A Government servant entitled to passage concession, when desiring to obtain, shall apply
to the Comptroller or the Accountant-General, Sind.

SECTION VI - ESTABLISHMENTS

REVISION OF ESTABLISHMENT (Rule 68):

5. 110 When a new establishment or a change is proposed in the office, a letter fully explaining
the reasons thereof should be submitted to the authority concerned with the information about the
present cost, the cost after revision and the details of the posts proposed.
5. 111 The cases of revision of establishment, proposals which cannot be set aside, schemes
which require the sanction of the President, should be submitted in Civil Account Code Form No.
5 or Sind Fin. R. Form No. 4.

PREPARATION OF PAY BILLS AND DISTRIBUTION OF PAY (Rules 68A and 68B):

5. 112 Rules for the preparation of pay bills are detailed in Subsidiary Rules 36 to 44 below
Treasury Order 16, Financial Publication No. II, Govt. of Sind.

5. 113 The head of an office is responsible for the distribution of pay to the persons entitled and
obtain receipts duly stamped on the office copy of the pay bill. He is neither at liberty to readjust
the pay of one person to another nor can he distribute the pay of an absentee.

SPECIAL RULES FOR THE PAYMENT OF BILLS IN PUBLIC WORKS DEPARTMENT

(Rules 69 and 70):

5. 114 Allowances of subordinates posted out of way places may be remitted to them by postal
money order at Government cost. Advance on transfer may be paid from the permanent advance,
work imprest or other available cash in hand, pending recoupments in order to avoid delay of
transfer in the public interest.

SPECIAL RULES FOR PAYMENT OF BILLS IN FOREST DEPARTMENT

(Rules 71 to 73):

5. 115 General rules regarding pay and T. A. bills of Civil Departments apply to this Department
with the exception that Divisional Officers discharge the functions of Treasury Officers and make
the payment by cheques or out of cash obtained from the Treasury by cheques.

5.116 All changes in the personnel of a circle and the grant of all leave to subordinates should be
sanctioned and intimated to the Principal Auditor in Fin. Rule Forms Nos. 6 and 7, a separate list
being prepared for each class of temporary and permanent establishment.

5.117 Pay and T. A. due to a Government servant on transfer not paid on his departure, should be
paid from and charged against the appropriation of the Division where he has been transferred.

RECOVERIES FROM ESTABLISHMENT BILLS (Rules 74 to 75F):

5.118 Fines imposed on non-gazetted Government servants arc recovered by stoppage from pay
and consequent short drawings from the treasury.

5.119 Recoveries of security deposits should be made in cash at the time of disbursement of pay
and the amount recovered should be remitted Accordingly.

5.120 When the pay of a Government servant is attached for debt by the order of a Court of Law,
proper deduction from his pay must be made by the officer concerned receiving such order, with
the exemption of attachment of all kinds of allowances other than pay, such as T. A.,
conveyance,uniforms, rations, higher cost of living and house-rent, etc., as declared by the
Government of Sind, under clause (i) of the proviso to sub-section (1) of section 60 of the Code of
Civil Procedure, 1908. The provident fund and the Government debts should be made non-
attachable portion.

The drawing and disbursing officer while making recoveries from pay of a Government servant
in compliance with attachment orders issued by Courts, shall be regulated in accordance with the
rules contained in rule 48 of Order XXI in the First Schedule to the Civil Procedure Code, 1908,
as amended by the Civil Procedure Code (Amendment) Act, 1939 (XXVI of 1939), as adapted in
Pakistan, and accordingly, only the net amount after deducting the amount recoverable under
attachment order shall be disbursed to a Government servant concerned; and in case the
attachment order is issued when a Government servant is on leave out of Pakistan, the
appropriate authority such as Accountant General will be held responsible for drawing the amount
recoverable; in case the debtor does not sign the acquittance roll and intentionally allows his pay
remain undisbursed in order to evade payment of attachment, the head of the department may
draw the pay of judgement debtor in satisfaction of the attachment order subject to the prescribed
restrictions and remit the amount to the Court concerned; and the amount so drawn shall be
treated in the accounts in the same way as leave salary or pay and the particulars of attachment
order should be cited in the pay bill as an authority and the Court's receipt of the amount shall be
filed with the attachment register or other suitable record kept by the drawing officer.

5.121 Deductions from pay bills on account of income-tax shall be made strictly in accordance
with the relevant provisions of the Income-Tax Ordinance, 1979 (XXXI of 1979), as modified from
time to time and the Income Tax Rules, 1982.

CUSTODY OF UNDISBURSED PAY (Rules 76 to 77):

5. 122 If at the time of disbursement of pay, the payee does not present himself before the end of
the month, the amount drawn ordinarily be refunded by short drawal in the next bill or at the
option of the disbursing officer who may retain for a period not exceeding three months. Pay must
not be placed in deposit. Such account may be mentioned in a subsidiary register vide Fin. Rule
34.

5. 123 Undisbursed balances of cash obtained by Public Works Disbursing Officers, may be kept
in departmental cash chests, but they must not be mixed up with regular cash balances.

ANNUAL RETURNS OF ESTABLISHMENTS (Rule 77A):

5.124 In July in each year, a detailed statement of the permanent establishment existing on the
1st July will be prepared in the prescribed form as contained in Appendix 21 of Sind Fin. Rules, to
be submitted to the A. G., Sind as soon as possible but not later than 15th of July.

SECTION VII - CONTINGENCIES

DEFINITION (Rule 78):

5.125 Contingencies are of two kinds, one is called "Supplies and Services" which should be
held to comprise charges which are incurred for the technical working of the department
concerned, which represent the main and proper activities of the departments, such as purchase
of essential apparatus, stores, books or exhibits for Museum, etc., while the other is called
contingencies comprising those charges which are incidental to the management of an office,
such as purchase of ordinary books, periodicals or stationery, etc., to be used in the same office
to which the officer incurring them belongs.

CLASSIFICATION (Rules 79 to 81):

5.126 The rules in this section apply to "Contingencies" and "Other Expenditure" except in so far
as it may be governed by any special rules prescribed for the purpose.
5.127 Contingent charges incurred on public services are generally divided into the following
classifications:

(a) "Contract contingent charges" for which a lump sum is allotted annually by Government for
incurring the expenditure for incidences.

(b) "Charges regulated by scales" such as rewards for destruction of wild animals, etc.

(c) "Special contingencies" i. e. charges which cannot be incurred without the previous sanction
of superior authority, whether recurring or non-recurring.

(d) "Contingencies of Heads of Departments" means the charges passed on fully vouchered bills
which do not require counter-signature, and which maybe incurred by the head of office on his
authority.

(e) All other contingent charges which cannot be dealt with as stated above must be dealt with as
"Counter-signed contingencies" which are controlled and reviewed by Heads of Offices need
counter-signature after payment on a monthly bill submitted to the Audit Office.

GENERAL RULES (Rules 82 to 86):

5.128 A drawing and disbursing officer is allowed to draw money from the treasury for contingent
expenses incurred on the public service from the amount allotted to him in his budget estimate.
For ordinary expenses prior sanction is not necessary.

No pay and any additions to pay are charged at contingent expenditure. Fixed allowances should
be drawn alongwith pay.

5.129 The following charges may be treated as contingent expenditure:

(a) Hot weather establishment.

(b) Coolies engaged in the Civil Department on manual labour and paid daily or monthly wages.

(c) Temporary Field Establishments on Surveys and Settlements.

(d) Sweepers in the Civil Departments, whether whole time servants or not.

(e) Extra shroffs or potdars engaged to deal with heavy receipt;; or to accompany remittances.

(f) At the discretion of Government such other classes of inferior servants in the Public Works
Department for the maintenance of plantations.

Contingent charges are to be recorded and treated in the accounts as charges of the month in
which they are actually disbursed from the treasury.

5.130 No charge which binds Government beyond a single payment may be incurred without the
sanction of the competent authority which are called recurring contingencies. The sanction of the
Government is not required to the payment of Municipal or Cantonment taxes.

RESPONSIBILITY OF DRAWING OFFICER (Rule 88):

5.131 Every Government Officer is expected to exercise the same vigilance in respect of petty
contingent expenditure, as a man of ordinary prudence would exercise in spending his own
money. The drawing officer should see that the rules regarding the preparation of contingent bills
are observed and only that amount is drawn which is required for immediate disbursement or has
already been paid from the permanent advance. He should also see that the expenditure is within
the sanctioned budget and if it is exceeded or is likely to exceed, he should take prompt steps to
obtain additional appropriation. In regard to the Contract Contingencies he should see that
expenditure is not in excess of the contract grant.

RESPONSIBILITY OF CONTROLLING AUTHORITY (Rules 89 & 103 to 105):

5.132 The countersigning or controlling authority should see that the expenditure incurred was of
obvious necessity, the rates were fair and reasonable, requisite sanctions had been obtained,
arithmetical calculations were correct and the expenditure was within the appropriation. If he felt
that the expenditure was increasing too rapidly, he should intimate the fact to the drawing officer
and insist on its being checked.

RESPONSIBILITY OF D. D. Os. (Rales 103 to 106):

5.133 Payment should be made out of regular cash or imprest balances and not out of
undisbursed balances of establishment charges and the cash obtained for contingent charges
should not be mixed up with the balances of cash obtained for the other purposes.

5.134 The sub-vouchers should not be destroyed before three years. If the local audit has not
conducted, the audit, these should be retained even beyond three years. The vouchers which are
not required to be submitted to the Accountant General should be cancelled by rubber stamp
initialled by the drawing officer.

5.135 A register of Contingent expenditure should be maintained in the prescribed manner

according to the various columns regarding detailed objects which may be modified to suit the
requirements of each department or office. Entries should be made in the contingent register with
date, name of payee, the number of voucher or sub-voucher and the amount paid. Every entry
should be initialled.

5.136 Whenever money is required for contingent. expenditure separate bills may be prepared
for each kind of contingent expenditure and the entries of the bills should be compared with those
of contingent register.

5.137 In case of payment for rewards to the informers or in other such cases, where the names
of payees cannot be disclosed due to public reasons, the D. D. O. should record a certificate in
his own hand writing that the payment has been, duly made which will be submitted to the A. G. in
lieu of payee's receipt.

SERVICE POSTAGE STAMPS (Rule 87):

5.138 For the purposes of obtaining service postage stamps, and adjusting their value, a bill
should be prepared in the prescribed form which should contain acknowledgement of the drawing
officer for the receipt of the stamps intended for and will be treated in the same way as contingent
bill for drawing cash from the treasury. Then the bill will be passed for payment by transfer by the
Accountant General. Then it should be presented to the treasury, where the stamps will be issued
and the amount will be entered in the list of the payment crediting the value of the stamps in the
same manner as if the cash was realised.
 ___________

SECTION VIII-MISCELLANEOUS CHARGES

REFUND (Rules 107 to 109):

5.139 The sanction for refunds of revenue is regulated by the orders in the Manual of Financial
Powers and the sanction may either be given on the voucher itself, or quoted on it, a certified
copy being attached.

5.140 Refunds of revenue should not be included in the Schedule of demands for grants under
the corresponding expenditure heads submitted to the Legislative Assembly.

5.141 The superintendent of stamps should check the amount of spoilt stamps and refund of
Judicial Stamps is allowed by Courts. Spoiltstamps are attached to the vouchers in support of
refunds allowed by the treasury.

For refund of Judicial Stamps, payment should be made on the certificate of the Court and the
receipt of the party being taken on the certificate, which is treated to be a voucher.

These vouchers should be lent for verification to the superintendent of Stamps, who will
forward to the Accountant General, Sind.

5.142 Before the refund of any kind is allowed the original demand or realisation should be
traced and reference thereof should be recorded against the original entry in the cash book to
avoid any erroneous claim. Any acknowledgement previously granted should be taken back or
destroyed.

COMPENSATION FOR LAND (Rule 110):

5.143 The procedure to be observed for the payment of compensation for land taken up for
public purposes under the Land Acquisition Act, 1894, has been detailed in Appendix 5 in the
Sind Financial Rules, Vol. 1, on page No. 37.

ACQUISITION OF LAND BY PRIVATE NEGOTIATIONS (Rule 111):

5.144 In the case of land acquired by private negotiations, the officer who settles the price
should draw up Form A in Appendix 5 prescribed for use in the case of award, and this should be
made the basis for the subsequent payments.

LAW CHARGES IN CIVIL SUITS (Rule IIIA-(iv) ):

5.145 Law charges incurred in connection with the execution of Government works may be
divided and classified into 3 categories: -

(1) The amount of claims for which a decree is given, is called decretal amount of claim to be
debited in all cases to the works concerned.

(2) The amount of incidental law charges incurred by the executing department in connection with
the work financed from its own departmental heads of expenditure and these charges should be
debited to the sub-head "Establishment Contingencies of the executing department.
(3) The amount of incidental law charges incurred by the executing department when acting as an
agent in connection with a work financed from a different heads of expenditure, and these
charges should be borne by the department on whose behalf the wort is undertaken.

SECTION IX-STORES

GENERAL RULES (Rule 112 to 113):

5.146 The Public Works Department and certain other departments of Government, viz., Jails,
Agriculture, etc. obtain large quantities of stores for works and manufactures, etc. The,
departmental officers entrusted with the care, use or consumption of the stores are responsible
for maintaining correct records and correct returns. They are responsible for keeping the stores in
proper custody and in good order. Any loss or damage to the Government stores should be
reported immediately to the immediate authority for necessary action.

5.147 Receipt of Stores. -All materials should be examined, counted, measured or weighed, as
the case may be, by the responsible Government servant, while taking the delivery, and will give
a certificate or receipt thereof.

5.148 Issue of Stores. The materials are issued by a Government servant incharge of the stores,
who should see that an indent in P. W. D. Account Form No. 7 or in Sind Fin. Rules Form No. 10,
has been made by an authorised person. When the materials are issued according to
specification, a written acknowledgement should be obtained.

STOCK ACCOUNTS (Rules 115 and 116):

5.149 The Accounts are of two kinds.

Quantity Accounts. All Quantities received in or issued from stores should be entered in the
Stock Accounts under the respective heads with date and place and balances should correspond
to the quantities in the stock at the close of each month is called "Quantity Accounts".

Value Accounts. The "Value Accounts" should show the money value of the materials
received in or issued from stock. The value of all materials obtained from different sources should
be entered on the payment side. Receipt side should show the value of materials issued from
time to time estimating the original price, cost of carriage, losses from depreciation or wastage,
cost of stores, godown and other similar charges under Sind Financial Rule 134, but the total
value calculated thereof must not exceed the market value. General valuation should be made of
the stock in hand on yearly basis. The difference between the payment and receipt will show
profit and loss.

5.150 Stock Taking. The balance in stock should be examined yearly to see whether the balance
in hand corresponds the quantities and the value. Any discrepancy discovered in the process of
verification should be explained and set right under the order of the competent authority.

CHAPTER X-SPECIAL RULES FOR THE PUBLIC

WORKS DEPARTMENT STORES

GENERAL (Rules 117 to 110):

5.151 The stores of P. W. D. are divided into four classes, i. e., stock or general stores, Tools
and Plant, Road metal and Materials charged direct works, and the incharge of the sub-division
will be responsible for all the stores thereof.

5.152 The Divisional Officer is responsible for proper arrangements of the property, to keep all
tools and implements in efficient order, must protect surplus stock from deterioration and must
take proper precautions to prevent the loss of public stores by fire, etc., throughout his division.

5.153 Any Government Officer available is bound to take charge of departmental stores which,
from the death or departure of a person incharge or from any other cause, may be left without
adequate protection.

ACQUISITION OF STORES (Rules 120 to 124):

5.154 Stores other than Tools and Plant. Stock, road metal and other materials (other than Tools
and Plant) may be procured on the responsibility of the Divisional Officer, and in case of stock in
large quantities the approval of Executive Engineer should be obtained. Where the materials are
to be manufactured, separate estimate for their preparation may be required under Rule 123.

5.155 Tools and plant. The articles under the head "Tools and plant" can be purchased or
manufactured on estimates sanctioned by the competent authority upto certain prescribed limit of
amount.

5.156 The general rules for the supply of articles required for public service will be found in detail
in the Stores Rules in Appendix 2, where the restrictions imposed therein do not apply to
purchases made by Port Trusts, Municipality or local funds, except where the stores purchased
are paid from the Government revenue, where the restrictions do apply.

When the P. W. D. Officer carries out a work for local bodies, the Stores Rules shall apply,
except when the stores are purchased otherwise with the approval of Government.

5.157 Incase, the material is for a work already sanctioned or for reserve stock, the estimate will
require the approval of the Superintending Engineer, otherwise the estimate must be duly
sanctioned by competent authority, as though for an original work.

RESERVE OF STOCK (Rules 125 to 126A):

5.158 Reserve stock will only be maintained in case of remoteness of the division or works from
the market of source of supply or for use in emergency, upto the maximum limit fixed by the Chief
Engineer. The stock returns of the divisions should be carefully scrutinised by S. E., and Stock
Accounts should be kept in 'accordance with the prescribed rules.

QUANTITY ACCOUNTS (Rules 127 to 131):

5.159 Receipts. Materials may be received on stock, from suppliers. Stores Department, other
sub divisions, divisions or departments including Government Workshops, Manufacture, works
and buildings, etc. In all eases there should be proper authority for the receipt by the receiving
officer. Authority should be given in writing by the Divisional Officer or Sub-Divisional Officer, if so
authorised,

5.160 All materials received should be examined, counted or measured as she case may be, and
the record thereof should be kept in the Measurement Book or in the Stock Account. Receiving
officer may extend acknowledgement to a supplier.
5.161 Issues. Materials may be issued from stock, for use on works under Fin. Rule 230, for
despatch to other sub-divisions, divisions or departments and for sale to contractors, employees,
or other persons or local bodies.

Materials should be issued only on receipt of an indent in P. W. D. Accounts Form No. 7 or Fin.
Rule Form No. 10, signed by the Divisional or Sub-Divisional Officer.

But when an officer has been authorised to draw such materials from hit stock upto any assigned
limit for the requirements of works, the above-stated procedure is not obligatory.

5.162 If the issuing officer is unable to comply the indent in full, he should make suitable
alteration under his dated initials in the description and quantities of materials. He should then
prepare and sign the form of invoice according to the actual supply and should record in the
Stock Account.

5.163 Ordinarily all transactions of receipts and issues should be recorded strictly in accordance
with the prescribed rules, except the issues of petty stores by an officer of lower rank, where the
works maybe shown in the accounts collectively at the time of closing the accounts of the month.

VALUE ACCOUNTS (Rules 132 to 145):

5.164 Payment of Stock received. 'Bills of suppliers should be examined carefully and dealt
with in the manner prescribed in Fin. Rules 205 to 217, where erroneous or double claims have
been successfully prevented. The supplier's bill should be verified before payment and the
disbursing officer has also been held responsible therefor.

5.165 Cash payment should not be made for stock received, except in the case of inter-
departmental transfers of stock where the claims of such department should be dealt with in the
same way as those of suppliers. In other cases the necessary adjustment of the cost through the
remittance should be made in the Divisional Office after verification of claim.

5.166 Recoveries for Stock issued. -The rate of issued materials is fixed approximately equal
to the actual cost that there may be no profit and loss in the stock accounts. It should consist of
original price, carriage and other incidental charges incurred on the acquisition of stores or
materials. Fluctuations in cost of the materials should be watched and accordingly issue rates
may be raised or lowered as may be necessary. At the time of closing the Stock Register yearly,
all rates must be reviewed and revised according to the market rates.

5.167 Mode of Recoveries. A shortage rate is fixed annually on the principle that the total
estimated annual expenditure is recovered from the issues likely to he made during the year. On
the basis of this rate, shortage charges are calculated.

The S. D. O. is responsible to recover in cash the value of the materials sold to municipalities,
local bodies, public and the contractors. He is also responsible for the clearance, from works
accounts, of all outstandings against contractors.

The 10 percent supervision charges should be realised, besides value of stock which is
recoverable under Fin. Rule 138. The amount so recovered should be treated as revenue
receipts, or receipts on capital account and not as receipts on account of stock.

When stock materials are sold to the public or other departments, an addition of 10 per cent
must be made to cover the charges of supervision and contingencies, which may be waived of by
the officer empowered to sanction the sale of surplus stock.
5.168 Fictitious Adjustments. Fictitious stock adjustment are strictly prohibited. The debiting to
a work not required or in excess of actual requirements, debiting to a particular work for which the
funds are already available and the writing back of the value of materials used on a work to avoid
excess are the examples of fictitious adjustments which constitute a serious irregularity which
should be brought to the notice of the Government by the Accountant General, Sind.

5.169 Yearly Register of Stock. Yearly Register of Stock should be maintained by filling up
column 24 (market rates) in P. W. Account Form No. 12 at the close of the year under the orders
of the Divisional Officer who should review the Register and record his remarks thereof. The
object is that the stocks on the register shall consist of efficient and necessary articles priced
within the rates of which they could be purchased at any time.

5.170 Stock-Taking. Divisional Officers are to have stock taken throughout their divisions at
least once a year. Important stores shall be counted. Verification should be entrusted to an officer
unconnected with the staff responsible for the custody of the stores, followed by surprise check.

All the stores of a division or sub-division should be checked and counted. Aggregate book
balance of any article in the sub-division should be physically verified.

In the cases of special stores depots or divisions or of construction divisions, a continuous and
periodical verification of stores by Audit Department should be arranged. If. any loss, fraud or
misappropriation is suspected during the course of audit of the stores, physical verification of the
stores may be undertaken followed by intimation and suggestion of any action to be taken in this
behalf to the Accountant General, in case of any discrepancy.

TOOLS AND PLANT (Rules 146 to 150A):

5.171 Numerical Account Receipts. All articles of tools and plants received should be
examined and counted when the delivery is taken, and acknowledgement thereof must be signed
by the Divisional or Sub-Divisional Officer.

5.172 Payment of Supplies. -Payments for tools and plants should be made in the manner
prescribed for stock receipts. In case the Department is unable to supply any instruments
indented for and arranges for their purchase,, the supplier's bill will be paid in cash or by
Remittance Transfer Receipt. "

5.173 Recoveries. When tools and plants are lent to local bodies, contrators or others, the hire
and other charges should be determined by the local rules and should be recovered regularly.

When the tools and plants are disposed of by sale or otherwise with the sanction of competent
authority, the amount should be realised at the earliest.

Verification of tools and plants are conducted under the same rules as that of verification of
stock, except that when any articles are found deficient, a note of deficiency should be recorded
in the account of issues Executive Engineers are responsible for the annual checking of Stores of
tools and plants at their Divisional Headquarters. S. D. Ok. may be entrusted with the check of
tools and plants in their charge and their certificate of count should be accepted by the Executive
Engineer. Disciplinary action may be taken against the Executive Engineer and S. D. Os., for any
derification of the orders.

ROAD METAL (Rules 151 to 152):

5.174 Supplies of road metal should be measured and paid for in the tame way as supplies of
other materials for works and an account is kept at prescribed in paragraph 235 of the Public
Works Account Code.

The verification of the road metal should generally be on the same lines of verification of
materials charged to works vide Fin. Rules 240. Following are the principles to be followed in
regard to the adjustment of the cost of land acquired for road metal quarries: -

(a) If the cost of acquisition of land and opening up a quarry is not more than the prescribed
amount, it should be debited either to 'Repairs' or to 'Original works' as the caste may be, and in
case the cost is more than the prescribed limit of amount. the procedure prescribed in paragraphs
239, 389 (b) and 390 of the Public Works Account Code, should be followed.

If the quarry is intended for the construction of a new road or raising the class of an existing
road, the Executive Engineer should charge to 'Original works' for such portion of the road and
remainder being taken to the suspense head to be cleared by debit to 'Repairs' in the manner
prescribed in paragraph 389 (b) of the Public Works Account Code.

(b) In the case of quarries required for the purpose of road transferred to Local Bodies for
construction or maintenance, the procedure with respect to any expenditure directly incurred by
the Public Works Department should be followed.

SCHEDULE OF RATES (Rule 153):

5.175 A schedule of rates showing, the fates at which road metal can be supplied to the road
side throughout the divisions should be kept in the divisional office as prescribed in Public Works
Account Form 17 or Sind Fin. Rules Form 11, with, modifications to suit the local conditions. The
rates may be revised from time to time, when the old quarries are exhausted or the new ones
opened and also as other circumstances affect the rates.

SECTION XI-WOHKS

WORKS EXECUTED BY CIVIL OFFICERS (Rules 154 to 157B):

5.176 General. Expenditure on construction and repairs executed by Civil Officers is treated as
contingent expenditure when it does not exceed a certain prescribed limit of amount, but when
the amount exceeds that limit, the expenditure is treated as 'work' expenditure of that department.

5.177 Execution of Works The works may either be executed departmentally, where the
advances may be drawn from the treasury on submitting the detailed expenditure in respect of
materials, labour, rates and cost alongwith payee's receipts of advances, etc., to the Accountant
General, or the works may be executed through contractors, Advances are strictly prohibited but
the payment may be made by instalments for the work actually done. When the work is finally
completed a completion certificate should be furnished to the Accountant General alongwith the
final bill, together with a certificate of disbursing officer in respect of the work completed.

No money on account of construction should be retained in hand after the close of the year. All
that has been drawn and remains unexpended on the last day of the financial year should be
refunded into the treasury. Bill may be submitted for portions of the grant expended from time to
time, but not for the whole sum in one bill before the work is completed.

Money sanctioned for one work cannot be spent on another.

5.178 Sale of Government Land and Immovable Properly. All land, the property of
Government should ordinarily be sold through Revenue Department. When any Government
property is sold and the purchaser takes the possession before the sale price is settled, he will
pay interest at the prescribed percentage on the sale price when more than one month elapsed
between taking over the possession and the payment of the price.

When any Government property is transferred from one department to another under the same
Government, the transfer shall be free of charge, "except when the property is transferred to or
from a Commercial department.

When any immoveable public property is made over to a local authority for public use, the
grant should be made expressly on the condition alongwith other conditions, that the property
shall be reverted to Governmeat if used for other than the specific purposes for which the grant
has been granted.

5.179 General principles to be followed by Government Officers while entering into contracts
involving expenditure from Provincial revenues: -

(1) The terms of a contract must be precise and definite free from any ambiguity or
misconstruction.

(2) Legal and financial advice should be taken in the drafting of the contracts,

(3) Standard or prescribed forms of contracts should be used and the terms should be settled
with prior scrutiny.

(4) In ease of any uncertain or indefinite liability or any unusual condition, prior consent of the
competent financial authority should be taken.

(5) The terms of a contract once entered should not be materially varied without the prior consent
of the authority.

(6) Contracts should be placed only after tenders have been openly invited and in case of non-
acceptance of the lowest tender, the reasons thereof should be recorded

(7) Where a formal written contract is not made, no order for supplies, etc. should be placed.

(8) Safeguarding Government property entrusted to contractor must be provided in the contract.

(9) Financial status of the individuals and the firms tendering must be taken into consideration in
addition to all other factors, while selecting the tender to be accepted.

(10) The audit authorities have the power to examine the contracts and to bring before the Public
Accounts Committee any cases where any kind of irregularities have come to light.

Cases involving revision of fixed rates specified in contracts should be referred to

Government for orders. The rule, however, does not apply to the revision of rates in contracts
made by the Forest Department.

SPECIAL RULES FOR THE FOREST DEPARTMENT (Rules 158 to 164):

5.180 Muster Roll for the Labourers. -The rules to be observed in keeping the muster rolls for
works executed by labourers on daily wages or otherwise, arc that, in the heading the work for
which the labourers are employed should be specified clearly; the roll should be called dally
before commencing and after closing the work; the Range Forest officer or any other authorised
officer should make surprise inspection of the muster rolls with the endorsement 'checked with
the labourers present and the work done and found correct; the roll is closed and an abstract of
the whole work should be given at the end with full details of the work conducted; the payments
on muster rolls should be recorded in words and in figures accordingly.

5.181 Contractors. Work costing not less than the prescribed limit of amount, a contract should
be made on a written agreement duly. stamped and registered to be enforced in the court of law
in the event of dispute. This rule does not apply to a petty forest works costing not more than the
prescribed limit.

5.182 Certain agreements relating to forest works or supply are exempted from stamp duty and
registration as detailed in rule 159(a) (2), of the Sind Fin. Rules.

Payments can be made to contractors by the Divisional Officer or an authorised officer. Claims
should be prepared in Forest Account Form No. 11. Payment is to be made when the correctness
of the claim in respect of quantities, rates, quality of work or supply, etc., is verified and accepted.

5.183 Measurements Work done otherwise than on lump sum contract should be measured in
detail, systematically recorded in a Measurement Book as in Fin. Rules Form No. 13, in a lucid
manner and no page of the book may be torn out and the corrections must be attested by an
authorised Government servant.

All the relevant entries in respect of the work should be recorded in the Measurement Book
and no bill should be signed without crossing off the connected entry in the Measurement Book
and the document of the payment should also bear the reference to the page No, and date on the
Measurement Book.

5.184 Advances to Contractors and Workmen. Advances to contractors and workmen should
be given only when no other arrangements can be made for carrying on the work, which are
regulated by the rules detailed in the Sind Fin. Rules No. 162.

5.185 Record of Sanction and Expenditure. Works requiring the sanction of the Chief
Conservator of Forest will be numbered consecutively for each financial year to be communicated
to the Accountant General in monthly lists.

On the completion of sanctioned work, all outstanding liabilities should be discharged and
account closed and the completion report showing all the details of work completed should be
submitted through the Accountant General to the Chief Conservator to be forwarded to the
Government.

___________

CHAPTER XII-SPECIAL RULES FOR THE PUBLIC WORKS

DEPARTMENT IN RESPECT OF "WORKS"

FINANCIAL RESPONSIBILITIES OF OFFICERS (Rule 165):

5.186 (a) The financial responsibilities of & Chief Engineer concerning the disbursement of
money, the custody of stores and submission of account are as under:
 (1) Budget appropriation of the year should be fully expended in the closing months of the
year in order to avoid lapses.

(2) Money not likely to be needed should be promptly surrendered, to allow its appropriation
for other purposes.

5. 186A (b) The responsibilities of a Superintending Engineer areas under:

(1) The authorised system of accounts for works, stock and stock manufacture, and tools and
plant should be maintained throughout his circle or division.

(2) He should examine the books or Divisional and Sub-Divisional Officers and their
subordinates and should also see that their primary accounts should represent the progress of
each work.

(3) He should examine the register of work and total expenditure under each sub-head of work
according to the sanctioned estimate and should also see the revised estimate if needed, is
submitted in due course of time.

(4) Completion Reports must be submitted in due course of time.

(5) Different articles in stock should be verified and there should be no excess stock in any
division or district beyond its requirements..

(6) He should forward the inspection report of divisional offices detailing therein initial
accounts, accounts of stock, tools and plant, stock manufacture, registers of works, divisional
books, estimates, contract agreements and contractor's accounts, etc,., to the Chief Engineer for
information.

5.187 (c) The responsibilities of a Divisional or District Officer are that, he must, not commence
the construction of any work without prior sanction of competent authority; close the account
promptly when the work is finished; take the necessary steps to obtain funds for the work under
his control, keep his accounts and submit them punctually to the audit office under the prescribed
rules; exercise his full control over his divisional accountant and carefully examine the books,
returns and papers of monthly accounts, etc.; take responsibility for the correctness of original
records of cash and stores, receipts and expenditure; watch the progress of expenditure under
each sub-head of work according to the sanctioned estimate; examine the books of subordinates
to see that the primary accounts represent the progress of each work and see that the accounts
are personally attended to by the Sub-Divisional Officer,

ADMINISTRATIVE APPROVAL AND TECHNICAL SANCTION (Rule 171):

5.188 Except petty works and repairs, for every work and annual repairs to be carried out, a
detailed estimate Is to be prepared for the sanction of competent authority which is known as the
'technical sanction' to the estimate in the Public Works Department and in other departments
such sanction is merely regarded as 'administrative approval' of the work.

5.189 It is necessary to obtain the concurrence of the department concerned to the proposals
before technical sanction is accorded. Such approval should only be accorded when the
professional authorities have intimated that the proposals are basically sound and estimate is
correct.Same procedure should be followed to obtain administrative approval. Both administrative
approval and technical sanction is needed in the Public Works Department.
5. 190 An application for administrative approval should be submitted to the competent authority
accompanied by a preliminary report, an approximate estimate, preliminary plans, necessary
informations, and other details to elucidate the proposals.

After administrative approval it is submitted to the concerned officer in the Public Works
Department for technical sanction for which the detailed plans and estimates are prepared in
case the funds have been allotted or promised.

5.191 Same procedure will also apply to any modifications of the proposals originally approved.
In the case of modifications during construction, revised administrative approval of the competent
authority should be obtained.

5.192 In the case of works required in the interests of the general public, designs and estimates
should be submitted for scrutiny by the Administrative Department concerned before a detailed
estimate is prepared for technical sanction.

5.193 Such financial and administrative powers of Government and other authorities are
regulated by the West Pakistan Delegation of Powers Rules, 1962.

REQUISITION BY CIVIL OFFICERS (Rules 172 and 173):

5. 194 On an application for new buildings and for additions or alterations to existing ones of any
department, the Divisional Officer must exercise his opinions in each case, considering all the
aspects of the works, but his duty is to oppose any application of the funds for works for which he
is not satisfied and should refer the matter accordingly to the Executive Engineer.

The actual execution of works asked for by civil officers, must in every case be dependent on
the necessary funds being available.

PREPARATION OF ESTIMATES (Rule 174):

5.195 Ordinarily a detailed working estimate will provide for the work expenditure, but the
complete estimates for a project should include indirect as well as direct charges.

CONTRACTS (Rules 175 to 177):

5.196 Except daily labour, the recognised systems for carrying out work, are "piece work", "Rate
List", and "Contract Work". "Piece Work" is that for which only a rate is agreed upon for a piece
work to be completed within a given period irrespective of quality or total quantity. In the "Rate
List", petty works can be carried out on schedule of costs and a number of petty workers may be
employed on one work at the same time, provided the cost of an individual work does not exceed
the prescribed limit of amount. Excluding "Piece work" and "Rate List", all other work, done under
agreement is termed "Contract work", and in agreement for such work, which should be in
writting, there should generally be a stipulation as to the quantity of work to be done, and to the
time within which it is to be completed.

Contracts are of three kinds: -

(a) In "Lump sum contract" the contractor engages to execute the work with all its
contingencies for a fixed sum.
 (b) 'Schedule contracts", are those in which the contractor undertakes to execute the work at a
fixed rate, the sum he is to receive depending" on the quantities and kind of work done or material
supplied.

(c) The third kind of contract is a combination of both the above mentioned contracts. A fixed
sum is proposed for the compietion of work as specified and a schedule of rates is agreed upon.

The terms of this kind of contract must be; precise and definite; legal and financial advice
taken; standard form of contracts; veried only with the previous consent of the financial authority;
of usual character; to enable the Government to cancel it with due notice and without excessive
cost.

TENDERS (Rules 178 to 181):

5.197 Sealed tenders should be Invited in the most open manner by notice or advertisement in
different ways in English and the Vernacular having full details and the tenderers should have free
access to the contract documents.

The notice or advertisement should state, the place where and the time when the contract
documents can be seen and the blank forms of tender obtained, the place where the date on
which and the time when the tenders are to be submitted and are to be opened, the amount of
earnest money and the amount and nature of security money to be deposited in the case of
accepted tender, and with whom or what authority the acceptance of the tender will rest.

The advertisement should expressly state that authority should always be reserved to reject
any or all of the tenders without assigning any reason thereof.

5.198 No tender for the execution of works should be received unless accompanied by cash as
earnest money. Contractors should be required to produce evidence of their financial status. This
condition may be relaxed in the case of zamindar contractors who take up clearance contracts of
canals and who hold lands in those canals and the work does exceed the prescribed limit of
amount.

5.199 The amount of earnest money should be sufficiently large to be security against any loss
and the minimum amount of earnest money to be recovered from the contractors should be fixed
at any prescribed per cent of the estimated cost of work.

The names of those contractors whose tenders have been accepted but who could not
complete the contract documents, should be circulated throughout the Department with a note
that such contractors are not to be entrusted with any work in future.

5.200 Usually the lowest tender should be accepted unless there be some objections, to the
capacity of contractor, his financial status, the security offered, or the execution of former work,
which are to be taken into consideration. However, the acceptance or rejection of tenders is left
entirely to the discretion of the officer to whom the duty is entrusted and no explanation in this
regard can be demanded. Such explanation may be called for by superior authority, if necessary.

SECURITY FOR PERFORMANCE OF CONTRACTS (Rules 182 and 182A):

5.201 Security should in all cases be taken for the due fulfilment of a contract in all respect,
which may be: -
 (a) A deposit of cash upto a prescribed limit as earnest money under Fin. Rule 180,
Government Securities, Municipal Debentures, Port Trust Bonds and Deposit receipts of
recognised banks.

(b) Post Office five year cash certificates for the amount at which they were purchased but not
for their face value.

(c) A deduction of certain prescribed percentage from the monthly payments made against the
work completed..

(d) Personal security of two persons of known honesty and weatth.

Note: Claims on behalf of deceased Government servants regarding security deposits lodged
by them should be dealt with as prescribed in Fin. Rule 52 (b), except that indemnity bonds to be
taken before payment is made, as prescribed in Appendix 1 of Sind Fin. Rules.

5.202 The security of a contractor shall be refunded after three months or as prescribed, of the
completion of the work, or the Executive Engineer may exercise his discretion to refund security
deposit to the contractor at any time after the completion of the work.

In the case of contracts for silt clearance and for supply and conveyance of materials, the
security may be refunded alongwith the final payment, provided the Executive Engineer gives a
certificate that the work has been properly completed and no dues are outstanding against the
contractor.

In the case of earth-work contracts, the Chief Engineer is authorised to sanction the refund of
security alongwith the final payment or before the expiry of three months of the completion of the
work, provided the Executive Engineer furnishes satisfactory certificate in this respect.

PROVISION IN CONTRACT FOR IMPORTED STORES (Rule 183):

5.203 The supply of imported materials should be retained in the hands of the Government as far
as possible, while framing the contracts of any description. Such materials should either be
supplied from the existing Government stock or be obtained by indenting on the Store
Department, London, or by purchase in the local market or may be supplied by contracting firms.

ENFORCEMENT OF TERMS OF CONTRACT (Rule 184):

5.204 The officers concerned are responsible that the terms of contracts are strictly enforced and
no act is done to nulify or vitiate a contract. All contract-deeds must be executed on a standard
form, which may be modified to suit local requirements, with consultation to the legal advisers of
Government.

OFFICERS EMPOWERED TO EXECUTE CONTRACTS (Rules 185 to 187)

5. 205 The incharge of a sub-division can only accept any tender or make a contract for public
works according to his legal power to execute as detailed in the Manual of Financial Powers.

It is permissible to give out to different contractors a number of petty contracts relating to one
work, even though such work may be estimated to cost more than the amount up to which
officers are empowered to accept tenders. But no individual contractor may receive a contract
amounting to more than the sum empowered. If an individual contractor has received one
contract, he is not entitled to receive the second in connection with the same work or estimate
while the first is still in force in case the sum of the contracts exceed the powers of the accepting
authority concerned. Deviations from the rules in respect of contracts as specified herein can only
be permitted or condoned by Government.

COMMENCEMENT OF WORKS (Rule 188):

5. 206 Except in the case of petty works and repairs under Fin. Rule 166, no work shall be begun
unless a properly detailed design and estimate have been sanctioned, allotment of funds made,
and orders for its beginning issued by competent authority. No permission for the commencement
of expenditure on the work is granted, unless such expenditure has been provided for in the
Budget Estimate of the financial year either by re-appropriation or out of lump sum grant.

In case, a Divisional officer is required by the superior authority to carry out the works on
grounds of urgency or otherwise, for which no estimates have been sanctioned or funds allotted,
then the orders of such superior authority should be conveyed in writing immediately to the
Accountant General, Sind, for necessary process of stopage or completion of the work, and in the
mean time the Divisional Officer may carry out such necessary work.

In order to avoid irregular expenditure, the officers concerned should see that no expenditure
is incurred on inspections and residential bungalows and gardens and nurseries attached to
them, unless it is provided for in the Budget.

ALTERATIONS ON DESIGN DURING CONSTRUCTION (Rules 189 to 191B): -

5. 207 Divisional or District Officer is not empowered to make any material or basic alteration
except with the approval of Superintending Engineer and a revised or supplementary estimate
thereof should be submitted for sanction, in case any additional expenses are involved. Such
urgent cases should be reported promptly to the superior authority to avoid delay.

Previous approval of a higher authority is a must, if any additions or alterations, likely to cause
an excess amount which will not fall within the powers of sanctioning authority. In case of
structural alterations, the order of the original sanctioning authority should be obtained, and such
responsibility rests primarily with the Executive and not with Audit.

5. 208 The date of completion is that, on which the work is finished in all respect according to
the contract and not the date of measurements, which should be reported by the S. D. O. to the
Executive Engineer concerned within one week of its completion.

SUPPLEMENTARY AND REVISED ESTIMATES (Rules 192 to 195):

5. 209 (a) Supplementary Estimates. Any additional development of a project thought

necessary while the work is in progress, must be covered by a supplementary estimate,
accompanied by a full report of circumstances which render it necessary, showing the amount of
the original estimate and the total of sanction required including the supplementary amount.

5. 210 (b) Revised Estimates. A revised estimate must be submitted when a sanctioned
estimate is likely to be exceeded due to any reason except as mentioned above. It is essential
that a revised estimate should be compared with the latest existing sanction before its approval.

5. 211 (c) Utilisation of Completion Report as Revised Estimate. When excesses occur at such
an advanced stage in the construction of a work, it may be explained in the completion report
under Fin. Rule 252 instead of revised estimate being purposeless.
INITIAL RECORDS OF ACCOUNTS (Rules 196 to 201):

The initial records upon which the accounts of work are based are:

5. 212 (a) Muster Roll. For work done by daily labour, the subordinate in charge of the work
prepares a muster roll which will show the work done and the amount payable. The nominal
muster roll in P. W. Account Form No. 21 or Fin. Rule Form No. 12, is the initial record of the
labour employed each day on a work and must be written up daily and in case of any injuries,
Muster Roll should be maintained as provided in the Workmen's Compensation Act.

For all large works or groups of works, labour reports in the prescribed form will be submitted
either daily or periodically, showing the number of each class of labourers employed on each
work or sub-head.

Payment should be made according to the Muster Roll, verified or witnessed by the official
available.

5. 213 (b) Measurement Book. For piece work and contract work generally, the measurement
book will form the basis of account, which will help checking the bills and accounts of contractors
and suppliers, to be prepared in Public Works Account Form No. 23 or Fin. Rule Form No. 13.
The description of the work must be lucid, so as to admit of easy identification and check.

Final payments may be made without detailed measurements which are dispensed with on
the presentation of the certificate of a responsible officer not below the rank of S. D. O. to be held
responsible for any over payment. Detailed measurements may also be dispensed with if the
works are done on lump sum contracts and a responsible officer not below the rank of S. D. O.
certifies in the bill and takes the responsibility of any over payment according to the contract.
Detailed measurements must invariably be taken in respect of additions and alterations. The
Superintending Engineer is responsible to examine the measurement books to be maintained
properly and carefully kept.

WORKS ACCOUNTS (Rules 202 to 266):

5. 214 (a) General Principle. The personal knowledge of the Divisional Officer regarding
executive arrangements for the execution and progress of work, must be supplemented by a
monthly comparison of the cost as recorded in the accounts with the value received in the shape
of work done. In the case of larger works where monthly comparison is not possible, the cost of
each distinct part maybe compared with the work done.

In the case of recoverable charges it should be seen that the contractors and others, on whose
behalf the charges are incurred, do not get the benefit of any concession to which they would not
be entitled if they had themselves incurred the charges.

5. 215 (B) Labour engaged through Contractors. To employ daily labour through a contractor
instead of by muster roll, is objectionable except in the case of great emergency, where it is
expedient to pay the contractor, at a suitable rates on the basis of work actually executed. But in
the case of urgent repair of canal breaches, the payment to the contractors should be made on
the basis of the numbers of labourers employed day by day. The profit or commission of the
contractor is either included in the rates allowed or paid separately in lump sum or at a prescribed
percentage rate.

5. 216 (C) Bills and Vouchers. (i) First and Final Bill in public Works Account Form No. 24 or Fin.
Rule Form No. 14, should be used for making payments both to contractors and to suppliers on
the completion of a job or contract. A single form may be used for several payees relating to the
same work or to the same head of account.

(ii) Running Account Bill A, in P. W. Account Form No. 25 or Fin.Rule Form No. 15, is
intended for contractors for work only to be used for an advance payment and for an on account
payment where an advance payment already made for the same work is outstanding. This form is
not to be used in case of secured advance or if such an advance is already outstanding against
the contractor in respect of the same work. This form will serve the purpose, if secured advance
is not outstanding and if there is no such proposal.

(iii) Running Account Bill B, in P. W. Account Form No. 26 or Fin. Rule Form No. 16, to be
used for work only in all cases in which secured advances are to be made or are outstanding, in
respect of the same work, against the contractor This form provides for all classes of running
account transactions with contractors lor work.

(iv) Running Account Bill C, in P. W. Account Form No. 27 or Fin. Rule Form No. 17, is used
both for contractors for work and for suppliers. It is not used for a secured advance or for an
advance payment. This Form is the only form of Running Account Bill which is suited for
transactions with suppliers.

(v) Hand Receipt, in P. W. A. Form No. 28 or Fin. Rule Form No. 18, is intended to be used
for all miscellaneous payments for which none of the forms mentioned above are suitable.

(vi) Account of Petty Contractors in P. W. A. Form No. 30 or Fin. Rule Form No. 19, is to be
used for petty contractors employed on the same work and may be prepared separate bill for
each payee.

This form makes no provision for advances, advance payments, issues of materials or for any
other recoverable payments, but is intended solely for an account payments.

5. 217 Preparation, Examination and Payments of Bills. Before the bill of a contractor is
prepared the entries in the measurement book should be examined by the S. D. O. and the
calculations thereof should be checked arithmetically. The bill should be prepared in one of the
Forms prescribed in Fin. Rules 205 to 212 applicable to the case. The rates allowed per
agreement, catalogue, or indent should be entered in the bill by the S. D. O. if the work done or
supplies made is upto the stipulated specification on the authority of the facts reported by the S.
D. O., the Executive Engineer may approve the reduced rates if he is satisfied and he should
specifically mention in the bill his approval to such rates.

Before signing the bill, the S. D. O. should compare the quantities in the bill with those in the
measurement book, and see the rates are correctly entered and calculations have been checked
arithmetically.

When the bill is on running account it should be compared with the previous bill. Recoveries,
if any, should be shown therein and the net amount payable should be recorded both in words
and figures.

Note 1. --- In the case of final bills any variations in rates should be previously approved by the
Divisional Officer in writing.

Note 2. If no sanctioned estimate is in existance at the time of signing the agreement or the
tender, the rates payable for each item of work should be specified, as any reference to an
estimate not yet sanctioned is meaningless and cannot be acted upon.
 Note 3. Payment for supplies is not permissible until the materials have been received and
surveyed except with the permission of Government on production of railways receipt.

Note 4 The responsibility of the correctness of the measurements and calculations lies entirely
on the Sub-Divisional Officers.

Note 5. Fractions less than half may be disregarded and half a rupee and over as a rupee.

Note 6. In case, the contractor is required to obtain materials from Government under Fin. Rule
231, it is not permissible for the contractor to obtain the materials otherwise, until, in a case of
emergency where the supply has been entrusted by the Divisional Officer to the contractor at
reasonable rates.

Note 7. Before signing the first and final bill, or the first bill on a running account, the S. D. O.
should see that the relevant measurement entries were marked as concerning to such bills by the
person taking the measurements.

5. 218 Being S. D. O. not empowered to make the payment, the bill should be submitted to the
Divisional Officer who will authorise the payment after necessary scrutiny.

From the measurement book, all quantities should be traceable into the documents on which
payments are made. Every page of the bill containing the detailed measurement must be scored
out by a red ink line, and after making the payment, an endorsement must be made in red ink,
giving a reference to the number and date of the voucher of payment.

Payment for work done or supplies made as on a running account should be made monthly.
Both the quantities and amount of each item should be shown separately in the bill, except in the
case of advance payment which is subject to adjustment in the final bill where the payee
acknowledges the payment as "in full settlement of all demands".

A separate running account is maintained in respect of each contract. Transactions relating to

two or more, separate parts of the same working estimate under Fin. Rule 247 should also
appear in the separate running accounts. Estimates for 'silt clearance', 'Repair for Banks' and
'Repairs for Bunds' may be covered by a single contract and account.

The above condition of separate runuing account for each contract may be relaxed in respect
of transactions relating to two or more separate working estimates of repair works and small
original works costing not more than the prescribed limit.

If a secured advance has been previously allowed to a contractor on the security of any
materials and such materials have been used in the construction of an item, the amount of the
advance payment for that item should not exceed a sum equivalent to the value of work done less
the proportionate amount of secured advance ultimately recoverable on account of the materials
used. The lump sum payments previously made on account of the items of work concerned,
should first be adjusted in full as early as possible, so that the contractor may not be paid twice
over the same quantities of work. Delays in adjusting advance payments should be avoided.

When secured advances under Fin. Rule 220 (a) are allowed by the Divisional Officer to a
contractor whose contract is for finished work, an Indenture in P. W. Account Form No. 31 or Fin.
Rule Form No. 20 should be signed by the contractor. The advances must be recovered by
deductions from the contractor's bills.
5. 219 Aid to Contractors. Advances to contractors are, as a principle, prohibited and no
payments are made except for work actually done, with the exceptions in the following cases:-

(a) In the case of contract for finished work, an advance may be advanced to the contractor
on the security of materials brought to site, by the (Executive Engineer, upto an amount not
exceeding 75 per cent of the value of such materials of an imperishable nature and a formal
agreement is drawn up for the custody and safeguard of such materials. Recoveries of such
advances should not be postponed until the whole of the work is completed. They should be
recovered from the bills for work done.

(b) In the interest of the works, where it is necessary to make petty advances upto certain
prescribed limit of amount, which may be allowed by subordinates, subject to the prescribed form
of agreement being signed by the contractor.

(c) In respect of the works above to a certain maximum limit, the contractor may be allowed
advance upto 10 per cent of the tendered amount by a competent authority subject to the
conditions that, a contractor shall furnish a guarantee in Form 20A to the rules from a Scheduled
Bank or Pakistan Insurance Corporation, the contractor shall pay interest at the rate of 10 per
cent per annum on the advance, the amount of the advance inclusive of the inerest shall be
recovered in five equal instalments from the first five running bills and in case there is no such
bills or the contractor fails to execute the work the security offered in respect of the advance shall
be forfeited to the credit of the Government.

(d) In all other cases, in exceptional circumstances the Government may authorise such
advances us may be deemed indispensable taking the necessary precautions for securing
Government against loss and for preventing the system from becoming general.

5. 220 It is accessary sometimes, in the interest of the work, to engage labourers or contractors
or to incur other liabilities on behalf of the contractors concerned, with a view to complete work
which he has failed to complete. In such cases, it is permissible to spend Government funds on
behalf of the contractors.

Otherwise, no advance, or recoverable payment should be made to or on behalf of a

contractor, nor should financial aid be given to him in any form, except in accordance with the Fin.
Rule 220, as detailed above.

5. 221 Work-charged Establishment. Works establishment will include such Establishments as

is employed upon the actual execution of a specific work or sub-works of a specific project. When
employees borne on the temporary establishment are employed on work of such nature, their pay
should, for the time being, be charged direct to the work. Employment of such establishments are
entirely at the discretion of Executive Engineer, subject to the condition that daily record showing
how each person is employed should be maintained. The establishment engaged for surveying,
drawing, tracing, etc. for the preparation of projects should be regarded as engaged on the
execution of work and should therefore be treated as work-charged.

5. 222 In all cases, previous sanction of the Divisional Officer, or the Superintending Engineer
as the case may be, is necessary which should specify in respect of each appointment, the
consolidated rate of pay, the period of sanction, full name of the work and the nature of duties.
Necessary overtime allowance may be paid under Appendix 38 of P. W. D. Manual, after prior
sanction of competent authority.

5. 223 A consolidated bill for the wages of members of the workcharged establishment should
be drawn and paid on P. W. Account Form No. 29 or Fin. Rule Form No. 2, cm monthly basis
either for the whole sub-division or for one or more sections of it.
 Acknowledgment of an individual may either be obtained on the paybill itself or separately on
a Hand Receipt P. W. Account Form No. 28 or Fin. Rule Form No. 18. Incharge of a section of
sub-division may be empowered to disburse the salaries of members of the work-charged.

Pay bills may be signed on the last working day of the calendar month, and be paid on the
first working day of the following month. When the, services of an individual are dispensed with, it
is permissible to settle up his account at once.

5. 224 Unpaid wages may be paid subsequently when claimed, and the procedure below being
observed: -

(a) The unpaid items of the monthly bill should be entered in a simple register with full
particulars of the charge and reference to the bill.

(b) Subsequent payments should be made on P. W. D. Form No. 199.

(c) A note of payment of arrears should be recorded against the original entries in the
register.

5. 225 The payment of T. A. to the work-charged establishment should be made on P. W. D.

Form No. 544 (e), and acknowledgment of the payee should. be obtained on the T. A. journal
itself.

5. 226 The conditions of occupation of quarters provided for any member of works
establishment, including the rent therefor, shall be regulated under Section I of Chapter XVII of
the Sind Civil Services Rules Manual, and as prescribed from time to time.

5. 227 Issue of Materials. Materials to works, whether from stock, or by transfer, purchase or
manufacture are issued either to contractors with whom agreements in respect of completed
items of works, for labour and materials, have been entered or direct to works when work is done
departmentaliy or by contractors whose agreements are for labour only.

5. 228 Materials to contractors who have contracted for completed items of work are issued,
provided when it is necessary to retain in the hands of Government the supply of imported
materials, and when in the interest of the work or with the object of utilising existing stock it is
necessary to retain the supply of certain materials in the hands of Government. In both the cases
the contract should specify, the materials to be supplied by Government, the place or places of
delivery, and the rates to be charged with description of material. No carriage or incidental
charges are borne by Government for moving the materials beyond the place agreed upon.

5. 229 No other materials should be supplied to such contractors for use on works, but at the
discretion of Sub-Divisional Officer, petty Issues of materials from the existing stock not
exceeding the prescribed limit of amount in any month for any one contract, may be supplied at
full Issue Rates.

After the execution of a contract, the material from the Government stock shall not be
supplied to a contractor where the supply by Government was not provided for in a contract,
except with the express authority of Divisional Officer who should specify the rate to be charged,
which should be the market rate or Issue Rate, whichever greater.

Stock materials issued to contractors for bona fide use on works are exempt from the usual
charge of certain prescribed percentage on account of supervision, storage, and contingencies,
which is charged where stock materials are sold to public vide Fin. Rule 137 (c).
 For all materials issued to contractors, an unstamped but dated acknowledgment, detailing
full particulars of materials including the rates and values chargeable to him, should be taken at
once.

5. 230 The recovery from a contractor on account of cost of materials issued to him for use on a
work should ordinarily be made by deduction from the first bill authorising an advance payment or
on an account payment to him for the work. However the Divisional Officer may permit, for
recorded reasons, the recovery to be effected gradually as the materials issued to contractors are
actually used in construction.

The Sub-Divisional Officer should make suitable arrangements for limiting the total issues of
materials to a contractor, for a particular work to the reasonable needs of that work. Such
precaution is necessary when the rates of materials issued under Fin. Rule 231 are lower than
the prevailing market rates.

5. 231 Government does not undertake to take over any surplus materials procured by
contractors, before or after the completion of contracts. Such materials are the property of the
contractors, which can only betaken over by Government if required for use on other works at the
prevailing market rales. However, contractors cannot remove the surplus materials from the site
of work, except with the prior written permission of the Divisional Officer.

5. 232 Tools and plants may be lent temporarily to contractors for use on Government works
and the articles taken should be returned without unnecessary delay and in good condition.

5. 233 The S, D. O. should exercise a detailed control over issues of stores direct to works, and
should see that the issues do not exceed the reasonable needs for each work.

(A) For major estimates of Special Repairs and original works, material at-site accounts
should be maintained with value as well as quantity accounts in Form 35.

(B) Other materials required for the maintenance and repair estimates of all minor original
works, when cost of such materials required is to be debited direct to the work concerned, a
proper quantity account should also be maintained of the material charged to each work
separately. The account should be submitted to the Divisional Office monthly for check and
return.

5. 234 Materials issued to works in excess to requirements may be transferred to stock,

provided they are serviceable and sure to be required.

All surplus materials at site of works which have been completed or stopped, should be
transferred to other works in progress or brought on to stock account.

A list of surplus materials unlikely to be of any use, should be maintained in the Sub-
Divisional and Divisional Offices as a Supplement to the half yearly stock returns.

Materials returned to stores or transferred to other works should be priced within current
market rates, and resultant loss being borne by the work to which they were originally issued.

5. 235 Unused balances of materials should be verified at least once a year as prescribed in Fin.
Rules 142 and 143 and a report of verification prepared by the S. D. O. in P. W. Account Form
No. 37 or Fin. Rule Form No. 23, should be submitted to the Divisional Office, keeping in

view the following instructions:

 (a) As no continuous account is maintained of the materials used, it is necessary first to
calculate the quantities of principal items used in a detailed statement at the top of the form, on
the basis of the "progress" of work done on each sub-head.

(b) Deducting these quantities from the total quantities of the materials issued to the work is
shown in P. W. Account Form No. 35 or Fin. Rule Form No. 22, the paper balances of unused
materials should be arrived at.

(c) The differences between the actual and paper balances should be priced at the actual
rate of cost, to be deducted from the total value and quantity recorded in the Detailed Statement
of Expen diture of Materials vide P. W. Account Form No, 35, or Fin. Rule Form No. 22.

(d) The remarks explaining the action taken, to adjust the differences, and to dispose of the
surplus balances, should be recorded there- in and in order to complete the report, printed
certificates applicable to the case should be signed.

(e) The differences due to adoption of inaccurate formula for determining the actual
consumption, unreasonable wastage and storage in some other form, as shown in the report,
should be investigated.

On or before the completion of work, when no more materials are required, after verification of
unused materials, steps should be taken to dispose of all surplus materials by transfer or sale In
case of transfer, the relieving and the relieved officer should verify the unused materials at site of
work and the report thereof prescribed in Fin. Rule 240, should be submitted to the divisional
office. An annual report of the value of materials at site of all works should be prepared in P. W.
Account Form No. 37 or Fin. Rule Form No. 23 and submitted to the divisional office, us on
completion of work. The balances should not be verified at the close of the year if, the work has
been under construction for not more than three months, or the accounts of the work were
expected to be closed within three months, or the balances were verified at any time during the
year.

The above principles regarding verification are intended for cases where detailed' accounts
are kept in P. W. Account Form No. 35 or Fin. Rule Form No. 22 and in other cases the S. D. O.
should make his own arrangements to verify the unused balances.

5. 236 Works Abstracts and Working Estimates. The work Abstract records the main action
relating to a work during a month in respect of cash, stock and other charges. In the case of
Major Estimates, a separate account is kept for each sub-head and in the case of minor
estimates the account of expenditure is not kept by sub-heads. The abstract of the estimate may
be framed to show merely the quantity and cost of each completed item, such as brick work or it
may be framed to show the cost of labour and material separately. Either form of abstract may be
adopted to carry on the work. To make any change in the original method for the execution of
work regarding Major Estimate, original abstract should be recast under Fin. Rule 245 and the
revised estimate thereof should be approved by the Divisional Office. If the number of sub-heads
is large, the estimate may be broken up into two or more parts and treated each part as asub-
work.

Drawing and Disbursing Officers are responsible for keeping a strict watch over all liabilities
and balances under the suspense account in the works accounts with a view to settle them
promptly. Money indisputably payable should never be left unpaid. It is no economy to postpone
inevitable payments and it is very important to ascertain payments at the earliest possible date.
The Divisional Accountant shall be held responsible for the correctness of the entries in the
Register of Works which should be signed by the Executive Engineer under paragraph 356 of the
Public Works Account Code. In case of any liabilities on behalf of the contractors, sufficient
balances from their bills should be with-held in order to make necessary recoveries.

Entries of "progress" in the works, to be furnished by the Engineer or any other authorised
subordinate in charge of the work should be based on the following points: -

(a) Only "quantities" actually measured and paid for should be reported as "progress".

(b) The progress report should specify the quantities executed "upto date".

(c) The progress of an item of work should be so reported as to describe as approximately

as possible.

(d) Reports of progress may be dispensed with during the process of construction of a work,
if the duration of its construction under a sub-head is not expected to be more than three months
or, if the quantities executed are not in the same units as these specified in the estimates or if
they cannot be expressed even roughly.

5. 237 Register of Works on Completion. -It is important to close the accounts of works as
soon as possible after the actual work of construction is completed vide Fin Rule 252. In case of
delay in closing of the accounts, further charges should not be incurred except with the
permission of the higher authority. All liabilities should be discharged before closing the accounts.

A consolidated completion statement in P. W. Account Form No. 45 or Fin. Rule Form No. 24
should be prepared monthly of all completed works, showing for each work or group of works, the
estimated amount, the outlay and the excess thereof. Where the Completion Statement is utilised
instead of a revised estimate, sufficient details must be provided therein to satisfy the authority
whose sanction is needed. If an excess over estimate is not within the powers of Divisional
Officer to deal with, a Detailed Completion Report in P. W. Account Form No. 44 or Fin. Rule
Form No. 25 should be prepared.

The Schedule of rates of each kind of work commonly executed should be prepared on the
basis of prevailing rates, to be required for preparing estimates and to be a guide for settling rates
of contract agreements and for necessary analysis of the accepted rates of each work.

5. 238 Contractor's Ledger. A contractor requiring a copy of his running accounts bill or an
extract from his account in the Contractor's Ledger should be furnished vide Note 2 under Fin.
Rule 221.

5. 239 Sundry Ruling in respect of Employment of Military Labour. When Military labour is
engaged on the execution of a work, no advance should be granted by the Public Works
Department but the Officers commanding the Units can obtain an advance from the Controller of
Military Accounts concerned for the same purposes.

5 240 Workshop. -No work is to be done in workshops of the department other than the work
required for the various branches of the depart- ment except under the order of Government. The
work for Municipalities or private parties should only be undertaken, if the whole estimated cost
including all charges has been paid to the Executive Engineer, or into the treasury to the credit of
Public Works Department. This rule may be relaxed in the case of Government Officers where a
rough estimate of the cost may be advanced with the undertaking that he agrees to pay the actual
charges in full on completion of the work and the full cost thereof must be deducted from the
Government Officer's pay for the following month. In all cases, an undertaking should be procured
from the party concerned. The Department will not be held responsible for any loss by fire or theft
or by any other factor. A revised estimate should be prepared in case of original estimate is likely
to exceed.

The original estimate should provide for all charges, including prescribed percentage for
direct charges detailed below and should be sanctioned by competent authority and accepted by
the party concerned:

(a) Shortage charges under Fin. Rule 138.

(b) Interest on capital cost of buildings, plant and machinery.

(c) Maintenance charges of buildings, plant and machinery.

(d) Depreciation of buildings, plant and machinery.

(e) Establishment charges including one per cent on account of Audit and Account
Establishment.

(f) Profit.

In case, the execution of a job for another division or department is likely 10 extend for
another financial year, the extra cost which may be in- curred should be settled before hand. The
profit is not charged in the case of jobs executed for other divisions of the Province. The shortage
charges should be charged on the basis of book value of materials issued for the job and the
oilier charges are calculated on the basis of total cost of labour and stores pertaining to the job.

5. 241 Non-Government Works. -For every non-Government work there must be a duly
sanctioned detailed estimate or requisition in the same way as for a Government work. No Public
Department or Public Officer may incur any expenditure or liability against local loan funds,
unless a statement in writing is first obtained from the Accountant General that the amount is
available out of the loan funds and has been placed in a separate account to be treated as
appropriation for the work which is not to be exceeded except with special orders of Government
and the funds so spent should be reckoned for interest. The limit of funds to be utilised during the
year should be ascertained from the Accountant General, which should be treated as the
appropriation for the work and should not be exceeded without special orders.

In case, if the amount due is not received in cash from the person or persons interested in
Takavi works, it is recoverable through the Civil Department in the same way as the arrears of
Lund Revenue. Endeavour, should, however, be made to effect direct and prompt recoveries of
the probable cost of Takavi works in order to avoid delay and trouble through the Civil
Department.

Recoveries regarding the cost of individual Takavi works not recoverable by cash, may be
recovered through Civil Department and a certificate therefor should be prepared in duplicate, by
the Divisional Officer, on the completion of the work to be submitted to the Collector of District
concerned, showing, the full name of the work, the name and adress of the responsible cultivator
or cultivators, the authority for undertaking the work, the total expenditure incurred, the amount
recovered in cash and the net amount to be recovered.

__________________
 SECTION XIII- PUBLIC BUILDINGS

INTRODUCTION (Rule 267):

5. 242 The rules in this section, except rule 269, are applicable to buildings maintained by
Public Works Department and they may be applied to any other Department maintaining buildings
departmentally. Rules for calculation of rents may be found in Chapter XVII of the Sind Civil
Services Rules Manual. The term "Public Buildings" applies to buildings borne on the books of
the Public Works Department and maintained from the appropriation.

FIXTURE AND FURNITURE (Rules 268 and 269):

5. 243 Every public building should be provided with all necessary fixtures and periodical repair
thereof should be carried out by P. W. D. from the repair estimate of the building. All petty repairs
may be carried out by the officer in possession of the building, to be charged to his contingent
accounts. The Public Works Department will not supply any portable items like furniture, screens,
and pardas, etc. Furniture for new offices may be supplied, provided the cost thereof is included
in the estimates of the building concerned. In the case of Public Works inspection bungalows, the
furniture should be supplied and repaired at the cost of Public Works Department.

Executive Engineer of the Division is responsible for the full maintenance of circuit houses
under the Public Works Department in respect of building, replacement and renewal of furniture
and fixture, crockery, etc., as the necessity arises.

5. 244 The purchase, repair and maintenance of furniture of the official residence of the
Governor will be conducted by the officers charged with these duties under rules issued by the
Government of Pakistan, and under rules issued by the Sind Government in respect of the official
residence of the Commissioner. The furniture should be properly maintained in good and
serviceable order.

PURCHASE AND SALE OF GOVERNMENT BUILDINGS (Rules 270 and 271):

5. 245 No building may be purchased for public purposes, and no permanent public building of
any book value may be sold or dismantled without the orders of Government. Temporary
buildings errected during the construction of work, may be sold or dismantled at any time, after its
purpose has been served, with the prior sanction of the Superintending Engineer.

HIRE OF OFFICE ACCOMMODATION (Rule 272):

5. 246 When no suitable Government building is available, private buildings may be hired for
public purposes. When the building is entirely used for office accommodation the rent is wholly
chargeable to Government and when it is partly used for residential purposes by an officer, the
rent will be paid proportionately by Government not exceeding half the rent of the building.

If, it is the local rule or custom for the Municipal Tax to be chargeable to the owner, the tax
for the entire building will be paid by Government, otherwise the officer concerned should pay the
share of such tax corresponding with the share of the rent payable by him and Government
should be debited the difference.

USE OF GOVERNMENT BUILDINGS BY AUXILIARY FORCE (Rule 273):

5. 247 Following are the conditions on which the Auxiliary Force should be allowed to use
Government buildings: -
 (a) In case, the buildings are likely to be required again by Government, these may be
retained and repaired at the cost of Govern- ment. Any alterations or additions required by the
Force may be carried out at the expense of Government and are to be con- sidered in fixing the
rent.

(b) When the buildings arc no longer advantage to or required by Government, these may
be handed over to the Auxiliary Force free of cost with the approval of Government. The Force
then may repair them from their own funds. The site, however, would remain the property of
Government and a small ground rent thereof may be charged.

(c) In case, the buildings should in any circumstances be resumed, the Government will
compensate the Auxiliary Force for any expen- diture incurred in alterations or additions but not
for repairs.

(d) In the case of an Auxiliary Force ceasing to exist, buildings handed over to them free
of cost would revert to Government.

REGISTER OF BUILDINGS (Rule 274):

5. 248 Each Superintending Engineer and Executive Engineer will keep a register of all buildings
within his circle or division respectively. In the register, the value of land, the value of building and
the value of each separate structure should be shown separately. In the case of purchased
property the price paid will be apportioned between the various items such as land, main building,
servants' quarters, compound wall, etc. The capital value of any portion which is abandoned or
dismantled without replacement should be written off from the total value of the building.

______________

SECTION XIV- LOANS AND ADVANCES

SANCTIONS AND ESTIMATES (Rules 281 and 281 A):

5. 249 Loans and advances met from the provincial revenues may be sanctioned by
Government or by competent authorities, for which provision should be made in the annual
budget estimates. No public department or public officer may incur any expenditure or any
liabilities against such loan funds unless certified by the Accountant General, Sind, that the
amount is available out of the loan funds and has been placed in a separate account to be
available for the proposed expenditure.

INTEREST (Rule 282):

5. 250 Provincial revenues are credited with the full amount of inte- rest received on these loans
and advances, and irrecoverable sums be charged to provincial revenues and credited to the
advance account.

CONDITION OF REPAYMENT (Rules 283 and 284):

5. 251 Loans and advances which are usually granted to local bodies should be repaid within
the prescribed period as short as possible. The term is to be calculated from the date on which
the loan is completely taken up, and the dates should be fixed for the payment of instalments and
the instalments paid before the due date will be taken to the principal amount, unless, of course
any interest for a preceding period is overdue.
 When the repayment of an advance with interest is made by fixed equal periodical
instalments, punctual payment of instalments is indispens- able, as otherwise the loan will not be
discharged in time,

CALCULATION OF INTEREST (Rule 285):

5. 252 The loan bears interest for the day of advance, but not for the day of final repayment,
and calculation of interest is to be calculated according to a prescribed formula as revised by
Government from time to time.

DEFAULTS IN PAYMENT (Rules 286 and 287):

5. 253 Any default in the payment of interest or in the repayment of principal amount should be
reported immediately to Government by the Accountant General, for immediate steps to be taken
to remedy the default. The authority may enforce a rate of compound interest under rules, upon
all over-due instalments of interest, or principal amount and interest. Defaulters in Federated
States where accounts are maintained at the treasury by Political Agents, should be reported to
Government by the respective Political Agents. Borrowers should be required to ad- here strictly
to the terms settled for the loans, which may be modified subsequently in their favour only for
very special reasons.

ACCURACY OF PLUS MINUS MEMORANDUM (Rules 988 and 288A):

5. 254 Neither the Treasury Officer nor the Accountant General, Sind, will be held responsible
for any individual transaction beyond keeping a separate plus and minus memorandum for each
officer who authorises the advances under the directions contained in Account Code Vol. II. For
all further accounts and supervision, the departmental authorities will be held responsible.

(1) Advances may be made either direct to the parties concerned or in lump sum to
Government officers disbursing the advances, on abstract bills in FormC. T. R.. 31:

(a) In the former case, the payments, in the treasury must be supported cither by actual
payees' receipts or by a certificate from the competent authority that the payments have been
made to the proper parties.

(b) In the later case the following precautions shall be adopted: -

(i) The disbursing officer is not allowed to draw a second abstract bill without producing the
details for the amounts dis- bursed from the last advance taken, and any balance left being
refunded into the treasury. The submission of the detailed bill must not be delayed beyond the
end of the month following which the advance was drawn.

(ii) The disbursing officer should take the receipts from the payees at the time the advances have
been made, and certify on the detailed bill that the advances were duly sanctioned and paid.

(iii) The detailed bill, without payees' receipts and without their names, may be forwarded to the
Accountant General, Sind,through the treasury officer.

(iv) The competent authority should prescribe a money limit for the amount to be drawn on
abstract bills by each officer with due regard to the circumstances of each case.

(2) No officer authorised to make advances may question the accuracy of the plus and minus
memorandum. Every officer should see the debits and credits made to his account accurately
correspond with those which enter his own registers and returns for each month. He may obtain
from the treasury a copy of the plus and minus memorandum in order to remove the differences
between the two sets of accounts. Special care should be taken in paying recoveries into the
treasury that the amounts of interest and principal recovered are separately and distinctly
credited. The interest must not and the principal must be credited in the plus and minus
memorandum.

REVENUE DEPARTMENT RETURNS (Rule 289):

5. 255 With every return of revenue advances made to the Revenue Authorities a memorandum
should be submitted setting forth the figures of the treasury plus and minus account and agreeing
them with figures of the return. The Accountant General will send to the Chief Revenue
Controlling Authority a return showing the figures in respect of revenue advances for the purpose
of certification.

IRRECOVERABLE LOANS AND ADVANCES (Rules 290 and 291):

5. 256 Government or any subordinate officer empowered can remit loans and advances found
to be irrecoverable vide note below Fin. Rule 329 on page No. 151.

Revenue Authorities on ascertaining the advance to be irrecoverable, cause, the amount

to be written off and advise the Accountant General, Sind, that he may charge in the amount as
expenditure and direct its being written off the treasury plus and minus memorandum. A separate
record of such irrecoverable advances should however be kept for eventual recovery, if possible.

PERIODICAL REVIEW (Rules 192 and 292A).:

5. 257 The Accountant General, Sind, will submit to Government annually a statement in Form
25A showing the details of loans and advances separately of each loans under each of the
classes such as loans to Presidency Corporations, and loans to Landholders and Other
Notabilities. Advances to cultivator* should be shown in lump sum and the land improvement
advances may be shown separately from those for relief of agri- cultural distress and other
purposes.

The Accountant General will also submit annually to Government a statement in Form
25B of the Sinking Funds on account of the different loans borne on his books.

SECTION XV - MISCELLANEOUS ADVANCES

ADVANCES BEARING INTEREST AND OTHER ADVANCES (Rule-293):

5. 258 Grant of advances to Government servants and others are included in this section.
Advances not covered by this section or the pre- ceding section, cannot be made except under
special orders of Goverment vide Fin. Rule 281. Conditions applicable to all advances: -

(a) Rules 294 to 299 do not apply to Government servants who are not in permanent Government
employ, being their pay not ade- quate security for a loan or advance. However, as a special
case, an advance may be sanctioned by the Finance Department to a temporary Government
servant as provided in Note 5 to rule 296.
(b) It is not permissible to sanction an advance which involves a breach of any of the canons of
financial propriety detailed in Definition (10), provided that, in case a cash grant is within the
powers of'sanction of a competent authority, it does not require the sanction of a higher authority.

(c) The monthly recovery should be fixed in whole rupees except in the case of last instalment
when the remaining balance including any fraction should be recovered.

ADVANCES BEARING INTEREST (Rule 293A).

5. 259 Following are the rules regulating the drawing of advances bearing interest:

(i) No advance should be sanctioned unless a certificate to the effect that there is sufficient
balance available is obtained from the audit office, except, if the advance is sanctioned by
Finance Deparment in emergent cases.

(ii) If the sanction is not accorded within three months in case of housebuilding advances and
within one month in case of other advances, from the date of issue of the certificate of availability,
a fresh certificate should be called for.

(iii) The first instalment of a house building advance or an advance for the purchase of motor car
or boat or tent must be drawn within two months and for the purchase of other conveyances
within one month from the date of issue of the sanction order, otherwise the sanction will be
considered to have lapsed.

(iv) In case, any sanctioned amount is not likely to be drawn, an intimation should be given to the
Finance Department and the Accountant General, Sind.

(v) All advances taken by Government servants for the purposes mentioned in rules 294-298B,
will be payable with interest at such rate as may be fixed by the Governor of Sind from time to
time. The recovery of the interest will commence from the month following that in which the whole
of the principal has been re-paid, in one or two instalments not greater than the instalments of the
principal amount.

(vi) Advances shall be recovered by deduction from the pay bills of the Government servants
concerned in the following number of monthly instalments. However, the sanctioning authority
may permit recovery to be made in smaller number of instalments, if the incumbent so
desires.No. of instalments

House building advances...... 96

Motor car or motor boat advances... 36

Motor cycle advances......... 36

Tent advances......... 36

Other conveyances advances...... 12

HOUSE BUILDING ADVANCES (Rules 294 and 295):

5. 260 (A) Advances for the Construction of Houses. House construction advances to
Government servants are regulated by the followingrules: -
(1) Advances to Government servants maybe made, who desire to build houses for self
occupation at places where no houses are available or where house-rent is exceptionally high.
Advance is only permissible at a place where the Government servant it actually serving.
Advance is not ordinarily permissible to a Government servant who is likely to be transferred or to
retire before complete recovery can be effected.

(2) All advances must be bona fide for the purpose of building houses for self occupation of the
Government servants concerned and the unexpended advance should be refunded to
Government.

(3) The advance should be drawn by instalments in the next three months, with evidence to show
the actual utilisation of the instal- ment drawn, before the next instalment is paid. The repayment
shall commence from the fourth issue of pay after the first installment is taken and be completed
in eight years. A certificate in prescribed form to ensure that the advance is properly utilised
should be attached with the bill for drawal of further advance.

(4) Advance shall not exceed eighteen months' pay of the incumbent; not more than one advance
shall be made for the same house; and no Government servant may receive a second advance
while any portion of a previous advance is outstanding against him.

(5) In case, an officer dies or quits the service before complete repayment of the advance, the
house so built and the land thereof, must be mortgaged to Government which will be released
on liquidation of the full amount of the advance. The mortgage bond ill be prepared in Fin. Rule
Form No. 26.

(6) The Government servant roust satisfy the sanctioning authority regarding his title to or interest
in the land upon which the house is or is proposed to be built. Advance is not granted to a person
who does not possess full proprietary right in the land. Mortgage bond will be prepared in Fin.
Rule Form No. 27, in cases where the sanctioning authority is satisfied that the applicant has a
lease which is sufficient to justify the grant of the advance. Certi- ficate is to be given by the Head
of the Office either in the bill in which the advance is drawn or separately, to the effect that the
mortgage bond in Fin. Rule Form No. 26 has been executed by the Government servant taking
the advance and that it has been duly registered.

(7) A Government servant quitting or removed from the station where he has built a house, will
continue deduction of his monthly ins- talment. until the advance has been fully repaid. He may
be allowed to dispose of the house provided the whole amount due, is repaid at once or is
transferred to any other Government servant and the future deductions to be made from hi* pay.

(8) Applications for advances must be forwarded by the departmental superior who will record his
opinion as to the necessity of advance. The applicant must certify that the sum is to be expended
in building the house only and the surplus funds will be at once re-funded to Government.

(9) The last-pay certificate must specify the original amount of such advance, the amount repaid
and the balance remaining due.

(10) The applicants' title to or interest in the property should be examined by the Government Law
officers, before the advance is actually paid. It should be seen; that he has undisputed title to or
interest in the land; that in case of an advance for the purchase of a house he will obtain such title
or interest as soon as the purchase price is paid; that there will be no legal obstacle in either case
to the property being mortgaged to Government; and that Government will have the right of fore-
closing on the condition mentioned in the mortgage bond. Such examination is left entirely at the
discretion of the sanctioning authority.
5. 261 (B) House Purchase Advance. An advance may be made to a Government servant in
exceptional cases, for the purchase of a house in places where house rent is exceptionally high.
A Government servant is required, in addition to a mortgage deed to deposit with Government,
satisfactory evidence of a clear title to the house. The advance may include the cost of any repair
or improvement of the house, besides the cost of the house to be purchased. The advance may
be drawn in full at once on the production of satisfactory evidence. The D. D. O. should record on
the bill a certificate to the effect that he has secured and retained with him an agreement in Fin.
Rule Frorm No. 27A, signed by the applicant pending execution of the final mortgage bond in Fin.
Rule Form No. 26 after the house is actually purchased.

5. 262 (C) Advance for House Repairs. An advance may be made under the following
conditions to a Government servant to enable him to effect repairs to his house:

(i) An advance may be made for repairs, to make the house habit- able, to make major
repairs and in case the outlay is large in comparison with the value of the house.

(ii) Not more than one advance is admissible in respect of the same house.

(iii) No advance shall exceed six month's pay of the Government servant.

(iv) An advance may also be made to repair a house which the Government servant
has built or purchased with previous advance, but five years must elapsed since the previous
advance was drawn.

(v) The maximum period of repayment of such advances being two years, variable from
time to time by Government.

5. 263 (D) Advance for Purchase of Laud. An advance may be given for the purchase of land
on which to construct a house under certain con-ditions to be fulfilled and the total amount for the
purchase of land and construction of the house does not exceed 18 months' pay of Government
servant concerned or as prescribed by Government.

Government servant should sign an agreement in Fin. Rule Form No. 27A at the time of
taking advance for the purchase of land and a mortgage deed in Fin. Rule Form No. 27B should
be executed before any further advance is drawn for the construction of house. The mortgage
deed must be registered within four months of its execution. Applicant's title to the property should
be carefully examined by the sanctioning authority. Such advance cannot be granted after a
house is already built, repaired or purchased.

5. 264 (E) Advance to a Member of Cooperative Housing Society. A Government servant

who is a member of a Co-operative Housing Society may also be advanced a house building
advance for the construction of a house on the Society's land either by himself or through the
Society. Incase, the construction is made through the Society the amount to be advanced should
be invested in the shares or debentures of the Society, and the Society in lieu thereof should
hand over the house to the Government servant within 24 months of the grant of the advance.
The Government ser- vant should execute a money bond in Form 31A in favour of Government,
undertaking to repay the advance in accordance with rule 293. Government servant should
mortgage his interest in the land or/and the house to the Society and the Society should then
execute a security bond in Form 32 in favour of Government. When the Government servant
constructs the house himself he should mortgage it to Government in Form 30 and the Society
should pass a security bond in favour of Government to the extent if its interest in land or/and the
house. In cases of advances to a Government servant being a member of a Society, bonds
should be pre- pared in such of Fin. Rule Form Nos. 30, 31, 31A and 32 as may be appropriate.
ADVANCE FOR PURCHASE OF CONVEYANCES (Rules 296 to 298):

5. 265 (A) Advance for Motor Car or Motor Boat. An advance to a Government servant for
the purchase of motor car or a motor boat may be sanctioned subject to the following conditions:

(1) An advance may be sanctioned when it is in the interest of the Public Service, that a
Government servant should use a car or motor boat in the discharge of his duties.

(2) The advance should not exceed four months pay or the anticipated price of the car or
boat, whichever is least, or as prescribed by Government from time to time. If the actual price
paid is less than the advance taken, the balance should be refunded- In exceptional cases, when
high prices of cars are prevailing, advance may be sanctioned up to a maximum of 80% of the
anticipated price or 12 months'pay of the officer. S. D. Os. not likely to be reverted, may be
sanctioned advances upto full cost of Jeeps.

Usually the advance should be repayable in 36 instalments, but it may be made repayable in
48 instalments in relaxation of Rule 293A (vii).

(3) A Government officer on leave or about to proceed on leave will not be allowed to draw
the approved advance earlier than a week before the expiry of the leave, but an officer on leave
out of Pakistan or about to proceed on leave out of Pakistan may be allowed to take it from the
High Commissioner six weeks before his departure for Pakistan.

An officer taking an advance, within six weeks of his departure for Pakistan, from the High
Commissioner, may include in the amount, freight on the car to a Pakistani Port, customs duty
thereon payable in Pakistan, and the cost of its insurance during the voyage. But an officer who
purchases a car in Europe prior to six weeks of his departure, no advance will be allowed to be
drawn in England. However, on bringing the car into Pakistan, he may apply for an advance
covering the landing price in Pakistan including the cost, freight, insurance and customs duty.

(4) A fresh advance should not be sanctioned within a period of three years from the date of
previous advance, except for special reasons to be recorded in writing. Before the drawal of a
fresh 1advance, the balance of the previous advance and the interest thereon must be completely
repaid.

(5) Prior sanction of Government is necessary for the sale of a car or a boat purchased
against an advance which has not been fully repaid. If a Government servant wishes to transfer
such a car or a boat to another Government servant, Government may. permit the transfer of the
liability attaching to a car or a boat to the latter, provided that he records a declaration that he is
aware that the car or boat remains subject to the mortgage bond and that he is bound by its terms
and conditions.

(6) In case, a car or boat is sold before the advance has been fully repaid, the sale proceeds
must be applied towards the repay- ment of outstanding balance. If the Government servant is
not in a position to repay the advance immediately on the sale of a car or boat, specific sanction
of Government should be obtained for its sale. If the car or boat is sold in order to purchase
another car or boat. Government may permit the Government servant of such purchase subject to
the conditions that the advance outstanding shall not exceed the cost of the new car or boat; that
the advance outstanding shall continue to be repaid at the rate previously fixed; and that the new
car or boat mint be insured and mortgaged to Government.

(7) An advance for the purchase of car or boat may not be granted to a Government servant
on deputation or about to proceed on deputation out of Pakistan.
5. 266 (B) Motor Cycle Advance. An advance for the purchase of motor cycle may be
sanctioned to a Government servant whose substantive pay does not exceed a certain limit as
prescribed from time to time and the advance should not exceed four months' pay or the
anticipated price of the motor cycle, whichever is least. If the actual price is less than the advance
taken, the balance should be refunded to Government. Conditions Nos. (1), and (4) to (7) detailed
above in respect of purchase of conveyance are also applicable to this. rule.

5. 267 (C) Advance for bicycle or animals. An advance for the purchase of a bicycle may be
granted, if, in the opinion of the competent authority, the possession of a bicycle will add to the
efficiency- of the Government servant concerned. The amount to be advanced to a Govern- ment
servant shall not exceed one months' salary or as may be prescribed or maybe limited to the
anticipated price of the article to be purchased. If the actual price is less than the advance taken,
the balance must be immediately refunded to Government. Such article purchased with the
advance will be the property of Government until the advance is repaid.

Advances may be granted, for the purchase of camels to sowars of the Excise Department,
for the purchase of ponies to the mounted police- men, and for the purchase of horse or camel to
an employee in Public Works Department, entirely at the discretion of the sanctioning authority as
prescribed under rules. Such advances must be utilised within a period of one month from the
date of drawing the advance otherwise the advance should be refunded to Government alongwith
interest due.

TENTAGE ADVANCES (Rule 298A):

5. 268 Advances for the purchase of tents may be sanctioned to the officer actually performing
the duties in which he is required to provide himself with tents at his own expense and no fresh
advance will be drawn until the previous one is fully repaid. Officers of the Civil Services of
Pakistan may be permitted to take such advances, three times during his or their service, viz., at
the commencement of service, after eight years' service, and at any time thereafter convenient to
them.

Deputy Collectors may be allowed to take such advances during their service at intervals of
not less than eight years. Officers of the Excise Department may be allowed such advances not
more than three times during their service at intervals not more than eight years, which may not
exceed the substantive monthly pay of the officers on each occasion.

Officers of the Forest Department may also be allowed such advances cnot more than three
times during their service, at intervals of not less than eight years.

If the actual price for the tents is less than the advance taken, the balance should be
refunded to Government. Before taking the advance Government servant should execute an
agreement in Fin. Rule Form No. 29A and after the purchase, he shall execute mortgage bond in
Fin. Rule Form No. 29 in favour of the Governor of Sind as security for the advance.

PASSAGES ADVANCES TO GOVERNMENT SERVANTS OF NON-

ASIATIC DOMICILE AND THEIR FAMILIES (Rule 2983):

5. 269 Advances for the purchase of passages by sea or by air may be sanctioned to
Government servants of non-Asiatic domicile and their fami- lies in accordance with the following
rules:
(1) Family means a Government servant's wife, legitimate children and step-children dependent
upon him.

(2) The rules apply only to Gazetted Government servants of non-Asiatic domicile holding
substantively a permanent post under the Government of Sind.

(3) Advance may be made for the cost of passage by see or by air from a port or aerodrome in
Pakistan to a port or aerodrome out- side Asia. The advance for family members will be
admissible even though they do not accompany the Government servant on voyage or journey.

(4) The amount of each advance shall not exceed four months' pay or as varied from time to time
under rules, but it shall not exceed the amount actually required.

(5) Previous advance and further advance should be so regulated that the total amount
outstanding will not exceed the prescribed limits. For the purpose of recoveries, each advance
shall be treated separately.

(6) Such advance will not be admissible to a Government servant who does not intend to return
to duty on the expiry of the leave, and he shall submit, alongwith the application for the advance,
a certificate that he intends to return to duty on the expiry of the leave and that he has not taken
any advance under G. P. Fund rules.

(7) Advances will be recovered in thirty six equal monthly instalments from the pay commencing
from full month's pay after the advance is granted. No recovery will be made when the
Government servant is on leave. A borrower may repay in less than prescribed instalments or in
two or more instalments at the same time.

If the Government servant retires or applies for retirement on the expiry of his leave, the
outstanding advance will be recovered at once, but the administrative department concerned or
the High Commissioner for Pakistan may permit a relaxation thereof, allowing monthly recoveries
to be made from the pension or leave salary which will not be less than the half of the monthly
amount of such pension or leave salary.

The borrower will submit to the Audit Officer concerned, receipts showing the amount of
payments for passages, within three weeks of the receipt of the advance, which may be extended
by two months in case the money for passages has to be remitted from Pakistan to England or
vice versa. If the receipts produced are less than the amount advanced, the balance will be
recoverable at once.

(8) The High Commissioner may sanction an advance to a Government servant on leave
outside Pakistan, and his family, for the cost of return passage to Pakistan, provided no advance
for the same journey has been previously made.

(9) A Government servant receiving such advance, will sign and deposit with Government
an undertaking in Form 32B.

OTHER ADVANCES (Rules 299 and 300):

5. 270 (a) An advance to a Government servant on transfer may be sanctioned, not exceeding
one month's basic pay plus T. A. admissible on transfer under rules. Such Government servant
should not ordinarily be of a lower rank in the department concerned. The advance should be
recorded on the Government servant's last-pay certificate, to be recovered from his pay in three
equal monthly instalments beginning with the month he receives full pay after transfer. The T. A.
advance to be recovered in full on submission of T. A. bill in respect of transfer.

Note 1. Such advance may be sanctioned to a Governmeat servant on transfer during leave. In
case, the sanctioning authority himself is on transfer during leave, the advance shall be
sanctioned by the Head of Department, and in case, the Head of the Department is on transfer
during leave, the advance shall be granted by Government. The sanction shall be communicated
to the Audit Officer concerned for the issue of neces- sary instructions to the Treasury Officer
concerned to make the payment. In case of urgency, the Collector of District may require the
Treasury Officer to pay the advance under Treasury Order No. 23.

Note 2. The powers of granting advances to self should not be exercised by officers in temporary
service.

Note 3. Advance on transfer does not prevent the grant of a second advance to a Government
servant to cover the expenses of members of his family who follow him within six months, under
Sind Civil Services Rule 490, and in respect of whom an advance has not already been drawn.

Note 4. When a single lump sum advance is drawn to cover travell- ing expenses both of the
officer himself and his family, it may be adjusted by the submission of more than one bill, if the
family members do not complete the journey with him.

Note 5. The advance of pay may be allowed to be drawn at the new station, on production of L. P.
C. showing that no advance was drawn at the old station.

Note 6. Students and candidates of Public Works Department under orders of transfer may also
be granted advances upto one month's subsistance allowance plus travelling allowance, provided
previous advances are repaid.

(b) (i) An advance may be sanctioned to a Government servant in Civil Department on arrival in
Pakistan on first appointment upto two month's substantive pay less the amount of any advance
made in England or any Foreign Country.

(ii) An advance may be granted on return from leave other than leave on average pay or
deputation out of Pakistan, upto two months' substantive pay, provided no advance has been
drawn under clause (a) above. Special passage advances made in England by the High
Commissioner for Pakistan at his discretion to enable officers to return to duty shall be recovered
in 36 monthly instalments vide Fin. Rule 293A (vi).

(c) An advance may be sanctioned to a Government servant to cover his tour and other
contingent charges such as those for the hire of conveyances or animals for the carriage of
records, tents and other Government property, subject to adjustment on the officer's return to
Head-quarters.

An advance to a gazetted officer may also be permitted by the competent authority.

Note 1. Second advance cannot be made to the same Government servant until first advance has
been accounted for.

Note 2. A Police Officer proceeding outside Pakistan with Government passage on duty may be
given an advance to meet the incidental expenses of the journey.
(d) Treasury Officer or District Superintendent of Police may be given an advance, for expenses
connected with a remittance of treasure (precious metals) to be adjusted when the duty is
completed.

(e) An advance may be sanctioned to a Government servant for lawsuits to which Government is
a party.

Note: Advances mentioned in clauses (c) and (e) above are treated as final charges not
recoverable and are to be drawn and accoun- ted for either as contingent charges or travelling
expenses.

(f) An advance may be advanced to any person either in Government service or not, undergoing
anti-rabic treatment in accordance with the rules in Appendix IX to the Sind Financial Rules.

(g) An advance may be sanctioned to Sub-Inspectors of Police for the purchase of sword and
scabbard, and such advance may also be sanc- tioned to an officer not lower in rank than a
Superintendent of Police, and recoverable in three equal monthly instalments.

All advances mentioned above are subject to adjustment by the officers receiving them, in
accordance with the rules applicable to each case. When an advance is adjustable by recovery,
the amount to be recovered monthly should not affect by the fact of an officer going on leave of
any kind with allowances or on subsistance allowance. In the case of advances sanctioned under.
Fin. Rules 294. 295. and 296, the whole amount shall be completely recovered by the due date.

Note: The term "Government" include! Departments of the Secretariat and Heads of
Departments.

___________

SECTION XVI - DEP0S1TS

INTRODUCTION (Rules 301 to 303):

5. 271 Moneys received at the treasury are classified at Revenue Deposits, Civil Court Deposits,
and Criminal Court Deposits. Another important class is 'Personal Deposits' and the receipts and
payments thereof is recorded in personal ledgers in the treasury. Separate registers 'must be
maintained for each class of deposits as detailed in Account Code Vol. II, or under special
instructions of the Accountant General, Sind.

Where the cash business of the treasury is conducted by the Bank, moneys tendered as
deposits will be received and repayment of such depo- sits will be made by the Bank accordingly
as contained in C. T. Rules 435 and 442 to 452.

GENERAL RULES AND LIMITATIONS (Rules 304 to 311):

5. 272 No moneys shall be received for deposit in the Public Account, except by virtue of any
statutory provisions or by general or special orders of the Government are required or authorised
to be held in the custody of the Government. It is the duty of the Treasury Officer to see that, no
money is credited as a deposit except under the formal orders of a Court or other competent
authority. Following items as deposits are prohibited:

(i) No pay, pension or other allowances should be deposited on the grounds of the
absence of payee or for any other reason. Pension granted to several persons jointly, may not be
drawn on the presence of one person only and the payment of his share may be made, the
balance being placed in deposit.

(ii) No fines should be placed in deposit on the ground that the appeal is pending, but
they should be credited at once to the Government, and refunded on the order of the appellate
Court. But compensation fines in criminal cases due to an injured party may be kept in deposit
both in appealable and non-appealable cases, till they lapse under the ordinary rule.

(iii) No refunds, whether of stamps or of other receipts can be drawn to be lodged in

deposit pending demand by the payee.

5. 273 No jewels or other such property received for custody and restoration may be brought on
the deposit account with the exception that Collector has to receive from a State which has
acceded to Pakistan, a sum of money to be paid out to certain claiments.

Government Promissory Notes or other security deposits received from revenue farmers,
contractors or other parties must be on no account be credited as deposits. The net sale
proceeds of unclaimed impounded cattle may be kept in deposits for three months, and if no
claim be made within that time, are to be credited to the proper account.

The sale-proceeds of unclaimed property are not to be placed in deposit at all. The
property itself is to be kept for six months and the money realised by sale should be taken to
credit of the appropriate receipt head concerned. However, the property left by persons dying
without heirs, which the Civil Courts may secure and held for certain periods according to local
law.

An unclaimed perishable property may be sold and its proceeds be held for six months in
deposit. Money belonging to prisoners in jail should not be kept for long by Jail Department, but
should be paid into the treasury. Police Department should have no deposit except security and
earnest money deposits to be paid into the treasury as revenue deposits. Unclaimed property
should be made over to the magistrate and proceeds of sales of old stores should be paid into the
treasury for credit to Government.

5. 274 Provisions for Personal Deposits at a treasury. --- (a) Moneys tendered by or on behalf
of wards and attached estates under Government management may be accepted at a Central
treasury for credit as Personal Deposits.

(b) Officers Commanding Units and other concerned in the administration of Public Funds
or Regimental Funds in the Defense Department are authorized to open Personal Deposit
accounts for such Funds at any treasury the cash business of which is not conducted by the Hank
ami the half-yearly certificate of the balances of these accounts will be furnished by the Treasury
Officers.

(c) Money tendered by Government officers in official or any other capacity, and funds of
quasi public institutions aided by Government, may not be accepted as Personal Deposits at a
treasury except with the special permission of the Government after due consultation with the
Accountant General.

(d) Nothing contained in this rule shall operate to affect the banking accounts kept at a
treasury of any Personal Deposits which formed part of the Public Account on the date of
promulgation of these rules,

5-275 Save as otherwise provided by any law or rule in force, the provisions of rules 313 to
321D apply mutatis mutandis to Personal Deposits and all other classes of Deposits dealt with.
REVENUE DEPOSITS (Rules 312 to 321D):

5. 276 Receipts. All deposits must be paid separately into the treasury with challan alongwith
the necessary particulars for the entries to be made in the register of deposit receipts, which will
be checked and initialed by the Treasury Officer as detailed in Account Code II. In respect of
earnest money deposits, the depositor must state the designation of officer in whose favour he
makes the deposit and the designation must be recorded on the receipt, given by the treasury.
Deposits may be received at the subtreasuries as well as at the district 'treasuries.

5. 277 Repayment. Refunds of deposits can be made only on the receipt of the person entitled
to them after production of due order of authority which ordered acceptance of the deposit. In
case of sufficient balance, payments will be made against payee's receipt, and the treasury officer
will record it at once under his initial both in the register of payments and in the receipts. If there is
no sufficient balnnce, the treasury officer shall endorse this fact on the order and return it to the
person presenting it allowed only on cheques signed by the responsible administrator.
Withdrawals shall on no account be allowed to exceed the balance at credit in the deposit
account.

DEPOSITS FOR WORKS DONE FOR PUBLIC BODIES OR

INDIVIDUALS (Rules 325 and 325A):

5. 285 Payments made to Government by District Boards, Municipalities or other Local Bodies
for the cost of land taken up on their behalf under the Land Acquisition Act, shall be received at
the treasury as detailed in Appendix 5. The number and date of award and the date of credit in
the treasury shall be noted on all orders and vouchers on which payments arc made out of the
deposit account.

Deposits for works to be done on behalf of Local Bodies and other parties may be received and
dealt with by the Public Works and other departments carrying out the works, in accordance with
departmental regulations.

Note:In case of deposit direct into the treasury, the challan should state the name of the
department to which the amount is cre- ditable and the division and the work to which the deposit
relates.

SPECIAL RULES FOR DEPOSITS OF LOCAL FUNDS (Rules 326 to 326 E):

5. 286 Definition. Local Fund means the revenues administered by bodies having the force of
law under the control of the Government regarding their budgets, filling up appointments,
enactment of leave, pension or similar rules, and revenues which may be specially notified by the
Government as such.

Receipts and Payments. Save as provided by any other law or rule, moneys pertaining to Local
Fund may not be received for deposit at a treasury without the order of the Government.

Local Funds are paid into and drawn out of the treasury without specifying the nature of receipt
or expenditure, as a pure banking account. Withdrawals can be made only by cheques signed by
an authorised officer of the Local Authority concerned, unless the Government directs otherwise.

Moneys required by a Local Body, under the orders of the Government, have to be drawn from
the treasury on detailed bills to be presented as provided in Part V of C. T. Rules. The gross
amount of the bill shall be debited against the Local Fund concerned.

No Local Body is allowed to overdraw the balance at its credit in the Public Account, without
obtaining before hand a loan or contribution from Government to cover the overdraft.

Verification of Balances. The balances at credit of each Local Fund shall be verified at the end
of the year by the Treasury Officer. The balance on the Accountant General's books as
acknowledged by Government must be followed by the Treasury Officer.

OTHER DEPOSITS ACCOUNTS (Rule 326F):

5. 287 Moneys pertaining to special deposit accounts not falling under stay of the separate
classes us specified above may be paid into or drawn out of the Public Account in accordance
with such general or special directions as may be given by the Government.

SECTION XVII -POWERS OF SANCTION

CLASSIFICATION OF CHARGES (Rule 327):

5. 288 Service payments on Government account are divided into three classes-Central,
Provincial reserved, and Provincial transferred.

POWERS OF SANCTION TO EXPENDITURE (Rule 328):

5. 289 Most important orders relating to the financial powers exercised by the authorities
subordinate to the Government of Sind concerning provincial expenditure are contained in the
'West Pakistan Delegation of Powers under the Financial Rules and the Powers of Re-
appropriation Rules, 1962' as adapted by the Government of Sind.

WRITE-OFF LOSSES (Rules 329 to 330A):

5. 290 The irrecoverable value of stores or public money lost by fraud or negligence of
individuals or other reasons, may be finally written- off by Government. Heads of Departments or
other subordinate authorities have the powers to write-off losses within their specified limits of
Financial Powers as specified in the Manual of Financial Powers or as prescribed from time to
time, provided that the loss does not need the system to be amended by Government and that
there has not been serious negligence on the part of some individual Government servant or
Government servants, against whom disciplinary action may be taken by the higher authority.

All sanctions to writeoff should be communicated to the Accountant General, Sind for scrutiny in
each case and for bringing to notice any defect of system which appears to require attention.

Note 1. -The rule also apply to irrecoverable advances and losses of revenue.

Note 2. -The expression "Value of Stores" means "Book Value".

Government may waive the recovery of an amount under objection and the Accountant
General, Sind, may take any action and report accordingly to the Committee on Public Accounts
as soon as possible. Losses are exhibited in the Government Accounts and in the Appropriation
Accounts as detailed in Appendix 18 to the Sind Financial Rules.

COMMUNICATION OF SANCTION (Rules 331 to 332).

5. 291 Sanctioning authorities should Communicate the copies of all orders regarding
sanctioning expenditure to the Audit Office. When the consent or sanction of the Finance
Department is needed, it must be expressed in writing to be communicated to the Accountant
General, Sind. A copy of any such order, where the consent of Finance Department has already
been presumed to have been given, must also be communicated to the Accountant General,
Sind, for ready reference.

The content of the Finance Department may be presumed in the following cases: -

(1) In the case of all establishment specified in any scheme. A lump allotment by the Public
Works Department to cover temporary establishment may be taken as a sufficient presumption in
this respect.

(2) In all cases of grants of lands not exceeding a certain prescribed amount its value and in the
cases of exploring and prospecting licenses.

(3) In all cases of abandonment of revenue upto a certain prescribed limit of amount in each
cases and a monthly report of such cases being supplied to the Finance Department. Assent may
also be presumed upto a certain prescribed limit of amount in each case of non-recurring
expenditure.

5. 292 All letters or memoranda conveying sanction to the grant of additions to pay such as
special pay and compensatory allowance, etc., should contain a brief but clear summary of the
reasons for the grant of these additions for the guidance of the Accountant General, Sind.
Similarly, the reasons for the grant of special concessions or allowances should be recorded. In
case, the open letter being undesirable, the reasons for the grant of such additions should be
communicated confidentially.

S. 293 Orders conveying sanction to expenditure must be communicated to the Accountant

General, Sind; if the order is issued by an authority subordinate to Government, to whom the
power to sanction has been delegated; if the order is issued by an Administrative Department
where the assent of the Finance Department is presumed, the order will be conveyed to the
Accountant General, Sind, and copy to the Finance Department. In other cases the order will be
conveyed under the endorsement of the Finance Department, to whom the Administrative
Department will send a copy of the order sanctioning expenditure for confirmation and
communication to the Accountant General, Sind.

5. 294 When an order sanctioning expenditure is issued by an Administrative Department, it is

essential for the audit purposes that the Accountant General, Sind, should know that the
necessary reference to the Finance Department has been previously made. Sanction accorded
by Government to grant of land and alienation of land revenue shall be communicated to the
Accountant General. Sind, in a consolidated monthly return giving the details for audit purposes.

DATE OF EFFECTS OF SANCTION (Rules 333 and 333 A):

5. 295 Statutory Rules are effective from the date on which they are passed and the executive
orders are effective from the date of issue of the dispatch of the letter or telegram containing such
sanction. The sanction of the Government of Pakistan, or a sanction of the Provincial
Government is effective from the date of the order of sanction in the absence of any special
provision thereof.

The general principal is that the sanction to any expenditure becomes operative as soon as funds
have been appropriated to meet the expenditure and the sanction to recurring expenditure
covering a specified term of years becomes operative when the funds are appropriated to meet
the expenditure of the first year and remains in operative for the specified term.
Retrospective effect should not be given to any proposals for revision of pay except in very
special circumstances for which the reasons should be specified in the sanction order itself.

LAPSE OF SANCTION (Rule 334):

5. 296 A sanction for any fresh charge which has not been acted on for a year must be held to
have lapsed, unless it is specifically renewed with necessary provisions in the budget estimates.
The rule does not apply to a case where an allowance has been sanctioned for a post or a class
of Government servants has not been drawn within specified period, nor does it apply to additions
made gradually from year to year to a permanent establishment. The sanction accorded by the
Secretary of the State may lapse if and when it is superseded by an order of later date.

SPECIAL RULE FOR THE PUBLIC WORKS DEPARTMENT (Rule 335):

5. 297 The sanction to an estimate for a public work will ordinarily cease to operate after a period
of five years from the date of its sanction but a specific provision for expenditure upon a work
which is in progress may be regarded as reviving.

SECTION XVIII - TREASURY PROCEDURE

RESPONSIBILITY OF THE COLLECTOR (Rules 336 and 336A):

5. 298 The Collector is responsible to Government for all moneys received and disbursed and for
the safe custody of cash, notes, stamps, opium, securities and other Government property. For
his own satisfaction, periodical examination should be conducted once in every quarter for
deposits, once in every six months for cash, opium and stock notes, and once a year for stamps,
security, bills and money order forms.

The actual stock of the materials mentioned above should be kept under joint lock and key, and
should correspond with the book balance. The stock of bills and forms to be used for money
transactions should be kept carefully by the Treasury Officer. Sub-treasury balances should also
be verified once a month by a Gazetted Government servant.

Deposit registers should be maintained according to rules and all the relevant entries should be
initialled at the time of transaction. At the time of assuming or making over charge of a district, the
Collector should see that all the stock is thoroughly verified and a certificate thereof should be
dispatched to Accountant General, Sind, on the same day the transfer takes place.

He should send all replies to important communications under his own signature to the
Accountant General, Sind. He should not forward the Treasury Officer's explanation instead of his
own, in reply to question or enquiries regarding treasury work.

The Collector is required to sign the periodical accounts, provided he is unable physically or is on
tour. He should send immediate notice followed by detailed report to the Accountant General,
Sind, of any embezzlement in an office or treasury. Personal investigation should be con- ducted
by the Collector if an irregularity of any kind is pointed out by the Accountant General, Sind.

5. 299 Rules for the guidance of local Revenue Officers in connection with inspection of
Treasuries and SubTreasuries have been detailed in Appendix 19 of the Sind Financial Rules Vol.
II, on page No. 99. and for lilt of questions for inspection of a District Treasury see Annexure I on
page No. 102 and for the list of questions for inspection of a Sub-Treasury see Annexure II on
page No. 128.
RESPONSIBILITIES OF THE TREASURY OFFICER (Rules 337 and 338):

5. 300 Appointment of junior officers to the charge of treasuries is objectionable, except in a

temporary emergency to be reported with reasons thereof to the Accountant General, Sind.

(1) Treasury Officer is answerable, for the right discharge of his duties, such as collection of
revenues, payment of Government dues, observance of treasury rules and daily routine of the
treasury work, to the Collector as his representative or delegate and the Government holds the
Collector responsible for such general supervision of treasuries and sub-treasuries of his district.

(2) Treasury Officer is held personally responsible for all moneys disbursed by him in an official
capacity. For the custody of cash balance he is jointly responsible with the Treasurer.

(3) Treasury Officer has no general authority but to make payments strictly as provided in
Treasury Orders Nos. 15 to 24 of Financial Publication No. 11.

(4) Treasury Officer may not entertain any claim of a Government servant to any special
allowance, but will request him to address to the Accountant General, Sind.

(5) He should also attend to all objections and orders communicated by the Accountant General,
Sind, and return the objection statement within a fortnight.

(6) In case, the Accountant General, Sind disallows a payment as unauthorized, the Treasury
Officer must recover the amounts disallowed vide Treasury Order 28 in Financial Publication No.
11, and also refuse further payment till the Accountant General, Sind authorizes the payment to
be resumed.

Note 1. -The Treasury Officer should without delay pass on the order of such recovery to other
treasury, if the respective Government servant has been transferred to another district.

Note 2. -Such recoveries are not ordinarily made at a rate exceeding one-third of pay.

Note 3. -A register should be maintained at the treasury for recording all retrenchments ordered
by the Audit Office, specifying name and office of the person concerned, the nature and amount
of over payment and the method of adjustment.

Note 4. -The recovery of a sum retrenched from a pay bill need only be made from the next pay
bill, and a sum retrenched from T. A. bill, from the next payment of traveling allowances; but the
retrenchment of T. A. must be recovered in cash or from pay bill.

RECEIPT OF MONEY IN THE TREASURY (Rule 339):

5. 301 When money has been paid into a treasury, the Treasury Officer should not sign a
duplicate memorandum, or a copy thereof, on the allegation that the original has been lost. (Also
see rule 31).

CHEQUE AND RECEIPT BOOK (Rule 340):

5. 302 Cheque Books for use on treasuries and the State Bank of Pakistan are issued by the
Treasury Officer to the drawing officers concerned. Stocks of Cheque Books will be kept and
obtained annually from he Accountant General by the Treasury Officer. Cheque books should n
receipt be examined carefully and the number of forms of each book be counted and examined
again when issued to disbursing officers who would promptly acknowledge the receipt thereof.
Same procedure applies to departmental Receipt Books.

CASH CHESTS AND VALUABLES OF OTHER DEPARTMENTS (Rule 341):-

5. 303 (a) No funds of other department may be received in the Treasury for safe custody and
kept out of accounts or be received at all except under ordinary rules.

(b) For special reasons, the Collector may direct the cash chests of other departments to
be lodged in the treasury for safe custody, to be reported to the Accountant General. A proper
register should be maintained in the treasury, in which the receipt and return of the cash chests
should be duly acknowledged.

A transit book in Form No. 39C should also be maintained showing the particulars of the
person authorized to fetch and deliver the box (cash chest) on behalf of the concerned
department. The register in Form No. 39B is used for permanent deposit and removal of the
chests in the Treasury. Treasury Officer will sign the transit book, to be given to the depositor of
the chest as a receipt.

(c) Bullion, jewellery and other valuables possessing Government servants in their official
capacity may be kept in the treasury for safe custody, at the discretion of the Collector and the
Treasury Officer should, once a month examine the condition of all such valuables and record his
opinion in the register as referred above in clause (b). (Also see rules 8 and 9).

(d) The following rules have been prescribed for the receipt, custody and delivery by the
Government treasuries of sealed packets containing duplicate keys of strong rooms and chests of
treasuries under the control of the State Bank of Pakistan:

(1) If, a branch of the State Bank of Pakistan wishes to deposit duplicate keys of the
treasury strong room or currency chest in the Government treasury, the officer in charge of such
branch shall personally deliver sealed packet containing the keys or currency chest to the
Treasury Officer and obtain the receipt.

(2) Before signing the receipt the Treasury Officer shall satisfy himself that the seals of
the packet are intact.

(3) The Treasury Officer will place the sealed packet in double locks, enter the
transaction in a register of valuables and record with his own hand the number of seals and date
of consignment to double locks.

(4) The sealed packet shall only be taken out of double locks on the personal
application by the agent or other officer in charge and the treasurer of the branch of the State
Bank of Pakistan. The Treasury Officer shall deliver the packet to the agent or officer and the
treasurer concerned on receiving back the receipt given by him for the same packet under rule (1)
above, as well as obtaining back the joint receipt of the agent or officer and the treasurer
(khazanchi).

(5) The agent or other officer in charge of the branch of the State Bank of Pakistan,
shall periodically but not less than six months, verify the presence of the sealed packet in the
double locks in the treasury and that the seals are intact.

(6) The Treasury Officer shall also, periodically but not less than six months, verify the
presence of the sealed packet and that the seals are intact. The out-going and in-coming
Treasury Officers shall personally hand over and take charge of the sealed packet and shall sign
the register as mentioned in rule (3) above.

(e) Cash chests belonging to Local Boards and Municipalities may be lodged in the treasury
for safe custody under the same conditions detailed in clause (b) above. Cash chests or strong
boxes belonging to Cooperative Societies or to Co-operative Bunks may be lodged in the
treasury for safe custody at the request of the Registrar under the orders of the Collector under
the same conditions detailed above in clause (b), exonerating the Government from all liabilities
in case of loss by fire, theft, fraud or any other cause whatsoever. Such concessions will be
subject to the following further conditions and any others which the Collector may impose in
individual cases: -

(i) that the chest or box will be of moderate size with good lock and properly sealed;

(ii) that the treasury staff will not be harassed by too frequent applications to open the treasury;

(iii) that the concession may be modified or withdrawn at the discretion of the Collector; and

(iv) that the Collector is satisfied that the Society or the could arrange for the custody of its funds
and papers either with a Government Saving Bank or with an approved Banker or with some
other safe manner.

Application in Fin, Rule Form No. 39, should be made for a box or cash chest to be lodged in the
Treasury and should be acknowledged by the Treasury Officer in Fin. Rule Form No. 40.

(f) Valuables of private individuals who vacate their houses during epidemics or famine or
scarcity, may be deposited for safe custody, at the discretion of the Collector in a room other than
the strong room subject to the following conditions:

(i) that the boxes arc of moderate size with good locks and sealed properly;

(ii) that the treasury staff are not harassed by frequent applications to open the treasury;

(iii) that the concession may be modified or withdrawn at the discretion of the Collector;

(iv) that a fee as prescribed from time to time for a month or portion of a month is charged for
each box; and

(v) that the application to deposit the box or boxes in the Treasury is to be made in Fin. Rule
Form No. 39A to the Collector who will acknowledge the receipt thereof in Fin, Rule Form No.
40A.

LETTER OF CREDIT (Rules 342 and 343):

5. 304 A letter of credit is only an authority to favor drafts, and payment can only be made on
cheques or drafts. Treasury Officer has authority to pay the maximum amount as shown in the
Letter of Credit and any excess payment made is at the Treasury Officer's risk. Letters of Credit
lapse at the close of the financial year in which they are issued. A cheque drawn before, but paid
after, the end of the financial year, will be taken against the letter of credit of the year in which it
was drawn.

SUB-TREASURY ACCOUNTS (Rules 344 and 344A):

5. 30 Payments due from district treasuries arc generally made at sub treasuries on cash orders
issued by District Treasury Cash orders outstanding for more than three months are held as
lapsed and the payment stopped and the statement of such lapsed orders should be submitted to
the Accountant General, Sind with monthly Cash Accounts for necessary adjustment. The
claimant may forward the lapsed cash order to the Treasury Officer who will arrange the payment,
a note being made against the original entry to prevent a second payment.

Exceptions: - As an exception to the above rule certain classes of bills may be paid at sub-
treasury without authority of the District treasury but the payment of these bills should not be
allowed at the District treasury, except under special arrangements and on particular occasions.
(See exceptions under rule 344 of the Sind Financial Rules Vol. 1, on page No. 162).

From the sub-treasuries a daily sheet supported by vouchers is received by the District
Treasury reporting the receipts, payments and balances of the day and from this sheet posting is
made into the accounts of district treasury.

CLOSING OF THE DAY (Rule 345):

5. 306 Treasury Officer should sign the Treasurer's daily balance sheet after carefully verifying its
balance, on the evening of the day. But the signature and comparison of Accountant's books need
not be made till the following morning unless the office is to be closed for two or more days. The
Accountant's balance sheet must not be signed until it has been carefully agreed with the
Treasurer's daily balance sheet.

In the case of a Branch of the State Bank of Pakistan doing the business of a Government
treasury, the comparison and signature of the Accountant's books should be done on the evening
of the day on which the bank's daily account is received at the treasury, or may be postponed till
the next day morning when the pressure of work renders this impossible and the reasons of delay
should be recorded.

RETURNS TO THE ACCOUNTANT GENERAL (Rule 346):

5. 307 The Collector must dispatch punctually the first and second lists of payments with
schedules and vouchers, and with cash account with schedules and papers. The returns due for
dispatch on a holiday may be sent one day late. Any avoidable delay will be treated as a treasury
irregularity.

RETURNS OF FORMS TO THE PUBLIC WORKS DEPARTMENT (Rule 347):

5. 308 The Treasury Officer should send a Statement every quarter to each Divisional Office
giving the numbers and dates of all Public Works Cheque Books and Receipt Books issued on
requisition received from him and from each of the Sub-Divisional Officers.

NOTICES (Rules 348 and 349):

5. 309 Notice of the hour at which the treasury closes for receipts and payments of money,
should be posted conspicuously in the office. It should be at least an hour before the end of the
day's work, in order to give time for the closing and agreeing the accounts. Necessary notices
and instructions regarding encashment of currency notes, the supply of small coins, etc., should
be exhibited conspicuously in places which the public enters freely.
SECTION XIX -TREASURIES BANKING WITH A BRANCH
OF THE STATE BANK OF PAKISTAN

RECEIPTS OF PUBLIC OFFICERS (Rule 350):

5. 310 Any monthly comparison of the receipts in the Branch of the State Bank of Pakistan
between the Departmental and Treasury Officers will be certified by the Treasury Officer.

CIVIL CHARGES (Rules 351 and 352):

5. 311 All charges for pay and allowance of Gazetted Officers and Establishment and contingent
expenses of officer of Civil Establishment, such as Judicial, Revenue, Medical, Education, Police,
etc., will be presented to the Collector who will approve and write an order on the bill, to pay the
specified amount, which will be returned to the presenter to be taken to the Bank for payment in
accordance with the Collector's order.

At the provincial capitals civil charges may be drawn on cheques issued by the Accountant
General in favour of the payees.

DEPARTMENTAL PAYMENTS (Rules 353 and 354):

5. 312 Rules regarding letters of credit and payments against them are detailed in Fin. Rules
342 and 343 which should be followed by the Sate Bank of Pakistan. Letters of Credit once
issued under the prescribed rules may be acted on without further authority and the Agent should
observe the prescribed limitations. Cases not covered by letters of credit, the Agent will act on
payment Orders signed by the Collector.

Officers of the Public Works Department draw funds either by bills or by Cheques. Bills will
be cashed by the Agent only on payment Orders endorsed thereon by the Collector. In respect of
cheques, no letters of credit will be issued by the Accountant General, Sind, but the officer in-
charge of a P. W. Division may regulate the drawings of his S. D. Os. by letters of credit issued by
himself, which may be acted on without further authority. Cheques hot covered by letters of credit
will be cashed without any limitations in the same way as pre-audit cheques issued by the
Accountant General, Sind. (Please see note under Fin. Rule 353).

REFUNDS (Rule 355):

5. 313 Refunds of Revenues, fines, etc., will be made by the Bank on bills bearing a payment
order signed by the Collector.

DISCOUNT ON SALE OF POSTAGE & OTHER STAMPS (Rule 356):

5. 314 Discount on the sale of Postage and other stamps is allowed by deduction from the
amount paid in by the purchaser. The net amount will be received and brought to accounts, the
receipted chalan being the payer's authority for receipt of the stamps from the Collector.

INTEREST ON PUBLIC DEBT (Rule 357):

5. 315 Government Promissory Notes for Provincial debts on which interest may be due, will be
presented to the Collector of the district who will after due examination will give the holder an
order on the Bank in the presribed form, for payment.

CURRENCY OF PAYMENT ORDERS (Rule 358):

5. 316 Payment orders are valid only for a time, not exceeding ten days, fixed by the Collector
and if presented after the allotted time the payment will be refused by the Bank, until revalidated
by the Collector.

SECTION XX - LOCAL FUNDS

DEFINITION (Rule 359):

5. 317 Revenues administered by bodies under the control of Government regarding general
proceedings or specific matters such as budgets, appointments, enactment of leave, pension or
similar rules, may come un der the purview of Local Funds, which are to be sanctioned by the
Government in the Finance Department, and the revenues of any body which may be specially
notified by the Government as such. The floating funds of charitable endowment may, with the
sanction of Government, be kept as a Local Fund.

RECEIPTS AND PAYMENTS (Rules 360 to 364):

5. 318 Municipalities ordinarily place their funds in a Government treasury near the Municipality.
No Local Fund is allowed to overdraw the balance at its credit and no advance to cover such
overdrafts is to be sanctioned by Government. Service stamps may not be used by a Local Fund
Officer or any Government Servant concerning Local Fund, but service labels may be used on
the correspondence of a public officer acting as such. However, the charges of telegraphic
messages are to be borne by Local Funds to be treated as "Private" and not as "State".

Transactions of all local funds, including municipal funds, should be recorded in a form meant for
personal deposits but must be kept quite distinct and must pass into cash account as Deposits of
Local Funds and not as Personal Deposits.

Transactions of each fund should be entered in a separate column in the treasury register and the
totals for Municipal and Cantonment funds should be separate from those of other funds.

VERIFICATION OF BALANCES (Rule 365):

5. 319 The balances at credit of each fund are verified at the end of the year by the Treasury
Officer and the balance on the Accountant General's books should be followed and not the local
accounts.

MISCELLANEOUS (Rules 366 and 367):

5. 320 Local Fund is required to pay in advance the estimated amount of charges to be incurred
for services rendered by Government, except the following arrangements: -

(a) Payments as made by Government may be charged to the balances of deposits of the Local
Funds in Government books.

(b) Recovery from the Local Fund may be postponed till the time when Government has to make
payment for the charges.

(c) Payments may be made as advances from Government funds in the first instance, pending
recovery from the Local Funds.
Note: Local Funds have to pay for medicines supplied and their liability cannot be accurately
known till the account of supplies has been received from the Military Department. Any
overrecovery will be re-adjusted in the new year.

5. 321 The Administrators of a Local Fund may, with the permission of Government, make a
permanent arrangement for contributing to pensions payable from the general revenues for its
permanent employees or for any specified classes of them, by paying to Government a
contribution at the prescribed rate of the sanctioned salaries of the several appointments, subject
to certain provisos as detailed in the Sind Financial Rules, Vol. I, Rule 367, page No. 170.

AUDIT (Rules 368 and 369):

5. 322 The accounts of Local Funds with the audit of which the Provincial Government are
concerned fall into the following two classes: -

(1) Accounts, the audit of which is a provincial subject under item 46 of Part II of Schedule I to the
Devolution Rules.

(2) Accounts, the audit of which not being strictly covered by item 46 above, has been declared to
be of provincial nature, and in respect of which the local Government have to decide the extent of
audit necessary and whether it should be conducted through Government agency.

All local funds, the accounts of which are audited under Government orders by Local Audit
Department, are to be charged audit fees on the basis of daily rates as prescribed under rules,
unless any of them are specially exempted from the payment of such fees.

The following local bodies, the accounts of which fall under item 46 of Part II of Schedule I to the
Devolution Rules and the audit of which is conducted by the Local Fund Audit Department, have
been exempted from the payment of audit fees.

(1) Municipalities, (2) Noted Area Committees. (3) District

Local Boards. (4) District Local Authorities. (5) Municipal

Local Authorities. (6) Cantonment Local Authorities (including Karachi Port trust).

Trust funds under the Director of Public Instruction, the accounts of which, not covered by item
No. 46 of Part II of Schedule I to the Devolution Rules and the audit of which the Provincial
Government is responsible, have also beta exempted from the payment of audit fees.

TREASURY RULES OF THE FEDERAL GOVERNMENT

Introduction and definition (Rules 1-2):

6. 1 The "Treasury Rules of the Federal Government" primarily deal with the procedure which
should be followed in treasuries including offices or agencies of State Bank conducting the cash
business of treasuries.

6. 2 These rules also provide vital principles and important safeguards of general applicability for
the Departments which generally deal with the receipt, custody and disbursement of Government
money.
6. 3 In these rules unless the context requires otherwise: -

(i) "Accountant General" means the head of an office of accounts and audit or of accounts, who
keep the accounts of the Federal Government and when used in relation to a treasury, the head
of an office of accounts to whom the accounts of treasury are rendered.

(ii) "Audit Officer'' means an officer subordinate to, or under the superintendence of the Auditor-
General of Pakistan, who exercises audit functions.

(iii) "The Bank" means the State Bank of Pakistan or any Office or agency of the State Bank of
Pakistan and includes any branch of the National Bank of Pakistan, acting as the agent of the
State Bank of Pakistan.

(iv) "Collector" means the head of a district, or an officer nominated by the Government to be the
Collector in respect of a Federal Treasury, and includes any other officer for the time being
authorized by the Government to discharge the duties of the Collector for the purposes of these
rules; and

(v) "Competent authority" means the Government or any other authority to whom the relevant
powers may be delegated by the Government.

(vi) "District" includes any area whether described as a District, a Political Agency, a Consulate or
otherwise, which is served by a treasury placed in the direct relation with an Accountant General
and the term 'District Treasury' shall be construed accordingly.

(vii) "Federal Consolidated Fund" means the consolidated fund of which all revenues received
and all loans raised by the Federal Government, and all moneys received by the Federal
Government in repayment of any loan, form part.

(viii) "Public Account of the Federation" means the account to which are credited all moneys other
than those forming part of the Federal Consolidated Fund including those received by or
deposited with the Supreme Court or any other Court established under the authority of the
Federation.

(ix) "Public Moneys" means the moneys forming part of the Federal Consolidated Fund and the
Public Account of the Federation.

Note"Public Account of the Federation" would include unfunded debt and. unless the contrary
intention appears, such receipts of a banking or deposit nature as by virtue of any statutory
provision or of any general or special executive order of the Government have to be held in
the custody of the Government.

(x) "Treasury" includes a "sub-treasury" "Bank treasury" means a treasury the cash business of
which is conducted by the Bank and a "Non-Bank Treasury" means a treasury other than a Bank
Treasury.

"Federal Treasury" means and includes any treasury or sub-treasury not being a Treasury or sub-
treasury under the control of a Province.

Location of Public Moneys (Rule 3):

6. 4 Subject to the Provisions of Sub-rules (2) and (3) or Rule 7 and Sub rule (1) of Rule 33,
public moneys of the Federal Government must either be held in a Federal Treasury or in the
Bank. Moneys deposited in the Bank is considered as one general fund held in the Books of the
Bank on behalf of the Government.

The deposit of such money in the Bank is governed by the provisions of Section 21 of the State
Bank of Pakistan Act. 1956 (Act XXXIII of 1956).

General system of control over Federal Treasury (Rules 4 & 5):

6. 5 Normally there is a treasury in each district, where the cash transactions are not conducted
by the Bank, the treasury is divided into two departments. a department of account under an
accountant and a department of cash, stamps and opium under over-all charge of Collector who
entrusts the immediate executive control of the treasury to a treasury officer. The Treasury Officer
is. no doubt, subordinate to him, but this does not divest the Collector of his responsibility for the
administrative control. The latter is responsible for the proper observance of procedure and for
punctual submission of returns to the Government, the Accountant General and the Bank, as may
be required under the rules. The Collector is also responsible for verifying and certifying the
monthly cash balance and for rendering the accounts to the Accountant General. The Collector
may authorise any other officer to act in this behalf, but he should verify and certify the cash
balance in person at least once every six months. Whenever a new Collector is appointed he
should notify the fact of his appointment to the Accountant General and also certify to him the
amount of cash balance, stumps and opium stores taken over by him. The Federal Government
have established Federal Treasuries at Islamabad and Karachi. These are under the
administrative control of the A. G. P. R.

6. 0 One or more sub-treasuries may be established in a District under the district treasury if the
interests of the public service so demand. The arrangements for the administration and conduct
of business should be made by the Head of local administration in consultation with the
Accountant General. The daily accounts of receipts and payments of moneys at a sub-treasury
must be included in the accounts of the district treasury.

6. 7 The Pakistan Audit Department is not responsible in any way regarding the proper
management and working of the treasuries. The inspection of treasuries by the Accountant
General does not relieve the Collector of his responsibilities for management and inspection.

Other Collecting and Disbursing Officer (Rule 6):

6. 8 The Officers in charge of Military Treasure Chests. Officers of the Posts and Telegraph
Departments or of any other Departments authorised in this, behalf, maintain separate
departmental cash balances outside the balances in the treasury or the Bank. They are required
to perform all the prescribed duties of Treasury Officer in respect of receipt of and payments from
the. Government money.

6. 9 An Accountant General may be authorized by the Government in consultation with the

Auditor General, to perform all or any prescribed duties of a Treasury Officer in respect of claims
against the Government that may fall due for disbursement and moneys that may be tendered for
credit to the public account.

Payment of revenues into the Public Account (Rules 7 to 10):

6. 10 All moneys received by or tendered to Government Officers on account of revenues should

be deposited in a treasury or Bank in full without any delay and included in the Federal
Consolidated Fund or in respect of the Pakistan foreign missions, the money should be deposited
in such bank or banks as have been specified by the Ministry of Finance in consultation with the
State Bank of Pakistan.
As a general rule, money so received should not be appropriated to meet departmental
expenditure nor it should be kept apart from the public account. The following departments have,
however, been authorized to appropriate departmen tal receipts towards departmental
expenditure:

(i) Postmasters and other heads of offices of Telegraph and Telephones

Department.

(ii) Civil and Criminal Courts in respect of service of summons and diet-money of witnesses, etc.

(iii) Civil Courts in respect of receipts and refund of deposit.

(iv) Fees received by Notaries Public and defraying of legal expenses by them.

(v) Public Works Departments, Department of Federal Excise and Land Customs for current
works expenditure and in exceptional cases for disbursement of pay and allowances.

(vi) Collector of Customs.

(vii) Forest Department.

(viii) Superintendents of Jails in respect of cash found on the persons of

prisoners at the time of their admission to jail for repayment to other
prisoners on their release.
(ix) Railways.

(x) Survey of Pakistan Payment of commission to map agents out of

map sale receipts.
(xi) Government Libraries replacement of books lost by borrowers out
of their deposit money.
(xii) Branch Military Dairies.
(xiii) Military Unit Allowance Fund sale proceeds of office furniture
etc. for the purpose of fund.
(xiv) Collectorate of Sea-Customs and Federal Excise and Land Customs
for payment of commission to duly authorized auctioneers out of the
sale proceeds of the auctioned goods.
(xv) Department of Investment Promotion and Supplies for payment of
commission to duly authorized auctioneers out of the sale proceeds
of the auctioned goods.

6. 11 The authority conferred on the above Departments to appropriate departmental receipts

towards departmental expenditure in certain circumstances, should not be construed as an
authority to keep the departmental receipts and expenditure defrayed therefrom outside the
account of the payments into and withdraws from the Federal Consolidated Fund.

6. 12 The moneys which are received by a Government Officer in his offi cial capacity or
otherwise and which do not relate to or form part of the revenues of the Government should not
be included in the Federal Consolidated Fund. Unless authorized as a special case, no money
should be withdrawn from Public Account or the Federal Consolidated Fund and deposited in a
bank.

6. 13 The grant drawn by the Chief of Staff in advance in accordance with the departmental
regulations may be kept in a bank under the official title.Similarly the officers commanding units
and other concerned with the administration of Public Funds in the Defence Services may open
current accounts for such funds with the bank in their official capacity.
6. 14 The Bank is responsible for the safe custody of the Government money deposited in the
Banks.

Withdrawals of money from the Public Account (Rules 12 to 28):

6. 15 The withdrawal means the withdrawal of funds from the Federal Consolidated Fund or the
Public Account for disbursement of or on behalf of the Government. The payments made by the
Pakistan Diplomatic Missions abroad for and on behalf of the Government are also included in
the above term.

6. 16 The most important and primary Principle is that no money can be withdrawn from the
Federal Consolidated Fund or the Public Account without the written permission of the District
Accounts Offices', Treasury Officer or of an Officer of the Pakistan Audit Department authorized
by the Accountant General. In other words unless there is a written pay order of an authorized
officer, no payment can be made. The Accountant General may authorise the withdrawal offunds
within his own jurisdiction. Unless specifically authorized by a competent authority to do so. he
cannot permit withdrawal beyond the limits of his own jurisdiction. Normally the treasuries and
banks located within a Province are under the jurisdiction of the respective Accountant General.
The Accountant General Pakistan Revenues, Islamabad can operate directly on the State Bank of
Pakistan, Islamabad, Rawalpindi and Karachi and at (he two Federal Treasuries, at Islamabad
and Karachi. The Sub-offices of the A. G. P. R. at Lahore, Karachi. Quetta, Peshawar & Gilgit can
operate on the Bank, Treasures & District Accounts Offices located in the respective Provinces &
Northern Areas respectively. If any Accountant General desires to make a payment through a
treasury which is not in his jurisdiction, he had to issue an authority to the respective Accountant
General who in turn will direct the Treasury Officer/Bank to make the payment.

6. 17 Broadly speaking a Treasury Officer is competent to permit withdrawal for all or any of the
following purposes:

(i) to pay sums due from the Government'to the drawing officer;

(ii) to provide the drawing officer with funds to meet claims likely to be presented against
theGovernment in the immediate future by other Government servant- or private parties;

(iii) to enable the drawing officer to supply funds to another Government officer from which to
meet similar claims;

(iv) to pay directly from the treasury or bank the sums due by the Government to a private party;

(v) to pay a Government officer or authority who is empowered to make investments of money,
standing in the Public Account, for the purpose of such investment.

6. 18 A Treasury Officer cannot make any payments other than those specified above, unless he
has been authorized by the Accountant General to do so as a special case. Normally a payment
should be made in the District in which a claim arises. The authority of a Treasury Officer is
limited to the making of payments authorized by or under the provisions of the Treasury Rules. If
a demand is presented to the Treasury Officer which is not covered by the provisions of these
rules or by an authority from the Accountant General, he would be perfectly juslified to refuse
such payment. A treasury officer has no authority to act under an order of the Government
sanctioning the payment. Such orders should normally be sent through the Accountant General,
but if there is an emergency, the order may be sent directly and the Treasury Officer has to
comply with it.
6. 19 Every Treasury Officer is responsible to the Accountant General for acceptance of the
validity of a claim against which the later has permitted withdrawal and for satisfying him that the
payee has actually received the payment.
The Treasury Officer should also obtain sufficient information as to the nature of every payment
he is to make and should not accept a claim which does not supply the requisite information. If he
is of the opinion that a claim is disputable he should not honour it and direct the party concerned
to refer the matter to the Accountant General.

6. 20 No pension can be paid nor a gazetted officer can be allowed to draw pay, allowances,
reward and honorarium etc., until the Accountant General has authorized the Treasury Officer to
make the payment. In exceptional cases, the Government may, with the concurrence of the
Auditor General, waive the above conditions.

6. 21 With me exception of the newly appointed person in whose case medical certificate of
fitness is necessary, the Treasury Officer should not make payment of pay and allowances to a
Government servant for the first time, if the claim is not supported by a Last Pay Certificate. In
cases where the Treasury Officer has himself issued a Last Pay Certificate, he should not make
any further
payment unless the Last Pay Certificate is surrendered back to him.

6. 22 A Treasury Officer may correct an arithmetical error or an obvious mistake in the bill
presented to him for payment. The drawing officer should be apprised of such corrections.

6. 23 In the emergencies a Collector is empowered to require a Treasury Officer by an order in

writing, to make payment, other than a pension, without complying with the provisions of the
rules. In all such cases the Collector should forward a copy of his orders to the Accountant
General detailing the circumstances in which he had resorted to such a course of action. The
Treasury Officer should also inform the Accountant General about the payment made by him.

6. 24 Whenever the Accountant General directs a Treasury Officer to recover an amount from an
officer, to whom it has been overpaid or wrongly paid, he should forthwith effect the recovery
without listening to any submissions or representations made by the party concerned. The
drawing officers are also expected to comply with the orders of the Accountant General in this
behalf without resorting to unnecessary and avoidable correspondence.

6. 25 Every Government officer who is supplied with Government funds for expenditure is fully
responsible for them until he has rendered an account for the same to the satisfaction of the
Accountant General. He is also responsible to ensure that payments are made to persons entitled
to receive them.

General instructions for handling cash (Rules 76 to 77):

6. 26 Moneys tendered as dues of the Government or for deposit in the custody of the
Government shall not pass through the hands of a departmental officer unnecessarily. Direct
payment into the Treasury or into the Bank by the person who tenders such money shall be
insisted on, and direct payments arranged whenever this is practicable.

6. 27 In every department or office, wherever the Government cash is handled, a cash book
should be maintained in Form TR-4. Before opening a cash book the number of pages should be
counted and certificate to that effect recorded on the first page. All monetary transactions should
be entered in the cash book as soon as they occur and attested by the Head of office or by any
gazetted
officer authorized by him in this behalf, in token of his having checked it.
The cash book should be closed regularly on all days, whenever there is any transaction. The
totals should be checked by the head of office himself or should be got checked through some
responsible subordinate other than the writer of the cash book. The totals should be initialled as
correct by the Head of the office. The cash balance is required to be verified at frequent intervals
of not more than a week. At the end of the month when the cash book is finally closed, the cash
balance should be verified by the head of office and a signed and dated certificate recorded to
that effect in the cash book. The cash in hand should be mentioned in figures as well as in words.
The balance in hand should also be analysed.

6. 28 The entries in the cash book should be very neat and clean. Erasures and over-writing
must be avoided. If there is an error, it should be corrected by drawing the pen through the
incorrect entry and inserting the correct entry in red in between the lines. All the corrections
should be duly attested over the dated initials of the Head of office.

6. 29 Whenever any amount in the custody of a Government officer is deposited into treasury or
bank, the entry in the cash book should be compared by the Head of office, with the treasury
receipt, chalan or bank pass book and then the attestation may be done. When the deposits into
Banks/Treasury are appreciable, the Treasury Officer may be asked to issue a consolidated
receipt for all remittances made during the month, which should be compared with the postings
made in the cash book.

6. 30 If an officer has to handle non-Government money in his official capacity, such cash should
be kept in a separate chest and accounted for in a separate set of books, so as to keep it entirely
out of the Government account.

6. 31 As a matter of policy Grade 1 to 3 servants should not be deputed to fetch or carry the
cash. But if it is unavoidable, only senior man of reliable character should be put on the job.
Whenever the amount is large, police guards should be procured and sent to accompany the
cashier/messenger.

Receipts of Government money (Rules 78 to 81):

6. 32 Ordinarily the Government dues should be realised in legal tender coins or notes only.
Where the cash business of the treasury is conducted by the Bank crossed cheques and demand
drafts may also be accepted towards the payment of Government dues. But as long as a cheque
is not cleared the payment will not be treated as having been made. Consequently when a
cheque is tendered, a final receipt cannot be issued. At the most a receipt for the actual cheque
may be given in the first instance and final receipt given only after the clearance. Any collection
charges of the Bank will have to be borne by the party concerned. If on presentation a cheque is
dishonoured, the party concerned should be notified immediately and a demand sent to it for
paying in cash. The Government will not
accept any liability for damages or loss caused to the party for a possible delay in notifying the
fact that the cheque has been dishonoured, it is in the interest of the parties paying the
Government dues through cheques to take suitable precautions to ensure that their cheques
reach the treasury or the receiving office, at the latest, on the working day preceding the date on
which payment is required to be made.
The receiving officer may, at his discretion, refuse to accept cheques in payment of the
Government dues on the last date.

Grant of receipt to the payer (Rules 82 to 86):

6. 33 Every Government officer receiving money on behalf of she Government must issue a
receipt to the payer. The receipt should be duly signed by; an authorized officer, who should
satisfy himself before signing the receipt that money has actually been realised and accounted for
in the cash book. The amount shown in the receipts should be in words as well as in figures.
6. 34 Unless there is particular form for a certain Department ail officers receiving money on
behalf of the Government should use the receipt books in machine numbered Form T. R. 5 which
may be obtained from the Deputy Controller of Stationery & Forms Government of Pakistan,
Karachi. The receipt books must be kept under lock and key in the personal custody of the
authorized officer, A proper stock register should be maintained for the receipt and issue of blank
receipt books. Whenever a new receipt book is put into use the number of forms in the book
should be counted and a certificate to the effect recorded at some conspicuous place in the book
over the signatures of the authorized officer.

6. 35 A duplicate receipt should not be issued in any circumstances even if the original one is
reported to be lost. At the most a certificate may be given that on a specified date a certain sum
on a certain account was received from a certain person, if however, the departmental regulations
envisage issue of a duplicate receipt, it can be issued

Procedure for paying public moneys (Rules 88 to 96):

6. 36 Normally ail remittances to the Bank should be in cash but cheques and bank drafts etc.
are also, accepted, with certain reservations as stated in para
6. 32. In case of these Departments which are authorized to appropriate revenues towards
expenditure, the gross receipts and payments made therefrom should be entered as receipts and
payments in the appropriate records. If the receipts are in excess of payments the excess should
be remitted to the treasury/bank. The officer making the remittance should note on the chalan the
full amount of cash actually received by him and per contra, the expenses disbursed therefrom
and not merely the net receipts.

6. 37 Any person paying money into a Treasury or Bank on Government account should present
with it a chalan, wherein the nature of payment, the person or Government officer on whose
account it is made, the head of account and all other relevant information should be duly
incorporated. The chalan will be in Form T. R. 6 and should be presented in duplicate. Special
chaian forms have been prescribed for payment of Income-tax, Sales tax and Estate Duty.

Presentation of claims (Rules 130 to 134):

6. 38 The money is withdrawn from the Federal Consolidated Fund or the Public Account only
through the presentation of bills. The bill, as a matter of fact, is a statement of claims against the
Government containing specification of the nature of claim, amount claimed, either in gross or by
items. The bill may be in, the form of a simple receipt also. The bill becomes a voucher as soon
as it is receipted and stamped paid.

6. 39 All the bills or cheques in payment of claims against the Government should be presented
at the treasury or at an authorized office of disbursement e. g., an audit and accounts office or a
foreign mission. The bill should be duly receipted and stamped if the amount claimed exceeds
Rs. 20. A cash memo, however, is not required to bear revenue stamps (not liable to duty under
Stamp Act, 1899). When a person, who is not in Government employment and has rendered
services or supplied articles prefers a claim, it should be submitted through the department. All
bills in respect of grants in-aid and contributions etc., to local bodies, religious, charitable or
educational institutions and other non Government bodies and persons should be presented for
payment either through some responsible Government servant or after those have been
countersigned by him. Ordinarily no claims against Government not preferred within six months of
their becoming due can be presented without an authority from the Accountant General except
petty claims of Rs. 5 or less.

Instructions regarding preparationand form of bills (Rule 138):

6. 40 Printed forms in English should be used. If the bill is in some other language, it should be
translated into English or at least an abstract of the bill should be prepared in English stating the
amount, the name of the payee and nature of the payment. The abstract should be, prepared
under the signature of the preferring officer. All bills must be filled in and signed in ink. The
amount claimed should be mentioned both in figures and words. Where the claim is for whole
rupees, the word "only" should be added to the amount given in words. If it is fraction of rupee,
the paisa may be written in figures after rupees.

6. 41 Erasures and overwritings should strictly be avoided. In case of an error, pen should be
drawn Over the wrong entry and a correct entry neatly made in red ink, which should be duly
attested by the drawing officer over his dated initials. Similarly all alterations and changes in the
bill should be attested and signed as many times as are the alterations or corrections.

6. 42 The Drawing Officer must record the accounts classification on each bill. The classification
given in the budget should serve as a guide in thisbehalf. The classification should show, inter-
alia, whether the expenditure is voted or charged. Charges against two or more objects should
not be included in one bill. Separate bills should be submitted where the expenditure is debitable
to different detailed objects

6. 43 Where the expenditure has been incurred in pursuance of some special sanction the bill in
respect thereof should be duly supported by a copy of the letter of sanction which should be
attested by the drawing officer.

6. 44 Dates of payments should be noted in acknowledgements, in subvouchers and acquittance

rolls. Where due to illiteracy of the payee or on account of any other reason the date of payment
cannot be given the disbursing officer should himself record the dates over his initials. If payment
is required to be made to some other person or agency or through a cheque proper endorsement
should be made in the bill.

6. 45 When the drawing officer requires payment to be made to some other person or agency, he
should specifically endorse an order or furnish an authority in this regard. If the payment is
desired wholly or partly by a Stale Bank draft an application for the draft should accompany the
bill and the manner in which payment is desired, should be indicated in the drawer's receipt on
the bill in case whole or part of the amount of a bill is to be remitted by Postal Money Order, the
bill should be accompanied by properly prepared money order form(s).
The amount of money order as well as the amount of commission should be shown as deduction
in the bill. The purpose of the money order should be stated briefly on the acknowledgement
portion of the money order in continuation of the entry "Received the sum specified on the
reverse on......" having sufficient space for the signature or thumb impression of the payee.

Signature or countersignature of bills

(Rules 141 to 144):

6. 46 No payment can be made on a bill or order signed by clerk instead of the Head of office or
where the signature of the drawing officer arc with rubber stamps. In all cases where signature on
a bill is given by a mark or seal or thumb impression it should be attested by some known person.
Signatures in vernacular except in Urdu are required to be transliterated into English.

6. 47 The head of an office may authorise any gazetted officer serving under him to act as
drawing and disbursing officer and to sign bills and orders for him. His name and specimen
signature should be communicated to the audit officer/treasury/bank. Whenever there is a change
in the incunibency of the drawing officer, it should be duly intimated to all concerned and his
specimen signaturesupplied as usual. The appointment of a drawing and disbursing officer,
however, does not relieve the head of office of his responsibility for the accuracy of the bill or for
the disposal of money received in payment.

6. 48 All those bills which require countersignature should not be presented unless the
countersignature has been obtained.

Duplicate copies of the bills (Rule 145):

6. 49 If a bill is presented for payment, is duly passed for payment by the Treasury/Accountant
General and is lost before the actual payment is made, the drawing and disbursing officer may
submit a duplicate bill with the word "duplicate" prominently marked in red ink on the top of it. The
following certificate should also be recorded on the bill: -

"Certified that no payment has been received against the original bill. I undertake to refund the
amount immediately, if payment is made against the original bill in future".

The audit officer/treasury/bank after satisfying themselves that no payment was made against the
original bill, pass the duplicate bill for payment.

6. 50 Whenever any bill is prepared in duplicate or triplicate, only one copy of it should be signed
in full and rest of the copies simply initialled. Only the copy signed in full should be presented for
payment.

Mode of making payments against bills (Rules 147 to 167):

6. 51 There are two systems of making payments against bills. Where the payment is made by
the treasury either by itself or through the Bank, pay order is recorded on the bill and payment is
made in cash. The other one is called the preaudit cheque system and in all those cases where
the treasury functions have been entrusted to the audit officers, payment is made through
cheques. The bills are presented at the Public counter of those officers, a token in lieu thereof is
issued and after the bill has been passed for payment and a cheque prepared therefor it is
delivered to the payee or his representative on his surrendering the token. The cheques for more
than Rs. 200/- drawn in favour of Corporate or Local Bodies, firms, private persons or
Government servants (in respect of their personal claims) shall always be crossed. This rule will,
however, not apply to Federal Government Servants in receipt of pay and allowances upto Rs. *2,
000/- p. m.

*Subs. vide Finance Division Notification No. F. 3(13) I. F. III/82 dated 15-3-1988.

Specimen signatures and other safeguards (Rules 172 to 174):

6. 52 An officer, who is authorized to draw cheques or sign or countersign bills payable by the
Accountant General/Treasury should send a set of his specimen signatures to the Accountant
General/Treasury/State Bank of Pakistan duly attested by another officer, whose signatures are
already on record of the office concerned. Whenever a transfer of charge occurs the relieved
officer should furnish the specimen signatures of the relieving officer to all concerned, duly
attested by the former. Specimen signatures, when forwarded on a sheet of paper other than the
forwarding letter itself, should be attested by the officer signing the forwarding letter. Similarly the
Accountant General will forward the specimen signatures of the officers authorized by him to sign
cheques and payment authorities on his behalf, to the Treasury/State Bank of Pakistan/Other
Accountant General. All payment authorities issued by an Accountant General have to be
embossed with a special seal duly countersigned by an officer authorized in this behalf.
Checks to be applied to claims (Rules 177 to 188):

6. 53 Whenever a bill is presented for payment to the Department/ Treasury/Audit office the
normal audit checks are to see if the claim is admissible, authority is good, arithmetical
calculations are correct, signatures/counter signatures are genuine and legal quittance is in order.
Where the payment has to be made to an authorized agent or banker the endorsement should be
in order and complete in all respects. If the bill is found in order it is passed for payment.

6. 54 When a person not in Government employ claims payment for work done, services
rendered or articles supplied the bill should be submitted through the Head of Department or
other responsible Government officers concerned. While forwarding the bill to the Accountant
General/Treasury Officer, the departmental officer should record his acceptance of the amount,
both in figures arid words on the body of the bill. It is the responsibility of the disbursing officer to
see that the payment is made to the correct person.

6. 55 The Treasury Officer/Audit Officer is also required to inform the income tax authorities
regarding the payments made to officials and non-officials, etc., in respect of remunerations, fee,
commission and bonus, etc. The names and addresses of the payees should be duly intimated.

Responsibility for the money withdrawn (Rules 205 to 216):

6. 56 Every Government officer entrusted with the payment of money should obtain for every
payment he makes a voucher setting forth the full and clear particulars regarding the claims and
all relevant information necessary for its proper identification and classification in accounts. Every
voucher must bear to have attached to it an acknowledgement of payment signed by the person
by whom or on whose behalf the claim is put forward. Where it is not possible to obtain an
acknowledgement, a certificate of disbursement should be in manuscript, signed by the
disbursing officer and countersigned by the superior officer. A memorandum detailing the reasons
for not obtaining an acknowledgement should also be drawn and kept on record.

6. 57 Every voucher must bear a pay order signed by the authorized drawing officer, specifying
the amount payable both in words and figures. The pay order should be signed by hand in ink.
The vouchers and sub-vouchers should be stamped "paid' and cancelled so that they cannot be
used a second time. Vouchers below Rs. 100/- which are not required to be submitted to the audit
officer, should be properly recorded as important documents.

6. 58 All objections and orders communicated by an audit officer should be promptly attended to.
Wherever he disallows any payment as unauthorised the disbursing officer should not only
recover the amount paid despite all protests and submission, but refuse to pay in future, unless
the audit officer authorises him to resume payments. In respect of retrenchments a disbursing
officer should not enter into correspondence with the audit officer and the Government servant
concerned. His duty is simply to carry out the orders he has received. The aggrieved person may
take up his case, with proper quarters, if he so desires. If a Government servant, from whom a
recovery is ordered by the Accountant General, is transferred to the jurisdiction of another
disbursing officer, the order of recovery should be passed on to him without delay.

6. 59 Except in those cases where the Government servant acted contrary to orders or without
due justification, the recoveries in respect of over-payments should not exceed one-third of the
pay of the Government servant concerned.

6. 60 In order to keep the record of retrenchments and recoveries in a proper way, a register
should be maintained by every disbursing officer wherein the retrenchments ordered by the
Accountant-General, should be recorded. Separate columns should be provided to show the
name and office of the person from whom the recovery is to be effected, the nature and amount
of over-payment and the method by which the over-payment is adjusted.

Due date of submission of monthly pay bills (Rules 217 to 219):

6. 61 The Government servants may sign the bill for monthly pay and fixed allowances on the
last working day of the month for the labour of which such pay and allowances are earned. The
amount so claimed will be due for payment on the next working day. Pay and establishment bills
of the Secretariat and other offices of the Federal Government may be signed and presented five
days
(7 days in the case of Karachi, Rawalpindi, Islamabad and provincial Headquarters) before the
last working day of the month to which they relate. Even if the Accountant-General, issues
cheques for the bills before the 1st of the next month, he endorses on them the words "not
payable before first proximo" so that in any case the pay and allowances are paid not earlier than
the first day of the next month. In case of foreign missions pay may be disbursed on the last day
of the month if it is customary in that particular country. In the following circumstances a
Government servant may be allowed to draw pay due for a part of the month and these bills may
be passed for payment before the end of the month: -

(a) When a Government servant proceeds, out of Pakistan, on temporary duty or on leave or on
vacation. If, however, the leave salary is payable in Pakistan it will be drawn alongwith the duty
pay at the commencement of the next month.

(b) When a Government servant is transferred to another audit circle or within the same audit
circle to and from the P. P. W. D. or Forest Department or from one P. P. W. D. Division to another.

(c) When a Government servant finally quits service of the Government or goes on foreign
service.

(d) When a Government servant serving in a Pakistan Mission abroad relinquishes charge and
leaves the country in which he was serving, either on transfer or on leave.

6. 62 If the first two days of a month are public holidays and pay and allowances cannot be
disbursed during those days, a competent authority may direct the payment on the last working
day before the holidays of the non-gazetted Government servants drawing pay and allowances
not exceeding Rs. 700 per month. In other special cases, the Government may also relax the
provisions of the above rules.

6. 63 If the Eidul-Fitr, Eidul Azha, the festivals of Dusserah, Diwali, Guru Nanak's Birthday, Good
Friday, Easter Monday, Christmas or Parghat Day of Guru Balmik Swamiji falls within last ten
days of the month, the pay and allowances of that month may be drawn in advance and
disbursed to Government servants belonging to the community observing the festival. The
advance should not be disbursed earlier than five days before the date of the festival.

Deductions from pay bills (Rules 221 to 299):

6. 64 The drawing officer in respect of the non-gazetted Government servants and gazetted
officers themselves are responsible to see that the deduction from the bills on account of
subscription to the provident funds, postal life insurance, income tax, super tax. Benevolent Fund
and Group Insurance premia etc.are made in accordance with the rules and regulations and
Income-Tax Act, 1922. The same applies to account of the house rent. The demand statement in
respect of the house rents are sent by the P. P. W. D. /Estate Officer in duplicate. The deduction
should be made accordingly and one copy of the statement after recording the fact of recovery in
the appropriate column returned to the P. P. W. D. /Estate Officer.
Where the rent recoverable is a percentage of the emoluments of a Government servant, the rate
of emoluments should be intimated from time to time to the authorities concerned. In the case of
gazetted officers the audit officer endorses a copy of the salary slip to the Estate Officer so that
he may keep his records up-to-date.

6. 65 When the pay of a Government servant is attached by an order of a Court of Law, it is the
duty of the officer receiving the court attachment order to see that proper deduction is made in
satisfaction of such order from the pay of the Government servant concerned. Only the pay of a
Government servant and not any allowances can be attached. The maximum amount of
attachment in a month will be the amount available after paying the salary to the Government
servant to the extent of first 100 rupees and one-half of the remainder, e. g., if the pay of a
Government servant is Rs. 500 he will be allowed to retain first hundred rupees plus 50 per cent
of the remainder, viz., Rs. 200 and the balance of Rs. 200 can be attached. Any deduction on
account of subscriptions to the Provident Fund, taxes on income and recoveries of advance, etc.,
will be made from the non attachable portion of the Government servant's salary. On an
Attachment Order recovery can be made for a maximum period of 24 months. If there is another
Attachment Order recovery will start after the expiry of 12 months from the last deduction on
account of a previous Attachment Order.

6. 66 The procedure for deductions on account of attachment will be that gross amount of pay
and allowances are drawn on pay bill, the net amount after deducting the amount recoverable
under the attachment order, will be disbursed to the Government servant concerned. The
authority making the deductions will remit the attached pay to the Court concerned. In such cases
the audit officer generally records two pay orders on a bill one in respect of the amount payable
to the Government servant concerned and the other in favor of the Court ordering the attachment
and accordingly two separate cheques are issued. In case a judgment debtor does not sign his
acquittance roll, if he is non-gazetted or abstaining from preferring a pay bill if he is gazetted
officer in order to evade the payment of the attached amount, the Head of office or administrative
officer concerned may draw the pay of judgment debtor in satisfaction of the attachment order
and remit the amount to the Court concerned. The cost, if any. on account of the remittance to
Court is deducted from the amount realized and only net amount remitted.

First payment of pay and allowances (Rules 230 to 231):

6. 67 When a Government servant presents his pay bill for payment for the first time, it should be
duly supported by a medical certificate of fitness, if it is a fresh appointment or re-employment
after resignation or forfeiture of past service. In other cases the pay bill should be supported by
the Last Pay Certificate issued by the Treasury/Audit Office from which he last drew his pay. If a
pensioner is re-employed, this fact should be stated in the bill. In all cases of transfer the
responsibility of obtaining his Last Pay Certificate from the last disbursing officer rests upon the
Government servant himself.

Payment on quitting the service (Rule 232):

6. 68 Whenever a gazetted Government servant finally quits the service by retirement,

resignation, dismissal, death or otherwise or is placed under suspension, the last payment of pay
and allowances should not be made to him until a 'no demand certificate' is issued by the
Department concerned, audit office, and the Estate Office, etc.

However, the last payment of pay or allowances of a Government Servant finally quitting service
by retirement shall not be held up merely for verifying that no demand is outstanding against him.
The payment may be made if the Government servant or in the event of his death before
payment, the person entitled to receive payment agrees in writing that any demand coming to
notice within a period of one year from the date of such payment may be recovered from the
pension. The official failing to intimate demand within the period of one year from the date of
retirement of an officer shall be personally liable for the amount involved.

Death of Payee (Rules 233-234):

6. 69 A Government servant is entitled to the pay and allowances for the day of his death
irrespective of the hour at which the death took place. The "day" for the purpose of this rule
means a calendar day beginning and ending at midnight.

6. 70 Pay and allowances of a deceased Government servant may be paid to his heirs. If the
amount payable is less than Rs. 500 payment can be made by a competent authority after
making an enquiry regarding the rights and title of claimants. Where the amount exceeds Rs. 500
the payment can be made under the orders of the Head of Department on execution of an
indemnity bond, with such sureties as he may require and after fully satisfying himself regarding
the right and title of the claimants. The latter course is adopted only in such cases where the
head of department is convinced of the fact that undue delay and hardship would be caused by
insisting on the production of a Succession Certificate. In all other cases and specially those of a
doubtful character, payment should be made only to the claimants producing the legal authority.

Place of payment (Rules 235 to 243):

6. 71 The bills for pay and allowances are payable only in the District where the claim arises, The
leave salary of a gazetted Government servant who draws his leave salary in Pakistan may be
paid at any treasury in Pakistan. But a non-gazetted Government servant will be paid his leave
salary only at the place where he draws his duty pay. He may, however, make his own
arrangements for getting his leave salary remitted to him.

6. 72 A Government servant, whose duties require him to travel extensively on inspection should
take with him his Last Pay Certificate. This would enable him to draw such portion of his pay from
the nearest treasury/audit office, as he desires. The balance may be drawn by him at his
headquarters. In case he passes from the jurisdiction of one Accountant-General to that of
another during the course of his tour, his Last Pay Certificate will require countersignature of both
of them. In such a case no advance is made and no recovery or adjustment becomes necessary.
Similarly, he can draw his traveling allowance bills after getting them countersigned by the
Controlling Officer. But he cannot be paid any advance of traveling allowance. The same
procedure will be followed in respect of establishment, if any, which accompanies him.

Payment of Pay, leave salary etc., through agents (Rules 244 to 246):

6. 73 A Government servant may be allowed to receive the payment of his pay and allowances or
leave salary through a messenger duly athorised by him to receive money in his account. But
there should be no endorsement on the bill to pay to any such person. The Government do not
accept any responsibility in respect of money or cheque handed over to the messenger. In case
of gazetted officers the bills may be made payable to some well-known banker or agent, provided
there is a written request to that effect. The receipt given by the banker or agent will not be
treated as final quittance, unless the bill has duly been endorsed in favour of the agent or banker.
The payment to an agent will be made only if he holds a valid power of attorney to act for the
Government Servant concerned.
Government servants proceeding for training to a country outside Pakistan under a scheme
sponsored by the Government, may draw a part of their pay in the currency of the country to
which they are sent for training subject to such limit as may be prescribed by the Government
from time to time, and the balance in Rupees in Pakistan. The pay of Government Servant
(gazetted or non-gazetted) may, however, be drawn by the Head of his office and the amount
disbursed to the nominee of the Government Servant concerned unless the Government servant
prefers to make his own arrangement to receive payment in accordance with the prescribed
procedure.

6. 74 The gazetted officers claiming leave salary in Pakistan should either appear in person at
the place of payment or furnish a life certificate signed by a responsible Government officer or
some other well-known or trustworthy person. If he draws it through an agent, the latter should
produce such a certificate.

Bills of B-16 and above Government servants,(Rules 248 to 261):

6. 75 The pay and fixed allowances of B-16 and above Government servants are drawn on bills
in Form T. R. 16 if drawn from treasury and in Form T. R. 17 if the pay is drawn from an
Accountant General. The claims relating to leave salary. Honorarium, fees, etc., are also drawn in
the same forms. The travelling allowance bills are drawn in Form T. R. 20.

6. 76 The B-16 and above officers are not allowed to draw increased or changed rate of pay,
leave salary, fixed allowances, reward or honorarium, etc., unless the Accountant-General has
issued an authority in respect of the same.
When such an officer draws his pay from a treasury, he can draw advance of pay and traveling
allowance without any authority from the Accountant-General, but an authority is necessary in
respect of all other personal advances.

Bills of B-1 to B-15 Government servants (Rules 262 to 282):

6. 77 The bills for pay, leave salaries and fixed allowances of B-1 to B-15 Government servants
are drawn in Form T. R. 22. Separate bills should be prepared for permanent and temporary
establishments. The name of every substantive, officiating or temporary incumbent should be
shown against each post. In respect of temporary establishment, the number and date of sanction
letter is also required to be quoted. The rate of pay claimed should always be noted and when the
pay is drawn for a part of the month, the number of days are mentioned against the name of the
Government servant concerned. The various sections comprising the establishment should be
shown separately, the description of
each section as well as the sanctioned number of posts included therein being prominently
written in red ink at the top. Whenever the leave salary is drawn, the bill should be accompanied
by a statement, attested by the drawing officer, showing the calculation of the leave salary. If due
to certain reasons the leave salary of an incumbent cannot be calculated, the amount of pay to
which he would have been entitled had he remained on duty should be entered in the money
column of the form which is intended to show leave salary, the amount being left undisbursed and
treated as held over pending the fixation of the amount of leave salary.

6. 78 The entries in all the money column of the bill should be totalled under each section and
the totals written in the red ink. The totals are required to be checked by the drawing officer
himself or through some responsible person other than that who has prepared the bill.

6. 79 The names of incumbents without permanent posts in a substantive capacity, in B-1, 2 and
3 and head-constables and constables may be omitted from pay bills and the following certificate
recorded on the body of the bill.

"Certified that all persons whose names are omitted from, but whose pay has been drawn in this
bill have actually been employed during the month and that full details of the names of the
persons concerned and the emoluments drawn for them working upto the total included in this bill
have been duly shown in the office copy. "
6. 80 The claims of Government servants in such cases are not lumped together and entered as
a single item in the bill, but the bills, should show separately the number on different rates of pay
or with different designations. The head of Local Administration may extend the provisions of
these rules, in consultation with the Accountant General, to any specific classes of establishment.

6. 81 The other instructions printed on the bill form should be observed

very carefully.

6. 82 If any Government servant is absent during a month, either on special duty or under
suspension, or with or without leave, other than casual leave, the monthly bill should be
supported by an absentee statement in Form T. R.23. In case of amalgamated establishments, a
consolidated absence statement

showing the complete chain of arrangements, should be furnished to the Accountant General.
Whenever leave salary is drawn in respect of a B-1 to B-I5 Government servant who has served
under another Government or Department, which is treated as a separate unit for purposes of
allocation of leave salary, a detailed statement of allocation of leave salary should be prepared
and attached to the leave salary bill.

6. 83 When the increment of a B-1 to B-15 Government servant is drawn, a periodical increment
certificate in Form T. R. 24 should be attached to the first pay bill in which the increment is drawn.
The periods of duty and absence with or without leave should be shown in the appropriate
columns of the increment certificate.

6. 84 Every bill in respect of an overtime allowance should bear the

following certificates: -

"Certified that-

(a) the men for whom overtime allowance is claimed have actually earned it by working
overtime;

(b) the periods for which overtime allowance has been claimed, have been checked with initial
records and found correct;

(c) the rates of overtime allowance have been sanctioned by a competent authority; and

(d) the overtime allowance has been taken into consideration for calculating the income-tax due
from the Government servant. "

Where overtime allowance is paid from the fees realized from the private parties and credited to
the Public account, the drawing officer should certify that fees has been realized and credited into
the public account.

6. 85 Arrears on account of pay, allowances and leave salary should not be drawn in the ordinary
monthly pay bill, but in a separate bill. The amount claimed for each month should be entered
separately with full cross reference of the bill from which the charge was omitted or withheld or on
which it was refunded by deduction. A note for the arrear bill should invariably be made on the
office copy of the bills for the period to which the claim pertains. This should be done over the
dated initials of the drawing officer, so that the risk of the arrears being claimed again, may be
avoided.
6. 86 The traveling allowance bill in respect of establishment should be drawn in Form T. R. 25
and the instructions printed thereupon adhered to carefully and the bill prepared accordingly.

6. 87 The head of an office is personally responsible for the amount drawn on a bill signed by
him or on his behalf until he has paid it to the persons entitled to receive it and obtained a legally
valid quittance on the office copy of

the bill. In large establishments it is permissible to obtain quittance on a separate acquittance roll
in Form T. R. 28. The quittance rolls and office copies of the bills are not required to be submitted
to the Accountant General but being important records, they should be stamped 'paid' and
preserved carefully for the period prescribed under the rules.

6. 88 If due to certain reasons payment cannot be made within the month, the amount drawn for
the payee should be refunded by short withdrawal in the next month bill. The amounts so
refunded can be redrawn whenever the payment is proposed to be made. But if in any case the
drawing officer considers that the refund would be inconvenient, he can retain the undisbursed
amount for a period not exceeding three months. This should be done only if proper
arrangements can be made for the safe custody of the cash retained.

6. 89 The undisbursed pay and allowances should not be placed in deposit in a treasury under
any circumstances.

6. 90 Pakistan Missions abroad may make payment to their staff by cheque.

Computerized Payroll:

6. 91 Computerised payroll system has been introduced with effect from 1st July, 1969 for
disbursement of pay and allowances to the Government Servants, maintaining the G. P. Fund
accounts, accounting for the various items of receipts and expenditure arising thereupon. The
scheme has been designed to computerise gradually payroll of all the Ministries/Divisions and
Departments.

6. 92 The manual preparation and submission of regular monthly paybills are dispensed with
under the Computerized payroll system. The officers (B-16and above) and staff (B-15 and below)
are treated alike in this system and as such the input data and output reports are processed in
respect of officers and staff without any distinction.

The detailed audit of payments and deductions in respect of the officers (B-16 and above) is
conducted by the Audit office and the Drawing and Disbursing Officer is responsible for all
payments/deduction in respect of the staff (B-15 and below) in accordance with existing rules and
orders of the Government.

6. 93 The Drawing and Disbursing Officers of the Administrative Ministries/Divisions and

Departments are required to provide to Audit Office all 6the initial data in respect of all the officers
and staff of their respective Departments for creation of master-file each month. The detailed
instructions for furnishing the input data, handling the output reports, of pay and allowances etc.,
have been laid down in the "Audit and Accounting Procedure for Computerised Pay roll in respect
of Governmenuservants. " The copy of this procedure has been supplied to the concerned
Ministries/Divisions and Departments.

6. 94 The Computer Agencies who design and run the Computerized Payroll system on the
Computer provide the procedure booklet containing the detailed technical information and
instructions in respect of input data, output reports, code lists, filling in of all input forms
processing of the data, etc. Initial training is imparted to the officers and staff of a new
Department, whose Payrolls are to be computerized in order to acquaint them with the
computerised payroll system.

6. 95 The most important responsibility of the drawing and disbursing officer in this regard is to
ensure that all input data is correctly supplied and all changes like promotions, demotions, leave,
transfers, retirements and variations in the rates of entitlements and deductions, etc., are
promptly reported through change statements. Any omission or delay in this regard may result
into over payment.

Contingencies (Rules 284 to 317) General Rules:

6. 96 The term "Contingent Charges" or "Contingencies" means all incidental and other
expenses which are incurred for the management of an office as an office or for the technical
working of a Department. The expenditure incurred on "Works", "Stocks", "Tools" and "Plants",
etc., is, however, not included in the contingencies.

Classification of charges (Rule 287):

6. 97 Contingent charges incurred on the Public Service are divided into the following
classification adopted in each department or office being determined by orders of competent
authority;

(i) Contract Contingencies are those for which a lump sum is placed annually at the disposal of
disbursing officer for expenditure without further sanction of any kind. These consist of the
charges the annual incidence of which can be averaged with reasonable accuracy.

(ii) Scale regulated Contingencies comprise such contingent charges as may be regulated by
scales laid down by a competent authority, e. g., reward for destruction of wild animals and supply
of liveries to Government Servants, etc.

(iii) Special Contingencies include such contingent charges whether recurring or non-recurring as
cannot be incurred without the previous sanction of the competent authority.

(iv) Countersigned Contingencies include such contingent charges as may require the approval of
some controlling authority before they can be admitted as legitimate expenditure, such approval
usually taking the form of countersignature after payment on a detailed bill submitted to the
Accountant General.

(v) Fully-Vouched Contingencies comprise charges which require neither special sanction nor
countersignature, but may be incurred by the head of office on his authority. These may be
passed on fully vouched bills without countersignature

6. 98 The above classes of contingencies are not necessarily mutually exclusive. There may
be cases where special contingencies are regulated by scale or in which a bill for scale-regulated
contingencies requires countersignature. In a case of this nature the rules relating to both the
kinds of contingencies will be applicable.

Permanent advance; its general limitations (Rules 288 to 294):

6. 99 The Government officers who have to make payment on account of contingent

expenditure before they can place themselves in funds may make such payments from the
payment advance or imprest, which can be recouped as usual. The charges incurred should be
drawn and paid at once. It is very irregular to keep a claim pending to be paid out of the funds for
the next year. Money should be drawn only when it is required to be paid immediately. Withdrawal
of money in anticipation of demands or in order to prevent the lapse of budget grant is strictly
prohibited. The charges relating to two or more detailed objects should neither be claimed in one
bill nor shown in one register.

6. 100 No pay of any kind can be drawn on bills for contingent expenditure. but in case of
Government servants in BPS 1 of the following categories, who have been declared by a
competent authority to be ineligible for pension, their pay may be treated as a contingent
expenditure:

(i) Hot weather establishment;

(ii) Coolies engaged on manual labour and paid daily or monthly

wages;

(iii) Sweepers; and

(iv) Other Grades 1-3 Government servants, e. g., dhobies, tailors,

syces and farashes etc.

The bill on account of labour charges for coollies should be supported by certificate to the effect
that they were actually entertained and paid. In respect " other B. P. S. 1 employees the
disbursing officer should certify that all such employees whose pay has been charged in the bill
were actually entertained in Government service during the period concerned.

responsibility of the Drawing Officer (Rule 295):

6. 101 Every Government officer is expected to exercise the same vigilance in respect of the
petty contingent expenditure, as a man of ordinary prunce would do in respect of his own money.
The drawing officer should see that les regarding the preparation of contingent bills are observed
and only that amount is drawn which is required for immediate disbursement or has already been
paid from the permanent advance. He should also see that the expenditure is thin the sanctioned
budget and if it is exceeded or is likely to exceed, he should be prompt steps to obtain additional
appropriation. In regard to the Contract contingencies he should see that expenditure is not in
excess of the contract grant.

responsibility of the Controlling Authority Rule 296):

6. 102 The controlling authority should see that the expenditure incurred was of obvious
necessity, the rates were fair and reasonable, requisite sanctions had been obtained, arithmetical
calculations were correct and the expenditure was within the appropriation. If he felt that the
expenditure was progressing too idly, he should intimate the fact to the drawing officer and insist
on its being checked.

Cancellation and destruction of vouchers (Rules 297):

6. 103 The subvouchers should not be destroyed before three years. If the local audit has not
been conducted these should be retained even beyond three years, so that the audit may be in a
position to check them. The vouchers which are not required to be submitted to the Accountant
General or the controlling officer should be cancelled by means of a rubber stamp or by an
endorsement in red ink across the voucher. The cancellation should be initialled by the drawing
officer. The cancellation should be done when the contingent bill is signed, in which the vouchers
or sub-vouchers are included. The vouchers which art submitted to the controlling officer and
which are not required to be submitted to the Accountant General should be cancelled by him
under proper initials. In the bill submitted to the Accountant General, it should be certified by the
drawing officer/controlling officer that the vouchers/sub-vouchers retained by them have duly
been cancelled. The vouchers/sub vouchers required to be submitted to the Accountant General
should be cancelled, as the duty of canceling them in order to prevent their fraudulent use
devolves upon him.

Record of contingent expenditure (Rules 298 to 301):

6. 104 A register of contingent expenditure should be maintained in Form T. R. 29. The various
columns regarding detailed objects may be modified to suit the requirement of each department
and office. The appropriation should be noted at the top of each column. As each payment is
made entries should be made in the contingent register regarding the date of payment and the
name of payee, the No. of sub-voucher and the amount paid. Every entry should be initialed by
the officer incurring the expenditure. In order to enable a disbursing officer to keep a watch over
the progress of expenditure under each detailed head,a progressive total of all the months should
be worked out immediately after the monthly total, from the commencement of the financial year
up to the end of last expired month.

Bills for contingent charges (Rules 302 to 314):

6. 105 Whenever money is required to be drawn for contingent expenditure whether to recoup
the inprest or at the time of transfer of charge and in any case at the end of each month a red line
should be drawn across the page of the contingent register, various columns should be added up
and separate bills prepared for each kind of contingent expenditure. The entries in the bills,
vouchers/sub-vouchers should be compared carefully with those of the contingent register and
only then the bill should be signed and presented for payment. In case of bills of suppliers, the
amount of which is too large to be paid from the imtrest, these may be endorsed for payment to
the party concerned direct. When paying rewards to the informers or in other cases where the
names of payees cannot be disclosed due to the Public reasons. the drawing and disbursing
officer should record a certificate in his own hand writing to the effect that the payment has duly
been made and this certificate will be submitted to the Accountant General in lieu of the payees
receipt.

6. 106 The bills in respect of the Contract Contingencies should be drawn in Form T. R. 30. The
Fully Vouched Contingent Charges should also be drawn on the same form and full detail of the
charges given therein. The charges regulated by the scales and those relating to the special
Contingencies are drawn in Form T. R. 31. In the case of Special Contingencies the No. and date
of letter of sanction should be quoted invariably. Where the sanction has been accorded for a
lump sum amount and the special sanction is continued for more than one month, the second and
subsequent month's bill should bear a note of how much has been spent up-to-date under the
special sanction.

6. 107 Except in those cases where prior counter signatures are required the charges on
account of items falling under Countersigned Contingencies may be drawn on abstract bills in
Form T. R. 31, subject to the condition that a detailed bill will be prepared and submitted to the
controlling officer and Accountant General in due course. A certificate should also be recorded on
the bill to the effect that detailed bill has been submitted to the controlling officer in respect of the
abstract bills drawn in the previous month on such and such date. No. abstract bill should be
cashed after the tenth of a month without this certificate. The detailed bill should be prepared in
Form. T. R. 32 headed "not payable at treasury" and showing the monthly total of each column
with description of each charge.
The No. and date of sub-vouchers and those of abstract bills should be quoted The amount of all
abstract bills drawn during the month should agree with the total of the detailed bill. If there is a
difference, it should be explained adequately. The bill should be signed by the Head of office and
then submitted to the controlling officer, who will review it with sub vouchers. After he has been
fully satisfied, the bill will go to the Accountant General, for audit scrutiny. Any disallowance
ordered by the former will be responded by the Head of the office through refund by means of
short withdrawal in the next bill.

Service Postage Stamps (Rule 317):

6. 108 For purposes of obtaining service postage stamps, and adjusting their value, a bill
should be prepared in Form T. R. 34. This should contain acknowledgement of the drawing officer
for the receipt of stamps indented for.The bill will be treated in the same way as if drawing the
cash. The bill will be passed for payment by transfer by the Accountant General. Then it should
be presented to he treasury, where the stamps will be issued and the amount will be entered in
the list of payments crediting the value of the stamps in the same manner as if the cash was
realized.

FUNDAMENTAL RULES
Introduction:

7. 1 The Fundamental Rules were enforced by the late Government of India with effect from the
1st January, 1922, to regulate the conditions of service, such as, age of retirement, leave, joining
time, fixation of pay, dismissal, removal from service and suspension, travelling allowance etc. in
replacement of corresponding rules in the Civil Service Regulations. These are among the few
sets of very old rules which on independence were inherited from the late Government of India.
There were then two sets of Fundamental Rules, the one which were applicable to the members
of Services subject to the rule-making control of the late Secretary of State-in-Council and the
other which were applicable to the members of the Services subject to the rule-making control of
the Governor-General-in-Council. In the wake of Independence control of all Services and Cadres
was transferred to the Governor-General-in-Council. In consequence the Fundamental Rules in
the first category became applicable to all Government servants whose pay was debitable to the
civil estimates.

Validity of Fundamental Rules:

7. 2 The Fundamental Rules have remained in force with necessary adaptations and
modifications, etc. on the strength of saving provisions in the successive constitutional
enactments. Article 268 of the 1973 Constitution, read with Article 2 of the Provisional
Constitutional Order, 1981 (CMLA Order of 1981) may be referred to in the present context.
Attention may also be invited to Article 241 of the Constitution and Sub-section (2) of Section 25
of the Civil Servants Act, 1973, according to which any rules, orders or instructions in respect of
any term and condition of service of Civil Servants duly made or issued by an authority competent
to make them and in force immediately before the com-
mencement of the Act shall, in so far as such rules, orders or instructions are not inconsistent with
the provisions of the Act shall be deemed to be rules made under
the Act. All previous rules have to be read in the light of this legal and constitu tional position. The
leave and T. A. Rules contained in the Fundamental Rules have since been replaced by new set
of rules. The age of retirement of Government Servants is now regulated under Section 13 of the
Civil Servants Act, 1973.
7. 3 Section 23 of the Civil Servants Act, 1973 provides that provisions of the Act or any rules
shall not be construed to limit or abridge the powers of the President to deal with the case of a
civil servant in such manner as may appear to him to be just and equitable. This is, however,
subject to the condition that the:case will not be decided in any manner less favourable to him
that the provisions of the Act or such rule.
Extent of application:

7. 4 The Fundamental Rules apply to all Government servants who are subject to the rule-
making power of the President and whose pay is debitable to civil estimates and to any other
class of Government servants to which the President may by general or special order declare
them to be applicable.

7. 5 The Fundamental Rules do not apply to Government servants whose conditions of service
are governed by Army, Navy and Air Force Regulations. If any officer of these services is
temporarily transferred to service paid from Civil Estimates, he will ipso facto, become subject to
the Fundamental Rules except for leave rules while so transferred. On the contrary, however, a
Government servant, paid from Civil Estimates, who is temporarily transferred to service paid
from Defence Estimates, will continue to remain subject to the Fundamental Rules.

7. 6 The powers specially granted by the Fundamental Rules to Local Governments may be
exercised by them in respect of the Government servants under their administrative control.
These powers may be exercised by the President in respect of all other Government servants.

7. 7 The Provincial Governors exercise the powers to make rules or general orders as conferred
upon Local Governments by the Fundamental Rules. A Local Government may relax the
provisions of rules or orders so made by it in such a manner that it is just and equitable, subject to
the limit of its powers to make such rules and orders. This is subject to the condition that where
such rule or order is applicable to the case of any person, the case should not be dealt with in any
manner less favourable to him than that provided by the rule or order.

7. 8 The powers conferred upon the Local Government by the Fundamental Rules can be
delegated to any of its officers, subject to any conditions it may think fit to impose, with the
following exceptions: -

(i) all powers to make rules; and

(ii) the other powers conferred by rules 6, 9 (6) 44, 45-A, 45-B,, 45-C, 108-A, 119, 121 and 127
(C) and the first proviso to clause (i) of rule 30.

7. 9 The powers delegated by the Government of Pakistan in its capacity as a Local

Government under different Fundamental Rules, are contained in Appendix 4 of F. R. Vol II as
amended from time to time.

7. 10 The powers under Fundamental Rules may be exercised or delegated only after
consultation with the Ministry of Finance. It is for the Ministry of Finance to prescribe by general
or special order, cases in which its consent may be presumed to have been given.

7. 11 The powers to interpret the Fundamental Rules is reserved to the President of Pakistan.

Definitions and orders issued under F, R. 9:

7. 12 Unless there be something repugnant in the subject or context, the terms defined below ate
used in the rules in sense here explained:

(1) Act. The act means the Government of India Act, 1935 as adapted by the Pakistan
(Provisional Constitution) Order, 1947.
(2) Average Pay. Average pay means the average monthly pay earned curing the twelve
complete months immediately preceding the month in which the event occurs, which necessitates
the calculation of average pay.

The "12 complete months" given above should be interpreted literally, e. g. a Government
servant, who has been on leave from the 23rd March, 1986, to 22nd July, 1986, inclusive is
granted leave from 4th February, 1987, the average pay is to be calculated on the pay earned
from 1st February, 1986 to 22nd March, 1986, and 23rd July, 1986 to 31st January, 1987. If the
Government servant happens to be on leave for more than 12 months immediately preceding the
month in which the leave is taken, the average should be taken of the monthly pay earned during
the 12 complete months immediately preceding the months in which the previous leave
commenced.

In the case of a Government servant on foreign service out of Pakistan lasting for more than 12
months who, on reversion to the Government service, immediately takes leave, the calculation of
average pay should be based on the pay drawn by him during the 12 complete months preceding
the month in which he was transferred to foreign service.

The period of joining time taken either under clause (b) or under clause (c) of F. R. 105 during the
preceding 12 months should be ignored in calculating average pay as no pay is drawn in respect
of such joining time.

Where the Government servant belongs to a vacation Department, the vacation falling in the
period of 12 complete months immediately preceding the month in which the leave is taken
should be treated as duty and the pay drawn bythe Government servant during the vacation
should be taken into account in determining his leave salary during the succeeding leave.

(3) Cadre. Cadre means the strength of a service or a part of a service sanctioned as a
separate unit.

(4) Compensatory Allowance. (i) Compensatory Allowance means an allowance granted to

meet personal expenditure necessitated by the special circumstances in which duly is performed.
It includes a travelling allowance but does not include a sumptuary allowance nor the grant of free
passage by sea to or from any place outside Pakistan.

(ii) The circumstances which justify the grant of special pay to an officer are entirely different in
character from those which justify the grant of a compensatory allowance, a difference
emphasized in the definitions of those terms embodied in the F. Rs. These definitions should be
strictly construed, and an exact compliance required with the conditions stated in them as
antecedent to the grant of either special pay or compensatory allowance.

(iii) In view of the importance attached to the correct classification of additions to pay such as
special pay and compensatory allowance, the reasons for the grant of such additions to pay
should be briefly recorded in the letter conveying the sanction.

(5) Duty. -(a) Duty includes: -

(i) Service as a probationer or apprentice, provided that such service is followed by confirmation.

(ii) Joining time.

(b) A local Government may issue orders declaring that in circumstances similar to those
mentioned below, a Government servant may be treated as on duty:
(i) In the case of a student stipendiary or otherwise, who is entitled to be appointed to the service
of the Government on passing through a course of training at a university, college or school in
Pakistan, dur ing the interval between the satisfactory completion of the course
and his assumption of duties.

(ii) During preparation in Pakistan for an examination in any oriental language.

(iii) On the first arrival in Pakistan of Government servants appointed in England who do not,
before they report themselves at the seat of the Local Government servant concerned, receive
orders to take charge of a specified post, during the interval between the date of such report and
the date on which they take charge of their duties.

(c) In terms of (5) (b) above the President has issued the following general orders applicable to all
Government servants under his administrative control:

(i) A Government servant who has been substantively appointed to a post or cadre in Government
service is treated on duty during any course of instruction or training which he may be required or
permitted to undergo in accordance with the terms of any general or
special order of the President.

(ii) A student, stipendiary or otherwise, who is entitled to be appointed to the Government service
on passing through a course of training at a university, college or school is, unless in any case it
be other wise expressly provided in the terms of his appointment, treated as
on duty during the interval between the satisfactory completion of the course and his assumption
of duties.

(iii) A Government servant is treated on duty during any period he is permitted to spend in
preparation for an examination in Urdu, Persian or Arabic. The period to be spent in preparation is
limited to six months in the case of examination by the Degree of Honour Test
in Arabic or Persian and to three months in all other cases.

(iv) When a Government servant is treated as on duty under (i) to (iii)above, his right to draw
during such period any Compensatory Allowance attached to the post on which he holds lien is
governed, as though he was on leave, by S. R. 6 et seq.

(v) The period spent in training and on the journey to and from the place of training by the
Reservists of the Pakistan Army and Pakistan Navy in Civil Government employ, when called
upon for periodical military and naval training respectively is treated as on duty for purposes of
civil leave and increment of civil pay.

(vi) The period spent by an employee of the Federal Government on the Civil Defence Training
with the permission of the Head of his office is treated as duty.

(vii) A Government servant required to attend an obligatory departmental examination, or

permitted to present himself at an examination the passing of which is a condition of preferment
in Government service may be treated as on duty during the day or days of examination and
during the reasonable time required for the journey, if any, to and from the place of examination-
in this connection the Government have decided that the phrase "obligatory examination" covers
only compulsory or optional examination for promotion
within the normal scope of the Government servant's department or office.

Note. According to audit rulings the status of a probationer is so be considered as

having the attributes of a substantive status except where the rules prescribe otherwise. No
person appointed substantively to a permanent post in a cadre is a probationer, unless definite
conditions of probation have been attached to his appointment, such as the conditions that he
must remain on probation pending the passing of certiain examination. The term 'probationer'
does not cover a Government servant, who holds substantively a permanent post in a cadre and
is appointed 'on probation" to another post.

(6-A) Fee. Means a recurring or non-recurring payment to a Government servant from a source
other than general revenues, whether made directly to the Government servant or indirectly
through the intermediary of Government.

(7) Foreign Service, Means service in which a Government servant receives his substantive pay
with the sanction of Government from any source her than the revenues of the Governor General
or of a Province or the Railway Fund

(8) General Revenues of Pakistan. Includes the revenues allocated to ocal Government and
exclude the revenues of Local Funds. The term 'General evenues of Pakistan is no longer an
appropriate term. Since the recasting of this erm will necessitate several modifications in other
rules, it is proposed that this efinition may be allowed to stand for the present.

(9) Honorarium. Means a recurring or non-recurring payment granted o a Govemrnent servant

from general revenues as remuneration for special work f an occasional or intermittent character.

(10) Joining Time. Means the time allowed to a Government servant in hich to join a new post or
to travel to or from a station to which he is posted.

(11) Leave on Full or Half Pay-Means leave on leave salary equal to he pay or half pay last
drawn by the Government servant before the commencement of the leave.
(12) Leave Salary. Means the monthly amount paid by Government to
a Government servant on leave.

(13) Lien. Means the title of a Government servant to hold substantively either immediately or on
the termination of a period or periods of absence, a permanent post, including a tenure post, to
which he has been appointed substantively.

(14) Local Fund. Means

(a) revenues administered by bodies which by law or rule having theforce of law come under
the control of the Government, whether inregard to the proceedings generally or to specific
matters, such asthe sanctioning of their budgets, sanction to the creation or filling up
of particular posts or the enactment of leave, pension or similarrules; and

(b) the revenues of any body which may be specially notified by the President as uch.

(15) Local Government. Local Government for the purposes of these

rules docs not include a Chief Commissioner.

(16) (a) Military Commissioned Officer. Means a commissioned officer

other than

(i) a departmental commissioned officer; and

(ii) a commissioned officer of the Pakistan Medical Department. It does

not include a warrant officer.
(b) Military Officer. Means any officer falling within the definition, of military commissioned officer,
or included in sub-clause (i) or (ii) of clause (a) above or any warrant officer.

(17) Ministerial Servant. Means a Government servant of a subordinate service whose duties are
entirely clerical and any other class of servant specially defined as such by general or special
order of a Local Government.

The members of Class II service whose duties are predominantly clerical are classed as
ministerial servants.

Note. With effect from the 21st August. 1973 all 'classes-' among Government servants,
have been abolished and replaced by a unified graded structure. Consequently, the old defination
as in the above rule, may be construed, in the present context, to apply to all Government
servants Grade 16 and below whose duties are entirely or predominantly clerical.

(18) Month. Means a calendar month. In calculating a period expressed in terms of months and
days, complete calendar months. irrespective of the number of days in each, should first be
calculated and the odd number of days calculated subsequently.

For the sake of illustration in calculating a period of 3 months and 20 days from 25th January, 3
months should bo taken as ending on 24th April, and the 20 days on the 14th May. In the same
way the period from 30th January to 2nd March should be reckoned as 1 month and 2 days,
because one month from 30th January ends on 28th February. A period of one month and 29
days commencing from 1st January will expire in an ordinary year (in which February is a month
of 28 days) on the last day of February, because a period of 29 days cannot obviously mean to
exceed a period of full calendar month and leave for 2 months from 1st January will end on the
last day of February. The same would be the case if February was a month of 29 days or if the
broken period were 28 days (in an ordinary year).

(19) Officiate. A Government servant officiates in a post when he performs the duties of a post on
which another person holds a lien. A Local Government may, if it thinks fit, appoint a Government
servant to officiate in a vacant post on which no other Government servant holds a lien.

In the case of a Government servant with a substantive post on a permanent establishment, who
is appointed to officiate in a permanent post which is substantively vacant or which is temporarily
vacant in consequence of the absence of the substantive incumbent on extraordinary leave or on
transfer to foreign service, and is allowed to draw the full officiating pay or salary admissible
under the rules, the difference between the substantive pay and officiating pay counts as
emoluments for pension.

(20) Deleted.

(21) Pay. Means the amount drawn monthly by a

(a) Government servant as:

(i) the pay other than special pay or pay granted in view of his personal qualifications which has
been sanctioned for a post held by him substantively or in an officiating capacity, or to
which he is entitled by reason of his position in a cadre.

(ii) technical pay special pay and personal pay; and

(iii) any other emoluments which may be specially classed as pay

by the Governor-General.
(b) In the case of a military officer pay includes the amount which he
receives monthly, under the following designations: -

(i) pay of appointment, lodging allowance and marriageallowance; and

(ii) pay of rank, command pay, additional pay, Pakistan Armyallowance, lodging allowance and
marriage allowance.

The following also are classed as pay:

Judicial pay, language pay, Staff pay, Frontier allowance, and Pashto allowance.

(22) Permanent Post. Means a post carrying a definite rate of pay sanctioned without limit of
time.

(23) Personal Pay. Means additional pay granted to a Government servant:

(a) to save him from the loss of substantive pay in respect of a permanent post other than a
tenure post due to a revision of pay or to any reduction of such substantive pay otherwise than as
a disciplinary measure; or

(b) in exceptional circumstances, on other personal considerations. The cases in which it is

proposed to grant personal pay under 9(23) (b) should be referred to the Ministry of Finance
through the administrative Ministry concerned. No case can be entertained which is not of an
entirely exceptional character and in submitting cases for the grant of personal pay this should be
carefully borne in mind.

(24) Presumptive Pay. Presumptive pay of a post, when used with reference to a particular
Government servant, means the pay to which he would be entitled if he held the post
substantively and were performing its duties but it does not include special pay unless the
government servant performs or discharge the work or responsibility or it is exposed to unhealthy
conditions, in consideration of which the special pay was sanctioned.

(25) Special Pay. Means an addition of the nature of pay, to the emoluments of a post or of a
Government servant, granted in consideration of

(a) the specially arduous nature of the duties; or

(b) a specific addition to the work or responsibility; or

(c) the unhealthiness of the locality in which the work is performed.

A provision in the contract of a Government servant appointed to particular post that he should
"also do all things that may be required of him" does not contemplate his being required to
perform onerous additional duties in another post without remuneration.

(26) Deleted.

(27) Subsistence Grant. Means a monthly grant made to a Government

servant who is not in receipt of pay or leave salary.
(28) Substantive Pay. Means the pay other than Special pay, personal
pay. or emoluments classed as pay by the Governor-General under Rule 9(21) (a)

iii) to which a government servant is entitled on account of post to which he has

been appointed substantively or by reason of his substantive position in a cadre.

Marriage Allowance and Lodging Allowance of Military Officers in the

Army come within the definition of "substantive pay" so long as they continue to
be treated as part of 'pay'.

(29) Techinical Pay Means pay granted to a Government servant by

virtue of his possessing minimum technical qualifications required for a post.

The definition given in the F. R. is obsolete.

(30) Temporary Post. (i) Means a post carrying a definite rate of pay
sanctioned for a limited time.

(ii) The temporary post can be held either substantively or in an officiating capacity. But the
substantive appointment to the temporary posts should be made in a limited number of cases as
e. g., when posts are for all intents and purposes quasi-permanent or when they have been
sanctioned for a period of not less than or there is reason to believe that they will not terminate
within a period of three years. In all other cases, appointment to temporary posts would be made
in an officiating capacity only.

(30-A) Tenure Post. Means a permanent post which an individual Government servant may not
hold for more than a limited period.

(31) (a) Time Scale Pay. Means pay which subject to any conditions prescribed in the rules, rises
by periodical increments from a minimum to a maximum.

(b) Identical Time Scale. Time scales are said to be identical if the minimum, the maximum, the
period of increment and the rate of increment of the time-scales are identical.

(c) Same Time Scale. A post is said to be on the same time-scale as another post on a time-
sca!e if the two time-scales are identical and the posts fall within a cadre, or a class, in a cadre,
such cadre or class having been created in order to fill all posts involving duties of approximately
the same character or degree of responsibility, in a service or establishment or group of
establishments so that the pay of the holder of any particular post is determined by his position in
the cadre of class and not by the fact that he holds that post.

(32) Traveling Allowance. Means an allowance granted to a

Government servant to cover the expenses which he incurs in travelling in the
interest of the public service. It includes allowances granted for the maintenance
of conveyances, horses and tents.

GENERAL CONDITIONS OF SERVICE

Production of health certificate on first appointment (F. R. 10):

7. 13 No person can be appointed to a post in Government service in Pakistan without a medical
certificate of health. This certificate must be affixed to the first pay bill to be submitted to the audit
officer or the treasury officer as the case may be. The Local Governments can make rules
prescribing the form in which the medical certificates are to be prepared and the particular
medical officer or other officer by whom they can be signed. A Local government, may, however,
in individual cases, dispense with the production of a certificate, and may by general orders
exempt any specified class of Government servants from the operation of these rules.

7. 14 The rules framed by the Federal Government in its capacity as Local Government are
contained in S. Rs. 3, 4 and 4-A. (Please see para 8. 3-7).

7. 15 Once a person has been asked to produce a medical certificate of fitness and has actually
been examined and declared unfit, it is not open to the

Local Government to use their discretion to ignore the certificate that has been produced.

Medical examination during the course of the (F. R. 10-A):

7. 16 Where an authority competent to fill the post held by a Government servant, is of the
opinion that the Government servant is suffering from a disease which renders him unfit for the
proper and efficient discharge of his duties or from a disease which is communicable and is likely
to endanger the health of the other Government servants, the Government servant concerned
may be required to appear before the medical authority for medical examination. If the medical
authority concerned, after examining the Government servant, certifies that he
requires a period of absence from duty for the purpose of rest and recreation and that there is a
reasonable prospect of recovery, the competent authority may grant him leave including
extraordinary leave for such period as the medical authority recommends. The leave will be
granted if it is due and admissible to the Government servant and in a manner as if the
Government servant had himself applied for the leave.

7. 17 In case the medical authority alter examining the government servant certifies that he is
permanently incapacitated for service, the finding of the medical authority should be
communicated to the Government servant immediately. The Government servant may witnin 7
days of the receipt by him of the official intimation of the findings of medical authority apply to the
Director-General, Health for a review of his case by second medical board. Such an application
should be accompanied by a fee. the amount of which will be fixed by the Director-General,
Health. The Director-General then should arrange for convening of a reviewing medical board
which should consist of persons who were not the members of the first medical board. If the
reviewing medical board also certified that the Government servant is incapacitated for further
service, the competent authority may require the Government servant to retire from service and
grant to him such invalid pension or gratuity as may be admissible under the rules. This will be
granted as if the Government servant had himself applied for an invalid pension.

7. 18 In case the reviewing medical board is of the opinion that the Government servant is fit for
Government service, he should be reinstated forthwith and the period of absence treated as duty.
If, however, the board certifies that the Government servant is not fit but there is a reasonable
prospect of his recovery he may be granted such leave as is recommended by the board and is
due and admissible to him.

7. 19 Where a Government servant does not apply for a review of his case within 7 days of the
receipt of the official intimation of the findings of the first medical board, the competent authority
may require him to retire from service and grant to him invalid pension or gratuity as admissible
under the rules.
7. 20 The Federal Government may make rules prescribing the form in which the medical
certificate should be prepared and the medical officers by whom it should be signed.

Whole-time employment (F. R. 11):

7. 21 The whole-time of a Government servant is at the disposal of the Government which pays
him, unless it is distinctly provided otherwise. He may be employed in any manner required by
appropriate authority without claim for additional remuneration irrespective of the fact that the
services required of him are remunerated from general revenues or from a Local Fund.

Lien (F. Rs. 12 to 15):

7. 22 In F. R. 9( 13) lien is explained as the title of a government servant to hold a permanent

post in a substantive capacity. In the following rules other aspects of the lien, i. e., holding of lien,
suspension and revival thereof have been dealt with.

7. 23 Two or more Government servants cannot be appointed substantively to the same

permanent post at the same time. Likewise, a Government servant cannot be appointed
substantively, except as a temporary measure, to two or more permanent posts at the same time.
If a Government servant holds a lien on a certain post, no other Government servant can be
appointed substantively to that post. Broadly speaking, there is only one substantive holder of a
given permanent post. When a Government servant is appointed to a permanent post in a
substantive capacity, he acquire a lien on that post and simultaneously ceases to
hold lien previously acquired on any other post. From the administrative point of view, when it is
proposed to confirm a Government servant in a certain post he should be asked to give in writing
that he agrees to the termination of his lien on any other permanent post held by him in a
substantive capacity.

7 24 A Government servant holding a permanent post substantively returns a lien on she post,
under the following circumstances

(a) while performing the duties of that post;

(b) while on foreign service, or holding a temporary post, or officiating in another post;

(c) during joining time on transfer to another post; unless he is transferred substantively to a
post on lower pay. in that case his lien will be transferred to the lower post from the date of his
relief; and

(d) while under suspension.

7. 25 A Government servant sent on deputation to an other office retains a lien on his permanent
post on his parent Department and as such he is governed by the rules of the lending
Department/Government in respect of pay, leave and pension etc. which have a right to recall him
from deputation. The lending Government have accordingly a right to determine in consultation
with the borrowing Government the terms and conditions of his employment under the latter and
those terms should not be varied by the borrowing Government without first consulting the
lending Government. In accordance with this principle a convention has been established
between the Federal Government and the
Provincial governments and between the Provincial Governments themselves that no increase in
pay or improvements in other service prospects should be offered to any officer without consulting
the lending Government.
7. 26 The officers of the Army in Pakistan Reserve of Officers and employed under the federal
Government whenever called to Army service, retain a lien on their civil posts during the period
for which they are called to Army Service.

7. 27 A competent authority suspends the lien of a Government servant holding a permanent

post in a substantive capacity, whenever he is appointed substantively against a tenure post, or to
a permanent post outside the cadre on which he is borne or if he is appointed in a provisional
substantive capacity against a post on which another Government servant would hold a lien, if his
lien had not been suspended. The competent authority may also, at his option, suspend the lien
of a Government servant holding a permanent post substantively if he is deputed out of Pakistan
or goes on foreign service, or is transferred in a substantive or officiating capacity to a post in
another cadre, provided there is a reason to
believe that the period of deputation out of Pakistan, foreign service or, appointment to another
post respectively would not be less than three years.

7. 28 A Government servant's lien on a tenure post cannot be suspended in any circumstances.

If he is appointed in a substantive permanent capacity to another permanent post, the lien on the
tenure post must be terminated.

7. 29 If a Government servant's lien on a permanent post is suspended, the post can be filled
substantively and the Government servant appointed to the post in a substantive capacity
acquires a lien on this post But if the suspended lien is revived at a later stage, the consequential
arrangements will have to be reversed The appointments of this nature are termed as provisional
appointments.Nevertheless, the lien acquired in this manner too can be suspended in accordance
with the foregoing provisions of the rules.

7. 30 If a Government servant's lien is suspended due to his substantive appointment to a tenure

post, or to a post outside the cadre or to a post on which another Government servant holds a
lien, the suspended lien will revive as soon as he ceases to hold a lien against any one of these
posts. Similarly, if a Government servant ceases to be on deputation out of Pakistan or on foreign
service or to hold a post in another cadre, the suspended lien will revive. If, however, a
Government servant, while on deputation out of Pakistan or on
foreign service or holding a post in another cadre, takes leave and there is reason to believe that
on the expiry of leave, the Government servant concerned would continue to be on deputation out
of Pakistan, or on foreign service or to hold a post in another cadre and the total period of
absence on duty will not fall short of three years, the lien may not be revived.

7. 31 If a Government servant, on transfer to a post outside his cadre, is due to retire on

superannuation pension within three years of his transfer, his lien on the permanent post cannot
be suspended.

7. 32 The lien of a Government servant, with the exception of that of a Governor and Chief
Engineer, P. W. D. cannot be terminated, even with the consent of the Government servant
concerned, in any circumstances, if such termination would leave him without a lien or a
suspended lien on any post. In the case of those officers who are appointed in a substantive
capacity as a Governor or Chief Engineer, P. W. D., their lien is terminated against the
substantive permanent post held by them prior to the above appointments.

7. 33 If a Government servant is substantively appointed to a permanent post outside the cadre

on which he is borne, his lien or suspended lien on his previous post can be terminated on the
Government servant's concerned written request for the termination of the lien and not otherwise.
7. 34 Subject to the provisions of F. R. 15, the lien of a Government servant, even if it has been
suspended, can be transferred to another permanent post in the same cadre, if he is not
performing the duties of the post to which the lien relates.

Transfer from one post to another (F. R. 15):

7. 35 (i) A Competent authority may transfer a Government servant from one post to another. But
a Government servant cannot be transferred in a substantively or officiating capacity to a post
carrying less pay than the pay of the'

permanent post on which a Government servant holds a lien, unless the transfer
has been occasioned as a disciplinary measure. on account of inefficiency or misbehavior or the
Government servant concerned has made a written request for being transferred to a lower post.

(ii) The combination of appointments in terms of F. R. 49, the retransfer of a Government servant
to the post on which he would hold a lien, had his lien not been suspended and permanent
transfer from a higher to a lower scale in anticipation of the abolition of a post are not transfers to
lower posts within the meaning of F. R. 15.

Subscription to a Provident Fund (F. R. 16):

7. 36 A Government servant may be required to subscribe to a provident and or a family pension

fund or any other fund in accordance with the rules as may be framed by the President.

Tenure of post (F. R. 17):

7. 37 A Government servant draws the pay and allowances of a post from the date he assumes
the charge of that post and ceases to draw them as soon as he relinquishes charge of that post. If
the charge of a post has been assumed in the afternoon of a day, the title to the pay and
allowances commences from the following day. Similarly if the charge of a post is relinquished in
the forenoon of a day, no pay and allowances will be admissible for that day.

*[Provided that the President may order for arrears of pay and allowances in case of proforma
promotion or ante dated upgradation if a civil servant was wrongfully prevented from such
promotion or upgradation with no fault of his own. ]

7. 38 If a person is recruited overseas, the date from which he would be entitled to the pay and
allowances will be determined by the general or special orders of the authority by whom he is
appointed.

Note. For instructions regarding 'transfer of charge' pl. see Chapter V.

Continuous absence (F. R. 18):

** (Omitted-

*Added vide- Finance Division SRO No. 1092(l)/95 dated 6-11-1995

**Omitted vide Finance Division Notification No F. I (11) DR. 4/89. dated 3-11-1992.

PAY
General principle (F R. 19)

7. 39 The Local Government is competent to fix the pay of a Government servant. Except in
these cases, where the personal pay is allowed to a Government servant on certain
considerations, the pay of a Government servant cannot be so increased as to exceed the pay
sanctioned for his post. If the increase is necessary due to one reason or the, other it can be
done only with sanction of an authority competent to create post in the same cadre on a rate of
pay equal to the pay when increased.

7. 40 The above rule does not empower a Local Government to grant less pay than what is
permissible under the rules. Likewise it does not give to the Local Government the. power to
grant pay in excess of what is permissible under the rules. Normally, a Government servant is
entitled to the initial pay as admissible under F. R 22. But once an initial pay is fixed in the
manner, a competent authority may grant advance increments immediately under F. R. 27.
Thus F. Rs 22 and 27 read together enable a competent authority to fix the initial pay in excess of
what would have been admissible under F. R. 22.

Admissibility of pay during training or a course of instructions (F. R. 20):

7. 4 1 If a Government servant is treated as on duly under F. R. 9(6) (b) the Local Government
may allow him, at their option, either to draw the pay of his substantive appointment or any lower
rate of pay considered suitable. If it is a course of training or instruction, the Local Government
may allow a Government servant to draw the pay of the officiating appointment held by the officer
at the time he was placed on training or course of instructions etc. The officiating pay cannot
however, be allowed for a period longer than that during which the officer would have held the
officiating appointment had he not been placed on training. This would mean that if a Government
servant was holding an officiating appointment at the time when he was placed on training he
would draw the officiating pay on every occasion during the period of instructions and training
which he would have held that officiating appointment but for such course of instruction or
training. The officiating pay would be equivalent to what he would have drawn had he been
holding the officiating appointment.

7. 42 A reservist of the Pakistan Army or Pakistan Navy in civil employ, when called up for
periodical military or naval training is entitled to receive military or naval pay and allowances
respectively. He is also entitled to receive the excess, if any, of the civil pay over his military/naval
pay, provided this concession is specifically sanctioned by the competent authority. The extra
expenditure thus involved will not be chargeable to Army/Defence Estimates, if the civil pay is not
paid from the Army/Defence Estimates and will be charged to the Civil Estimates.

Fixation of pay:

7. 43 (i) On first appointment to a post, the pay of a Government servant should be fixed at the
minimum of the scale of the post.

(ii) In case of first appointment under Government fixation of initial pay can be done by grant of
not more than six premature increments subject to the conditions:

(a) In cases of persons recruited through the Federal Public Service Commission premature
increments should be granted on there commendations of the F. P. S. C. and in consideration of
the fact that suitable persons of requisite qualifications are not available on
the minimum pay of the post.

(b) No premature increment should be granted in cases of ad hoc appointments in anticipation

of FPSC recommendations.
(c) In posts where recruitment is not made through F. P. S. C. premature increments should be
granted only after the appointing authority certifies that suitable persons of requisite qualifications
arc not available on the minimum of the sanctioned pay scale of the posts.

(Item 13 of Annexure II to para 5(a) of the Ministry of Finance O. M. No. F. 3(4)

Exp-III/2000. dated 30-6-2000.

(iii) In cases other than cases of re-employment after resignation from public service or after
removal from public service for inefficiency, misconductor as a disciplinary measure, a
Government servant has previously held substantivelyor officiated in

(a) the same post, or

(b) a permanent or temporary post on the same time-scale, or

(c) a permanent post other than a tenure post on an identical time-scale,

or

(d) a temporary post on an identical time-scale, such post being on the

same time scale as a permanent post, or

(e) is appointed substantively to a tenure post on a time-scale identical

with that of another tenure post, which he has previously held substantively or in which he has
previously officiated than his initial pay should not be less man the pay. other than special pay
and personal pay etc., which he drew on last such occasion. The period during which the
Government servant drew that pay on such last or previous occasions will also
count for increment.

7. 44 The condition that the temporary post should be on the same time scale as a permanent
post should not be enforced when a temporary post is (i) created by one Government or
Department for the purpose of work of the same nature as the ordinary work for which permanent
posts exist, in a cadre under a different Government or Department and (ii) sanctioned on a time-
scale identical with the time-scale applicable to the permanent posts in the cadre under the
different Government or Department.

7. 45 The following principles of general application should also be kept in view, while dealing
with the cases of fixation of pay:

(i) The Ministry of the Head of an Administrative Department are competent to declare, as to the
relative degree of responsibility of two posts for the purpose of these rules.

(ii) A temporary post on a certain rate of pay (fixed or time-scale) which is converted into a
permanent post on a different rate of pay is not the same post as the permanent post even
though the duties remain the same, for purposes of these rules. The temporary post would be
regarded as having ceased to exist and to have been replaced by the permanent post.

(iii) The substantive pay of a Government servant in respect of a 'provisional substantive

appointment' against a post on which another Government servant holds a suspended lien will be
treated a 'substantive pay' for the purposes of these rules, which would mean that
the substantive pay in respect of a provisional substantive appointment is taken into consideration
in determining the initial pay of a Government servant on his appointment to another post. When
the initial pay of a Government servant in a post is thus fixed, it will not
be affected even if during the tenure of his appointment to that post he reverts from his
provisional appointment.

(iv) If a Government servant has been officiating in a post and is later on appointed against die
same post in substantive capacity he is entitled to get his pay fixed a new under F. R. 22 with
reference to his substantive pay at the time in respect of his old permanent post.

(v) If the pay last drawn by a Government servant in temporary post has been inflated by the
grant of premature increments, the pay which he would have drawn but for the grant of these
increments should be taken into account for the purposes of fixation of pay under F.R.
22, unless the competent authority decides otherwise.

(vi) When a Government servant is appointed to officiate in a post on a time-scale of pay, but in
terms of F. R. 35 his pay is fixed below the minimum of the time-scale, he must not be treated as
having effectually officiated in that post within the meaning of F. R. 22 or counted towards duty for
purposes of increments under F. R. 26.

(vii) If the time-scale of a post is reduced for reasons other than a diminution in the duties or
responsibilities attached to that post and a Government servant appointed to it is not entitled to
draw pay on the time-scale as it stood prior to the reduction on re-appointment to
that post his pay should be fixed under F. R. 22 in such a way as if the reduced time-scale was in
force from the very beginning.

(viii) Where a civil servant is not transferred from one post to another, but is transferred from
a lower to a higher scale, initial pay in the higher scale will be fixed at the stage next above the
pay admissible in the lower scale as on the eve of transfer to the higher scale. This decision is
applicable with effect from 1st March, 1972.
[c. f. Finance Division O. M. No. D-438-R. 4/75-F. 2(31) Rl/75,dated 18-6-1975].

Fixation of pay on the change of scale of a post (F. R. 23):

7. 46 If the scale of pay of a post is changed the holder of the post is treated as having been
transferred to another post on the new pay and his pay is refixed under para 7. 45 (viii) as if the
transfer to the new post did not involve assumption of higher responsibilities. In such cases where
the pay of a post is changed, the government servant concerned has an option to retain his old
pay until the date on which he earns his next increment or any subsequent increments in the old
scale, or until he vacates his post or ceases to draw pay in the time-scale. The option once
exercised is deemed as final.

7. 47 A very important point which has to be borne in mind in the context of this rule is that the
substantive part of the rule and its proviso cannot be operative at one and the same time. During
the period the option exercised under the proviso operates, the substantive position of the rule
remains inoperative. Any failure to exercise the option from whatever cause entails forfeiture of
the benefit of the rule.

7. 48 The provisions of this rule apply to officiating as well as substantive holder of a post. The
expression 'subsequent increment in the old scale' includes grade promotion in cases in which
time-scale of pay has been substituted by a graded scale of pay.

7. 49 If the maximum of pay of a post is changed without affecting the minimum and me rale of
increment the refixation of pay should be done as if the Government servant was transferred to a
post which did not involve assumption of higher responsibilities even if the Government servant
might be holding the post substantively.
Fixation of Pay on absorption of surplus staff drawing Pay in Selection Grade:

7. 50 Clarification on the following terms: -

(i) How should the pay of a civil servant holding a post in Selection Grade be fixed on his
absorption in another Department after being declared surplus in his parent Department

(ii) How would the absorption of a surplus civil servant drawing pay in Selection Grade affect the
Selection Grade/Scale prospects of those holding the same posts in regular pay scales in the
Department in which a surplus employee is absorbed

Clarification. (i) Rule 3(3) of the Civil Servants (Appointment.Promotion and Transfer) Rules, 1973
lays down that a person rendered surplus as a result of re-organization or abolition of a
Government Department, Office or permanent post in pursuance of any Government decision or
as a measure of economy, may be appointed to a post in the basic pay scale to which he
belonged, if he possesses the qualifications and fulfills other conditions applicable to the post.
This implies that he is required to be absorbed in the regular scale of pay sanctioned for the post.
The pay of such an employee, therefore, has to be fixed
in the regular pay scale of the post at an appropriate stage as if he was holding a post in regular
pay scale in his parent Department. The difference, if any, between the pay so fixed and the
actual pay that such a civil servant may have been drawing in Selection Grade may be
sanctioned to him as his Personal Pay. Such personal Pay would be reduced by any amounts by
which the recipient's pay may be subsequently increased by way of annual increment or in any
other manner and shall cease as soon as his pay is increased by the amount equal to his
Personal Pay.

(ii) With regard to the second question. Rule 4 of Civil Servants (Seniority) Rules. 1993 read with
Establishment Division's O. M. No. 13/3/93-D-2 (Pt), dated 12-9-1994, say that the surplus
employees on their absorption in another Department are to be placed junior to the employees
already working in that organization in the relevant post, service or cadre. For this reason and in
view of the position explained in (i) above, the absorption of surplus staff drawing pay in Selection
Grade shall not affect the prospects of grant of Selection Grade to the existing employees in the
prescribed manner.

[ Finance Division OM. No. F. 1(79) Imp. 97. Vol VII. dated 31-7-2000].

Drawal of increment (F. R. 24):

7. 51 The increment in a time-scale is drawn as a matter of course, unless it is withheld by the

competent authority as a disciplinary measure due to misconduct or unsatisfactory work.
Whenever an increment is withheld, the authority withholding the increment should state the
period for which the increment has been stopped

Conditions of service for increments (F. R. 26):

7. 52 The service in a post in a time-scale counts for increments, as follows: -

(a) All duty in a post on a time-scale and periods of leave other than extraordinary leave count
for increments in that time-scale.

(b) If a Government servant holds a lien or a suspended lien against a post, the service in
another post, whether in a substantive or officiating capacity, service on deputation count for
increment in that post. If the President is satisfied that extraordinary leave was taken
on account of illness or for any other cause beyond the Government servant's control, he can
direct that the extraordinary leave may count towards increment.

(c) If a Government servant officiating in a post or holding a temporary post in a time-scale is

appointed to officiate in another post which does not carry less pay than the pay of his original
post, then on reappointment to the lower post the service in the higher post counts for increments
in the lower post. But the period officiating service in the higher post, which would count for
increment in the lower post would be restricted to the period during which the Government
servant would have held the lower post but for his appointment in
the higher post. This also covers the case of a Government servant who might not actually have
been officiating in the lower post at the time of his appointment to the higher post, but he would
have officiated as such but for appointment to the higher post.

(d) Foreign service counts for increments in the time-scale of the post in Government service on
which the Government servant holds a lien or a suspended lien. If the Government servant
receives any officiating promotion while he is on foreign service, the period counts for increment
for the duration of such promotion the foreign
service counts for increment in a temporary post also, if the Government servant returns to the
temporary post.

7. 53 Following are the important decisions having a bearing on the calculation of increments: -

(i) When a Government servant officiating in a post is transferred to officiate in another post, the
period of joining time should be treated as duty in the post, the pay of which is drawn by the
Government servant during the joining time and it is to count for increment in the same post.

(ii) If a Government servant is allowed to draw his officiating pay during a course of instruction or
training, the period of training will count towards increment in the time-scale of the post.

(iii) If a probationer is confirmed at the end of a period of probation exceeding twelve months he is
entitled to claim retrospectively the increments which but for his probation, he would have
received in an ordinary course.

(iv) The concession contemplated in F. R. 26(c) is admissible irrespective of the fact whether the
higher post is within or outside the Department to which the Government servant belongs. This
equally applies to the Provincial Civil Service officers holding the
'Listed Posts'.

Grant of advance increments (F. R. 27):

7. 54 An authority competent to create a permanent post in the same cadre on the same scale
of pay can grant premature increment to a Government servant on a time-scale of pay.
7. 55 In regard to the grant of advance increment, usually the intention is that the officer should
be entitled to the increments in the same manner as if he had reached his position in the scale in
the normal course, and unless there are orders otherwise, he should be placed on exactly the
same footing as an officer who has so risen. It would mean that normally an officer will get the
next increment after completion of duty for one year at the stage from the date the advance
increment was granted. However, if the orders envisage that the original date of increment will not
be disturbed the increment may be allowed accordingly.

7. 56 The expression "Scale of pay" represents the maximum of the scale which is to be taken
into consideration for determining the authority competent to sanction increments rather that the
stage to which the advance increment has been
given.

Fixation of pay on reversion to a lower post or reduction of stage (F. Rs. 28 & 29):

7. 57 If a Government servant is transferred from a higher to a lower grade or post as measure of

punishment, the competent authority may allow him to draw any pay as it may deem proper
subject to the condition that it should not exceed the maximum of the scale of pay of the lower
grade or post. In a case where a Government servant on account of misconduct or inefficiency is
reduced to a lower grade or post or to a lower stage in the time-scale, the competent authority
should clearly state the period for which the punishment would be effective and whether, on
restoration it should operate to postpone future increments, and, if so, to what extent. The
authority concerned should specifically mention whether the reduction would have the cumulative
effect and if the increments would be admissible during the period the reduction was in force. In
short the contents of the orders in this respect should be specific and leave no room for any doubt
or equivocation.

Presumptive pay of the post (F. R. 31):

7. 58 A Government servant officiating in a post draws the presumptive pay of the post except in
those cases where the pay has been restricted under F. Rs.30 and 35. But if at any stage the
presumptive pay of the post on which the Government servant holds a lien or a suspended lien is
greater than the presumptive pay of the officiating post, he draws the presumptive pay of the
permanent post. The cases of those Government servants who have been appointed to certain
posts at their own request under F. R. 15 are, however, excluded from the provision of the latter
part of the rule.

7. 59 As an officiating Government servant on proceeding on leave is reverted to his substantive

post, he is entitled to get his pay refixed in the higher post on return from regular leave. It
sometimes happened that their substantive pay had increased in the mean-time and when the
refixation of pay was done on return from leave the pay was fixed at a higher stage than what
they had been drawing prior to their proceeding on leave. The Government had an impression
that some Government servants proceeded on regular leave deliberately merely to avail
themselves of the aforesaid benefit. In order to put the check against this
manipulation of rules the Government have decided that when a Government servant applies for
leave and there is reason to believe that the leave was being applied for in order to secure the
benefit of the refixation of pay, the grant of regular leave may be refused under F. R. 67.

In cases where this position is not realised in advance or the leave is granted on genuine
grounds, then on refixation, the officiating pay may be restricted under F. R. 35 so as to limit it to
the pay the Government servant would have drawn, had he not proceeded on regular leave. In
short, the refixation of pay on return from regular leave should be done in such a way so as to
disallow an increase in the officiating pay over the pay the Government servant was drawing prior
to his proceeding on leave.
Personal rate of pay (F. R. 33):

7. 60 If a Government servant is appointed to officiate in a post the pay of which was fixed at a
rate personal to another Government servant, the competent authority may fix his pay at any rate,
but not more than the pay already fixed.
If the post carries a time-scale pay the pay should be allowed at the minimum of
the scale and increments as stipulated therein.

Restriction on officiating pay (F. R. 35):

7. 61 (i) The pay of an officiating Government servant can be fixed by a competent authority at
an amount less than that admissible under the rules.
(ii) One class of cases falling under F. R. 35 is that in which Government
Servant merely holds charge of the current duties and does not perform the full
duties of the post. [Para 12 (i) Chapter IV, Section I of the Manual of Audit
Instructions].

(iii) An Officer appointed to hold current charge of a higher post is allowed, in terms of F. R. 35
and provision to Section 17 of the Civil Servants Act, 1973, pay in his own grade plus additional
pay equal to 20% of his grade pay. (Establishment Division O. M. No. 1/21/76-AR1/RI. dated 18-
6-1980).

7. 62 The powers conferred under the above rule can be exercised in individual cases by a
special order. The general application of this rule will be ultra-vires of F. R. 35. In financial
emergencies and on administrative consideration the Government have, however, resorted to this
rule in a general way. The 30% orders, which were in force from 1st July, 1948 to 31st March,
1951 and 30th September 1951 and the length of service formula under the Revision of Pay
Rules, 1951 as amended from time to time, may be referred to in this behalf.

Acting promotions (F. R. 36):

7. 63 With reference to rule 8-A of the Civil Servants (Appointment, Promotion and Transfer)
Rules, 1973. a civil servant, on appointment to hold a post on Acting Charge basis, shall

(a) assume full duties and responsibility of the post and exercise all statutory, administrative
and financial powers vested in the regular incumbent of the post; and

(b) during the period of such appointment, be entitled to draw fixed pay equal to the minimum
stage of the pay at which his pay would have been fixed had he been appointed to that post on
regular basis. Service rendered on Acting Charge basis in the scale applicable to the posts shall
not count for purposes of drawal of increments in that grade. It shall, however, count towards
increments in the scale of pay held immediately before appointment on Acting Charge basis so
that on reversion from Acting Charge appointment his pay in the
lower grade should be fixed at the same stage which he would have reached, but for appointment
to the higher grade;

Provided that if at any time during his appointment on acting charge basis, his substantive pay
exceeds his pay fixed on acting charge appointment, he will draw his substantive pay.

Explanation. For the purpose of this proviso, officiating pay drawn in a post held on regular basis
continuously for three years (including period of leave) or which would have been drawn for that
period but for appointment on acting charge basis shall be treated as
substantive pay.
[Establishment Division O. M. No. 1/9/80-R II(B). dated 12-1-1981 as amended vide
O. M. No. 1/1/82-R2 dated 15-8-1983].

7. 63-A (a) Reference sub para (b) of Establishment Division's O. M. No. 1/9/80-R. II(B) dated
12th January. 1981, as amended vide O. M. No. 1/9/80-R. 2, dated 15th August, 1983, in partial
modification of the said orders it has been decided that the service rendered on acting charge
basis in respect of appointments falling under rules 8-B(l) and 8-B(3) of the Civil Servants
(Appointment. Promotion and Transfer) Rules, 1973 count in the pay scale applicable to the post
for the purposes of accrual of increments subject to
fulfillment of the following:

(i) In case of acting charge appointments to posts carrying BPS-18, the incubements shall have
completed *[5 years service in B-17].

(ii) In case of acting charge appointments to posts carrying BPS-19 and above the incumbents
shall have completed the prescribed length of service for respective posts as under:

(a) Posts in BPS-19 * 12 years service in BPS-17 and

above.

(b) Posts in BPS-20 17 years service in BPS-17 and

above.

(c) Posts in BPS-21 22 years service in BPS-17 and

above.

(b) The above decision shall be effective from the First January, 1985. However, in cases of
acting charge appointments made during the period from 12th January, 1981 to 31st December,
1984, the increments shall be restored from the due dates but no arrears due on accounts of
restoration of increments prior to 1st January, 1985 shall be allowed.

[ Establishment Division O. M. No. 1/25/83-R. 2. dated 27-3-1985)

Absorption of Personal pay (FR. 37):

7. 64 Unless there are orders to the contrary by the competent authority, the personal pay is
reduced by any amount by which the recipient's pay is increased. As soon as the increase is
equal to the personal pay, it is ceased to be drawn.

Pay of temporary post (F. Rs 39 & 40):

7. 65 When temporary post is created and it is to be filled by a person who is not already a
Government servant, he should be allowed the minimum pay that would be necessary to secure
the services of a person capable of discharging efficiently the duties of the post.

7. 66 In case the temporary post is such as is to be filled by a person who is already in

Government service, its pay should be fixed after taking in to consideration the character of
responsibility of the work to be performed and the existing pay of the Government servant of a
status sufficient to warrant his selection for the post.

'Amended vide Estd. Division O. M. No. 1/25/83-R 2, dated 31-3-1986.

7. 67 While dealing with the fixation of pay in such cases, it should be borne in mind that
temporary posts may be divided into two categories (1) posts created to perform the ordinary
work for which permanent posts already exist in a cadre and (2) isolated posts created for the
performance of special tasks unconnected with the ordinary work which a service is required to
perform. The posts in the first category should be treated as temporary addition to the cadre of a
service and the holders of this posts should draw pay in the time-scale of the post without any
extra remuneration. If any of these posts involve decided increase in work and responsibility in
comparison with the duties of the parent
cadre generally, a special pay may be sanctioned in addition.

For the second category of posts, if these involve greater responsibilities or increase in work as
compared to those of the posts in the regular line, extra remuneration may be sanctioned, but it,
in no case, should exceed, without the specific sanction of the Ministry of Finance, one-fifth of
substantive pay or Rs. 10 a day, whichever is less.

Scheme of National Scales of Pay:

7. 68 (a) The Scheme of the National Pay Scales and Allowances and other Fringe benefits for
Civil employees of the Federal Government, paid directly from the Civil estimates or from the
Defence Estimates, was introduced from the 1st March, 1972. Under the scheme, salary structure
of the civil employees was divided into 22 steps, a Naib Qasid at the lowest rung of the hierarchy,
viz. NPS 1 and a Secretary to Federal Government at the top of the ladder, viz., NPS 22. No
addition to or alteration in these scales, was permissible except with the approval of the Prime
Minister. The selection grades and technical Pays admissible prior to the introduction of the NPS
were abolished. However, the special pays attached to certain posts or certain incumbents in the
pre-national
scales were allowed to be continued, under certain conditions.

(b) The National Scales of pay were replaced by the Revised National Scales of Pay w. e. f. 1st
May, 1977.

[Finance Division O. M. No. F. 1(1) Imp. 1/77, dated 28-4-1977].

(c) The Revised National Scales of Pay were modified with effect from
1st July, 1981.

[Finance Division O. M. No. F. 2(18) R-3/81. dated 27-6-1981).

(d) The Scheme of Basic Pay Scales was introduced with effect from
1st July, 1983.

[Finance Division O. M. No. F. 1(1) Imp/81 dated 18-8-1983].

(e) The Basic Pay Scales were revised w. e. f. 1-7-1987.

[Finance Division O. M. No. F. 1/7/lmp-II/87, dated 1-7-1987)

(f) The Basic Pay Scales were revised w. e. f. 1-6-1991.

[Finance Division O Ms. No. F. l(12)/lmp-ll/9. dated 20-6-1991 & 19-8-1991|.

(g) (i) The Basic Pay Scales were revised with effect from 1-6-1994.

(ii) *[The revised Basic Pay Scales of civil employees of the Federal Government (1994) as
introduced under the Finance Division's Office Memorandum No. F. I(2)-Imp. /94 (i) dated 15th
June, 1994 would be applicable to all the contingent paid staff in BPS-1 to BPS-4 employed/to be
employed in the Ministries/ Departments on and after 1-6-1994 alongwith the fringe benefits,
wherever applicable, as provided therein].

(h) In cases of promotion from a lower to higher post/scale before the introduction of these
scales, the pay of the senior employee in the same scale may be fixed and so enhanced that it
would not be less than the pay that would have been admissible to him if his promotion to the
higher post/scale had taken place after the introduction of these scales.

[Financc Division O. M. No F 1(2)-lmp. /94(1), dated 15-6-1994].

(i) The Basic Pay Scales and Fringe Benefits of Civil Employees (BPS 1-22) have been revised
w. e. f. 1-12-2001.

[Finance Division O. M. No. F. 1(5) Imp/2001, dated 4-9-2001

PAY SCALES 1973 -2001

NPS 1973 1977 1981

1 100-2-116/3-140 250-5-280/6-340 25O-5-28O/6-34O-7-375

2 110-3-152/4-160 260-6-302/7-365 260-6-3O2/7-365-8-405

3. 120-3-150/5-180 270-7-326/8 390 270-7-326/8-390-9-435

4 130-4-170/5-200 280-8-352/9-415 280- 8-352/9-415-12-475

5 150-6-180/8-220/10-280 290-10-350/12-470 290- IO-35O/12-470-14-540

6. 165-8-205/10-255/10-315 315-12-399/14-525 315-12-399/14-525-16-605

7. 180-10-230/10280/15-370 335-14 447/16-575 335-14-447/16-575-18-665

8 200 12-260/15-335/15-425 370-16-514/18-640 370-16-514/18-640-22-750

9. 225- 15-300/16-380/20-480 390-2O-59O/22-7OO 39O-2O-59O/22-70O-24-82O

10. 250-18-340/20-440/20-540 4IO-22-52O/24 76O 410-22-520/24-760-28-900

II. 275-20-375/20-475/25-600 430-24-550/28-830 43O-24-550/28-830-30-980

12 300-20-400/25-525/25 650 460 28-600/30-900 460-28-600/30-900/32-1060

13. 325-25-450/25-575/25-700 490-30-790/32-950 490-30-790/32-950/35-1125

14 350-25-475/25-600/30-750 520 30-730/35-1010 520-30-730/35-1010-40-1210

15. 375-25-500/30-650/35-825 550-35-900/40-1100 550-35-900/40-1100-50-1350

16 400-35-750/50-1000 625-40-825/50-1325 625-40-825/50-1325-60-1625

17. 500-50-1000/50-1250 900-50-1150/60-1750 900-50-1150/60-1750-100-2250

18. 1000-75-1750 I35O-75-I65O/IOO-2I5O I35O-75-I65O/IO0-265O

19. 1800-80-2200 2250-100-27, 50 2250-100-3050

20. 2300-100-2600 2600-125-3225 2600-125-3600

21. 2750 3000-150-3750 3000-150-4200

22 3000 3250-200-4250 3250-200-4850

*Finance Division O. M. No. F. 2(2) R-l/94 dated 14-11-1994.

Modified
BPS 1983 1987 1991 1994 *2O0l
Scales

1. 440-I0-64O 600-13-860 605-17-86O 920-26-1310 1245-35-1770 1870-55-3520

2. 460-12 700 625-16-945 630-21-945 945-32-1425 1275-44-1935 1915-65 3865

3. 480-14-760 650-19-1030 655 25-1030 975-37-1530 1320-50-2070 1980-75-4230

4 500-16-820 675-22-1115 680-29-1115 1005-43-1650 1360-58-2230 2040-85-4590

5. 520-18-880 700-25-1200 705-33-1200 1035-49-1770 1400-66-2390 2100-100-5100

6. 540-20-940 725-28-1285 730-37-1285 1065-54-1875 1440-73-2535 2160-110-3460

7. 560-23-1020 750-31-1370 755-41-1370 1095-60-1995 1480-81-2695 2220-120-5820

8 590-26-1110 790-34-1470 795-45-1470 1140-65-2115 1540-88-2860 2310-130-6210

9. 620-29-1200 830-38-1590 840-50-1590 1185-72-2265 1605-97-3060 2410-145-6760

10. 660-32-1300 870-42-1710 870-56-1710 1230-79-2415 1660-107-3265 2490-160-7290

II. 700-35-1400 910-46-1830 915-61 1830 1275-86-2565 1725-116-3465 2590-175-7840

12. 750-40-1550 970-52-2010 975-69-2010 1355-96-2795 1830-130-2780 2745-195-8595

1440-107-
13. 800-45-1700 1035-58-2195 1040-77-2195 1950-144-4110 2925-215-9375
3045

1530-119-
14. 850-50-1850. 1100-64-2380 1105-85-2380 2065-161-4480 100-240-10300
3315

1620-131-
15. 900-55-2200 1165-71-2585 1160-95-2585 2190-177-4845 3285-265-11235
3585

1050-80- 1875 146-

16. 1350-105-2925 2535-197-5490 3805-295 12655
2250 4065

1600-120- 2870 215-

17. 2065-155-3925 3880-29O-73606210-465-15510
3040 5450

2100-150- 3765-271-
18. 2710-195-4660 5085-366-8745 8135-585-19835
3600 6475

3200-160- 5740-285- 7750-385- 12400-615-

19 4130-205-5770
4480 8590 11600 24700

3800-180- 6810 325-9195-440- 14710-950-

20. 4900-235-6780
5240 10060 13595 28010

4200-225- 7535-405- I019O-545- I63O5-IO7O-

5420-290-7740
6000 11585 15640 3I285

4500-250- 58OO-325- 8075-450- 10900-610- 17440-1250-

22.
6500 84OO 12575 17000 34940

*Option. (a) All the existing civil exployees (BPS 1 to 22) of the Federal Government shall within
45 days from the date of issue of this office memorandum, exercise an option in writing,
addressed to the Audit Office concerned in the case of employees in BPS-16 and above and to
the DDO concerned in the case of employees in BPS-15 and below, either to draw pay in the
existing Basic Pay Scales of 1994 or in the Revised Basic Pay Scales and pension/commutation
scheme 2001 as specified in Finance Division O. M. No. F l(5)/lmp/2OOI dated 4-9-2001. Option
once exercised shall be final.

(b) An existing employee as aforesaid, who does not exercise and communicate such an option
within the specified time limit, shall be deemed to have opted to continue to draw salary in basic
pay scales of 1994 and Pension/Commutation as per existing formulae.

Note: For the scheme of the Basic Pay Scales and fringe benefits of Civil Employees of the
FederalGovernment introduced in 1983 as well as revision of Basic Pay Scales of Civil
employees of the Federal Government in 1987, 1991, 1994 and 2001 please see Annexure I-VI.

Annexure-I
No. l/l(l)Imp/83

GOVERNMENT OF PAKISTAN

FINANCE DIVISION

Islamabad, the 18th August, 1983

OFFICE MEMORANDUM

Subject: Scheme of Basic Pay Scales and Fringe Benefits of Civil Employees of
the Federal Government (1983)

The President has been pleased to sanction, with effect from 1st July,
1983, a Scheme, as detailed below, of the Basic Pay Scales. Allowances and other

Fringe Benefits. 1983 for the civil employees of the Federal Government, paid
directly from the Civil Estimates or from the Defence Estimates.

PART I-BASIC SCALES AND ALLIED MATTERS

2. Basic Scales of Pay. The Basic Scales of Pay, 1983, as shown in the Schedule annexed to this
O. M. shall replace the existing Revised National Scales of Pay (RNPS). The Basic Scales shall
not be regarded as "grades" and shall not be referred to as grades in official communications.
Officials shall henceforth be appointed/promoted to posts and not in grades.

3. Initial Fixation of Pay. (i) The initial pay of an existing employee, i. e. an employee who has
been in Government service since before the 1st of July, 1983, shall be fixed at the stage in the
relevant Basic Pay Scale which is as many stages above the minimum as the stage occupied by
him above the minimum of the existing Revised National Pay Scale. Provided that where the pay
so determined does not give the employee concerned a minimum advantage of 10% of his
existing basic pay plus Dearness Allowance over and above the present emoluments drawn by
him, his pay shall be fixed at the lowest stage in the Basic Scale that gives him that advantage:
Provided further that the maximum of the rel-
evant Basic Scale shall not be exceeded in any case. In this fixation formula, "emoluments" would
mean the sum of pay. Dearness Allowance and Local Compensatory Allowance, if any.

(ii) Annual increment shall continue to be admissible subject to existing conditions on the 1st of
December each year under this Scheme. However, the first annual increment of existing
employees in the Basic Scales shall accrue on the 1st of December, 1983.

4. Fixation of Pay on Promotion. The existing provisions regulating the fixation of pay in case
of promotion of employees from a lower to a higher post shall continue to apply.

5. Move-over. -The existing provisions' regulating the concession of move-over without

promotion to the next higher pay scale of employees in RNPS-1 (B-l) to RNPS-16 (B-16) shall
continue to be applicable in this Scheme.

6. The existing concession of 'move-over' of employees from RNPS16 to RNPS-17 (B-l7) and
RNPS-17(B-17) to RNPS-18 (B-l8) shall be extended upto B-20 and regulated as under:

(a) The existing condition of the period of stay of three years at the182
maximum of pay scale B-16 and B-17 in the case of non-technical and non-professional
categories shall continue to be applicable.

(b) No move-over beyond B-18 in the case of the categories of employees mentioned at (a)
above shall be permissible.

(c) The move-over in the case of technical and professional categories e. g. Doctors,
Engineers, Educationists, Economists, Management Accountants, Scientists, rchaeologists.
Geologists. Meteorologists. Experts of Agriculture, Animal Husbandry and Forestry shall be
permissible upto B-20 without the condition of stay at the maximum for three years.

(d) More-over shall be allowed in cases where an employee, who is otherwise considered fit for
promotion to higher post cannot be promoted for want of a vacancy.

(e) Normal promotion procedure as is observed in cases of promotion through the competent
authority e. g. Establishment Division Selection Board shall be followed in allowing move-over to
Basic Scales 19 and 20.

7. (A) Modification of Scales in Case of Certain Posts. (a) In the case of certain posts, the Basic
Pay Scales indicated in Annexure-II to this O. M. will be allowed.

(b) In the case of posts of artisans, such as Carpenters, Welders etc. and Store-keepers and
Assistant Store-keepers, which require different level of expertise and responsibilities in different
organisations appropriate Basic Pay Scale may with the approval of the competent authority, be
allowed in different organisations or even in the same organisation while taking into account the
market value of such artisans and their level of competence.

(c) In specially meritorious cases, Basic Scale B-21 or B-22 alongwith allowances and fringe
benefits may be allowed, with the approval of the President to technical and professional officers
without requiring them to move from their technical posts where their expertise is particularly
needed. The number of such beneficiaries will not exceed 12. 5 of the total number of posts in B-
20 in any particular cadre under the Federal or Provincial Government.

(d) In cases where it is necessary for Government to recruit and/or to continue in employment
certain officials who have acquired expertise in a highly specialised field, special contract terms
may be offered to such 'narrow-narrow specialists'. For this purpose, a Special Standing
Committee shall be constituted by Government to deal with such cases. The Standing Committee
shall take in to account the markes value of the narrow-narrow specialists" and recommended
proper remunerations to engage or to retain their services.

(B) Fixation of Pay in Cases Under (A) Above. In cases where the Basic Scales under (A) above
higher than the scale which corresponds to the revised NPS has been allowed, initial fixation of
pay of the employees concerned shall first be made in the Basic Scale corresponding to his
existing RNPS in the light of the initial fixation of pay formula mentioned in para 3 above, and
thereafter their pays in the higher Basic Scales shall be fixed at the next higher stage.

8. Special Pays. (a) The existing special pays admissible to officials of various categories working
as Private Secretaries and Personal Assistants shall be revised as under.

Name of Post Existing Revised

PS to Ministers (Federal)
PS to Ministers (Provincial)

PS to Secretaries (Federal)

PS to Additional Secretaries (Federal)

PS to Secretaries (Provicial)

PA to Ministers (Federal)

PA to Ministers of State

PA to Secretaries (Federal)

PA to Addl. Secretaries (Federal)

PA to Secretaries (Provincial)

PA to Joint Secretaries (Federal)

(b) Field Officers on appointment as Deputy Secretary in the Federal Secretariat shall be allowed
a special pay of Rs. 400 p. m. in addition to basic pay.

PART II-ALLOWANCES

(i) Dearness Allowance, Local Compensatory Allowance and Leave Travel Concession and Rest
and Recreation Allowance. As from the 1st of July, 1983. the existing Dearness Allowance. Local
Compensatory Allowance wherever admissible, and the Leave Travel Concession and Rest and
Recreation Allowance in lieu thereof, shall cease to be admissible to an employee who draws pay
in these Basic Pay Scales.

Rs. Rs.

220 250

150 200

150 200

100 150

100 150

70 100

60 100

60 100
60 100

50 75

45 75

(ii) The existing rules and orders regulating the grant of House Rent Allowance, Conveyance
Allowance and Washing Allowance shall continue to be applicable.

9. Entertainment Allowance. Entertainment Allowance shall be admissible at the following

fixed rates to officers drawing pay in B-20 to B-22:

(1) B-20 Rs. 400/-p. m.

(2) B-21 Rs. 450/-p. m.

(3) B-22 Rs. 650/- p. m.

10. Non-Practising Allowance. The existing rates of Non-Practising Allowance shall be revised
as under:

Doctors drawing pay in B-17 and B-18 Rs. 500/- p. m.

Doctors drawing pay in B-19 and above. Rs. 700/- p. m.

The above Non-Practising Allowance shall be admissible in all cases where a doctor is not
allowed private practice.

Doctors posted in Rural areas below town committee level, and allowed private practice, shall be
given a Practice Compensatory Allowance @Rs. 200/- p. m. for male doctors and @Rs. 300/- p.
m. lor female doctors.

11. Teaching Allowance. Teaching Allowance @Rs. 100/- p. m. shall be allowed to qualified
High School Teachers who teach basic/natural sciences.

Junior Instructors in Polytechnics who possess Technical Teachers Diploma shall be allowed
Teaching Allowance @Rs. 100/- p. m.

Doctors who teach basic sciences in Medical Colleges shall be allowed a Teaching Allowance
@Rs. 500/- p. m.

12. Charge Allowance. Charge Allowance to Principals of Colleges and Polytechnics shall be
admissible at the following rates;

(a) Principals of Degree Colleges/ Rs. 200/-p. m.

Colleges of Technology
(b) Principals of Intermediate Colleges/ Rs. 100/-p. m.
Polytechics

13. Warden Allowance. Teachers who are assigned the duty of Hostel Wardens in Colleges and
Polytechnics shall be allowed a Warden Allowance of Rs. 100/- p. m.

14. Advance Increments to School Teachers on Attaining Higher Qualifications. Primary, Middle
and High School teachers who posses or acquire while in service higher qualifications shall be
allowed advance increments, as under:

I. Primary School

(i) A teacher who possesses or acquires FA/F. Sc shall be allowed

two advance increments.

(ii) A teacher who (in addition to FA/F. Sc. ) also acquires C. T. shall
be allowed one additional advance increment.

(iii) A teacher who acquires a degree of B A/B. Sc. shall be allowed

three additional advance increments.

II. Middle School

A teacher who possesses or acquires a degree of BA/B. Sc. shall be

allowed three advance increments.

III. High School

A teacher who possesses or acquires Master's degree shall be allowed three advance
increments. In case of a teacher who possesses or acquires Master's degree in Education (M.
Ed) and also a Master's degree in any academic subject shall be allowed six
advance increments.

Provided that a teacher who has already drawn increments for possessing higher educational
qualification under the existing scales shall be allowed increments equal to shortfall in the number
of increments, if any, between the increments obtained by him and the increments which have
now been prescribed.

15. Advance Increments to Technical and Professional Categories on assessing/Acquiring

Higher Qualincations. Doctors, Engineers, Educationists, Economists, Management Accountants,
Scientists, Geologists, Archaeologists, Experts in Agriculture, Animal Husbandry and Forestry
working in Universities, Colleges, Research institutions or technical departments shall be allowed
advance increments on possessing/acquiring higher qualifications as under:

(i) In case a technical/professional employee of the above category possesses D. Sc, Ph. D.
degree from a Foreign University, he shall be allowed six advance increments on enlry into
service in B-17.

(ii) Those of the above categories of officers who possess MA/M. Sc/M. S. or equivalent from a
foreign university or Ph. D. or M. Phil, from a university in Pakistan will receive four
advance increments on induction in service in B-17.
(iii) Those of the above categories of employees who while in service obtain a degree shall be
allowed four advance increments in case of (i) above and two advance increments in case of (ii)
above.

16. Design Allowance. Engineers holding University degree in

engineering and working full time in the Design Offices shall be allowed a Design
Allowance at the following rates:

Engineers drawing pay in B-17 Rs. 400/- p. m.

Engineers drawing pay in B-18 Rs. 500/- p. m.

Engineers drawing pay in B-19 Rs. 600- p. m.

Engineers drawing pay in B-20 Rs. 700/- p. m.

17. Qualification Allowance. S. A. S. Accountants shall be allowed a Qualification Allowance of

Rs. 100/- p. m. on qualifying the S. A. S. or equivalent examination. This allowance shall continue
to be admissible as a separate entity even after their promotion to higher posts.

18. Performance Evaluation Allowance. Audit Officers working in the Performance Evaluation
Cell shall be allowed Performance Evaluation Allowance at the following rates:

B-17 and B-18 Rs. 300/-p. m.

B-19 and B-20 Rs. 400/- p. m.

19. Special Research Allowance. Field Officers on their appointment in research institutions for
doing research work shall be allowed a Special Research Allowance @20% of their Basic Pay.

20. Deputation Allowance. In lieu of the existing fixed rates of Deputation Allowance, civil
servants while on deputation to foreign service in Pakistan, shall be allowed a Deputation
Allowance @ 10% of the minimum of
their Basic Pay Scales.

21. Daily Allowance. The pay limits for the admissibility of higher rates of Daily Allowance notified
vide this Divisions O. M. No. F. 2(38)-R. 9/8I-
D-660/82. dated 17-6-1982. shall be as under:

Special RateOrdinary Rate

Pay limits
Rs. Rs.

Rs. 3200/- and above 90 75

FromRs. 2100/-to Rs. 3199/- 75 65

FromRs. 1001/-to Rs. 2099/- 50 40

From Rs. 501/- to Rs. 1000/- 40 35

Upto Rs. 500/- 25 20

PART III-MISCELLANEOUS

22. House Building Advance. At present House Building Advance equal to 24 months' pay is
allowed to Government servants drawing pay in Basic Scales B-3 and above. This pay limit shall
henceforth be raised to 36 months.

23. Government servants who do not claim interest on their G. P. Fund Balances shall not be
charged interest on House Building Advance or other advances as admissible under the rules,

24. Cost of Blood Transfusion. The cost of blood transfusion is at present reimburseable to the
Federal Government servants, but not to the Provincial Government employees. Henceforth the
cost of blood transfusion shall be reimburseable to Government servants under the Provincial
Governments also.

25. Encashment of LPR. At present encashment of LPR upto six months is permissible to
Government servants provided the LPR is refused by Government in public interest. Henceforth,
the option for encashment of LPR shall rest with the Government servant concerned. In case, a
Government servant opts not to take LPR he shall be allowed leave salary for the period for
which LPR is admissible subject to a maximum of six months.

26. The word "Family" for the purpose of medical treatment shall also include parents of the
civil servant residing with. and dependent on him.

27. All existing rules and orders on the subject shall be deemed to have been modified to the
extent indicated above. All existing rules and orders not so modified shall continue in force under
this Scheme.

28. Anomalies. A Committee will be set up in the Finance Division (Regulations Wing) to resolve
the anomalies, if any, arising out of the introduction of this Scheme. A separate communication
will be issued in this connection.

(QAMARUDDIN SIDDIQUI)
Additional Finance Secretary.

To

All Ministries/Divisions, etc.

Schedule to Finance Division

O. M. No. F. 1(I)-Imp/83,
Dated: 18th August, 1983.

BASIC SCALES OF PAY

No. Existing Revised National Pay Scale Basic Pay Scale

1. 250-5-280/6-340-7-375 B1 440-10-640
2. 26O-6-3O2/7-365-8-4O5 B2 460-12-700

3. 270-7-326/8-390-9-435 B3 480-14-760

4. 280-8-352/9-415-12-475 B4 500-16-820

5. 290-10-350/12-470-14-540 B5 520-18-880

6. 315-12-399/14-525-16-605 B6 540-20-940

7. 335-14-447/16-575-18-665 B7 560-23-1020

8. 370-16-514/18-640-22-750 B8 5590-26-1110

9. 390-20-590/22-700-24-820 B9 620-29-1200

10. 410-22-520/24-760-28-900 B 10 660-32-1300

11. 430-24-550/28-830-30-980 B 11 700-35-1400

12. 460-28-600/30-900-32-1060 B 12 750-40-1550

13. 490-30-790/32-950-35-1125 B 13 800-45-1700

14. 520-30-730/35-1010-40-1210 B 14 850-50-1850

15. 550-35-900/40-110-50-1350 B 15 900-55-2000

16. 625-40-825/50-1325-60-1625 B 16 1050-80-2250

17. 900-50-1150/60-1750-100-2250 B 17 1600-120-3040

18. 1350-75-1650/100-2650 B 18 2100-150-3600

19. 2250-100-3050 B 19 3200-160-4480

20. 2600-125-3600 B20 3800-180-4480

21. 3000-150-4200 B21 4200-225-6000

22. 3250-200-4850 B22 4500-250-6500

Anncxure-ll to O. M.
Dated: 18-8-1983
Name of Post

Existing Scale

Basic Scale

EDUCATIONAL DEPARTMENT

1. Primary School Teacher

(Matric with JV/(PTC)

NPS-6

Rs. 315-12-399/14-325-16-650

B-7

Rs. 560-20-1020 with selection

grade equal to l/3rd posts in B-10
(Rs. 660-32-1300).

Physical Training Instructors in

Primary Schools may be treated at
par with Primary School teacher
in the matters of Pay Scale &
Selection Grade.

2. Middle School Teacher (FA. /

F. Sc. with CT or equivalent)

3 Physical Training Instructor

(Middle Schools) FA. with
diploma in Physical Education
or equivalent.

4. Drawing Master (Middle School)

F. A. with one year training in
Drawing or equivalent Profes-
sional qualification.

5 High School Teacher

(B. A/B. Sc. B. Ed. )

6. Physical Training Instructor

(High Schools/Comprehensive
Schools) B. A. with Senior
Diploma in Physical Education.

7. Librarian (High Schools) B. A

with Diploma in Library Science.
8. Head Masters/Head Mistress
High Schools

9. Library Assistant

10. Laboratory Assistant

NPS-8

Rs. 370-16-514-18-640-22-750

-do-

-do-

NPS-14

Rs. 520-30-730-35-1010-40-
1210

-do-

-do-

NPS-17

Rs. 900-50-1150-60-1750-

100-2250

NPS-8

Rs 370-16-514-18-640-22-750

NPS-5

Rs. 290-10-350/12-470-14-540

B-9

Rs. 620-29-1200 with selection

grade equal to 1/3rd posts in B-12
(Rs. 750-40-1500).

-do-

-do-

B-15
(Rs. 900-55-2000) with selection
grade equal to 1/3rd posts in B-17
(Rs. 1600-120-3040).

-do-

-do-

B-17

Rs. 1600-120-3040 with 1/3rd

posts as selection grade in B-18
(Rs. 2100-150-3600) minus
promotion posts.

B-9

(Rs. 620-29-1200)

B-7

(Rs. 560-23-1020) with 1/3rd

posts as Selection Grade in B-10
(Rs 660-32-1300)

190

Name of Post

Existing Scale

Basic Scale

11 Junior Inspector Polytechnic

HEALTH SERVICES

NPS-14

Rs. 520-30-730/35-1010-40-

1210

1. Assistant Mid-wife & Nursing Nursing Aid NPS-3

Rs. 270-7-326/8-390-9-435

2 Operation Theater Assistant/

Anesthetist Assistant

3 Wardmaster
4 Sanitary Inspector

5 Dispenser

6. Dresser/Midwife

7 O T. Technician/ECG/ENT/
Dental Technician

8. Lab. Technician

9. Blood Bank Technician

10. Senior Technician

11. Lady Health Visitor

12. Medical Technician

13. Chemical Assistant

NPS-5
Rs. 290-10-350/l2-479-14-540

NPS-5

Rs. 290-10-350/12-470-14-540

Rs. 315 12- 399/14-525-16-605

-do-
-do-
NPS 6 Rs. 315-12-399/14-525-16-605

B-14

Rs. 850 50-1850 wilh selection

grade in B-16 (Rs. 1050-80-2250
equal to 1 /3rd posts.

B-4

Rs 500-16-820

B-6

Rs 540-20 940 with selection

grade equal to 25% of total posts
in scale of Rs 590-26-1110 (B-8).

B-6
Rs. 540-20-940

B-6

(Rs 540-20-940) with 25% of

posts as selection grade in B-8
(Rs. 590-20-1110)

do-
-do-

B-9

(Rs. 620-29 1200) with 1/3rd

posts as selection grade in B-11
(Rs. 700 35-1400).

NPS-9 -do-

NPS-7
-do-
Rs 335 14 447/16-575-18-665

8-9
(Rs. 620-29-1200) with 25% of
-do-
posts as selection grade in B-11
(Rs 700-35-1400).

NPS-7 (Federal Govt)

Rs. 335- l4-447/16-575-18-665
NPS-6 (Provincial Govt. )
Rs. 315-12 339/14-525 16 605

NPS-8(Federal Govt)

Rs. 370 16-5I4/18-640-22-75O

NPS-9 (Provincial Govt. )

Rs 390 20 590/22-700-24-82O

NPS 11
Rs. 43O-24-550/28-83O-3O-980

-do-

-do-

B-11 (Rs 700 35 1400) wilh

25% of total posts as selection
grade in B 14 (Rs. 850-50-1850).
191

Name of Post
14. Technical Assistant

15. Bact. Assistant

16 General/Charge Nurse

Existing Scale

Basic Scale

17. Speech Therapist

18 Assistant Physiotherapist

19 Assistant Nursing Superintendent

20. Nursing Adviser

CENTRAL BOARD OF REVENUE

1. Preventive Officer

2. Intelligence Officer

3. Examiner

4. Income Tax Inspector

5 Deputy Supdt. (C&E. )

6. Senior Intelligence Officer

7. Inspector Preventive Services

8. Valuation Officers/Appraiser
9. Principal Appraiser

NPS-II
RS. 43O-24-55O/28-83O-3O-980

-do-

-do-

NPS-14

Rs. 520-3O-730-35 1010-40-1210

NPS-14
Rs. 52O-3O-73O/25 1010-40-
1210

NPS-16

Rs 625-40-825/50-1325-60-

1625

NPS-18

Rs. I35O-75-I65O/100-265O

NPS-10

Rs. 410-22-530/24-760-28-900

NPS-13

Rs. 490-30-790/32-950-35-1125

B-11 (Rs. 700-35-1400) with

25 % of total posts as selection
grade in B-14 (Rs. 850-50-1850).

B-16

(Rs 1050-8O-225O)

B-14

(Rs. 85O-5O-185O) General

Charge Nurse possessing
Midwifery Certificate should be
allowed two advance increments
on initial induction.

B-16

(Rs. 1050-80-2250)

This post would be merged with

Physiotherapist and placed in
B-l6 (Rs 1050-80-2250)

B-16

(Rs 1050-8O-2250) plus a

special pay of Rs. 100/ p. m.

B-19

(Rs. 3200-160-4480).

B-11

(Rs. 700-35-1400)

B-11

(Rs. 700-35-1400) with selection

grade equal to 25% of posts in B-
14 (Rs 850-50-1850).

B 14

(Rs. 850-50-1850)

do do

NPS-16 do

Rs. 625-4O-825/5O-1325 6-I625 (Rs. 1050-80-2250)

(*) The existing incumbents drawing pay in the upgraded posts of Preventive Officer (NPS-13)
and
Appraiser/Valuation Officer/Principal Appraisers (NPS-17) will continue to draw pay in the
corresponding Basic Scales B-13 and B-17 respectively as personal to them so long they hold
these posts.

Name of Post

Existing Scale

Basic Scale

POST OFFICE DEPARTMENT

Inspectors Broadcast Receivers

Licence

NPS-7

Rs. 335-14-447/16-575-18-665

B-9

(Rs. 620-29-1200)

2. Town Inspector do-

STATISTICS DIVISION & COMPUTER BUREAU

Key Punch Verifying Operator/

Machine Operator

2 Asstt Supervisor/Machine
Operator (Statistics Divn. )

3. Supervisor (Statistics Divn)

4 Data Processing Assistant/Console

Operator (Statistics Div. )

5 Data Processing Officer

(Statistics Divn. )

6. System Analyst/Programmer
(Statistics Divn)

Assistant Programmer
(Computer Bureau)

(Statistics Division NPS-7 B-10

(Rs. 335-14-447/16-575-18-665 Rs. 660. 32-1300)

Computer Bureau) NPS-9

Rs. 39O-20-590/22-700-24-820

NPS-11

Rs 430-24-550/28-830-980

B 12

Rs. 750-40-1550

NPS-12 B-14

Rs. 460-28-600/30-900-32-1060 Rs. 850-50-1850

?do? B-16

Rs. 1050-80-2250

NPS-16 B-17

Rs. 625-40-825/50-1325-60-1625 Rs. 1600-120-3040

NPS-17 B-I7

Rs 90O-50-1150/6O-I750-I0O-225O Rs. 1600-120-3040

plus Special Allowance of Rs. 200/

p. m.

NPS-17

Rs. 900-50-1150/60-1750-100-2250

Plus special pay Rs 100/ p. m.

PROVINCIAL GOVERNMENTS

IRRIGATION/FORESTS/AGRICULTURE ANIMAL
HUSBANDRY/COOPERATIVES DEPARTMENT

1 Field Assistant

NPS-5

Rs. 290-10-350/12-470-14-540

B-6

Rs 540-20-940 with I/3rd of total

posts as selection grade in B-9
(Rs. 62O-29-1200)

2 Stock Assistant/Poultry Supervisor/

Poultry Assistant/Sheep Development
Assistant/Laboratory Assistant

2(a) Veterinary Compounder

3 Junior Research Assistant

Sind Government

NPS-8

Rs 370-16-514/18-640-22-750

B-6

Rs. 540-20-940 with l/3rd of total

posts as selection grade in B-8
(Rs. 590-26-1110)

B-16
Rs. 1050-80-2250

193

Name of Post

Existing Scale

Basic Scale

4. Senior Research Assistant

Sind Government

5. Draftsman

6. Inspector Cooperatives

7. Zilledar

8. Reclamation Supervisor (Sind)

POLICE DEPARTMENT

1. Foot Constable

2. Head Constable

3. Assistant Sub-Inspector

4. Sub-Inspector

5. Inspector

6. Prosecuting Sub-Inspector

NPS-11

Rs. 430-24-550/28-830-30-980

NPS-8

Rs. 370-16-514/18-640-22-750

NPS-10

Rs. 410-22-52O/24-76O-28-900

?do?

NPS-11
Rs. 43O-24-55O/28-83O-3O-98O

B-16

Rs. 1050-80-2250

B 11

Rs. -700-35-1400

?do?

B-14(Rs 850-50-1850)

B-17

Rs. 1600-120-3040 in all

Provinces subject to the condi-
tion that the incumbents possess
the minimum qualification of
M. Sc (Agriculture)

*B2

Rs. 460-12-700

B-3

(Rs. 480-14-760) with 30% posts

as selection grade in B-5 (Rs.

520-18-880).

*Those Constables and Head

Constables who are Matriculate

at the lime of recruitment or

acquire Matriculation Certificate

while in service may be allowed

five advance increments.

Ration Allowance to the lower

Police personnel shall be allowed
at rates admisssible to equivalent
categories of Civil Armed
Forces.
NPS-5 B-5

Rs 290-10-350/12-470-14-540 (Rs. 520-18-880) with l/3rd

posts as Seletion Grade in B-7

(Rs. 560-23-1020).

NPS-2

Rs. 260-6-302/7-365-8-405

NPS-3

Rs. 270-7-326/8-390-9-435

NPS-7

Rs. 335-14-447/16-575-18-665

NPS-11

Rs 430-24-550/28-830-30-980

NPS-7

Rs. 335-14-447/16-575-18-665

B-11

(Rs. 700-35-1400) with

Graduation as minimum qualifi-
cation.

B-14

(Rs. 850-50-1850).

B-11

(Rs. 700-35-1400). Those who

possess Law Degree, five

advance increments may be

allowed.

194

Name of Post
Existing Scale

Basic Scale

7 Prosecuting Inspector

REVENUE DEPARTMENT

1. Kanungo/Girdawar

NPS-11

Rs 430-24-550/28-830 30-980

NPS-6

Rs. 315-12-399/14-525-16-605

NaibTehsildar/District Kanungo/ NPS-9

District Accountant Rs. 390-20-590/22-700-24-820

3. Treasury Officer

NPS-17

Rs. 9OO-5O-II5O/6O-175O-1OO-225O

B-14

(Rs 850-50-1850)

B-9

(Rs 620-29-1200)

B-14

(Rs. 850-50-1850)

B-17

(Rs I600-I20-304O) with l/3rd

of posts as selection grade in
B-18 (Rs. 2100-150-3600)

GOVERNMENT DEPARTMENTS AND ORGANIZATIONS

1 Stenotypist

Stenographer
NPS-8

Rs. 370-I6-5I4/18-640-22-750

NPS-11

Rs. 430-24-550/28-830-3O-98O

B-12

(Rs 750-40-1550)

B-15

(Rs. 900-55-2000) with 25%

posts as selection grade in B-16
(Rs. 1050-80-2250).

195

Annexure-II

GOVERNMENT OF PAKISTAN

FINANCE DIVISION
(Regulations Wing)

No. F. I/7/Imp-II/87 Islamabad, the 1st July, 1987

OFFICE MEMORANDUM

SUBJECT: Revision of Basic Pay Scales of Civil Employees of the Federal

Government.

The President has been pleased to sanction the revision of Basic Pay
Scales for the civil employees of the Federal Government, paid directly from the
Civil Estimates or from the Defence Estimates as detailed in the following
paragraphs.

2. Basic Pay Scales. ?The new scales, as shown in the Annexure to

this O. M. shall replace the Basic Pay Scales 1983 and shall be effective from the
First of July 1987.

3. Initial Fixation of Pay. ?(i) The initial pay of an existing employee

who has been in Government service since before the 1st of July, 1987, shall be
fixed on "Point to Point basis" i. e. at the stage in the relevant Basic Pay Scale
which is as many stages above the minimum as the stage occupied by him above
the minimum of existing Basic Pay Scale.

(ii) The annual increment shall continue to be admissible subject to the

existing condition on the First of December each year. However, the first annual
increment of the existing employees in the Basic Pay Scales shall accrue on the
1st December, 1987.

(iii) The existing Indexed Pay sanctioned vide Finance Division's O. M.

No. 1(9) Imp. 11/86 dated 1-7-1986 shall cease to be admissible with effect from
First of July, 1987.

(iv) The interim relief of Rs. 20/- p. m. sanctioned vide this Division's
Circular O. M. No. F. 7(1) R. 5/87, dated the 24th March, 1987, to the low paid
employees, shall cease to be admissible with effect from 1st July, 1987.

(v) In cases of promotions from a lower to a higher post/scale before the

introduction of these scales, the pay of the senior employee in the same scale may
be fixed and so enhanced that it would not be less than the pay that would have
been admissible to him if his promotion to the higher post/scale had taken place
after the introduction of these scales.

4. Grant of Selection Grade to Clerical Posts w. e. f. 1-7-1987. (i)

33% posts of L. D. Cs (BPS-5) shall be placed in Selection Grade BPS-7.

(ii) The Senior Clerks (BPS-6) of the Provincial Governments shall be

allowed BPS-7 and 33% posts be placed in Selection Grade BPS-9.

(iii) 33% posts of U. D. Cs (BPS-7) shall be placed in Selection Grade

BPS-9.

5. Grant of Selection Grade to Assistants in Federal Secretariat.

33% posts of Assistants in Federal Secretariat shall be placed in BPS-15 in place
of existing 25% posts in BPS-14.

6. Grant of Advance Increments to officials for possessing/attaining higher educational

qualifications. (a) Advance increments shall be allowed to the officials in BPS-1?15 for
possessing or acquiring higher educational qualifications over and above the prescribed
qualification in relevant Recruitment Rules to the extent given below:

Matric F. A. /F. SC. B. A/B. Sc. M. A. /M. Sc.

at least at least at least at least

2nd Div. 2nd Div. 2nd Div. 2nd Div.

(i) Where the prescribed 1 2 3

qualification is Non-Matric.

(ii) Where the prescribed Nil 1 2

qualification is Matric.

(iii) Where the prescribed Nil Nil 1

qualification is F. A/F. Sc.

(iv) Where the prescribed Nil Nil Nil

qualification is B. A/B. Sc.

(b) Engineers and Doctors shall be allowed four advance increments in

case they possess or acquire a Post-Graduate degree in their relevant field for
which they have not been allowed any qualification pay.

(c) The advance increment/increments shall be allowed at the time of

recruitment or acquiring higher qualification during service. In cases where the
employee is already as the maximum of his pay scale, he would be allowed the
requisite number of increments as personal pay to be absorbed on moving over/
promotion to higher pay scale.

7. House Rent Allowance. All employees not provided with Government accommodation and
posted at the stations specified in para-l(a) of Finance Division's O. M. No. F. 2(9)-R. 5/81 dated
27-6-1981 shall continue to be entitled to house rent allowance at 45% of the minimum of the
relevant Basic Pay Scale without indexation sanctioned vide Finance Division O. M. No. F. 1(13)-
Imp. 11/86 dated 1-7-1986. At all other places this allowance will be allowed at
30% of the minimum of relevant basic pay scale without indexation against the
existing rate of 20% of the minimum of the relevant Basic Pay Scales.

8. Conveyance Allowance. The Conveyance Allowance shall

continue to be admissible at the Stations specified in para 8 of Finance Division's
O. M. No. F. 1(1)-Imp. 1/77 dated 28-4-1977 at the rates given below:

(i) Government Servants drawing pay of Rs. 1650 p. m. and above:

(a) Those maintaining motor car not registered Rs. 285/- p. m.

for commercial purpose.

(b) Others. Rs. 150/-p. m.

(ii) Government Servants drawing pay of Rs. 100/- pm.

Rs. 850/- p. m. and above but less than

Rs. 1650/- p. m. and maintaining motor-
cycle/Scooter.

(iii) Others Rs. 70/- p. m.

9. Indexation of Conveyance Allowance. It has been decided that the

existing indexation of Conveyance Allowance allowed vide this Division's O. M.
No. F-l(12)-Imp. 11/86 dated the 1st July, 1986 for the fiscal year 1986-87 shall
be revised (inclusive of the rate of indexation of the Conveyance Allowance of the
last year) with effect from 1st July 1987 as under:

(a) Government servants drawing basic pay upto

Rs. 1935/- p. m. 1. 08
(b) Government servants drawing basic pay above

Rs. 1935/-p. m. 1. 07

198

The other condition regarding grant of indexation of Conveyance

Allowancce shall continue to apply.

10. Medical Allowance. Medical Allowance @Rs. 50/- p. m. shall be

allowed to the employees in BPS-1 to 15 instead of the re-imbursement of the cost
of medicines purchased by the employees as out-door patients. The facility of
in-door treatment shall continue to be admissible.

11. Research Allowance. It has been decided to allow Research

Allowance at the rate of 20% of the pay subject to a maximum of Rs. 800/- p. m.
to the employees in BPS-16 and above, deployed exclusively on research work,
both field officers and those employed exclusively for the Research
Organisations. This allowance would be admissible to employees of such research
organisation which are performing purely research work and have been so recog-
nised by the Finance and the Establishment Divisions.

12. Special Allowance for Deputy Secretaries. It has been decided to

allow Special Allowance at a fixed rate of Rs. 300/- p. m. instead of at 20% of pay
sanctioned vide this Division's circular O. M. No. F. I (4) R. 3/83, dated the 8th
December, 1985, to holders of the post of Deputy Secretary and equivalent work"-
ing in the Federal Secretariat including President/Prime Minister/National
Assembly and Senate Secretariats w. e. f. 1-7-1987. However, in the case of exist-
ing Deputy Secretaries and equivalent in B-19, already drawing special allowance
at 20% of pay, the amount of their special allowance would be frozen at the rates
admissible on 30-6-1987 as personal to them for so long as they hold the post in
1-19 and remain posted in the Secretariat.

13. Anomalies. A Committee has been set up in the Finance Division(Regulations Wing) to
resolve the anomalies, if any, arising out of the issue of
this order.

Sd/-

(FARHAT HUSSAIN)

Joint Secretary.
All Ministries/Divisions.

Annexure to the Finance Division (Reg)'s O. M.No. F. l/7/lmp-II/87, dated 1st July, 1987

BPS Existing Scales

New Scales

2. 460-12-700

3. 480-14-760
4. 500-16-820

5. 520-18-880

6. 540-20-940

7. 560-23-1020

8. 590-26-1110

9. 620-29-1200

10. 660-32-1300

11. 700-35-1400

12. 750-40-1550

13. 800-45-1700

14. 850-50-1850

15. 900-55-2000

16. 1050-80-2250

17. 1600-120-3040

18. 2100-150-3600

19. 3200-160-4480

20. 3800-180-5240

21. 4200-225-6000

22. 4500-250-6500

600-13-860

625-16-945

650-19-1030

675-22-1115

700-25-1200

725-28-1285
750-31-1370

790-34-1470

830-38-1590

870-42-1710

910-46-1830

970-52-2010

1035-58-2195

1100-64-2380

1165-71-2585

1350-105-2925

2065-155-3925

2710-195-4660

4130-205-5770

4900-235-6780

5420-290-7740

5800-325-8400

Annexure-II

GOVERNMENT OF PAKISTAN

FINANCE DIVISION
(Regulations Wing)

No. F. l(12)-Imp-II/91 Islamabad, the 29th June, 1991

OFFICE MEMORANDUM

SUBJECT -. Revision of Basic Pay Scales and Fringe Benefits of Civil Employees
of the Federal Government (1991)

The President has been pleased to sanction the revision of Basic Pay Scales for the civil
employees of the Federal Government, paid directly from the Civil Estimates or from the Defence
Estimates as detailed in the following paragraphs.
2. Basic Pay Scales. ---The existing, modified and the revised pay
scales are detailed in the Annexure to this O. M. The revised pay scales shall
replace the Basic Pay Scales, 1987 and shall be effective from the first of June,
1991.

3. Initial Fixation of Pay. ?(i) The initial pay of the existing employ-
ees who have been in government service since before the 1st June, 1991, shall
first be fixed in the modified scale at the stage having the same pay or if there is
no such stage, at the next higher stage. Thereafter the pay shall be fixed in the
revised pay scale "on point to point basis" i. e. at the stage in the relevant revised
basic pay scale which is as many stages above the stage occupied by him above
the minimum of the modified basic scale.

(ii) In the case of those employees whose pay is fixed in the revised
scales at a stage which gives less than Rs. 100 increase in pay of May, 1991 a min-
imum increase of Rs. 100 in pay over May, 1991 level, would be allowed and
thereafter pay fixed at the corresponding stage equal to this pay or if there is no
such stage, at the next higher stage. The pay fixation formula has been illustrated
through examples I, II & III in Appendix.

(iii) The annual increment shall continue to be admissible subject to the

existing conditions on the first of December each year.

201

(iv) The increases allowed since 1-7-1988 as detailed below shall cease
to be admissible from 1-6-1991: ?

(a) Indexed pay sanctioned vide Finance Division's O. M. No. F. l(31)-

Imp-II/88 dated 1-7-1988.

(b) Ad hoc increase of 5% of pay sanctioned vide Finance Division's

O. M. No. F. l(31)-Imp-II/89 dated 22d July, 1989.

(c) Ad hoc increase of 10% of pay sanctioned vide Finance Division's

O. M. No. F. 1(31)-Imp-II/90 dated 10-7-1990.

(d) Dearness Allowance of Rs. 200/- p. m. sanctioned vide Finance

Division's O. M. No. F. l(23)- Imp-II/90 dated 15-12-1990.

4. Fixation of pay on Promotion. ?(i) In cases of promotion from a

lower to higher post/scale before the introduction of these scales, the pay of the
employee concerned in the revised scale may be fixed and so enhanced that it
would not be less than the pay that would have been admissible to him if his
promotion to the higher post/scale had taken place after the introduction of these
scales.

(ii) Government employees who arc allowed selection grade shall be

granted one premature increment from 1-6-1991 as is allowed in the case of
promotion.

5. Grant of advance increments to officials for possessing/attaining

higher educational qualifications. ?(i) From 1-6-1991 onwards advance
increments shall be allowed without the condition of the Second Division to the
officials in BPS 1-15 for possessing or acquiring higher educational qualifications
over and above prescribed qualifications in the relevant Recruitment Rules, to the
extent given below: ?

No. of advance increments for obtaining

Matric F. A. /F. Sc. B. A. /B. SC. M. A. /M. Sc.

Where the prescribed 2

qualification is Non-Matric.

Where the prescribed Nil

qualification is Matric.

202

No. of advance increments for obtaining

Matric F. A. /F. Sc. B. A. /B. Sc. M. A. /M. Sc.

(c) Where the prescribed Nil Nil 2

qualification is F. A/F. Sc.

(d) Where the prescribed Nil Nil Nil

qualification is B. A/B. Sc.

The advance increments already allowed in terms of para-6 of O. M.

No. F. 1(7) Imp-II/87 dated the 1st July, 1987 would be doubled from 1-6-1991.

(ii) The advance increments shall be allowed at the time of recruitment

or acquisition of higher qualification whichever is later. In cases where the
employee is already at the maximum of the scale, he may be allowed the number
of advance increments beyond the maximum of the scale as personal pay to be
absorbed at the time of his move-over/promotion. Those employees who had
acquired higher qualification in 3rd Division prior to 1-6-1991 and were not
granted advance increments earlier would henceforth would be allowed advance
increments w. e. f. 1-6-1991.

6. Move-over. ?The concession of move-over shall also be available

from 1-6-1991 onwards to those who are enjoying selection grade.

7. Special Pays. ?(i) The existing special pays admissible to various

categories of employees working as Personal Assistants in BPS-15 and
Confidential Assistants posted in Ministries/Divisions shall be revised from
1-6-1991 as under: ?

Name of Post Existing Rs. p. m Revised Rs. p. m.

PA to Minister (Federal)
PA to Minister of State

PA to Secretaries (Federal)

PA to Additional Secretaries (Federal)

PA to Secretaries (Provincial)

PA to Joint Secretaries (Federal)

Confidential Assistants posted in

Ministries/Divisions 45 65

100 150

100 150

100 150

100 150

75 120

75 120

203

(ii) The existing special pays admissible to those handling cash in

Government Organizations shall be revised as under: ?

Existing Revised
Rs. p. m Rs. p. m

(a) Govt, servants handling cash between Rs. 1000/- to

Rs. 10. 000/-p. m. 15 25

(b) Govt, servants handling cash between Rs. 10, 001/- to

Rs. 15. 000/- p. m. 20 30

(c) Govt, servants handling cash between Rs. 15, 001/- to

Rs. 25, 000/- p. m. 25 35

(d) Govt, servants handling cash between Rs. 25, 001/- to

Rs. 35. 000/- p. m. 30 40

(e) Govt, servants handling cash between Rs. 35, 000/- p. m. 45 60

8. Teaching Allowance

Existing rates of Teaching Allowance shall be enhanced as under:

(a) For High School Science Teacher From Rs. 100/- p. m. to Rs. 200/- p. m.

(b) For Junior Instructors in Polytechnic From Rs. 100/- p. m. to Rs. 200/- p. m.

9. Medical Allowance:

Existing rate of Medical Allowance of Rs. 50/- p. m. admissible to the

employees in BPS 1?15, shall be enhanced to Rs. 60/- p. m.

10. (a) Diet Allowance:

The existing rate of diet allowance for nursing cadre (below BPS-16) shall
be enhanced from Rs. 300/- to Rs. 500/- p. m.

(b) Uniform Allowance:

The existing rate of uniform allowance for nursing cadre (below BPS-16)
shall be enhanced from Rs. 100/- p. m. to Rs. 150/- p. m.

204

(c) Night Duty Allowance

Existing rates of Night Duty Allowance shall be enhanced as under: ?

(i) For Assistants/Clerks: From Rs. 6/- per night to Rs. 8/- per

night.

(ii) For staff Car Drivers/ From Rs. 3/- per night to Rs. 4/-

Despatch Riders per night.

(iii) For Naib Qasid From Rs. 2. 50 per night to Rs. 3. 50/-

per night.

(d) Washing Grant admissible to liveried staff:

The existing rates of Washing grant shall be enhanced from Rs. 25/- p. m. to
Rs. 30/- p. m.

(e) Overtime Allowance admissible to Staff Car Drivers:

The existing maximum limit of overtime allowance of Rs. 30/- per day shall
be enhanced to Rs. 36/- per day.

(f) Conveyance Charges for late sitting after office hours

The existing rates of conveyance charges admissible to employees in BPS

1?16 (Non-Gazetted) shall be enhanced as under: ?

(i) On Working Days:

For officials in BPS 1?2 From Rs. 3. 50/- per day to Rs. 4. 50/-

per day.

For officials in BPS 3?15 From Rs. 4. 50/- per day to Rs. 5. 50/-
and B-16 (Non-Gazetted) per day.

(ii) On closed holidays:

For officials in BPS 1?2 From Rs. 4. 50/- per day to Rs. 5. 50/-

per day.

For officials in BPS 3?15 and From Rs. 7. 00 per day to Rs. 8. 00 per
B-16 (Non-Gazetted). day

205

11. Anomalies;

A committee will be set up in the Finance Division (Regulations Wing) to

resolve the anomalies, if any, arising out of the issue of this order.

All Ministries/Divisions/Departments etc,

Sd/-

(MAKHDOOM H. CHAUDHR1)
Joint Secretary

ANNEXURE TO THE FINANCE DVISION S. O. M.

No. F1(I2) IMP II/91 DATED 29th JUNE, 1991

EXISTING, MODIFIED AND THE REVISED DAY SCALES (BPS 1?15)

BPS Existing BPS Stages Modified Scales Stages Revised DPS Stages

No. 1-7-87 1-6-1991

1 600-13-860 20 605-17-860 15 920-26-1310 15

2. 625-16-945 20 630-21-945 15 945-32-1425 15

3. 650-19-1030 20 655-25-1030 15 975-37-1530 15

4. 675-22-1115 20 680-29-1115 15 1005-43-l650 15

5 700-25-1200 20 705-33-1200 15 1035-49-1770 15

6 725-28-1285 20 730-37-1285 15 1065-54-1875 15

7. 750-31-1370 20 755-41-1370 15 1095-60-1995 15

8. 790-34-1470 20 795-45-1470 15 1140-65-2115 15

9. 830-38-1590 20 840-50-1590 15 1185-72-2265 15

10. 870-42-1710 20 870-56-1710 15 1230-79-2415 15

11 910-46-1830 20 915-61-1830 15 1275-86-2565 15

12. 970-52-2010 20 975-69-2010 15 1355-96-2795 15

13. 1035-58-2I95 20 1040-77-2195 15 1440-107-3O45 15

14. 1100-64-2380 20 1105-85-2380 15 1530-119-3315 15

15. 1165-71-2585 20 1160-95-2585 15 1620-131-3585 15

Example 1. ?Case of Mr. 'A' drawing pay at the minimum of BPS-11

(a) Basic Pay on 1-5-91 in existing scale 910-46-1830

Indexation w. e. f. 1-7-88
5% ad hoc increase w. e. f. 1-7-89
10% ad hoc increase w. e. f. 1-7-90
Dearness allowance w. e. f. 1-12-90

Rs. 910
Rs. 25
Rs. 46
Rs. 91

Rs. 200

Total: Rs. 1272

206

(b) Pay will first be fixed at Rs. 915 in the modified scale of 915-61-1830
and thereafter in revised scale 12/5-86-2565 on point to point basis at
Rs. 1275/-.

(c) The individual, being already in receipt of Rs. 1272/- (Pay plus increases
allowed since 1-7-1988) in May, 1991, would get an increase of Rs. 3/-
p. m. He would thus be entitled to a minimum increase of Rs. 100/- over
pay of May, 1991 in terms of para 3(ii) and his pay in the revised scale
will be fixed at Rs. 1447 to secure the minimum increase of Rs. 100/-.

Example II. ?Mr. 'A' drawing pay of Rs. 1508/- in BPS-11

(a) Pay on 1-5-91 in existing scale 910-16-1830

Indexation w. e. f. 1-7-88

5% ad hoc increase allowed w. e. f. 1-7-89

10% ad hoc increase allowed w. e. f. 1-7-90
Dearness allowance of Rs. 200/- w. e. f. 1-12-90

Total: 1966

(b) Pay will first be fixed in the modified scale of 915-61-1830 at the same
stage or if there is no such stage at the next higher stage. This would be
Rs. 1525/-.

(c) The pay will thereafter be fixed in the revised scale 1275-86-2565 on
point to point basis in relation to pay in modified scale. Since the pay of
Rs. 1525 in modified scale is 10 stages above the minimum, the pay in
revised scale will be fixed on point to point basis at Rs. 2135, allowing
10 increments on the minimum.

(d) The individual gets more than Rs. 100/- increase over pay of May, 1991
and therefore the provision of para 3(iii) will not be attracted.

Example III. ?Mr. 'A' drawing maximum of BPS-11

(a) Pay on 1-5-91 in existing scale 910-16-1830 Rs. 1830

Indexation w. e. f. 1-7-88 Rs. 38

5% ad hoc increase allowed w. e. f. 1-7-89 Rs. 92

10% ad hoc increase allowed w. e. f. 1-7-90 Rs. 183

Dearness allowance of Rs. 200/- w. e. f. 1-12-90 Rs. 200

Total: 2343

207

(b) Pay will first be fixed in the modified scale 915-61-1830 at the maxi-
mum Rs. 1830/-.

(c) Pay will thereafter be fixed in revised scale 1275-86-2565 on point to

point basis. Since the pay of Rs. 1830 in the modified scale is 15 stages
above the minimum, the pay in the revised scale will be fixed allowing 15
increments. This would be Rs. 2565/-

(d) The individual gets more than Rs. 100/- increase over pay of May. 1991-
the application of para 3 (ii) will not be attracted.

208

Annexure-lV

GOVERNMENT OF PAKISTAN

FINANCE DIVISION
(Regulations Wing)

No. F. l(12)-Imp-II/91 Islamabad, the 19th August, 1991

OFFICE MEMORANDUM

Subject: ?Revision of Basic Pay Scales and Fringe Benefits of Civil Employees
in BPS 16?22 of the Federal Government. 1991.

The President has been pleased to sanction the revision of Basic Pay
Scales for the civil employees in BPS 16?22 of the Federal Government, paid
directly from the Civil Estimates or from the Defence Estimates as detailed in the
following paragraphs.

2. Basic Pay Scales. ?The existing and the revised pay scales are
detailed in the Annexure to this O. M. The revised pay scales shall replace the
Basic Pay Scales, 1987 and shall be effective from the first of June, 1991.

3. Initial Fixation of Pay. ?(i) The initial pay of an existing employee

who has been in Government service since before the 1st June, 1991, shall be
fixed in the revised pay scale "on point to point basis" i. e., at the stage in the rel-
evant revised basic pay scale which is as many stages above the stage occupied
by him above the minimum of the existing basic scale; (ii) The annual increment
shall continue to be admissible subject to the existing conditions on the first
December each year; (iii) The increase allowed since 1-7-1988 as detailed below
would cease to be admissible from 1-6-1991;
(a) The existing indexed pay sanctioned vide Finance Division's O. M.
No. F. l(3l)-lmp-II/88, dated 1-7-1988;

(b) Ad hoc increase of 5% of pay sanctioned vide O. M. No. F. 1(31)-

Jmp-II/89, dated the 22nd July. 1989;

(c) The ad hoc increase of 10% sanctioned vide Finance Division's

O. M. No. F. I(13)-Imp-II/90, dated 10-7-1990;

209

(d) The clearness allowance of Rs. 200/- per month sanctioned vide
Finance Division's O. M. No. F. l(23)Imp-II/90(i), dated 17-1-1991.

4. Fixation of pay on promotion. ?(i) In cases of promotion from a

lower to higher post/scale before the introduction of these scales, the pay of the
senior employees in the same scale may be fixed and so enhanced that it would
not be less than the pay that would have been admissible to him if his promotion
to the higher post/scale had taken place after the introduction of these scales.

(ii) The existing concession of grant of one premature increment on

promotion as admissible to employees in BPS 1?19, shall be extended also to
those in BPS-20 and above.

(iii) Government employees who are allowed selection grade may be

granted one premature increment as is allowed in the case of promotion.

5. Grant of selection grade, ?'From 1-6-1991 onwards the

Accountants in BPS-16 in the Audit and Accounts Departments shall be allowed
33% selection grade in BPS-17.

6. Move-over, ?The employees in BPS-16 to 19 enjoying selection

grade shall also be allowed the concession of one move-over from 1-6-1991
onwards subject to the fulfilment of the existing conditions laid down in the
move-over policy.

7. Special pays. -?The existing special pays admissible to various

categories of employees working as Private Secretaries posted in Ministries/
Divisions shall be revised from 1-6-1991 as under: ?

Name of Post Existing Revised

Rs. p. m. Rs. p. m.

? PS to Ministers (Federal)

? PS to Secretaries (Federal)

? PS to Addl. Secretaries (Federal)

250 375
200 300

150 225

210

8. Qualifications Pay. ?(i) Existing rates of Qualifications Pay for

ICMA/ICWA/Chartered Accountants shall be enhanced from 1-6-1991 as
under: ?

(a) Part-III (ICMA/ICWA) from Rs. 150 p. m. to Rs. 300 p. m.

(b) Part-V (ICMA/ICWA) from Rs. 400 p. m. to Rs. 800 p. m.

(c) Chartered Accountants from Rs. 400 p. m. to Rs. 800 p. m. where

FCA/ACA is not the minimum qualifi-

cation prescribed for the post.

(ii) Qualifications pay for senior officers. ?Qualifications pay shall be

allowed from 1-6-1991 to those officers who have qualified the following
courses at the rates shown against each: ?

(a) PASC National Management Course Rs. 500 p. m.

(b) National Defence College Course Rs. 500 p. m. as against the

existing rate of Rs. 100 p. m.

(c) Advanced Course in Management Rs. 100 p. m.

in NIPA

Note. ?One Qualification Pay will be admissible at a time.

(iii) Qualification pay for S. A. S. Accountants. ?The existing rate of Rs.

100 p. m. shall be enhanced to Rs. 150 p. m. from 1-6-1991.

9. Allowances: I. (a) Deputation Allowance (Foreign Service in

Pakistan) ?Deputation allowance at 20% of the minimum of the relevant basic
pay scales shall be allowed in future as against the existing rate of deputation
allowance of 10% of the minimum of relevant Basic Pay Scales.

(b) Deputation Allowance admissible to Audit Officers on deputation to

Ministries/Divisions. ?As against the existing deputation allowance of Rs. 200
p. m. for SAS Accountants (B-16), Rs. 300 p. m. for AAG/AO in BPS-17 and Rs.
400 p. m. for officers in BPS-18 and 19, deputation allowance at 20% of the min-
imum of the relevant basic pay scales shall be allowed in future.

II. Performance Evaluation Allowance. ?Existing rates of

Performance Evaluation Allowance admissible to Audit Officers working in the
Performance Evaluation Cell shall be enhanced as under: ?
(a) For Officers in BPS-17& 18 From Rs. 300 p. m. to

Rs. 400 p. m.

211

(b) For Officers in BPS 19 and 20 From Rs. 400 p. m. to

Rs. 500 p. m.

III. Teaching Allowance. ?Existing rates of Teaching Allowance shall

be enhanced as under: ?

For Doctors who teach basic sciences From Rs. 500 p. m. to

in Medical Colleges Rs. 1, 000 p. m.

IV. Rural Compensatory Allowance for Doctors posted in rural areas

below Town Committee level. ?The existing rates of the Practice Compensatory
Allowance (Renamed as Rural Compensatory Allowance) for doctors posted in
rural areas below Town Committee level shall be enhanced as under: ?

(a) For Male Doctors From Rs. 200 p. m. to

Rs. 1, 200 p. m.

(b) For Female Doctors From Rs. 300 p. m. to

Rs. 1, 500 p. m.

V. Senior Post Allowance, ?The existing rates of Senior Post

Allowance shall be enhanced as under: ?

(a) For officers in BPS-20 From Rs. 200 p. m. to

Rs. 600 p. m.

(b) For officers in BPS-21 From Rs. 400 p. m. to

Rs. 800 p. m.

(c) For officers in BPS-22 From Rs. 600 p. m. to

Rs. 1, 000 p. m.

10. Anomalies. ?A Committee will be set up in the Finance Division

(Regulations Wing) to resolve the anomalies, if any, arising out of the issue of this
order.

Sd/-
(JAVID AHMED KHAN)
Joint Secretary (R-l)

All Ministries/Divisions/Departments

212

ANNEXURE TO THE FINANCE DIVISION'S

O. M. No. I(12)Imp-II/91 dated 19th August, 1991

Existing and the revised pay scales (BPS 16-22)

BPS Existing BPS Stages Revised Pay Scales Stages

No. 1-7-87 1-6-1991

16 1350-105-2925 15 1875-146-4065 15

17 2065-155-3925 12 2870-215-5450 12

18 2710-195-4660 10 3765-271-6475 10

19 4130-205-5770 8 5740-285-8020 8

20 4900-235-6780 8 6810-325-9410 8

21 5420-290-7740 8 7535-405-10775 8

22 5800-325-8400 8 8075-450-11675 8

213

Annexure-V

GOVERNMENT OF PAKISTAN

FINANCE DIVISION
(Regulations Wing)

No. F. I(2)-lmp/94(i) Islamabad, the 15th June, 1994

OFFICE MEMORANDUM

Subject: ?Revision of Basic Pay Scales and Fringe Benefits of Civil Employees
(B 1?22 of the Federal Government, 1994.

The President has been pleased to sanction the revision of Basic Pay
Scales for the civil employees of the Federal Government BPS 1?22, paid
directly from the civil Estimates and/or from the Defence Estimates as detailed in
the following paragraphs.

2. Basic Pay Scales. ?The existing and the revised pay scales are
detailed in the Annexure to this O. M. The revised pay scales shall replace the
existing pay scales, in terms of para 6(b) and shall be effective from the first of
June, 1994.

3. Initial Fixation of Pay. ?The initial fixation of pay of the

employees who have been in government service since before the 1st June, 1994,
shall be effected w. e. f. 1-6-1994, as below:

(i) Employees in BPS 1 to 16. ?By allowing an increase at the rate of

35% of the pay actually drawn on 31-5-1994. The pay of the
employees will be fixed at the stage equal to or if there be no stage,
at the stage next above.

(ii) Employees in BPS-17 and above. ?Initial fixation of pay shall be

made by allowing 35% increase on the pay actually drawn on
31-5-1994, in the following two phases: ?

(a) 20% of the increase shall be allowed w. e. f. 1-6-1994 by fixing

pay in the relevant scale at the stage equal to or if there be no
stage, at the stage next above.

214

(b) The remaining 15% increase shall be allowed on and from

1-6-1995 by refixing pay in the relevant pay scale on 1-6-1994
by allowing 35% increase over pay drawn on 31-5-1994. The
new pay so fixed will be drawn from 1-6-1995 without any
arrears.

(c) The annual increment shall continue to be admissible subject

to the existing condition on the 1st of December each year.

(d) To ad hoc increase allowed as detailed below shall cease to be

admissible from 1-6-1994:

(i) Ad hoc relief of Rs. 100 p. m. sanctioned vide Finance

Division's O. M. No. F. I(26)-Imp. 11/92 (i) (ii), dated
20-7-1992 and O. M. No. F. 1(26)-Imp. 11/92, dated
16-9-1992.

(ii) Additional ad hoc relief of Rs. 100 p. m. sanctioned vide

O. M. No. F. l(28)-Imp/93 (i) (ii) (iii) dated 21-8-1993.

(iii) Additional ad hoc relief of Rs. 50 p. m. sanctioned vide

O. M. No. F. l(9)Imp. /94 dated 26th March, 1994.

4. Fixation of Pay. ?In cases of promotion from a lower to higher

posts/scale before introduction of these scales, the pay of the employees
concerned in the revised scale may be fixed and so enhanced that it would not be
less than the pay that would have been admissible to him if his promotion to the
higher post/scale had taken place after the introduction of these scales.

5. Allowances: (i) Secretariat Allowance. ?With the introduction of

new scales of pay, the Secretariat Allowance is abolished w. e. f. 1-6-1994 and the
amount actually drawn on 31-5-1994 will be converted into Personal Allowance.
Such Personal Allowance in case of Government employees in BPS 17?22 shall
be reduced by the amount of annual increments, by which the Government
employee's pay may be increased after 1-6-1994, and shall cease as soon as his
pay is increased by an amount equal to/or more than his Personal Allowance.
Those in BPS 1?16 will be exempted from this adjustment to the extent that their
Personal Allowance will not be reduced/adjusted.

(ii) Other Allowances, Special Pay etc. ?Special Pays and other
allowances including House Rent Allowance will be maintained at the level
drawn/admissible at the rates as on 31st May, 1994.

215

6. Option. ?(a) All existing Government employees are given option

either to draw the existing pay scales plus Secretariat Allowance or the new pay
scales plus Personal Allowance in the manner as at 5(i) above. Option to retain
existing scale with Secretariat Allowance must, however, be given in writing by
the employees concerned to the audit office/Drawing and Disbursing Officer
concerned by the 15th July, 1994. Option once exercised shall be final.

(b) An existing Government employee who does not exercise and

communicate such option within the prescribed time limit, shall be deemed to
have opted to be governed by the new scales and abolition of Secretariat
Allowance.

7. Pension & Retirement Benefits. ?In the case of persons retiring

from 1-6-1994 onwards in BPS 17 to 22, pension will be recalculated on 1-6-1995
on the basis of pay refixed with 35% increase in the pay in the second phase. New
pension will, however, be admissible from 1-6-1995 and no arrears will be
admissible.

8. The following relief to the widows, dependents, retarded and

incapacitated children and invalid pensioners shall be allowed w. e. f. 1st June,
1994: ?

(a) Restoration of commuted value/gratuity portion of families on

completion of required period.

(b) Grant of family pension to dependent disabled/retarded children for

life without any age limit.

(c) Elimination of second medical board for the invalidated pensioners

for eligibility of commutation.

9. Government servants who have retired on or after 1-6-1993, till the

introduction of revised pay scales i. e. 1-6-1994, be allowed pension/commutation
on the basis of pay that would have been admissible to them, had the pay revision
been effected on the due of their retirement, discounted by 12%.

216

10. All existing rules and orders on the subject shall be deemed to have
been modified to the extent indicated above. All existing rules and orders not so
modified shall continue in force under this scheme.

11. Anomalies. ?A Committee will be set up in the Finance Division

(Regulations Wing) to resolve the anomalies, if any, arising out of the issue of this
order.

Sd/-

ROSHAN ALI MANG1.

Joint Secretary (R)

All Ministries/Divisions/Departments.

Annexure to Finance Division's

O. M. No. F. l(2)lmp-94 dated 15th June, 1994
EXISTING AND REVISED PAY SCALES

BPS Existing Pay Scales (Stages) Revised Pay Scales (Stages)

No. 1-6-1991 1-6-1994

B-l 920-26-1310 (15) 1245-35-1770 (15)

B-2 945-32-1425 (15) 1275-44-1935 (15)

B-3 975-37-1530 (15) 1320-50-2070 (15)

B-4 1005-43-1650 (15) 1360-58-2230 (15)

B-5 1035-49-1770 (15) 1400-66-2390 (15)

B-6 1065-54-1875 (15) 1440-73-2535 (15)

B-7 1095-60-1995 (15) 1480-81-2695 (15)

B-8 1140-65-2115 (15) 1540-88-2860 (15)

B-9 1185-72-2265 (15) 1605-97-3060 (15)

B-10 1230-79-2415 (15) 1660-107-3265 (15)

B-11 1275-86-2565 (15) 1725-116-3465 (15)

B-12 1355-96-2795 (15) 1830-130-3780 (15)

B-13 1440-107-3045 (15) 1950-144-4110 (15)

B-14 1530-119-3315 (15) 2065-161-4480 (15)

B-15 1620-131-3585 (15) 2190-177-4845 (15)

B-16 1875-146-4065 (15) 2535-197-5490 (15)

B-17 2870-215-5450 (12) 3880-290-7360 (12)

B-18 3765-271-6475 (10) 5085-366-8745 (10)

B-19 5740-285-8590 (10) 7750-385-11600 (10)

B-20 6810-325-10060 (10) 9195-440-13595 (10)

B-21 7535-405-11585 (10) 10190-545-15640 (10)

B-22 8075-450-12575 (10) 10900-610-17000 (10)

Annexure-VI

GOVERNMENT OF PAKISTAN

FINANCE DIVISION

(Regulations Wing)

Office Memorandum

No. F. 1 (5)Imp/2001 Islamabad, the 4th September, 2001

Subject: ?Revision of Basic Pay Scales and Fringe Benefits of Civil Employees
(BPS. 1?22) of the Federal Government (2001).

The President has been pleased to sanction, with effect from 1st
December 2001, a Scheme, as detailed below, of the Basic Pay Scales,
Allowances and Pensions, 2001 for the civil employees of the Federal
Government in BPS 1 to BPS 22 paid from the Civil Estimates and from the
Defence Estimates respectively as shown in the following paragraphs.

Part 1. ?BASIC PAY SCALES AND ALLIED MATTERS

2. Basic Pay Scales. ?The existing basic pay scales and the revised
basic pay scales are shown in Annexure I to this O. M. The revised Basic Pay
Scales shall replace the existing Basic Pay Scales, 1994, and shall be effective
from 1st December, 2001.
3. Discontinuation of Allowances. ?The following allowances shall
cease to be payable on introduction of the revised pay scales w. e. f. 1-12-2001.

(i) Cost of Living Allowance to BS 1 to BS 22 @ 1% of basic pay.

(ii) Ad hoc relief of Rs. 300/- p. m. and Rs. 100/- p. m. to BS 1 to 16

(inclusive of BPS-17 by virtue of Move Over).

(iii) Secretariat/Personal Allowance.

4. Special Additional Allowance. ?Special Additional Allowance

sanctioned vide Finance Division O. M. No. F. l(7)lmp/99 dated 23rd July 1999
shall be frozen at the level drawn as on date of issue of this O. M.

Clarification. ?The civil employees recruited after 1-12-2001 will not

get any special additional allowance.

[Finance Division's lettler No. I(5)/lmp/2001 dated 3-11-2001).

5. Initial Fixation of Pay. ?(1) Pay of the employees in service on

30-11-2001 shall be fixed at the stage in the revised pay scales which is as many
stages above the minimum as the stage occupied by him above the minimum of
the 1994 Basic Pay Scale.

S. Pay Fixation on Promotion. ?(2) The existing provisions regulat-

ing the fixation of pay in case of promotion from lower to a higher post shall con-
tinue to apply.

218

6. Selection Grade and Move Over. ?Selection Grade in the

scheme of Basic Pay Scales and Move Over scheme shall stand discontinued
w. e. f. the date of issue of this O. M.

7. Pay Fixation of employees in Selection Grade and those who

have Moved Over to higher scale. ?Pay of an existing employee drawing pay
by move over shall be fixed with reference to the pay scale of the post for the time
being held by him. In case the employee was drawing pay in a Selection Grade,
his pay will be fixed in the Selection Grade pay scale. The stage of fixation will
be arrived at after allowing increments on notional basis in the original scale of
the post or the Selection Grade, in 1994 Basic Pay Scales, upto the point of exist-
ing pay. Pay of the employees will then be fixed at the relevant stage in the revised
pay scales 2001.

Example-I

Assistant, BS-11 Selection Grade, BS-15, Moved Over BS-16 and in

receipt of Pay of Rs. 5490/- Pay will be fixed in BS-15 i. e. Selection Grade pay
scale at Rs. 8320/- as under:

1994 Scale Stage 15 Stage 16 Stage 17 Stage 18 Stage 19

4845 5022 5199 5376 5553
2001 Scale 7260 7525 7790 8055 8320

Example-II

Pay fixation of an employee in BS-11 who has moved over to BS-14 and
is in receipt of basic pay of Rs. 4480/- will be fixed after allowing notional incre-
ments in BS-11 of 1994 Basic Pay Scales upto the stage of basic pay drawn. Pay
in revised BPS-11 will be fixed at the corresponding stage of Rs. 6790/- as
under: ?

BS-11 Stg 518 Stg Sis Stg Stg stg Stg stg 518

1994 15 16 17 18 19 20 21 22 23 24

Pay Scale 3465 3581 3697 3813 3929 4045 4161 4277 4393 4509

BS-11 5215 5390 5565 5470 5915 6090 6265 6440 6615 6790

2001

Pay Scale

219
Example-III

Pay fixation of an employee in BS-5 who has moved over to BS-11 and
is in receipt of basic pay of Rs. 3465/- will be fixed after allowing notional incre-
ments in BS-5 of 1994 BPS upto the stage of basic pay drawn. Since basic pay of
Rs. 3465/- is beyond the 30 stages in notional BS-5, (1994 BPS), & resultantly
more than the 30 stages of BPS 2001, therefore, his pay will be fixed at the
notional 32nd stage i. e. at Rs. 5300/-. The difference of Rs. 200/- (Rs. 5300-5100)
will be personal to him as under: ?

BS-5 1994 Stage-30 Stage-31 Stage-32

3380 3446 3512

BS-5 2001 5100 5200 5300

In such cases future increments upto a maximum of 3 years will also be allowed
as personal to such employees.

8. Date of Increment. ?Annual increment shall continue to be

admissible subject to the existing conditions, on the 1st December each year.

9. Special Pays/Allowances for Offices. ?The Special Pays/

Allowances sanctioned to offices as percentage of Pay shall be discontinued on
the introduction of revised pay scales w. e. f. 1-12-2001 *[deleted].
10. Advance Increments. ?The existing scheme of advance incre-
ments is discontinued w. e. f. 1-12-2001. A fresh scheme, if any will be introduced
in due course.

Part II. ?ALLOWANCES

11. Conveyance Allowance. ?The rates of Conveyance Allowance and

Motorcycle/Motor car maintenance allowance presently fixed with reference to
pay drawn shall be increased and related to Basic Pay Scales as follows:

Sr. No. Existing Revised

(i) Government servants drawing pay in BS-16 BS-16 (Gazetted)

(Gazetted) and above and maintaining motor car & above
not registered for commercial purpose. Rs. 355/-p. m. Rs. 620/- p. m.

*The words "and adjusted in future increments" deleted under Finance Division letter No.
F l(5)/lmp/2001 dated 3-11-2001.

220

Sr. No. Existing Revised

Government servants drawing pay of Rs. 3240/-

BS 11 and above
(ii) per month and above other than those at (i) above.
Rs. 340/- p. m.
Rs. 193/- p. m.

Government servants drawing pay of Rs. 1688/- p. m. BS 1?10 main-

(iii) and above but less than Rs. 3240/- p. m. andtaining Motor Cycle/
maintaining Motorcycle/Scooter. Rs. 130/- p. m. Scooter Rs. 230/-pm

Others. BS 1?10
(iv)
Rs. 96/- per month Rs. 170/- p. m.

12. Daily Allowance. ?Daily Allowance rates presently fixed with

reference to pay drawn shall be increased and related to Basic Pay Scales as
under: ?

Special RatesOrdinary Rates

BPS
Per day (Rs. ) Per day (Rs. )

1-4 110 80

5?11 120 100

12?16 200 180

17?18. 350 320

19?20 450 400

21?22 550 450

13. Medical Allowance. ?Medical Allowance to employees in

BS. 1?16 shall be increased from Rs. 90/- p. m. to Rs. 160/- p. m.

14. Computer Allowance. ?The Computer Allowance shall be

increased subject to the existing conditions of admissibility as under:

Existing Rate
Rs. 500/- p. m.

Rs. 1000/- p. m.

Revised Rate
Rs. 750/- p. m.

Rs. 1500/- p. m.

221

15. Special Pays/Allowances. ?All the Special Pays and Allowances

admissible on certain POSTS as percentage of Pay are revised subject to the
following limits:

Revised

(a) Special Pays/Allowances On existing rates subject

sanctioned @ 20% and above of Pay. to a maximum of

Rs. 2000/- p. m.

(b) Special Pays/Allowances On existing rates subject

sanctioned @ 10%?19% of Pay. to a maximum of

Rs. 1500/- p. m.

(c) Special Pays/Allowances On existing rates subject

sanctioned @ 5% ?9% of Pay. to a maximum of

Rs. 1000/- p. m.

Part III?PENSION AND COMMUTATION

16. Pension. ?The Government has made the following reforms in

pension/commutation scheme w. e. f. 1-12-2001 in respect of civil pensioners of
Federal Government including civilian paid from Defence Estimates as well as
retired Aimed Forces Personnel.
(a) Commutation Table shall be replaced by the new Commutation
Table at Annexure-II to this Office Memorandum.

(b) Commutation upto 40% of gross pension shall be admissible at the

option of the pensioner.

(c) The additional benefit of 2% ? 10% for extra years of service after
completion of 30 years of qualifying service in respect of Civil
Pensioners shall be discontinued.

(d) The increase in pension @ 20% ? 25% to Civil Pensioners allowed

vide this Division's O. M. No. 4(l)-Reg. 6/99 dated 23-7-1999 shall
be discontinued.

(e) The benefit of restoration of surrendered portion of pension in lieu

of commutation/gratuity shall be withdrawn.

(0 In future, the increase in pension to the pensioners shall be allowed

on net pension instead of gross pension.

222

(g) All the pensioners shall be allowed an increase in net pension

(inclusive of dearness increases allowed in the past) as follows: ?

Increase in net pension

(i) Pensioners who retired prior to the 15%

introduction of 1991 Basic Pay Scales.

(ii) Pensioners who retired prior to the 10%

introduction of 1994 Basic Pay Scales

but on or after the Introduction of 1991
Pay Scales.

(iii) Pensioners who retired on or after the 5%

introduction of 1994 Basic Pay Scales

and upto the date of introduction of
revised Basic Pay Scales i. e. 1-12-2001.

17. Option. ?(a) All the existing civil employees (BPS 1 to 22) of the
Federal Government shall within 45 days from the date of issue of this office
memorandum, exercise an option in writing, addressed to the Audit Office con-
cerned in the case of employees in BPS 16 and above to the DDO concerned in
the case of employees in BPS 15 and below, either to draw pay in the existing Basic
Pay Scales of 1994 or in the revised Basic Pay Scales and pension/commutation
scheme 2001 as specified in this O. M. Option once exercised shall be final.
(b) An existing employee as aforesaid, who does not exercise and
communicate such an option within the specified time limit, shall be deemed to
have opted to continue to draw salary in basic pay scales of 1994 and Pension/
Commutation as per existing formulae.

18. The government servant who will retire w. e. f. 1-7-2001 shall be

given the benefit of revised pay scales on presumptive basis discounted by 5%
increase in pension if availed, subject to the condition that all those who may like
to avail this benefit should opt for the entire package i. e. revised schemes of Basic
Pay Scales as contained in Part-I and revised package of pension as contained in
Part-III of this O. M.

19. All existing rules/orders on the subject shall be deemed to have.,

been modified to the extent indicated above. All existing rules/orders not so
modified shall continue in force under this scheme.

20. Anomalies. ?An Anomalies Committee shall be set up in the

Finance Division (Regulations Wing) to resolve the anomalies if any, arising in
the implementation of this Office Memorandum.

Sd/-

ABDULRAUF MALIK,
Joint Secretary (it)

All Ministries/Divisions/Departments

223

Annexure-I to Finance Division's

O. M. No. F. l(5)lmp/2001,

dated September 4, 2001

EXISTING AND REVISED PAY SCALES

PAY SCALES OF 1994 (CIVIL) REVISED PAY SCALES, 2001 (CIVIL)

Scale Min Incr Max Stgs Scale Min Incr Max Stgs

1 1245 35 1770 15 1 1870 55 3520 30

2 1275 44 1935 15 2 1915 65 3865 30

3 1320 50 2070 15 3 1980 75 4230 30

4 1360 58 2230 15 4 2040 85 4590 30

5 1400 66 2390 15 5 2100 100 5100 30

6 1440 73 2535 15 6 2160 110 5460 30

7 1480 81 2695 15 7 2220 120 5820 30

8 1540 88 2860 15 8 2310 130 6210 30

9 1605 97 3060 15 9 2410 145 6760 30

10 1660 107 3265 15 10 2490 160 7290 30

11 1725 116 3465 15 11 2590 175 7840 30

12 1830 130 3780 15 12 2745 195 8595 30

13 1950 144 4110 15 13 2925 215 9375 30

14 2065 161 4480 15 14 3100 240 10300 30

15 2190 177 4845 15 15 3285 265 11235 30

16 2535 197 5490 15 16 3805 295 12655 30

17 3880 290 7360 12 17 6210 465 15510 20

18 5085 366 8745 10 18 8135 585 19835 20

19 7750 385 11600 10 19 12400 615 24700 20

20 9195 440 13595 10 20 14710 950 28010 14

21 10190 545 15640 10 21 16305 1070 31285 14

22 10900 610 17000 10 22 17440 1250 34940 14

224

Annexure-II to Finance Division's

O. M. No. F. l(5)Imp/2001,

dated September 4, 2001

"[DELETED]
COMMUTATION TABLE

Age next No. of years Age next No. of years

Birthday Purchased Birthday Purchased

20 40. 5043 51 17. 6526

21 39. 7341 52 17. 0050

22 38. 9653 53 16. 3710

23 38. 1974 54 15. 7517

24 37. 4307 55 15. 1478

25 36. 6651 56 14. 5602

26 35. 9006 57 13. 9888

27 35. 1372 58 13. 4340

28 34. 3750 59 12. 8953

29 33. 6143 60 12. 3719

30 32. 8071 61 11. 8632

31 32. 0974 62 11. 3684

32 31. 3412 63 10. 8872

33 30. 5869 64 10. 4191

34 29. 8343 65 9. 9639

35 29. 0841 66 9. 5214

36 28. 3362 67 9. 0914

37 27. 5908 68 8. 6742

38 26. 8482 69 8. 2697

39 26. 1009 70 7. 8778

40 25. 3728 71 7. 4983

41 24. 6406 72 7. 1314

42 23. 9126 73 6. 7766

43 23. 1840 74 6. 4342

44 22. 4713 75 6. 1039

45 21. 7592 76 5. 7858

46 21. 0538 77 5. 4797

47 20. 3555 78 5. 1854

48 19. 6653 79 4. 9030

49 18. 9841 80 4. 6321

50 18. 3129

?The words "Existing and Revised Pay Scales" deleted vide Finance Division letter No. F.
I(5)/Imp/2001
dated 3-11-2001.

225

Revision of Pay Scales of the Employees of

Autonomous/Semi Autonomous Bodies

7. 69 Consequent upon revision of Basic Pay Scales of Civil Employees

in BPS 1?22 of Federal Government w. e. f. 1st December, 2001 vide Finance
Division's O. M. No. F. l(5)Imp/2001, dated 4-9-2001, it has been decided that the
scheme of Revised Basic Pay Scales as well as revised pension/commutation
scheme will also be applicable as a package, to the employees of the Autonomous/
Semi Autonomous Bodies which have adopted in totality the Federal
Government's Basic Pay Scales Scheme/Pension Scheme. These instructions will,
however, not be applicable to those employees of Banks, Financial Institutions,
Public Sector Corporations, Insurance Corporations and employees are governed
by the Industrial Relations Ordinance, 1969 and/or whose financial terms of
service are settled through Collective Bargaining Agents.

2. In case of Autonomous/Semi-Autonomous Bodies where employ-

ees are allowed different pay scales/allowances, the revision of the existing pay
scales of their employees shall not be made without consultation of the Finance
Division.

(Finance Division's O. M. No. I(5)lmp/2OO1 (i), dated 17-9-2001].

Ad hoc Relief to Civil Servants of Federal

Government Drawing Pay in BPS 1 to 16:

7. 70 The Prime Minister has been pleased to sanction with effect from
1st March, 1997 and until further orders, ad hoc relief at a uniform rate of Rs. 300
per month to the Civil Servants of the Federal Government in B-1 to 16 inclusive
of those who are in B-17 by virtue of move-over as well as the employees of
Railways, Post Office and T&T Departments. Civilians paid from Defence
Estimates drawing pay in B-1 to 16 inclusive of those who are in B-17 by virtue
of move-over.

2. The above increase: ?

(i) will not be treated as a part of emoluments for the purpose of

recovery of house rent under F. R. 45-C;

(ii) will be admissible for the entire period of leave including leave
preparatory to retirement;

(iii) will not be admissible during extraordinary leave,

(iv) will not be admissible to Civil Servants posted abroad.

[Authority. ?Finance Division's O. M. No. F. l(17)Imp, /97 dated 5-3-1997].

7. 70-A. Grant of ad hoc relief to Civil Servants of Federal Government

drawing Pay in BPS 1 to 16. ?The President has been pleased to sanction with
effect from 1st March, 1997 and until further orders, ad hoc relief at a uniform

226

rate of Rs. 300 per month to contingent paid and contract employees, daily
wages employees and work charge employees working in the Ministries/
Divisions/Departments and Subordinate Offices as well. The ad hoc relief of Rs.
300 per month will be admissible on Orderly Allowance also on the terms and
conditions laid down in the Finance Division O. M. No. F-l(17)Imp/97(l) dated
5th March, 1997.

(Finance Division O. M. No. F. I (17) Imp 97( I) dated 26-3-1997]

7. 70-B. The President has been pleased to allow ad hoc Relief @Rs. 100
p. m. w. e. f. 1-1-2000 and until further orders to the Civilian employees of the
Federal Government as well as Civilians paid from Defence Estimates and Armed
Forces Personnel who are in BS-1 to BS-16/equivalent. The employees who are
in B-17 by virtue of move-over will also be entitled to this ad hoc relief.

2. The above ad hoc relief:

(a) will be subject to Income Tax.

(b) will be admissible during leave and entire period of leave

preparatory to retirement except during extraordinary leave.

(c) will not be treated as part of emoluments for the purposes of

calculation of Pension and recovery of House Rent.

(d) will not be admissible to the employees posted/deputed abroad

from the country.
(e) will be admissible during the period of suspension.

(f) will not be admissible during extraordinary leave.

[Finance Division O. M. No. F. 1(9) lmp. 99 dated 31-12-1999]

7. 70-C Discontinuation of Ad hoc relief under revised pay scales

2001. ?The ad hoc relief of Rs. 300/- p. m. and Rs. 100/- p. m. to BPS 1?16
(inclusive of BPS-17 by virtue of move over) shall cease to be payable on intro-
duction of the revised pay scales w. e. f 01-12-2001.

[Finance Division O. M. No. F 1(5) Imp/2001 dated 04-09-2001]

Grant of Special Additional Allowance:

7. 71 (i) The President has been pleased to allow Special Additional

Allowance to civilian employees of the Federal Government including civilian
paid from Defence Estimates with effect from 1st July, 1999 and till further
orders, as under:

? BPS. 1-16 25% of the Minimum of relevant Pay Scale.

? BPS. 17-22 20% of the Minimum of relevant Pay Scale.

(ii) This Allowance will be regulated as under:

(a) It will not be subject to Income Tax.

(b) It will be admissible during leave and entire period of leave

preparatory to retirement except during extra-ordinary leave.

227

(c) It will not be treated as part of emoluments for the purposes of

calculation of Pension and recovery of House Rent.

(d) It will not be admissible to the employees posted/deputed

abroad from the country.

(e) It will be admissible during the period of suspension.

(iii) The revision in Special Pays and Allowances in case of Officers and
personnel of the Armed Forces was allowed with effect from 1st
February, 1999.

[Finance Division's O. M. No. F. l(7)lmp. /99 dated 23-7-I999].

7. 71-A Special Additional Allowance frozen under revised pay scales

2001. ?Special Additional Allowance sanctioned vide Finance Division O. M. No.
F. l(7) Imp/99 dated 23rd July 1999 shall be frozen at the level drawn as on
4-9-2001.
(Finance Division O. M. No. P. 1(5) Imp/2001 dated 04-09-2001)

Clarification. ?The civil employees recruited after 1-12-2001 will not

get any special additional allowance.

[Finance Division's letter No. I(5)/imp/2001 dated 3-11-2001]-

Conditions to award Selection Grade in different cadres:

7. 72 "The following conditions are laid down for grant of Selection

Grade/Senior Scale.

(a) Selection Grade may be granted on the basis of Seniority-cum-fit

ness.

(b) The official to whom Selection Grade is proposed to be granted

must have successfully completed his probationary period and must
possess the following length of service in his existing Pay Scale: ?

(i) For grant of Selection Grade As prescribed for promotion'

in BPS-18 and above. to these Pay Scales.

(ii) For grant of Selection Grade Three years service in the

in BPS-17 and below. existing Pay Scales.

[Finance Division O. M. No. F. I(39)lmp/95 dated 30-6-1996].

Grant of Selection Grade:

Selection Grade Shall be allowed strictly on the basis of seniority-cum-

fitness.

[Finance Division O. M. No. F. l(45)Imp-ll/87 dated 25-4-1988].

Clerical Posts from 1-7-1987

(a) 33% posts of Lower Division Clerks (BPS-5) will be placed in

Selection Grade (BPS-7).

(b) The Senior Clerks (B-6) of the Provincial Governments will be

allowed BPS-7 and 33% posts be placed in Selection Grade (BPS-9).

228

(c) 33% posts of Upper Division Clerks (BPS-7); will be placed in

Selection Grade (BPS-9).

(i) Stenographers. ?The posts of stenographers selection grade (B-16)

have been enhanced from 25% to 33% w. e. f. 17-3-1991.

[Finance Division O. M. No. F. l(45)lmp-II/87 dated 17-3-1991).

(ii) Stenotypist. ?*33% posts of Stenotypists (B-12) working in,
Ministries/Divisions and Departments of the Federal Government shall be placed
in Selection Grade B-14 *(w. e. f. 17-3-1991).

(iii) Accountants. ?Accountants BPS-16 in the Audit and f Accounts

Departments shall be allowed 33% Selection grade in BPS-17, w. e. f. 1-6-1991.

[Para 5 of the Finance Division O. M. No. F. l(12)lmp-II/91, dated 19-8-1991).

Clarification. ?It is clarified that the facility of Selection Grade has been
allowed only to Accountants who are serving in Audit and Accounts Departments
under administrative control of Auditor General of Pakistan.

IFinance Division O. M. No. F. I(26)lmp/91 dated 7-8-1993].

(iv) Naib Quasids, Quasids and Daftries. ?**30% posts of Naib

Quasids, Quasids and Daftries working in the Federal Government Organisations
shall be placed in Selection Grade w. e. f. **1-6-1991 as under: ?

S. No. Name of posts Existing Pay Scale Selection Grade

1. Naib Quasid B-1 B-2

2. Quasid B-1 with special pay of B-3

Rs. 30/- p. m.

3. Daftry B-1 with special pay of B-4

Rs. 30/- p. m.

The special pay of Rs. 30/- p. m., admissible under the existing orders to
Quasids and Daftries, shall continue to be admissible to them when placed in
Selection Grade.

[Finance Division O. M. No. F. l/56/lmp-ll/87. dated 15-12-1987).

(v) Diploma Engineers. ?Consequent upon placing of 33% posts of

Diploma Engineers in the Federal Government in BPS-16 vide Finance Division
O. M. No. F. 1(2)/R-I/91-D 1006 dated 25-8-1991. The following clarifications are
made to settle the issue in the Federal Government: ?

(a) The benefit is applicable in all the Federal Government Ministries/

Divisions/Departments including Pakistan Railways where the post
of Diploma Engineer exists carrying prescribed qualification i. e.
Matriculate plus 3 years' diploma from a recognized Institution;

*Revised vide Finance Division's O. M. No. l(45)Imp-li/87 dated 17-3-1991.

**Revised vide Finance Division O. M. No. F. l(10)/lmp-ll/91, dated 27-8-1991.
229

(b) The Diploma Engineers were granted Selection Grade (BPS-16) to

25% of posts vide Finance Division O. M. No. F. 1(24) NG. Imp-
II/75-Dy, No. 105/76 dated 19-2-1976. With the O. M. of 25-8-1991
referred to above the percentage of Selection Grade of the posts of
Diploma Engineers has only been enhanced from 25% to 33%.

(c) Since this is not a new benefit, the same terms and conditions
already in force prior to the present enhancement of percentage will
remain applicable as such, except the increase in percentage w. e. f.
25-8-1991.

(d) The Provincial Governments may if considered necessary adopt the

benefit for their Diploma Engineers on the same terms and conditions.

2. The terms and conditions applicable on the Selection Grade allowed

to 25% of the posts (which has been raised to 33%) are re-produced below for

convenience: ?

(a) Only regular posts of diploma engineers have to be taken into

account for the purpose of calculating 25% posts in BPS-16. The
regular posts mean both permanent and temporary posts. Temporary
posts which have been sanctioned for a period of not less than or
there is a reason to believe that they will not terminate within a
period of three years or more will be taken into account for this pur
pose excluding temporary posts sanctioned for temporary jobs such
as for execution of Projects.

(b) 25% is to be calculated on the basis of total permanent and tempo-

rary posts (sanctioned on regular basis) of diploma engineers in
Grade 11 to 15. However where a certain percentage of diploma
engineers in Grade 11 are reserved for unqualified promotees, the
number of such posts may be excluded for the purpose of calcula-
tion of number of posts in Grade-16. The unqualified promotees to
BPS-11 could, however, be considered for promotion to BPS-16 in
accordance with the service rules of the Department concerned and
subject to 10 years service and passing the prescribed Departmental
Examination.

(c) The initial date of effect in such cases will be from the date of issue
of this Division O. M. No. F. l(1)NG-Imp-II/76, dated the 19th
February, 1976.

[Finance Division O. M. No, F. l(2)/R-l/9l-Pt dated 18-1-1992].

(vi) Assistant in Federal Secretariat/Attached Departments. ?33% posts

of Assistants in Federal Secretariat/Attached Departments will be placed BPS-15
in place of existing 25% posts in BPS-14.

230
(vii) Superintendents (B-16) of the Attached Departments. ?It has been
decided to allow Selection Grade B-17 @ 33% of the posts to the Superintendents
(B-16) working in the Attached Departments of Federal Government with imme-
diate effect.

[Finance Division O M No. F 3(10)Imp /94 dated 18-5-1994]

7. 72-A Grant of one pre-matiire Increment on Grant of Selection Grade. ?

Reference para 4(ii) of Finance Division's O. M. No. F. l(12)Imp. 11/91, dated
29-6-1991 andpara4(iii)of O. M. No. F. l(12)-lmp. 11/91, dated 19-8-199! where-
in the benefit of pre-mature increment on the grant of selection grade has been
allowed with effect from 1-6-1991.

2. It has been decided by the competent authority that the civil

employees who were awarded selection grade prior to 1-6-1991 and were serving
in selection grade posts on that date may also be allowed one pre-mature incre-
ment for the purpose of fixation of pay w. e. f. 1-6-1991. Pay so fixed will be
admissible from 1-6-1992.

3. These orders would not be applicable if the benefit of para 4(i) of

Finance Division's O. M. elated 29-6-1991, and dated 19-8-1991 referred to above
has already been allowed.

4. This supersedes clarification issued in this Division's O. M. No.

F. I(17)Imp. II/91, dated 9-9-1991.

[Finance revision O. M. No. F. 6 (13)Imp-II/91. dated 3-6-1992].

7. 72-B Discontinuation of Selection Grade and Move Over under

revised pay scales 2001. --Selection Grade in the scheme of Basic Pay Scales and

Move Over scheme shall stand discontinued w. e. f. 4-9-2001.

[Finance Division O. M. No. f I(5)Imp/2001 dated 4-9-2001].

Grant of Advance Increments:

7. 73 (a) Grant of Advance Increments to officials for posessing/attain-

ing higher educational qualifications. ?-From 1-6-1991 onwards advance incre-
ments shall be allowed without the condition of the Second Division to the offi
cials in [BPS 1 ?15) for possessing or acquiring higher educational qualifications
over and above prescribed qualifications in the relevant Recruitment Rules to the
extent given below: ......

No. of advance increments for obtaining

Matric F. A. /FSC. B. A/B. Sc. M. A. /M. Sc.

(a) Where the prescribed qualifi-

cation is Non-Matric 2 4 6
8
(b) Where the prescribed qualifi-
cation is Matric Nil 24 6

(c) Where the prescribed qualifi-

cation is FA/F. Sc. Nil Nil 1
4

(d) Where the prescribed quaiifi

cation is B. A/B. Sc. Nil Nil Nil

2

The advance increments already allowed in terms of Para-6 of O. M. No. F. 1(7) lmp-ll/87 dated
the
1st July, 1987 would be doubled from 1-6-1991.

231

(i) The advance increments shall be allowed at the time of recruitment

or acquisition of higher qualification whichever is later, in cases where the
employee is already at she maximum of the scale, he may be allowed the number
of advance increments beyond the maximum of the scale as personal pay to be
absorbed at the time of his move over/promotion. Those employees who had
acquired higher qualification in 3rd Division prior-to 1-6-1991 and were not
granted advance increments earlier would henceforth would be allowed advance
increments w. e. f. 1-6-1991.

[Para 5 (i) of Finance Division O. M. No. F. 1(12) lmp-ll/91 dated 29-6 1991]

Clarification. ?It has been decided that employee holding the post on or
after 1-6-1992 for which there is no prescribed qualification in the recruitment
Rules and is filled by 100% promotion basis, will be allowed advance increments
on possessing/acquiring higher qualification than prescribed for the feeding post
as per criteria laid down in Para 5(i) of Finance Division O. M. No. 1(12) Imp-
II/91, dated 29-6-1991 w. e. f. 1-6-1991 for the purpose of fixation of Pay. Pay so
fixed will be admissible with effect form 1-10-1992.

(Finance Division O. M No, F- I(9) Imp ll/9lpt (G) dated 4-10-1992].

(ii) Engineers and Doctors will also be allowed four advance

increments in case they possess or acquire a post-Graduate degree in their
relevant field for which they have not been allowed any qualification pay.

The advance increment/increments will be allowed at the time of

recruitment or acquiring higher qualification during service. In cases where the
employee is already at the maximum of his pay scale, he would be allowed
requisite number of increments as personal pay to be absorbed on moving
over/promotion to higher pay scale.

(b) Grant of Advance Increments to the Employees Drawing Pay in

BPS 16. ?The competent authority has been pleased to allow advance increments
to the Federal Government Servants drawing pay in BPS-16 also on
acquiring. Possesing higher qualifications as under: ?
Matric FA/F. Sc. BA/B. Sc. MA/M. Sc

Where the prescribed qualification Nil 2

is Matric

Where the prescribed qualification Nil Nil

is FA/F. Sc.

232

Matric FA/F. Sc. BA/B. Sc. MA/M. Sc

Where the prescribed qualification Nil Nil Nil 2

is FA/B/Sc.

2. These orders will take effect from 1st July, 1996.

[Finance Division O. M. No. F. (10)-lmp 1/91-Vol III dated 8-7-1996].

7. 73-A Discontinuation of Advance Increments under revised Pay Scales

2001. ?The existing scheme of advance increments is discontinued w. e. f. 1-12-
2001. A fresh scheme, if any will be introduced in due course.

[Finance Division O. M. No. F. l(5)-Imp/200l dated 4-9-2001].

Uniform date of increment:

7. 74 The annual increments in the Basic Pay Scales accrue only on the
first day of the month of December following the completion of at least six
months of such service at the relevant stage in that scale as counts for increments
under the ordinary rules. This is subject to the rules regarding withholding of
increments.

7. 74-A Date of Increment under revised Pay Scales 2001. ?Annual

increment shall continue to be admissible subject to the existing conditions, on the
1st December each year.

[Finance Division O. M. No. F. l(5)-lmp/2001 dated 4-9-2001)

Discontinuation of Special Pays/Allowances for

Offices under revised Pay Scales 2001:

7. 75 The Special Pays/Allowances sanctioned to offices as percentage of

Pay shall be discontinued on the introduction of revised pay scales w. e. f. 1-12-
2001 * [deleted].

[Finance Division O. M. No. F. I(5)-Imp/2001 dated 4-9-2001].

Moving Over to next Higher Basic Pay Scale:

7. 76 (a) A Class IV Government servant, who has reached the maximum
of a National Scale, shall be brought on to the next higher National Scale, with
effect from the 1st of December of the year in which he completes one year of
such service at the above maximum, as counts for increment under the rules.

(b) A Class III or Class II (non-gazetted) Government servant who has

reached the maximum of a National Scale (lower than the National Scale No. 15)
shall be brought on to the next higher National Scale, with effect from the 1st of
December of the year in which he completes one year of such service, at the above

*The words "and adjusted in future increments" deleted under Finance Division letter No.
F. l(5)/lmp/2001 dated 3-11-2001.

233

maximum, as counts for increment under the rules, subject to the condition that
there is no adverse entry in his Annual Confidential Reports for the last four
years. If this condition is not fulfilled, he shall wait at the above maximum till he
has earned in succession four Annual Confidential Reports without any adverse
entry, and his transfer to the next higher National Scale shall take effect from the
1st of December of the year, following the year for which he earned such Annual
Confidential Report.

[Finance Division O. M. No. F. l(2)-NG-Imp. l/72, -daled 27-12-1972].

(c) Consequent on the introduction of the Scheme of National Scales of

Pay etc. of August 18, 1973, the matter has been reconsidered by the Government
and it has now been decided that an employee, who will be adjusted in or whose
basic scale is, NPS 15, will, subject to the same conditions as are applicable for
movement of employees from the maximum of NPS 3 to 14, be allowed to move
over only upto and including NPS 16 of the Scheme of National Scales of Pay
etc. of 18th August 1973. For this purpose alone, NPS 16 of the Scheme of August
1973 will be deemed as if it were part of the Schedule of National Scales of Pay-
appended to the Scheme of March 8, 1972. These orders will be effective from 1st
March 1972.

[Finance Division O. M. No. F. 1(2) NG lmp-ll/71 dated 26-12-1973].

Clarification. ?(I) The consideration of move ever cases in respect of

employees in BPS-1?15 may be postponed if disciplinary action is pending
against them; and

(2) If the employee is exonerated from all the charges he will get move
over from the due date with all financial benefits. But if he is penalised as a result
of the disciplinary action he will have to wait for the next 4 years for the grant of
move-over.

(Finance Division O. M. No. F. 9(4)-R-3/93-l397 daled 31-10-1994].

Judgment. ?If there is no adverse report against him and he gets "average
reports they would have to be treated as " generally good" for purpose of move
over Becasue a report "average" cannot be treated as adverse unless specifically
so treated and then conveyed to the civil servant as an adverse report.
[Muhammad Anwar v/s Secretary, Establishment Division, decided on 10-12-I991-PLD-1992-SC-
I44 ref].

(d) The fixation of pay in the higher scale will be done at the stage next
above the maximum of the lower scale.

(e) BPS 1-15 employees are entitled to consecutive and automatic grant
of move-over on reaching the maximum of their Pay Scale; subject to the condi-
tion that they fulfil the other requirements. In their case neither D. P. C. nor

234

Move-over Committee has any role to play. However, the grading standard of
their A. CRs is to be ensured by the respective Administration. It also disposes of
their O. M of even number dated 26th January. 1993 and 7th February, 1993 on the
subject.

[Finance Division O. M. No F. 9(l4)-R-3/92-587 dated l8-4-l993).

7. 77 (a) The civil servant in BPS-16 to 19 will be allowed to move over

to the next higher Basic Pay Scales from the 1st December of the year following
the year in which they reach the maximum of the Basic Pay Scale subject to the
following conditions: ?

*[Move-Over Committee

(i) Cases of Move-Over of Respective Deputy

employees from BS-16 to Financial Adviser.

BS-17andfromBS-17to
BS-18.

(ii) Cases of Move-Over of Respective Financial

employees from BS-18 Adviser. ]

to BS-19 and BS-19 to

BS-20.

Attached Departments/Subordinate Offices

(a) Additional Secretary or Joint Secretary of the

Administrative Ministry/Division ........... Chairman

(b) An officer of the Department holding post in

BPS-20 or at least in BPS-19 if there will be no
officer in B-20 (in respect of cases of Attached
Departments)........................... Member

OR
Head of the subordinate office concerned (in
respect of cases of Subordinate Offices).

**[(c) Joint Secretary (in case of move over from B-18

to B-19 and from B-19 to B-20) Deputy Secretary
(in case of move over from B-16 and B-17 and
from B-17 to B-18 of the Finance Division).,. Member]

The cases would then be processed by the Establishment

Division to obtain approval of the competent authority.

*Finance Division O. M. No. F. 10(2)R. 3/2000, dated 3-5-2000.

**Amended vide Finance Division O. M No. F. 1(82) R. 3/85, dated 3-3-1986.

235

(ii) For move over to BPS-18 the employees should have completed at
least five years of service in BPS-17. Service rendered in pay scales
below BPS-17 will be computed according to the existing formula.

*[(iii) For move-over from BPS-16 to BPS-17, at least one good report
without any adverse entry during the last five years inclusive of the
year of move-over].

**[(iv) The cases of move over of employees from BPS-18 to 19 and from
BPS-19 to 20 will be scrutinized and recommended by a Selection
Committee consisting of Secretary of the administrative Ministry
concerned and a representative each of Establishment and Finance
Divisions not below the rank of Joint Secretary. However, in case of
Establishment Division, the Selection Committee may be headed by
an Additional Secretary. The cases would then be processed by the
Establishment Division to obtain the approval of the competent
authority ].

(v) The eligibility of the employees for move over to BPS-19 to 20

would be subject to their having completed the length of service of
12 years and 17 years respectively in BPS-17 and above. Service
rendered in scales below BPS-17 will be computed according to the
existing formula.

*[(vi) For move-over from BPS-17 to BPS-18 and BPS-18 to BPS-19, at

least two good reports without any adverse entry during the last five
years inclusive of the year of move-over].

(vii) In case an employee fails to fulfil the condition prescribed in (iii) to

(vi) above, as the case may be, he shall wait at the maximum of the
pay scale till he has earned in succession the requisite number of
reports of the required standard without adverse entry, and his move
over shall take effect from 1st December of the year in which last
such report is earned.

(viii) The move over shall not be construed to be a promotion to the post
of higher Basic Pay Scale, but the higher pay scale will be. treated to
be an extension of the existing Basic Pay Scale of the post held by
the employee. Therefore, the incidence of move over shall not be
notified.

?Subs. vide Finance Division O. M. No. F. 7(l)-lmp 1/90-Vol. II. dated 7-2-1991.
**Subs. vide Finance Division O M. No. 9(2) R-3/93 dated 13-3-1993

236

*[(ix) The pay of employees who are allowed the move over shall be fixed
at the stage next above their existing pay in the lower scale. No pre-
mature increment will be admissible However, in case of officers
who have moved over from B-19 to B-20 and are subsequently
promoted on regular basis, they will continue to draw the salary at
the same stage, until such time the next increment becomes due in
the Basic Pay Scale (B-20) under the normal rules].

(x) In case of move over to B-20 no Entertainment Allowance, Senior

Post Allowance, Residence Orderly/Orderly Allowance or any other
fringe benefits shall be admissible to the employees.

**[(xi) The employee allowed to move over shall not be entitled to any
change in rental ceiling. The house rent allowance, which is calcu-
lated with reference to the minimum of the relevant basic scale shall
continue to be payable on the basis of the minimum of the scale of
the post to which the employee originally belongs].

(xii) The employees shall not be allowed two successive move over.
However, if an employee having moved over to a particular scale, is
subsequently promoted to a post carrying the same scale, he may
again become eligible for further move over.

(Finance Division OM. No. F. I(82)-R. 3/85 dated 1-1-1986].

(xiii) ***Those who become eligible for move-over during the currency
of a calendar year either because of the grant of Selection Grade,
grant of advance increments, refixation of pay or promotion etc.
shall be allowed move-over from 1st of the month of December
which follows immediately thereafter provided that other conditions
on the subject are fulfilled.

(a) Guidelines for Considering cases of move over of Employees in

BPS-16 to BPS-19. ?The following are the guidelines for processing the cases of
move over:

(i) ****[Cases of move over of employees in BPS-18 and BPS-19 shall

be scrutinized and recommended by a Selection Committee com-
prising the Secretary of the administrative Ministry concerned or in
the case of Attached Department', the head of department if he is
drawing pay in BPS-22 and a representative each of the

*Subs, vide Finance Division O. M. No. F. 2(7)-lmp. 1/88. dated 7-4-1988.

**Subs. vide Finance Division O. M. No. F. 1(7)-R. 3/85, dated 1-8-1994.
***Added vide Finance Division O. M. No. F. 9(14)-R. 3/93, Vol-II, dated 19-5-1994.
****Added vide Finance Division O. M. No. F. 1(82)-R. 3/85 dated 5-10-1986.

237

Establishment Division and the Finance Division not below the rank
of Joint Secretary. ] The Ministries and Divisions shall prepare a
working paper for the Selection Committee embodying the particu-
lars of each officer as per proforma enclosed (Annexure) with these
guidelines.

(ii) Cases of move over of employees in BPS-16 and 17 will be scruti-

nized by the concerned Move over Committee and will be approved
by the competent authority. The proforma referred to above will
also be used in this case.

(iii) While considering an employee for move over, the Selection

Committee/Move over Committee should briefly indicate the
grounds for their recommendation. If a case is postponed, the exact
ground for gostponement vide Sub-para viii of Para 7. 75 of the
guidelines should always be specified. The Ministries/Divisions and
Departments should ensure that when the reason for which the case
was postponed ceases to exist, the case is placed before the
Selection Committee/Move over Committee as early as possible.

[Annexure to Finance Division O. M, No. F I(82)R-3/85 dated 1-1-1986. ]

N. B. ?The censure being a minor penalty of lowest order bordering

warning, may be ignored while deciding the case of move over to next higher
scale.

[Finance Division OM. No. F. 9(5)-R. 3/92, dated 27-10-1992].

(b) Criteria for Move over. ?An employee must fulfil the following
requirements for move over to pay scales 17, 18, 19 and 20, as the case may be:

(i) He should be a regular member of the service cadre or post con-

cerned and should have completed the following length of service to
a post in the pay scale in which he is to move over:

B-18............................... 5 Years.

B-19..............................12 Years.

B-20.............................. 17 Years.

*[The service rendered by an employee on regular basis in other

government departments under the Federal/Provincial Governments may be
included in the length of service subject to the following conditions: ?

(ii) There is no break in service between the period of previous service

rendered by an employee in other government departments, under
*Added vide Finance Division O. M. No. F. I(20) R 3/85. dated 16-9-1987.

238

the Federal or Provincial Governments and the service rendered by

him in the existing Federal Government department and that his
previous service in other Government departments has been count-
ed toward fixation of pay in the new/existing Federal Government
department with the approval of the competent authority.

(iii) The period of leave without pay should be excluded in calculating

total service required for move over.

Clarification. ?It is clarified that in such cases, no benefit of service in

posts in BPS-16 and below, if any, shall be admissible. However, benefit of
service in posts in BPS-16 and below (vide para 2(3) of the Finance Division
O. M. dated 15-6-1986) shall be admissible only where first initial appointment
has taken place in BPS-16 and below and not in a post in BPS-17, 18 or 19 which
is already covered by para 2(2) of Finance Division O. M. under reference].

Clarification. --A. C. Rs means consecutive A. C. Rs for the last five years

including a year of move-over and not the haphazard A. C. Rs.

[Finance Division O. M. No. F. 9(2)-R3/92. dated 5-7-1992],

(iv) His confidential reports for the last five years in the existing post/
pay-scale are free from adverse remarks *[If the period in the exist-
ing post/scale is less than five years, the reports of the previous post
may be included to complete the requisite number of reports for the
last five years. In case of the persons directly recruited, the previous
instructions on the subject matter will continue] and?

(a) **[are good for at least one year for move-over to scale 17.

(b) are good for atleast two years for move-over to next scale 18

and 19]

***[(c) are good for at least three years for move-over to BPS-20].

(v) No penalty under the relevant rules was imposed on him during the
last five years.

(vi) He has not reached his present pay scale by move-over.

(vii) Subject to fulfilment of the conditions mentioned in the preceding

paragraphs move over would be admissible from 1st December of

*Amended vide Finance Division O. M. No. F. 7(l-Imp. I/9 Vol. 1, dated 29-8-1990.
**Subs, vide Finance Division O. M. No. F7(1)-IMP. l/90-Vol-ll, dated 7-2-1991.
***Added vide Finance Division O. M. No. F. l(82)-R. 3/85. dated 6-11 -1986.
239

the year following the year in which he reached the maximum of his
basic pay scale.

(viii) The Selection Commiltee/Move-over Committee may postpone

consideration of a case: ?

(a) If the officer is on long leave or is under suspension, or

disciplinary action is pending against him or he is on deputa-
tion abroad or posted to an ex-cadre post abroad; or

(b) His CR dossier is incomplete or some other information is

wanting.

If a case was postponed and the employee concerned is subsequent-

ly allowed move over this will be allowed with immediate effect in
cases covered under sub-para (i) above and the qualifying period
from the date the move over was due to the actual date of move over
shall count towards increments in fixation of pay. If the case was
postponed under sub-para (ii) above, move over shall be allowed
from the date the move over was due.

[Annexure to Finance Division's O. M. No. F. 1(82)-R, 3/85 dated 1-1-1986].

Clarification. ?Entry in the ACR "Not yet fit for promotion" relates to
promotion, the above entry may not be taken into account while allowing move
over to a Government servant, subject to fulfilment of the other conditions pre-
scribed in the O. M. No. F. 1(82)-R. 3/85 dated 1st January, 1986.

(Finance Division OM. No. F. 7(6)-lmp. 1/89, dated 12-12-1989).

Clarification. ?It is clarified that the above said decision/clarification

will be deemed to be applicable from the date of introduction of the Move over
Scheme.

[Finance Division OM. No. F. 9(7)-R. 3/96, -Vol-1, dated 26-5-1996).

(ix) Concession of Move-over to the next Higher Pay Scale. ?In order to
ensure expeditious finalisation of move over cases the following
procedure will be adopted: ?

(a) All cases of move over of officers upto BPS-20, irrespective of

the Service-Group to which they belong, would be processed
by the Miniseries/Divisions/Departments where the employ-
ees are working. The confidential record of the officer, if not
available, may be obtained from the concerned
Ministries/Divisions administering the Service/Cadre/Group.

240

(b) The cases of Government servants who are posted in or are on

deputation to the Corporations/Autonomous Bodies would be
processed by the 'parent Government Departments, after
which they will be allowed to move-over to the next pay scale.

(c) Cases of move-over from BPS-16 to B-17 and BPS-17 to

B-18 may be approved by the Secretaries of the administrative
Ministries/Divisions on the recommendations of the Move
over Committee. They will not be referred to the
Establishment Division for obtaining approval of the compe-
tent authority.

(d) Cases of move over from BPS -18 to BPS-19 and BPS-19 to
BPS-20 after being processed by the Selection Committee,
would be referred to the Establishment Division for obtaining
approval of the competent authority to allow move over in
these cases.

[Finance Division O. M No. F. I(82)-R. 3/85. dated 19-2-1986].

(e) The cases of move over of Federal Government Servants serv-

ing in the Provinces to BPS-19 & 20 would be processed by
the Provincial Governments where they are serving.
Thereafter they would be submitted to the Establishment
Division for approval. Move-over upto BPS-18 may be
approved by the Provincial Governments.

[Finance Division O. M. No. F. I(27)-K. 3/80. dated 23-11-1986],

Clarification. ?It is clarified that the parent Governments/Departments

mean the administrative Ministries and Divisions of the Federal Government and
departments of Provincial Governments who control the concerned autonomous
bodies/corporations etc.

[Finance Division O. M. No. F. I(82)-R. 3/85, dated 5-10-1986),

It has been decided to allow arrears of fixation of pay on account of move

over w. e. f. 1-12-1987 to all Federal Government employees.

The above decision will also be applicable to the employees of those

Corporations and Autonomous Organizations who are otherwise covered under
the move over policy vide Finance Division's O. M. No. F. 1(1)-R. 3/86, dated
27-2-1986.

IFinance Division OM No F 7(7)-lmp I/90, dated 8-12-1990].

241

N. B. ?The concession of move-over shall also be available from 1-6-1991

onwards to those who are enjoying Selection Grade.

Para 6 of Finance Division O. M. No. F. l(12)-lmp. 11/91, dated 29-6-19911.

(x) Counting of Army service for the purpose of move over in respect of
Army Officers inducted in civil posts on regular basis. ?The commissioned ser-
vice rendered by an officer in the Armed Forces prior to induction into the civil
post on regular basis under Part-II of Induction Policy, may be included in the
length of service for the purpose of grant of move over subject to the following
conditions: ?

(i) There is no break in service between the previous commissioned

service rendered by them in the existing Government department
besides such commissioned service has also been counted towards
fixation of pay in the existing Government department.

(ii) He is not drawing pension against the service rendered in the Armed
Forces,

[Finance Division O. M. No F 6(12)-R. 3/89 Imp -I. dated 31-10-1990).

(xi) Enquiries are being received from the Ministries/Divisions as to

whether initial ad hoc service followed by regular service in the same scale ren-
dered by a civil servant should be counted to determine the requisite length of ser-
vice prescribed for move-over to next higher scale.

The matter has been considered in the Finance Division in consultation

with the Establishment Division. It has been decided that the continued
service in the same scale may be included in the length of service specified in para
2(2) of this Division's O. M. No. 1(1)-R. 3/86 dated 15-6-1986 subject to
condition that there is no break in service and this service has been counted
towards fixation of pay in the new/existing Federal Government Department with
the approval of the Competent Authority.

(Finance Division O. M. No. F. 7(4)-R. -Imp. 1/88. dated 4-11-1990].

(xii) References from various quarters have been received in the Finance
Division to clarify the position whether the cases of such officers which have
already been cleared by the respective Move-over Committees for allowing
move-over w. e. f 1-12-1988 needs to be placed before these committees for con-
sideration in the light of the decision taken by the Finance Division O. M. dated
29-9-1990.

242

It has been decided that in consultation with the Establishment Division

only fresh cases will be required to be placed before the respective move-over
committees. The cases already decided by these committees need not be put up
for allowing move-over w. e. f. 1-12-1987 instead of 1-12-1988.

[Finance Division O. M. No. F 7(1) IMP. 1/90. dated 27-4-1991].

(xiii) It has been decided that cases in which move-over has already been
decided on or before 9th October, 1994 need not be put up again to the Move-over
Committees/Selection Committees for ante-dation, consequent upon the issue of
Finance Division's O. M. No. F. 9(9)-R. 3, dated 9-10-1994. In such situation, the
cases may be decided by re-fixation of pay: provided that there is no violation of
the prescribed instructions on the subject including those determining eligibility
for grant of move-over.
[Para 2 of Finance Division O. M. No. F. 9(7)-R. 3/94, Vol. I, dated 14-11-1994).

(xiv) Reference Finance Division's O. M. No. F. l(12)-Imp/94(i), dated

15-6-1994. The queries have been received in this Division about the eligibility
for the grant of move-over to those BPS-17?19 employees, from 1-12-1994,
who had reached the maximum of the relevant pay scales on 1-12-1993.

This aspect of the revision of pay scales has been examined in this
Division, in consultation with the Establishment Division, and the view held is
that such employees shall be eligible for the grant of move-over from 1-12-1994.
However, since their pay will be fixed on 1-6-1994, at the maximum of the rele-
vant pay scale on presumptive basis (without arrears), the grant of move-over
from 1-12-1994 will also be presumptive. The financial benefits of move-over in
such cases will accrue from 1-6-1995, when their pay will actually be fixed at the
maximum of their respective pay scales. No arrears/refund etc. will be admissible
on this account. However, such cases will be considered after June, 1995.

(Para 2 of Finance Division O. M. No. F. 9(14)-R. 3/95, Vol. I, dated 13-4-1995].

(xv) Move-over Policy Instructions. ?According to Finance Division's

O. M. No. F. 1(82) R. 3/85, dated 1-1-1986 the concession of move-over to civil
employees of Federal Government in BPS-16 to BPS 19 from 1st December of
the year following the year in which they reach the maximum of their pay scales,
subject to certain conditions was allowed. Later on the facility of move-over was
allowed during the currency of a calendar year to those Government servants who
became eligible either because of grant of Selection Grade, advance increments,
refixation of pay or promotion vide Finance Division's O. M. No. 9(14) R. 3/93-
Vol-II, dated 19-6-1994. This concession was made effective w. e. f. 1-6-1992 and
afterwards w. e. f. 1-1-1986 for Government servants and w. e. f. 27-2-1986 for

243

employees of Corporations, without arrears, vide Finance Division's O. M. No.

9(9)R-3/93, dated 9-10-1994. This concession was withdrawn by cancelling the
relevant orders vide Finance Division's O. M. No. F. 9(14)R-3/94-Pt, dated
19-4-1995. However, this facility was kept operative for those Government
servants to whom move-over had become due between 9th October, 1994 and
18th April, 1995, vide Finance Division's O. M. No. F, 9(28)R-3/94, dated
13-9-1995 it was clearly mentioned therein that this concession will not be
available on or after 18-4-1995. But the Finance Division is still receiving such
references contrary to the instructions dated 13-9-1995.

To avoid complications and to set the move-over policy back on track, it

has been decided to cancel the Finance Division's O. M. No. F. 9(28)R. 3/94, dated
13-9-1995 with immediate effect. Now the move-over cases of same year
pertaining to the period prior to 18-4-1995 would not be entertained and the cases
already decided before that date would not be re-opened. Henceforth an official
on reaching the maximum of the relevant pay scale either by promotion or
through advance increments or Selection Grade etc. shall be allowed move-over
to next higher scale only from 1st of December of the year following the year in
which he reaches the maximum of the scale subject to fulfilment of condition of
length of service and service record etc.

According to policy instructions of 1988, civil employees of the Federal

government were allowed move over to the next higher basic pay scale with

effect from 1st December of the year following the year in which they reach the

maximum. These instructions were inferred erroneously to imply one year's stay

at the maximum before becoming entitled to move over. This is not the case. It is

clarified that the term following year, used in the instructions of 1986, in fact

means next calendar year. These instructions therefore, clearly refer to admissi-

bility of move over from 1st of December of the next calendar year. For example

if an officer reaches the maximum of his scale during 2nd December to 31st

December, 1997 he will be eligible for move over from 1st December of following

(next) year i. e. 1-12-1998. Similarly if an officer-reaches the maximum of his scale

on 1-1-1997 he will be entitled for move over on 1-12-1998 (next calendar year).

The above clarifications/instructions will also be applicable to all

employees of Government Corporations/Autonomous Organizations.

[Finance Division O. M. No. F. 10(2)-R-3/99. dated 7-10-1999].

244

Annexure
PROFORMA

GOVERNMENT OF PAKISTAN

MINISTRY-----?-------?

Division/Deptt/Office-

Particulars of the Officers for Selection Committee/Move-over Committee

Name............................................................ Post held.,

Date of Birth................................................

Basic Pay Scale (Number and scale)....... ............................

Present Pay Rs............................................

1. (i) Date of first appointment in government

service on regular basis and method of
appointment.

(ii) Post and scale of pay in which appointment

was made.

2. Date of appointment in the present post on

regular basis and method of appointment.

3. State how the officer has reached his present pay

scaie (i. e. by move-over or by appointment/
promotion)

4. (i) Date of reaching the maximum of the pay

scale.

(ii) Date from which move-over to the next

scale is admissible.

5. Seniority postion in the cadre (extract of

seniority list to be appended)

6. If the officer is on long leave of six months or

more, leave preparatory to retirement, deputation
abroad or on posting abroad, indicate the nature
of absence, the commencing date and the date of
its expiry.

7. Whether there is a post in higher scale in the

service, cadre or group reserved for promotion. If
so?

(i) its designation and scale,

(ii) number of vacancies available on the 1st

December on which mover-over is due.

(iii) Whether the government servant is eligible

for promotion according to the conditions

laid down in the recruitment rules/promotion

policy.

245

8. Total length of service in pay scale 17 and above

possessed by the officer on the 1st December of
the year on which move over is due (actual cal-
culations should be appended).
9. Analysis of confidential reports for the last 5
years.

Year Overall Work output Quality

Integrity* Intcllec- Fitness

Moral General tual for

Promotion

*Final assessment as made by the countersigning officer should be given.

10. Adverse entries (if any) during the above

period. Indicate the year, nature of adverse entry,
whether it was communicated, whether it was
expunged or retained. (If a representation against
adverse remarks is pending, it should be indi-
cated).

11. Whether under suspension. If so, from which

date.

12. Whether any disciplinary case is pending against

him.

13. Penalties, if any, imposed during the last 5 years.

Signature.,

Designation.,

(To be signed by a senior officer)

246

Pay Fixation of employees in Selection Grade

and those who have Moved Over to higher scale
under the revised Pay Scales 2001

7. 78 Pay of an existing employee drawing pay by move over shall be fixed

with reference to the pay scale of the post for the time being held by him. In case
the employee was drawing pay in a Selection Grade, his pay will be fixed in the
Selection Grade pay scale. The stage of fixation will be arrived at after allowing
increments on notional basis in the original scale of the post or the Selection
Grade, in 1994 Basic Pay Scales, upto the point of existing pay. Pay of the
employees will then be fixed at the relevant stage in the revised pay scales 2001.

Example-1
Assistant, BS-11 Selection Grade, BS-15, Moved Over BS-16 and in
receipt of Pay of Rs. 5490/- pay will be fixed in BS-15 i. e. Selection Grade pay
scale at Rs. 8320/- as under:

1994 Scale Stage 15 State 16 State 17 Stage 18 Stage 19

4845 5022 5199 5376 5553

2001 Scale 7260 7525 7790 8055 8320

Example-ll

Pay fixation of an employee in BS-11 who has moved over to BS-14 and
is in receipt of basic pay of Rs. 4480/- will be fixed after allowing notional incre-
ments in BS-11 of 1994 Basic Pay Scales upto the stage of basic pay drawn. Pay
in revised BPS-11 will be fixed at the corresponding stage of Rs. 6790/- as
under: ?

BS-11 Sis stg Stg Stg Stg Stg stg Stg Stg Stg

1994 15 16 17 18 19 20 21 22 23 24

Pay Scale 3465 3581 3697 3813 3929 4045 4161 4277 4393 4509

BS-11 5215 5390 5565 5470 5915 6090 6265 6440 6615 6790

2001 ?

Pay Scale

247
Example-III

Pay fixation of an employee in BS-5 who has moved over to BS-11 and
is in receipt of basic pay of Rs. 3465/- will be fixed after allowing notional incre-
ments in BS-5 or 1994 BPS upto the stage of basic pay drawn. Since basic pay of
Rs. 3465/- is beyond the 30 stages in notional BS-5, (1994 BPS), & resultantly
more than the 30 stages of BPS 2001, therefore, his pay will be fixed at the
notional 32nd stage i. e. at Rs. 5300/-. The difference of Rs. 200/- (Rs. 5300-5100)
will be personal to him as under: ?

BS-5 1994 Stage-30 Stage-31 Stage-32

3380 3446 3512

BS-5 2001 5100 5200 5300

In such cases future increments upto a maximum of 3 years will also be allowed
as personal to such employees.
[Finance Division O. M. No. F. 1(5)lmp/2001 dated 4-9-2001).

Initial Fixation of Pay under revised Pay Scales 2001:

7. 79 Pay of the employees in service on 30-11-2001 shall be fixed at the

stage in the revised pay scales which is as many stages above the minimum as
the stage occupied by him above the minimum of the 1994 Basic Pay Scale.

[Finance Division O. M. No. F. l(5)lmp/2001 dated 4-9-200l).

Fixation of pay on promotion:

7. 80 (i) In cases of appointment from one post to another post carrying

BPS 2 to 19, where the stage in the Basic Scale of Pay of the other post next above
the substantive pay in the first post, gives a pay increase equal to, or less than a
full increment, the initial pay in the Basic Scale of Pay of the other post, will be
fixed after allowing a premature increment in the Basic Scale of Pay of the other
post.

(ii) In cases of Government servants appointed to posts in BPS-20 and

above, on completion of the minimum length of service prescribed for the
relevant scale of pay in the scale of higher post will be fixed at the next stage. But
if the minimum length of service prescribed for posts in BPS-19 and above has
not been completed the pay will be fixed at the minimum of the scale of post and
for the purposes of drawal of increment in the scale of post and for the purposes
of drawal of increment in the scale the service in that scale will count only from
the date of completion of the prescribed length of service.

248

(iii) The minimum length of service prescribed for purposes of drawal of

pay and increments on promotion to posts carrying B-19 and above is as
follows: ?

B-19.......................___ 12 years in B-17 & above

B-20........................... 17 years in B-17 & above

B-21........................... 22 years in B-17 & above

B-22........................... 22 years in B-17 & above

(Finance Division O. M. No. F. 2(51) R-2/85 dated 4-11-1985]

7. 81 Fixation of Pay of Government Servants concerned on their protec-

tion to higher posts carrying pay scales to which they have already reached by
Move over. ?(i) In accordance with Finance Division's Office Memorandum
No. D. 435-R. I. F. 2(33)/75-R. I, dated the 14th July, 1975 benefit of next stage
equal to one increment in fixation of pay was admissible to such a Government
servant who is promoted to a higher post carrying pay scale to which he had
moved over earlier.
(ii) It has now been decided in consultation with the Auditor General of
Pakistan that a Government servant who is promoted to a higher post carrying pay
scale to which he has already reached by way of move over will also be entitled
to the benefit of a premature increment i. e. next stage plus one premature incre-
ment over the stage which he had reached by way of move over but not beyond
the maximum of the scale of the higher post to which he has been promoted.

(iii) These orders would be effective from 1-12-1985. but no arrears

would be allowed on account of this refixation of pay prior to 1-1-1990. Cases
decided prior to *[ 1-12-1984] by allowing next stage under this Division's Office
Memorandum dated 14-7-1975 quoted above shall not be reopened.

[Finance Division O. M. No. F. 8(2)R-2/88, dated 3-4-1990].

7. 82 Fixation of pay on promotion within the same oay scale. ? In order

to adopt a uniform mode of fixation of pay where a Government servant already
drawing pay in a pay scale by virtue of selection grade, or, otherwise holding a
lower post in the pay scale, is promoted to a higher post falling in the same pay
scale, it has been decided to allow next stage equal to one increment in fixation
of pay on promotion in such cases.

2. There are also cases where special pay has been attached to one or
both the posts involved and has been specifically protected for fixation of pay
purposes like that of P. A. 's/Stenographers in the Federal Secretariat. It has been

*Revised vide Finance. Division O. M. of even number, dated 2-6-1991.

249

decided to adopt the following mode of fixation of pay for a Government servant
falling in such cases: ?

(i) If no special pay is attached to the lower post but it is available in

the higher post, his pay on promotion would be fixed at the same

stage plus special pay of higher post would be allowed; or at the

next stage (plus special pay of the higher post) in case of special pay

of the higher post is less than the rate of increment of the higher post;

(ii) If special pay is attached to the lower post but not the higher post,
his pay on promotion would be at next stage after adding pay plus
special pay;

(iii) If special pay is attached to both lower and higher posts and:

(a) if the difference in special pays is more than one increment, he

would be allowed present pay plus higher special pay.
(b) if the difference is less than one increment, he would be
allowed next stage plus special pay of higher post.

3. The cases of fixation of pay involved settled on the above lines with
the Audit/Accounts Officers concerned as already pointed out in the Finance
Division's O. M. No. F. 1087-R. 2/91, dated 2-9-1991. However, to ascertain the
relevant degree of importance of the duties and responsibilities the recruitment
rules of the post and a declaration on the lines suggested in Audit Instruction (3)
below FR. 30 may be kept in view.

4. These orders would be effective from 1-6-1991. Cases already

decided prior to this date shall not be re-opened.

(Finance Division's O M. No. F 2(8)/R. I (I)/80 dated 17-11-1991 as amended vide Finance
Division
O. M. No. F. 2(8)-R-l/97-237. dated 11-3-1997 and even No. dated 9-4-1997].

7. 83 In cases where an employee, before reaching the maximum of a

Basic Scale of Pay, is promoted to a higher Basic Scale of Pay between 2nd June
and 30th November of a calendar year may. at his option, get his pay in the
higher scale refixed from 1st December, of the above year of promotion with
reference to his presumptive pay on that date in the pre-promotion scale.

[Finance Division O. M. No. F. 3(2) Gaz. Imp. 1/75 dated 14-10-1975. F. 5(2) (4) Imp. 1/78 dated
20 -3-1978.
R-2/81 Dy No. I3I8/R-2/81 dated 15-12-1981 and No. F. l(49)R-3(A)87. dated 18-3-1984).

7. 83-A Pay Fixation on Promotion under revised Pay Scales 2001. ?The
existing provisions regulating the fixation of pay in case of promotion from lower
to a higher post shall continue to apply.

(Finance Division O. M. No. F I(5)lmp/2001 dated 4-9-2001)

250
Fringe Benefits under the Basic Pay Scales:

7. 84 House Rent Allowance. ?All employees not provided with

Government accommodation and posted at the following stations are entitled to
house rent allowance at the rates indicated against each: -

(a) Islamabad, Rawalpindi, Karachi, 45% of the minimum

Lahore, Peshawar, Quetta, Hyder- of the relevant BPS.
abad (including Kotri) Multan and

Faisalabad.

(b) All other places. 30% of the minimum

of the relevant BPS.

[Finance Division O. M. No. F. 2(9) R-5/81 dated 27-6-1981, Finance Division O. M. No. F. 5(l2)-
R-5/82 dated
17-6-1982 and Finance Division O. M. No. F. 17-Imp. 11/87 dated 1-7-1987].
7. 85 The drawal of House Rent Allowance is regulated as under: ?

(i) The allowance is admissible to Federal Government employees

living in private houses as are owned by themselves, their wives,
relatives or friends.

(ii) If both husband and wife are Government servants and residing
together at the same station in a Government residence allotted to
one of them, allowance is not admissible to the other.

(iii) *[In case at (ii) above if none of them has been provided with
Government residence and both are posted at a specified station, the
house rent allowance shall be admissible to both of them. Posting of
one of the partners (i. e. husband or wife) at Rawalpindi and the
other at Islamabad shall be treated as posting at one place].

(iv) A Government servant, who was allotted a Government accommo-

dation, but surrendered it, is eligible to draw the Allowance from the
date of vacation of the Government residence.

(v) Where a Government residence is offered and is declined by a

Government servant on personal grounds, he will be paid the
allowance.

(vi) Even if a Government servant is not eligible for Government

accommodation on the Estate Office Pool and is residing in his own
house, he is entitled to the allowance.

*Amended vide Finance Division O. M. No. F. 3(82)-R 13/79-D. 252/80, dated 29-4-1981.

251

(vii) The unmarried sons and daughters, entitled to Government resi-

dence, but residing with their parents in accommodation provided to
the latter by the Government are entitled to the allowance subject to
suspension of their title to Government residence. This can be
revived from a date when they elect not to draw the allowance.

(viii) The Government employees living with their relatives/friends, etc.

in houses provided to the latter by the Government are entitled to
the allowance subject to the permission of the sharing of
Govemment accommodation being obtained from the Estate Office.

(ix) In the event of unauthorized occupation of a Government residence

in a subletting case resulting in the forfeiture of the Govemment
residence, neither the allottee nor he who was in unauthorized
occupation is entitled to the allowance till their entitlement is
restored by the Estate Office.

[Finance Division O. M. No. F. 5(17)-Gaz. (i)/73, dated 20-11-1974. )

(x) The Government servants on training abroad will continue to draw
House Rent Allowance as would have been admissible to them, but
for training abroad.

[Finance Division O. M. No. F. 3(77) R-13/80, dated 4-3-1980].

7. 86 (i) Residence-Office Conveyance Allowance. ?All employees

posted at Islamabad, Karachi, Lahore, Peshawar, Quetta, Rawalpindi, Hyderabad
(including Kotri), Multan and Faisalabad and not residing within their work
premises are entitled to the Conveyance Allowance as follows: ?

(a) Conveyance Allowance Rs. *967-

(b) Motor Cycle Maintenance Allowance Rs. *130/-

(c) Car Maintenance Allowance Rs. *355/-

(d) Not maintaining car and in receipt of pay not less

than Rs. 3240/- p. m. Rs. *193/-

(ii) Motor Cycle Maintenance Allowance is admissible to an employee

who maintains a motor cycle/scooter and draws pay of not less than Rs. 1688/-
and not more than Rs. 3240/- per month. Motor car maintenance allowance is
admissible to an employee who draws pay in B-16 (gazetted) and above and pos-
sesses a motor car registered in his/her own name or in the name of his/her spouse
and not for commercial purposes. This allowance will be admissible only to one
of the spouses and not to both, in respect of the same vehicle.

[Finance Division O. M. No. F. 1(1) Imp. 1/77, dated 28-4-1977. ]

*Revised vide Finance Division O. M. No. F. 3(2) R. 5/91, dated 11-12-1994.

252

(iii) Residence-Office Conveyance Allowance is admissible from the

date of purchase of the vehicle but actual payment begins only after registration
of the vehicle.

[Finance Division O M. No. P. 3(1) R-13/80, dated 18-12-1980. 1

(iv) The Government servants availing themselves of the facility of

chartered buses/wagons are not entitled to the allowance.

[Finance Division O. M. No. F. 3(4) R-12/76. dated 29-8-1979 and No. 983-R-12/79, dated 24-10-
1979].

7. 87 Officers B-22 and Additional Secretaries, who do not draw car

maintenance allowance, are entitled to free use of staff car for official and private
purposes. This concession is subject to recovery of Income Tax from them; 50%
of the total running and maintenance charges of the staff car subject to a maxi-
mum of Rs. 2400 will be added to their salary.
(Cabinet Division O. M. No. l/64/77-Cord. I dated 30-4-1977. )

7. 88 Revised Conveyance Allowance under Pay Scales 2001. ?The rates

of Conveyance Allowance and Motorcycle/Motor car maintenance allowance
presently fixed with reference to pay drawn shall be increased and related to
Basic Pay Scales as follows:

S. No. Existing Revised

(i) Government servants drawing pay in BS-16 BS-16 (Gazetted)

(Gazetted) and above and maintaining motor car & above

not registered for commercial purpose. Rs. 355/- p. m. Rs. 620/- p. m.

(ii) Government servants drawing pay of Rs. 3240/- BS 11 and above

per month and above other than those at (i) above. Rs. 340/- p. m.
Rs. 193/- p. m.

(iii) Government servants drawing pay of Rs. 1688/- BS 1?10

p. m. and above but less than Rs. 3240/- p. m. and maintaining Motor

maintaining Motorcycle/Scooter. Rs. 130/- p. m. Cycle/Scooter

Rs. 230/- p. m.

(iv) Others. BS 1?10

R. 96/- per month Rs. 170/- p. m.

[Finance Division O. M. No. F. 1(5)lmp/2OO1 dated 4 9-20011.

253

7. 89 Senior Post Allowance. ?The Senior Post Allowance is admissible

at the following rates: ?

BPS-20 [Rs. *600 per month

BPS-21 Rs. *800 per month

BPS-22 Rs. * 1000 per month]

7. 90 The Senior Post Allowance is treated as part of pay for the purpose
of drawal of leave salary during leave on full pay/half pay including leave
preparatory to retirement.

[Finance Division O. M. No. F. 2(11) Imp. 1/77. dated 3-7-1977].

7. 91 Entertainment Allowance. ?Entertainment Allowance will be
admissible at the following fixed rates to officers drawing pay in B-20 to B-22:

B-20 Rs. *400 per month

B-21 Rs. *450 per month

B-22 Rs. *650 per month

7. 92 Non-Practising Allowance. ?The existing rates of Non-Practising

Allowance have been revised as under:

Doctors drawing pay in B-17 & B-18 [Rs. *500 p. m. ]

Doctors drawing pay in B-19 & above [Rs. *700 p. m. ]

The above Non-Practising allowance will be admissible in all cases where a doc-
tor is not allowed private practice.

Doctors posted in rural areas below Town Committee level, and allowed
private practice will be given a Practice Compensatory Allowance at the rate of
Rs. 1200 per month for male doctors and Rs. 1500 per month for female doctors.

7. 93 Teaching Allowance. ?Teaching allowance at the rate of |Rs. *200

p. m. ] will be allowed to qualified High School Teachers who teach basic/natural
sciences.

Junior Instructors in Polytechnics who possess Technical teachers

Diploma will be allowed Teaching Allowance at the rate of Rs. **200 per month.

*Revised vide Para 9 of Finance Division O. M. No. F. I(l2)-lmp-ll/91 dated 19-8-1991.

**Revised vide Finance Division O. M. No. l(24)Imp-II/90-pt. dated 21-6-1993.

254

Doctors who teach basic sciences in Medical Colleges will be allowed a

Teaching Allowance at the rate of Rs. [* 1000 per month].

7. 94 Charge Allowance. ?Charge Allowance to Principals of Colleges

and Polytechnics will be admissible at the following rates: ?

(a) Principals of Degree College/College

of Technology..................................... *[Rs. 200 p. m. ]

(b) Principals of Intermediate Colleges/

Polytechnics........................................ *[Rs. 100 p. m. l

7. 95 Warden Allowance. ?Teachers who are assigned the duty of Hostel

Wardens in Colleges and Polytechnics will be allowed a Warden Allowance of Rs.
100 per month.
7. 96 Design Allowance. ?Engineers holding University degree in
engineering and working full time in the Design Offices will be allowed a Design
Allowance at the following rates: ?

Engineers drawing pay in B-17 Rs. 400 p. m.

Engineers drawing pay in B-18 Rs. 500 p. m.

Engineers drawing pay in B-19 Rs. 600 p. m.

Engineers drawing pay in B-20 Rs. 700 p. m.

7. 97 Qualification Pay. ?(i) S. A. S. Accountants will be allowed a

Qualification Allowance of Rs. *200 per month on qualifying the SAS or equiv-
alent examination. This allowance will continue to be admissible as a separate
entity even after their promotion to higher posts.

(ii) Qualification Pay for ICMA, /ICWA/Chartered Accountant shall be

as under w. e. f. 1-6-1991.

(a) Part-III (ICMA/ICWA) Rs. 300 p. m.

(b) Part-V (ICMA/ICWA) Rs. 800 p. m. [where it is not minimum

qualification prescribed for the post].

(c) Chartered Accountants Rs. 800 p. m. where FCA/ACA is not

the minimum qualification prescribed

for the post.

[Finance Division O. M. No. 1(12) Imp. 11/91 dated 19-8-1991].

?Revised vide Finance Division O. M. No 1(24) lmp-ll/90-pl dated 21-6-1993.

255

(iii) Qualifications Pay for Senior Officers. ?Qualifications Pay shall be

allowed from 1-7-1995 to those officers who have qualified the following

courses shown against each: ?

(a) PASC National Management Course. Rs. 750 p. m.

(b) National Defence College Course. Rs. 750 p. m.

(c) Advanced Course in Management in Rs. 200 p. m.

NIPA.

Note. ?One Qualification Pay will be admissible at a time.

[Finance Division O. M. No. F. 1(44) Imp. /95 dated 13-7-1995].

Clarification. ?It is clarified that the said qualification pay is only
allowed to the Officers of Federal/Provincial Governments or those Departments
who have adopted the Basic National Pay Scales in toto. This qualification pay is
also not admissible to those officers for whom this qualification is not necessary
for promotion to higher grades.

[Finance Division O. M. No. 1(12) Imp. 11/91 dated 18-I-I992|.

It has been decided by the competent authority to withdraw the benefit of

Qualification Pay allowed vide this Division's O. M. No. F. 6(II)-Imp. /91, dated
13-10-1992. In future the Qualification Pay shall be allowed to those officers only
who have qualified the prescribed courses as laid down vide para-8 (ii) of Finance
Division's O. M. No. F. 1(12) Imp. 11/91 dated 19-8-1991.

[Finance Division O. M. No. F. 6(9)-lmp. /91 dated 17-1-1995].

Clarification. ?The participants of the First NDC Course of 1971 are also
eligible for the grant of qualification pay for NDC Course of *[Rs. 750 per month
w. e. f. 1-7-1991].

[Finance Division O. M. No. 1(12) Imp/11 dated 17-9-1991],

7. 98 Performance Evaluation Allowance. ?Audit Officers working in

the Performance Evaluation Cell will be allowed Performance Evaluation
Allowance at the following rates: ?

B 17 and B-18 **Rs. 400 p. m.

B-19&B-20 **Rs. 500 p. m.

7. 99 Research Allowance. ?Research Allowance at the rate of 20% of

the pay subject to a maximum of Rs. 800 p. m. will be allowed to the employees
in BPS-16 and above, deployed exclusively on research work, both field officers
and those employed exclusively for the Research Organizations. This allowance
would be admissible to employees of such research organizations which are

*Revised vide Finance Division O. M. No. F. 1(44) Imp/95 dated 13-7-1995.

**Revised vide Finance Division O. M. No. F. I. (12)/lmp-ll, dated 19-8-1991.

256

performing purely research work and have been so recognized by the Finance and
the Establishment Divisions.

7. 99-A Discontinuation of Research Allowance under revised Pay Scales

2001. ?The competent authority has been pleased to discontinue with immediate
effect the Special Research Allowance allowed vide para 13 of Finance Division's
O. M. No. l(l)Imp/83, dated 18-8-1983 and later on renamed as Research
Allowance @ 20% of pay subject to a maximum of Rs. 800/- p. m. vide para II of
Finance Division's O. M. No. F. l(7)Imp. II/87, dated 1-7-1987.

(Finance Division O. M. No. F. 7(5)lmp/95. dated 14-9-2001]

7. 100 (a) Deputation Allowance (Foreign Service in Pakistan). ?
Deputation Allowance @ 20% of the minimum of the relevant basic pay scales
shall be allowed w. e. f. 1-6-1991.

(b) Special Pay admissible to audit officers on deputation to

Ministries/Divisions. ?Spec ' Pay of Rs. 200 p. m. for SAS Accountants (B-16)',
Rs. 300 p. m. for AAG/AO in, 'S-17 and Rs. 400 p. m. for officers in BPS-18 and
19, Special Pay @Rs. 20% of the minimum of the relevant basic pay scales shall
be allowed.

(c) Finance Division O. M. No. F. l(32)/lmp-II/88, dated 9th August,

1988 would remain applicable in this regard.

(Finance Division's O. M. No. F. 1(12) Imp-ll/9l, dated 19-8-1991 as amended vide Finance
Division
O. M. No. F I(12)/Imp-II/9I dated 2-10-1991]

Clarification. ?Relevant basic pay scales means the basic pay scale of
the Government Servant in which he is drawing pay either by virtue of move-over
or grant of selection grade instead of minimum of scale. This would be applica-
ble w. e. f. 1-6-1991.

(Finance Division O. M. No. F. 2(l)-R-3/92-259, dated 2-6-1992].

7. 101 Medical Allowance. ?Medical Allowance at the rate of *[Rs. 90]

per month will be allowed to the employees of BPS-1 to BPS-15 instead of the
reimbursement of the cost of medicines purchased by the employees as outdoor
patients. The facility of in-door treatment will continue to be admissible.

7. 102 Revised Medical Allowance under Pay Scales 2001. ?Medical

Allowance to employees in BS. 1?16 shall be increased from Rs. 90/- p. m. to
Rs. 160/- p. m.

(Finance Division O. M. No. F. I(5)lmp/2001 dated 4-9-2001].

7. 103 Allowances for Nursing Cadre. ?(a) Messing Allowance. ?It is

admissible to Nursing Cadre (below BPS-16) at the rate of Rs. 500 p. m.

(b) Uniform Allowance. ?It is admissible to Nursing Cadre (below

BPS-16) at the rate of Rs. 150 p. m.

*Increased vide Finance Division O. M No. Fl(71) Imp/95, dated 6-11 -1995.

257

The messing and uniform allowances are also admissible to Nursing

Cadre B-16 and above subject to the conditions laid down in Health Division's
letter No. F. 4-23/94-MF. II (N. E), dated 1-6-1987.

[Finance Division O. M No F. l(12)-lmp. 11/91, dated 29-6-1991 read with O. M. of even number

dated 28-2-1993).
7. 104 Residence Orderly or Orderly Allowance?

(i) The Establishment Division in their O. M. No. 13/4/77-P. II dated

30th April, 1977, had approved the provision of an Orderly to
officers in BPS-20 and above at their residences. It has now been
decided that the entitled officer may be allowed an option either to
retain the Orderly or to receive an Orderly Allowance of *Rs. 1900
per month in lieu thereof. The option for the Orderly Allowance
should be exercised in writing and communicated to the Audit
Office through the Head of the Office concerned. The following
procedure should be observed: -?

(a) Those opting for the Orderly Allowance would furnish a cer-
tificate to their audit office to the effect that they have not been
provided with an orderly by the office or have surrendered the
one already provided to them. This certificate should be
endorsed the audit office by the officer incharge of adminis-
tration of the concerned organization.

(b) No new post of Naib Quasid may be created in a

Ministry/Division/Department without ensuring that the
Residence Orderly surrendered by any officer has been
gainfully utilised in the office.

(c) In the event of an officer in receipt of Orderly Allowance

opting for the residence Orderly, it will be responsibility of the
officer as well as officer in charge of administration of the con-
cerned organization to intimate the audit office about it and
have the Orderly Allowance discontinued from the date the
Residence Orderly is provided out of the existing sanctioned
strength of the organization.

[Finance Division O. M. No, F. 1(3) Imp. 11/85, dated 24-10-1985].

(ii) The Orderly Allowance will be admissible during all kinds of leave
except extraordinary leave. For the periods of training abroad the

*Revised vide Finance Division O. M. No. 1 (17) lmp. /97 (i), dated 26-3-1997.

258

Allowance will be allowed provided the family of the officer con-

cerned remains in Pakistan.

[Finance Division O. M. No. F. 1(3) Imp. 11/85, dated 29-4-1987).

Clarification. ?It is clarified that the Orderly, Senior Post and

Qualification allowances are not admissible during re-employment/contractual
appointment because: ?

(1) 100% Orderly Allowance is already included in pension, as Special

additional Pension.
(2) Similarly, Senior Post Allowance also forms part of pension. More-
over, this "allowance is admissible to civil servants: whereas a
contractual appointee is not a civil servant.

(3) Qualification *Pay also forms part of pension. This has been
examined many times in the past. The view has been:

"Qualification Pay is not admissible because, the philosophy

at the time of its introduction was to encourage the
government officers in service to do the higher courses and
was made a condition for future promotion. It was meant as an
incentive for government's regular, permanent officers who
are in service. More-over the Qualification Pay is counted
towards pension. As such, there can not be two benefits at the
same time, as the officer was already drawing.

If these allowances are again granted on re-employment, it will amount to

duplication. This policy is being kept in mind while vetting the terms and condi-
tions of contractual appointments and the payment of the above discussed
allowances is not allowed to retired government servants.

[Finance Division O. M. No. F. 5 (4) R-3/96 dated 16-4-1096).

7. 105 Instruction Allowance. ?An Instruction Allowance at the rate of

20% of the minimum of the BPS of the officer concerned would be allowed w. e. f
1st July, 1986 to officers/staff deployed on instructional duties in training institu-
tions functioning as organizations of the Federal Government or as.
Autonomous/Semi-autonomous institutions & imparting training to Government
servants. The allowance would be admissible to the heads of the institutions also.
Any other special pay, deputation pay or deputation allowance admissible to the

*Subs. vide Finance Division's O. M. No. F. 5(4)R. 3/96 dated 16-9-1996.

259

instructional staff, including heads of the institutions, would cease to be admissi-

ble from the date of grant of Instructional Allowance.

7. 106 Ph. D. /D. Sc. Allowance. ?All Ph. D/D. Sc. Degree holders
would be allowed Ph. D. /D. Sc. Allowance @ Rs. 1500. p. m. w. e. f. 1st July, 1988.
The eligibility of the Allowance would not be linked with the Recruitment Rules
and irrespective of the job assigned to them.

[Finance Division O. M No. I 3(l)-lmp. -l/88, dated 1-7-1988).

7. 107 Submission of Copy of Original Ph. D Degree. ?The scholars

who earn a Ph. D/D. Sc. Degree should invariably substantiate their claims with
a copy of the Original regular Ph. D/D. Sc. Degree no matter when received.

The submission of two attested photo copies of their Original Ph. D/D. Sc.
Degrees may be regarded as mandatory on all the scholars/Government officials
who have acquired this degree and, as such, they may be asked to do so immedi-
ately for placement thereof in their C. R. Dossiers/Personal Files. It may also be
clarified that the Ph. D. Allowance would be allowed provisionally for six months
on production of Provisional Degrees. The said allowance will be made regular
on submission of attested photo copy of regular Ph. D/D. Sc. Degrees. In case of
those officers who are already in receipt of the said allowance it is for the
Ministries/Divisions concerned to ensure fulfillment of this condition within
reasonable period of time.

[Finance Division O. M. No F. l(20)-lmp. 11/92, dated 28-6-19921.

Clarification. ?It is clarified that the orders of Finance Division issued

vide O. M. No. l(2o)Imp. 11/92, dated 28-6-1992 are equally applicable to the
employees of Attached Departments, Sub-ordinate Offices, and to those
Autonomous/Semi-autonomic Organizations/Corporations who have adopted the
scheme of Basic Pay Scales of Government in toto.

[Finance Division O. M. No. F. l(20)-lmp. 11/92, dated 15-10-1992).

7. 108 Computer Allowance. ?The Computer personnel would be enti-

tled to the Computer Allowance @ Rs. 1000 p. m. w. e. f. 1st July, 1988. The Key
Punch Operators/Key Punch Varifying Operators/Data Entry Operators would
also be allowed Computer Allowance @ Rs. 300 p. m. from 1st July. 1988.

[Finance Division O. M. No. F. 3(6) R. 1/85 dated 26-6-1985, even No. dated 1-7-1986 &
No. F. 3 (3)-R. 1/88 dated 1-7-19881.

7. 109 It has further been decided to allow Computer Allowance to the

following categories of Computer Personnel w. e. f. 1st August, 1988: ?

(a) Data Control Staff upto *BPS-15 Rs. 500 p. m.

*Subs, vide Finance Division O. M. No. F. 20(4) R. 5/90-Vol. III. dated 21-8-1996.

260

(b) Senior Computer Personnel in BPS-19 Rs. 1500 p. m.

and above.

All other existing terms and conditions regulating the grant of Computer
Allowance would remain the same.

[Finance Divisions O. M. No. F 3(3)-R. 1/88/dated 7-8-1988].

7. 110 Revised Computer Allowance under Pay Scales 2001. ?The

Computer Allowance shall be increased subject to the existing conditions of
admissibility as under:

Existing Rate Revised Rate

Rs. 500/- p. m. Rs. 750/- p. m.

Rs. 1000/- p. m. Rs. 1500/- p. m.

[Finance Division O. M. No. F. l(5)/lmp/2001 dated 4-9-2001].

7. 111 Secretariat Allowance. ?With the introduction of new scales of

pay, the Secretariat Allowance is abolished w. e. f. 1-6-1994 and the amount
actually drawn on 31-5-1994 will be converted into Personal Allowance. Such
Personal Allowance in case of Government employees in BPS-17?22 shall be
reduced by the amount of annual increments, by which the Government
employees's pay may be increased after 1-6-1994, and shall cease as soon as his
pay is increased by an amount equal to or more than his Personal Allowance.
Those in BPS 1?16 will be exempted from this adjustment to the extent that their
Personal Allowance will not be reduced/adjusted.

[Finance Division Regulation Wing O. M. No. F. l(2)-lmp-/94 (i) dated 15-6-1994).

It is clarified that Secretariat Allowance has been abolished w. e. f.

1-6-1994 vide Finance Division's O. M. No. F. 1(2) Imp. /94 (i), dated 15-6-1994
and the amount actually drawn on 31-5-1994 has been converted into Personal
Allowance. This personal allowance will continue to be drawn by the employees
on their posting out of the Secretariat subject to adjustment (in case of BPS-17
and above employees) and non-adjustment (in case of BPS-1?16 employees) as
laid down in this Division's O. M. No. F. 1(2) Imp. /94 (i) dated 15-6-1994. Those
who were not drawing Secretariat Allowance on 31-5-1994 would not be allowed
Personal Allowance on their re-posting to the Secretariat.

[Finance Division O. M. No. F. 1(2) Imp/94 dated 16-1-1995. )

7. 112. Grant of Deputation Pay in addition to Secretariat Allowance to

the Employees working in the Federal Secretariat. ? The President has been
pleased to decide that the official deputed from other Departments to work in the
Secretariat and who were eligible to draw special deputation Pay/Allowance, will
continue to draw Special Deputation Pay/ Allowance in addition to the Secretariat

261

Allowance at 20% of their basic Pay who were posted prior to 10-12-1989. This
facility would not be admissible to those deputed after 10-12-1989.

Finance Division O. M No. F. 1(32)-Imp. II/88 dated 14-11-1992).

7. 113 Discontinuation of the Secretariat/Personal Allowance under

revised Pay Scales 2001, ?The Secretariat/Personal Allowance shall cease to be
payable on introduction of the revised pay scales w. e. f. 1-12-2001.

[Finance Division O. M. No. F I(5)lmp/2001 dated 4-9-2001).

7. 114. Overtime Allowance. ?The drivers of the Government staff cars

and despatch riders would be allowed the Overtime Allowance @ Rs. 6 per hour
subject to the maximum of *Rs. 36 per day w. e. f. 1-6-1991.

The existing conditions regulating the grant of Overtime Allowance and

the provisions of Rule 275 of the Federal Treasury Rules would continue to apply.

(Finance Division O. M. No. F. 4 (I)-R 5/88 dated 1-7-1988)

7. 115. (i) Night Duty Allowance. ?Night Duty Allowance shall be
admissible as under w. e. f. 1-6-1991:

(a) Assistants/Clerks *[Rs. 8/-per night. ]

(b) Staff Car Drivers/Despatch Riders *[Rs. 4/-per night. J

(c) NaibQasid *[Rs. 3. 50/- per night. )

(ii) Washing Grant admissible to liveried staff. ? The Washing grant

shall be admissible *[Rs. 30/- p. m. ] to liveried staff.

7. 116. Special Pay. ?The Special Pays shall be admissible to various

categories of employees at following rates:

(i) Private Secretaries to Rs. p. m.

?Ministers (Federal) **[375. 00

?Secretaries (Federal) 300. 00

?Addl. Secretaries (Federal) 225. 00]

(ii) Personal/Confidential Assistants in BPS 15:

Rs. p. m.

Minsters (Federal).................. *( 150. 00

Ministers of State................... 150. 00

Secretaries (Federal)................. 150. 00

Additional Secretaries (Federal)........ 150. 00

Secretaries (Provincial)........., ..... 120. 00

Joint Secretaries (Federal)............. 120. 00

Confidential Assistants posted in

Ministries/Divisions................. 65. 00]

*Revised vide- Finance Division O M. No. 1(12) lmp-ll/91. dated 20-6-1991

**Revised vide- Finance Division O M No. F-I(I2)-Imp. II/91 dated 19-8-I991.

262

N. B. It has been decided to allow the Special Pay at the prescribed rales
to all the Personal Assistants attached with officers in BPS-20 and above of the
Federal Government provided that such incumbents arc also otherwise eligible to
be appointed as such under the recruitmenl rules of their posts,
[Finance Division O. M No. F 2(1) R 3/94 dated 17 9-1995].

(iii) Those handling cash in Government organizations:

Rs. p. m.

(a) Government servants handling cash between

Rs. 1000- to Rs. 10. 000 p. m. *[25

(b) Government servants handling cash between

Rs. 10. 001 to Rs. 15. 000 p. m" 30

(c) Government servants handling cash Rs. 15, 001

to Rs. 25. 000 per month. 35

(d) Government servants handling cash between

Rs. 25, 001 to Rs 35. 000 per month. 40

(e) Government servants handling cash beyond

Rs. 35, 000 per month. 601

7. 117. "'Special Allowance" of Rs. 100 admissible to the Assistants-in-

charge will be changed to 'Special Pay" with effect from 13-2-1991, under
F. R. 9(21) and reckoned as part of emoluments for pension.

[Finance Division O. M No. F. 1(18) Imp. II/87 dated 19-2-1991]

7. 118. Special Pays/Allowances under revised Pay Scales 2001. ?All

the Special Pays and Allowances admissible on certain POSTS as percentage of
Pay are revised subject to the following limits.

Revised

(a) Special Pays/Allowances On existing rates subject

sanctioned @ 20% and above of Pay to a maximum of

Rs. 2000/- p. m.

(b) Special Pays/Allowances On existing rates subject

sanctioned @ 10%? 19% of Pay. to a maximum of

Rs 1500/- p. m.

(c) Special Pays/Allowances On existing rates subject

sanctioned @ 5% 9% of pay. to a maximum of

Rs. 1000/- p. m.

[Finance Division O. M. No F- 1(5) lmp/2001. dated 4-9-2001]

vide Finance Division O. M No 1(12) Imp 11/91. dated 29-6-1991]

263

7. 119 Grant of cost of Living Allowance. ?The President has been

pleased to sanction with effect from 1st June, 1995 and till further orders a cost
of Living Allowance @ 7% of Basic Pay to all employees in BPS 1 to 22/
equivalent of the Government including Defence Officers, Personnel. Northern
Light Infentary, Mujahid Janbaz. Defence Service Guards, Cadets and Recruits
and those paid out of Defence Estimates, including civilian employees.

2. The above Allowance: ?

(a) will be classified as compensatory allowance and will not be subject

to Income Tax.

(b) will be admissible during leave and entire period of leave

preparatory to retirement except during extraordinary leave.

(c) will not be treated as part of emoluments for the purposes of

calculation of Pension and recovery of House Rent.

(d) will not be admissible to the employees posted/deputed abroad from

the country.

(e) will be admissible during the period of suspension.

(f) will be accommodated within the budgetary allocation for the year
1995-96 by the respective department and no supplementary grants
would be given on this account.

(Finance Division O M. No F 1(40) -lmp/95(i) dated 29-6-1995]

7. 120. Discontinuation of Cost Living Allowance under revised Pay Scales

2001. ? The Cost Living Allowance to BPS-1 to BPS-22 @ 7% of basic pay shall
cease to be payable on introduction of the revised pay scales w. e. f. 1-12-2001.

[Finance Division O. M. No. F. 1(5) Imp/2001. dated 4-9-2001].

Allotment of residence (F. R. 45):

7. 121. The Government servants can be allotted residential houses owned

or leased by the Government under such conditions as may be imposed by the
Local Government concerned. The rules framed in this behalf may vary in respect
of different localities and different classes of residences.
7. 122. If any civil or military Government servant paid from Defence
Estimates is in occupation of residence owned by the Federal (Civil) Government,
he would be required to pay the standard rent of the building subject to the

264

maximum of 5% of his salary. The Civil Government will forego any difference
between the actual standard rent of the building and the rent recovered from the
occupier. On the same analogy, there is an agreement between the Federal
Government and those of the Provinces that if the employees of one Government
are in occupation of the property owned by the other Government, they will
charge the same rent as from their own employees.

7. 123. F. R. 45-A is applicable to those officers whose posts or services

have been included in the Schedule to the rule. On allotment of residence to these
officers they are required to pay the standard rent of the building allotted to them
or rent equal to 5% of their monthly emoluments, whichever is the less. The
standard rent is calculated in the basis of 6% per annum of the Capital Cost of
building. The Capital Cost of the building is determined with reference to the cost
of construction excluding value of the site and expenditure on its preparation and
including the cost of sanitary, water supply and electric installations. If a
residence is supplied with additional amenities such as furniture, tennis court or
garden maintained at the cost of Government, rent is charged for these also in
addition to the rent as stated above. Where a garrage is provided for a particular
residence, its Capital Cost should be included in the Capital Cost of the residence
for the purposes of assessment of standard rent. Where it is not included, rent for
the garrage should be charged separately. In cases where the cost of acquiring or
constructing the residence and any capital expenditure incurred for after acquisi-
tion or construction is not known, the present value of the residence should be
taken into consideration while determining the capital cost.

7. 124. The scale of accommodation supplied to an officer is normally

according to his status, unless requested by him otherwise. The term "emolu-
ments' for purposes of calculating rent at 5% includes pay, fixed monthly fees and
payments from genera! revenues, compensatory allowance other than travelling
allowance and uniform allowance, exchange compensation allowance and pen-
sion before commutation, if any. If a Government servant is under suspension, the
rent is calculated on the basis of subsistence grant. But if he is reinstated retro-
spectively and is paid all the pay and allowances, he should be required to pay the
difference of rent calculated on the basis of subsistence grant and the emoluments.
The tenant is also required to pay cost of the gas, water and electric energy, etc.
He should also be required to pay municipal and other taxes not being in the
nature of house or property tax.

7. 125. In special circumstances, the Local Government may, for reasons to

be recorded, grant rent-free accommodation to any officer or class of officers or
waive or reduce the amount of rent and municipal taxes. The concession of rent-
free quarters, whenever granted, is complete, that is, no additional charge is nor-
mally made in respect of sanitary, water supply and electric installations.

265

7. 126. Government servant who, at his own request, is supplied with a

residence owned or leased by the Government, of a class higher than that for
which he is eligible, when a house of his class is made available to him, should
be charged the full standard rent fixed for the residence and should not be given
the 5% concession.

7. 127. F. R. 45-B applies to Government servants, oilier than those to

whom F. R. 45-A applies or is made applicable under special orders. The
provisions of F. Rs. 45-A and 45-B are, more or less, identical with the exception
of two main differences. In this case the Capital Cost includes the cost of land and
expenses incurred on preparation of site. The standard rent is calculated on the
Capital Cost of the residence and is a percentage of such Capital cost equal to
such rate of interest as may from time to time be fixed by the President plus an
addition for municipal and other taxes in the nature of house or property tax and
for both ordinary and special maintenance and repairs, such addition being
determined under rules, which a Local Government may make.

Fees & Honoraria (FR 46 to 48):

7. 128. Government servant may be allowed by the competent authority to

perform a special service or series of services for a private person or body or for
a public body including a body administering a local fund provided this can be
done without detriment to his official duties and responsibilities. If the service is
material the government servant may be permitted to receive as remuneration
therefor a recurring or non-recurring fee. The Ministries, Divisions, and Heads of
Departments have been given full power to sanction the undertaking of work for
which a fee is offered and acceptance of fee vide item 18 of Annexure II to the
Finance Division 0. M. No. F. 3(4) Exp. III/2000. dated 30-6-2000.

7. 129. Under S. R. 12 one third of any fee in excess of Rs. 50 or if a

recurring fees of Rs. 50 a year paid to a Government servant for services rendered
in Pakistan has to be credited to the General Revenues. One third of any fee in
excess of $800 or equivalent received by a civil servant for a foreign consultancy
outside Pakistan is to be credited to General Revenues. The Ministries, Divisions
and Heads of Departments have, however, full powers of exempting a
Government servant from crediting portion of fees to Government in respect of
fees paid to Government servant for services rendered in Pakistan vide item 19 of
Annexure II to the Finance Division O. M. No. F. 3(4) Exp-III/2000, dated
30-6-2000.

7. 130. This rule does not apply to fees received by Government servants
from a University or other examining body in return for their services as examin-
ers and from a Board of Secondary Education for services rendered as reviewers
of books, it also does not apply to fees received by Government servants for

266

participation in a radio broadcast or television programme or contribution of any

article or writing of any letter to any newspaper or periodical if such broadcast or
television programme or contribution or letter is of a purely literary, artistic or
scientific character.

7. 131. Honorarium. ?A competent authority may sanction the grant of the

honorarium from the general revenues to a Government servant for doing certain
work, provided that the following conditions ar fulfilled: ?
(i) the work is occasional in character;
(ii) is so laborious or of such special merit as to justify special award;

(iii) the competent authority has given prior consent to the undertaking
of work; and

iv) the amount of honorarium has been settled in advance.

7. 132. If in any case the last two conditions are not fulfilled reasons there-
for should be recorded in writing. In the case of both fees and honoraria the
sanctioning authority should give a certificate that due regard has been paid to the
genera! principle enunciated in F. R. 11 and the reasons justifying the grant of
extra remuneration should also be recorded. An Audit officer may insist that the
reasons for the grant of an honorarium or fee should be communicated to him in
each case.

7. 133. The temporary increase in the work of a Government servant is not

a valid justification for grant of honorarium to him. The temporary increase in
work arc normal incidents of Government service and form part of legitimate
duties of Government servants according to general principle enunciated in F. R.
11 and as such have no claim to extra remuneration.

7. 134. The powers to sanction the undertaking a work for which an

honorarium is offered and to the grant and acceptance of an honorarium have been
delegated to the Ministries and Heads of Departments upto a maximum of
Rs. 2000 and Rs. 1000 in each case respectively vide item No. 19 of Annexure II
to the Finance Division O. M. of 11th March, 1981. The amount should not exceed
one month's pay of the Government servant concerned on each occasion. In the
case of recurring honoraria, this limit applies to the total of recurring payments
made to an individual in a financial year. The power will be exercised subject to
the condition that the relevant rules and policy instructions issued by the Finance
Division from time to time are duly observed and that the grant of honorarium is
not used as a device to compensate a Government servant for special pay etc. not
admissible under the rules. No expenditure should be incurred on honoraria in
excess of the budget provision. If such provision becomes necessary at some stage
prior concurrence of the Financial Adviser will be necessary before such expen-
diture is incurred.

267

7. 135. The honoraria received by the Government servants on account of

their appointment as Examiners, Paper Setters or on the viva voce Boards in
connection with recruitment examination held by the Federal Public Service
Commission or the Provincial Public Service Commissions do not require a
separate sanction of the Government. Once the departments concerned have
agreed to their appointment as such, the sanction for honorarium is automatically
implied.

7. 136. There is no objection to the payment of honorarium to the heirs of a

deceased Government servant.

7. 137. The Government servant do not require any special permission to

receive: ?
(a) the premium awarded for any essay or plan in public competition;

(b) any reward offered for the arrest of a criminal or for information or
any special service in connection with the administration of

justice:

(c) any reward payable in accordance with provision of any Act or

Regulations;

(d) any reward sanctioned for services in connection with the adminis-
tration of the Customs and Excise Laws; and

(e) any fees payable to a Government servant for duties which he is

required to perform in his official capacity under any special or
local law or by order of Government.

7. 138. Under F. R. 48-A, a Government servant whose duties involve the

carrying out of scientific and technical research shall not apply for directly or
indirectly, a patent for an invention made by him except with the permission of
the Local Government and under such conditions as may be imposed by them. If
a question arises as to whether a Government servant is a Government servant to
whom Rule 48-A applies, the decision of the Local Government in this behalf will
be final.

Combination of appointments (F. R. 49):

7. i 39. A Government servant may be appointed by a competent authority

to hold substantially as a temporary measure or to officiate in two or more
independent posts at one time and may draw pay as follows:

(a) the highest pay to which he would be entitled under the rules, if his
appointment to one of the posts held by him stood alone;

268

(b) for each other post held by him the competent authority may allow
him to draw such reasonable pay, as it may fix subject to the condi-
tion that it should not exceed half the presumptive pay of the post.
The. term reasonable does no! mean that half the salary should be
allowed automatically, rather it should be as deemed 'reasonable'
under the circumstances, subject to a maximum of 50%; and

(c) if compensatory or sumptuary allowances are attached to one or

more of the posts, he may be allowed such compensatory allowance
or sumptuary allowance as may be fixed by the competent
authority subject to the condition that such allowances should not
exceed the total of the compensatory and sumptuary allowances
attached to all the posts.

7. 140. The provisions of F. R. 49 were considered to be unduly liberal and

extravagant by the late Government of India as far back as in 1931 vide Finance
Department O. M. No. F. 15 (11) RI/31 dated 2nd June, 1931. It was. therefore,
suggested that one way of avoiding claims to extra-remunerations could be to
refrain from formally appointing the officer to the additional post or posts. But if
it was found that the extra duties were such as to justify additional pay or there
was a legal necessity of making a formal appointment, then this could be done. In
that event the officer could draw the pay of the higher of the two posts and
granted additional pay which should not ordinarily exceed one fifth of the pay of
the lower post.

7. 141. The late government of India also decided vide their O. M. No.
12(37) W. 11/45, dated 5th October, 1945 read with Office Memorandum No. F.
7(3) E. II/46 dated 26th September, 1946 that posts which fell vacant for a period
of two months or less should ordinarily be held in abeyance and an officer
appointed to hold current charge of the routine duties of the post in addition to his
own dures. He could be granted a special pay equal to 20 per cent of his pay sub-
ject to a maximum of Rs. *[ 1500 per month.

7. 142. (a) The Establishment Division in their O. M. No. 1/21/76-AR. I/R.

II dated 18th June, 1980, have observed that under the existing instructions all
appointments by promotion in higher posts are to be made through regular selec-
tion process, i. e. with the approval of the Central Selection Board/ Departmental
Promotion Committee and the authority competent to make appointment to the
grade in which the vacancy exists. However, in those cases where a vacancy in
higher post occurs for less than two months and it is considered impossible for
good reasons to make arrangements for day to day work of that post to be carried
on otherwise the current charge of the duties of that post may be given temporarily,
with the approval of the authority competent to make appointments to the said

?Revised vide Finance Division O. M. No F-II(7) R3/2000 danced 6-5-2000.

269

post, to the senior most officer in the cadre present at the place or in the organi-
zation where the vacancy may have occurred if he is otherwise fit and eligible for
promotion.

(b) Situations arise in various departments where higher posts have to

be filled urgently for short periods independently of the normal promotion and
appointment procedure which takes time. In order to overcome the difficulty the
President has been pleased to delegate the power to make current charge appoint-
ments as follows: ?

(i) Secretaries/Additional Secretaries. (ii) Heads of Attached Departments not

below B-21 For BPS-17 to
including Chairman, FPSC and Chairman BPS-20.
Federal Inspection Commission in respect of
their own Officers.

(iii) Auditor-General of Pakistan, for Pakistan Audit"

Department.

(iv) Military Accountant General for Military

Accounts Department.
(v) Member Finance, Railway Board for Railway
Audit Department.

(vi) Head of Department as defined in S. R. 2(10)

Upto BPS-20

For BPS-17 &

not below B-20. 18.

(c) The exercise of the powers so delegated would be subject to the

observance of the following conditions: ?

(i) the arrangements should not be made for a period of less than one
month and should not exceed 3 months. However, it may be extend-
ed by another three months with the approval of the next higher
authority;

(ii) as soon as the current charge is given, a proposal for regular

appointment should be initiated and referred to DPC/CSB within a
month; and

(iii) in making current charge arrangement, the senior most officer avail-
able in the organization and present at the place where the vacancy
may have occurred, if he is otherwise fit and eligible for promotion
should be considered.

[Establishment Division O. M. No. 1/2I-76-AR. 1/R. II. dated 18-6-1980 as amended vide O. M. of
even No.

dated. 10-4-1981].

270

7. 143. *[The competent authority has been pleased to enhance w. e. f. 1st

January, 2000 the maximum limit of Rs. 1100/- to Rs. 1500/- p. m. on account of
special allowance for holding additional charge appointment of identicai/non-
identical post and that of special pay for holding current charge appointment],
subject to the fulfilment of the following conditions: ?

(i) The work of the vacant post, as far as possible, be distributed among
more than one Government Servant of the same status and designa-
tion available in the Ministries/Divisions/Departments.

(ii) Where the distribution of the work among more than one
Government servant is not feasible, the charge of the vacant post
may be entrusted, in its entirely, to another Government Servant.
This arrangement should not be made for a period less than one
month and should not exceed three months and it should be allowed
with specific approval of the Secretaries/Additional Secretaries/
Heads of Attached Departments/Heads of Departments not below
BPS-21. However, it may be extended by another three months with
the approval of next higher authority.

(iii) Immediately on the expiry of six months of the full additional

charge of the particular vacant post, the post shall be treated as
having been abolished and its duties automatically becoming part of
the normal duties of the other existing posts of the same category in
the Divisions/Departments concerned. The post so treated as
abolished shall not be revived without the concurrence of the
Financial Adviser concerned.

**(iv) [Where the services of judicial officers and supplementary staff are
borrowed by the Federal Government to perform duties in addition
to their own duties in Special Courts and Tribunals established for
specified periods, the period of additional charge (beyond six
months) may be continued with the approval of the authority which
appointed such judicial officers in Special Courts in addition to their
original appointments. I

[Finance Division O. M. No F. 2(9) R-3/85. dated 18-3- 1987].

Deputation out of Pakistan

(F. Rs 50 & 51):

7. 144 Before Independence the deputation of Government servants to

whom the Fundamental Rules apply was regulated in accordance with
F. Rs. 50 & 51. In those days deputation outside the country was rare and privi-
lege of a few persons. After Independence the situation changed and a large num-
ber of Government servants were required to go abroad to attend international

?Revised vide Finance Division's O. M. No. F. 11(2) R.. 3/2000, dated 0-5-2000
**Added vide Finance Division's O. M. No. F 3(22) R. 3/94, dated 26-5-1994.

271

conferences or meetings or on other diplomatic or trade missions. As the provi-

sions contained in the Fundamental Rules 50 &. 51 were inadequate to meet the
changed circumstances, revised orders were issued to regulate the case of deputa-
tion abroad of Government Servants. The revised rules may be found in Appendix
7 of the Compilation of Fundamental and Supplementary Rules?Volume II. The
powers to sanction deputation abroad of Government servants are contained item
45 of Annexure-II to the Finance Division O. M. No. F-l(5) R-12/808,
dated 11th March, 1981.

7. 145 In terms of these orders the Government servants may be sent out of
Pakistan on temporary duty with the sanction of the President. While abroad they
are treated on duty and entitled to the pay and allowances as would have been
admissible to them, but for their deputation abroad. There are, however, certain
restrictions on the drawal of pay in the foreign currency. A Government servant
on temporary duty abroad can draw 50% of his pay in foreign currency subject to
a maximum of Rs. 1, 400 in a calendar month. Those in receipt of pay upto
Rs. 850 per month may draw their pay in foreign currency at the rate of Rs. 425
per month or their actual pay. whichever is less.
7. 146 The officers proceeding abroad on temporary duty are categorised
as follows: ?

(i) Cabinet Ministers; Heads of Diplomatic Missions within their juris-

diction; Chief of Staff, Pakistan Army, Air Force and Navy;
Members of the National Assembly/Senators, officers in Basic Scale
21 and above and non-official leaders of delegation. [Finance
Division O. M. No. (148) R-10/868 dated 22nd March, 1987].

(ii) Officers in Basic Scale 20, Heads of Missions outside their jurisdic-
tion, and Ministers (diplomatic rank); Military Officers of the rank
of Major General and above; and non-officials other than leaders of
delegations.

(iii) Employees in Basic Scales 17?19 excluding officers who draw pay
in Basic Scale 17 by move over.

(iv) Officers in Basic Scale 16 and below; military officials of corre-

sponding rank.

7. 147 When travelling abroad by air, road or sea each officer will be
entitled to actual cost of passage by public transport in accordance with the class
of accommodation to which he is entitled in Pakistan. Non-official will, for this
purpose, be treated as officers of the 1st category (for purposes of T. A. in
Pakistan). When travelling abroad by rail officials or non-officials will be entitled
to actual fare of the class to which they are entitled. Travelling by sea will not be
undertaken except with the prior permission of the Head of Department and in the
case of Head of Missions, the Ministry of Foreign Affairs; the permission will not

272

be accorded except for valid reasons and after taking into account the extra cost
involved (excluding pay drawn during the journey period). The officers of the
Federal Government of the rank of Joint Secretary and above may travel in 1st
class by air when travelling abroad. If an officer travels by rail and a night
journey is involved he may claim the cost, if incurred, of sleeper accommodation.

7. 148 During travel, carriage of luggage will not be allowed at

Government expense and reimbursements may be claimed in respect of official
records and equipment carried for purposes of official work, but prior permission
of the competent authority should be obtained in this regard. The officers of
category I may, however, claim reimbursement of excess baggage fare upto a total
of 80 pounds (or 36 kilograms) of luggage (including the free allowance on air
tickets for journeys performed by air).

7. 149 In respect of each night spent at a place of halt, outside the head-
quarters on official duty, daily allowance shall be admissible in accordance with
the rates sanctioned by the Government from time to lime. Except for category
(I), the daily allowance rates are consolidated rates to cover the cost of accom-
modation and meals etc. Whenever the period of continuous stay at one station
exceeds 28 nights, the rate of daily allowance will be reduced by 10% beyond the
period of 28 nights. If the duration of halt exceeds 56 nights, the rate will be
reduced by 15% beyond the period of 56 nights.
7. 150 In case of category I, the accommodation will consist of a room plus
bath room in a 1st class hotel, except where for representational reasons a suit of
room has to be hired but the cost of accommodation should ordinarily not exceed
the daily allowance rate admissible to category II officer at that station. The
payment of accommodation so booked by the Embassy will initially be made by
the mission but will be charged to the budget allocation/foreign exchange quota
of the Ministry/Department concerned. It is permissible to an officer of category
I to convert himself to category II at his option. The accommodation for category
I officers should normally be arranged by the Pakistan missions at the stations.
Where accommodation in a hotel is not arranged by the Pakistan Embassy
concerned and the official concerned stays in a hotel under his own arrangement,
in addition to the daily allowance for category I, he is entitled to be allowed
reimbursement of the actual charges of single room accommodation not exceed-
ing the amount of daily allowance admissible to a category II officer on produc-
tion of hotel bills. If hotel bills are not produced daily allowance shall be
admissible at the category II rates. In such a situation the concerned officer will
be allowed advance of foreign exchange equal to daily allowance of category I
plus category II and this advance shall be adjusted on return of the officer to
Pakistan producing the hotel bills.

7. 151 Whenever, the officer is a State Guest, i. e., when the expenses for
his accommodation and meals, etc., are paid for by another Government or

273

International organisation the daily allowance admissible will be 30% of the

normal rate at the station concerned.

7. 152 During the transit by air if an over-night journey is involved, the

daily allowance shall be admissible at 30% of the rate of the daily allowance. At
the outward journey daily allowance will be allowed for each day of transit at the
rate of 30% of the daily allowance admissible at the next place of duty. On return
journey 30% of daily allowance will be allowed for each day of transit at the rates
admissible at the place where he last stayed on duty.

7. 153 In the absence of specific orders to the contrary officials or non-

officials accompanied by wives will receive charges only for single accommoda-
tion. Anything extra will be paid by the person concerned.

7. 154 The actual expenditure incurred
taxi hire and porterage, etc., at the place of
concerned upto a maximum of 15% of the
that station. This will not be admissible to
treated State Guests.
abroad on incidental items like tips,
halt will be reimbursed to the person
rate of daily allowance admissible at
those Government servants who are

7. 155 The extra amount spent by a Government servant proceeding abroad

on the purchase of foreign exchange in the form of Travellers Cheques equivalent
to the amount of daily allowance in U. S. Dollars against the advance of daily
allowance sanctioned to him, shall be reimbursed on production of necessary
receipt.

7. 156 The daily allowance in Pakistan rupees will be calculated on the

basis of selling rates applicable to U. S. Dollar in cash or travellers cheques on the
date of purchase as notified by the State Bank of Pakistan. Original receipt from
the Bank from which foreign exchange has been purchased will be attached with
the T. A. Bill.

7. 157 Terms Admissible to civil servants proceeding abroad to participate

in Seminars and symposia, etc. ?The civil servants deputed abroad for participa-
tion in symposia, seminars, study tours and the like are normally provided board
and lodging by the sponsoring foreign Governments and agencies at their
expense, but no cash payment is made to meet out-of-pocket expenses. Some time
the facilities provided are net adequate and suitable Government subsidy is nec-
essary. Such cases should be regulated as indicated below: ?

Facility offered Government subsidy

1. Board plus lodging. 1. 30% of the normal rate of daily

allowance prescribed for the sta-

tion concerned.

274

2. Board plus lodging and cash

payment.

3. Furnished accommodation
(including water, electric. Gas,
washing facilities).

4. Cash payment plus lodging

but no board.

2. Nothing if cash payment is equal to

30% of normal rate of daily
allowance or more. If cash pay-
ment offered is less than 30% of
daily the difference between 30%
and such cash payment.

3. 50% of the normal rate of daily

allowance.

4. 50% of the normal rate of daily

allowance less cash payment
offered.

5. Cash payment plus board but 5. 80% of daily allowance less cash
no lodging. payment offered.

no lodging.

6. No board, or lodging or cash

payment.
7. Cash payment but not board
or lodging.

8. Free transport (normally to be

met out of cash payment with
or without any other facility).

6. Full daily allowance (as at pre-

sent).

7. Full daily allowance less cash pay-

ment offered.

8. 10% to be deducted from the

admissible amount (as above)
of daily allowance.

[Finance Division O. M. No. F. 3(2)-R-10/76-958 dated 31-3-1977].

7. 158 The payment of subsidy will be subject to the following conditions: ?

(i) All cases of participation in seminars abroad in which financial

liability of Government of Pakistan in terms of Finance Division's
O. M. No. F. 3(2) R-10/76-958, dated 31st March, 1977 is involved
will be sent to Cabinet Division after obtaining prior clearance of
the Finance Division (Regulations Wing).

(ii) Cabinet Division may incorporate in their clearance/sanction the

condition of admissibility or otherwise of difference of daily
allowance while according Government's no objection to the
proposed participation.

(iii) No difference of daily allowance will be allowed on return of an

officer after participation in seminars etc. abroad.

275

(iv) The AGPR/State Bank of Pakistan will not allow payment on

account of difference of D. A. unless the claim is backed up by
specific clearance from Finance Division.

[Finance Division O. M. No. F. 3(15) R-10/850, dated 4-2-1987. ]

Dismissal (F. R. 52):

7. 159 A Government servant ceases to draw the pay and allowances of his
post from the date of his dismissal or removal from service.

Suspension and Reinstatement (F. R. 53):

7. 160 During the period of suspension Government servants are entitled to

the following payments: ?
(a) In case of employees of the Armed Forces who are liable to revert
to Military duty, they are entitled to pay and allowances to which
they would have been entitled, had they been suspended while in
military employment.

(b) In the case of a Government servant under suspension, other than

that specified in clause (a), he shall be entitled to full amount of his
salary and all other benefits and facilities provided to him under the
contract of service, during the period of his suspension.

[Establishment Division O. M. No. 9/80/79-CII(A) dated 28-12-1978. ]

7. 161 (a) A Government servant committed to prison either for debt or on

a criminal charge should be considered as under suspension from the date of his
arrest and until the termination of the proceedings against him, i. e., his suspension
is automatic from the date of arrest till termination of proceedings against him.

(b) A Government servant against whom a criminal charge or proceed-

ing for arrest or debt is pending should also be placed under suspension by the
issue of specific orders to this effect during periods when he is not actually
detained in custody or imprisoned (e. g. whilst released on bail) if the charge made
or proceeding taken against him is connected with his position as a Government
servant or is likely to embarrass him in discharge of his duties as such or involves
moral turpitude; and

(c) The requirement of obtaining approval of authority for extension of

suspension period after every 3 months laid down in Government Servants
(Efficiency and Discipline) Rules, 1973, does not apply to suspensions ordered,
under these rules. Article 194 or 194-A do not mention any such requirement.

?Subs made finance Division Gazette Notification S. R. O. No. 1173(I)/94. dated 21-9-1999.

276

7. 162 (F. R. 54): In cases, where the suspension of a Government Servant

is held to have been unjustifiable or not wholly justifiable or he is re-instated after
being dismissed, removed from service or suspended, the revising or appellate
authority may grant him the following pay and allowances for the period of
absence: ?-

(a) If the Government servant has been honourably acquitted, he may

be given the full pay to which he would have been entitled but for
his dismissal, removal or suspension. The period of absence in such
cases is treated as spent on duty. For this purpose F. R. 54 should be
treated as absolute and unconditional and no question should be
raised as to whether there was a post or not against which he could
be adjusted for the period of his absence or that he had no longer any
lien and another Government servant was appointed substantially in
his place. If the condition of lien had first to be satisfied the rule
would not have been absolute.
(b) Where a Government servant has not been honourably acquitted he
may be granted such portion of pay as may be prescribed by the
competent authority. In this case the period of absence is not treat-
ed as spent on duty unless the revising or appellate authority directs
that it should be treated as duty. The competent authority may also
direct that the period spent under suspension may be regarded as
leave and the Government servant paid leave salary as permissible
under the rules. The period of suspension can be treated even the
extraordinary leave, but in such a case no recovery will be made for
the subsistence grant and allowances already paid to the suspended
Government servant. It has been held that F. R. 54 permits an appel-
late authority to convert a period spent under suspension into one of
leave.

[Finance Division O. M. No. F. 8(12) PR 2(RWP)/62. dated 29-9-1962. ]

(c) The amount of arrears payable to the Government servant con-

cerned whether he is reinstated as a result of a Court judgement or
acceptance of his appeal by the departmental authority, will be
reduced by the amount earned by way of salary or as profit on
account of his having accepted some employment or been engaged
in some profitable business during the period he remained dis-
missed, removed or suspended, and for the determination of the said
amount a committee will be constituted consisting of two officers of
the administrative Division and a representative of the Finance
Division.

(Finance Division Notification No. S. R. O. 45 (KE)/80, dated 4-9-1980]

277

7. 163 F. R. 54-A: (i) If a Government servant, who has been suspended

pending inquiry into his conduct attains the age of superannuation before the com-
pletion of inquiry the disciplinary proceedings against him will abate and such
Government servant will retire with full pensionary benefits and the period of sus-
pension will be treated as period spent on duty.

[Finance Division Notification No. 12(8) Reg 6/79 dated 19-11-1980]

(ii) The posts vacated by dismissed Government servant may be filled

substantively, but such arrangements have to be reversed if the dismissed
Government servant is reinstated on appeal.

7. 164 F. R. 55: No leave may be granted to a Government servant under

suspension.

Compulsory Retirement (FR 56 & 57):

7. 165 The retirement from service is now regulated under section 13 of

the Civil Servants Act, 1973 (Act No. LXXX1 of 1973) instead of F. Rs 56 and 57.
In terms of this section, a civil servant shall retire from service: ?
(i) in case of an officer holding the post of Additional Secretary to the
Federal Government or any equivalent or higher post, on such date
as the competent authority may, in the public interest direct;

(ii) in any other case on such date after he has completed *[twenty]
years of service qualifying for pension or other retirement benefits
as the competent authority may, in the public interest, direct; or

(iii) where no order has been passed under (i) & (ii) above on the com-
pletion of sixty years of age.

The competent authority for the aforesaid purposes means appointing

authority or a person duly authorised by the appointing authority in that behalf,
not being a person lower in rank than civil servant concerned.

7. 166 Leave preparatory to retirement can be granted only if the

Government servant applies for it.

[Finance Division No. F. 4(3)-RS766, dated 30-4-1966].

A question was raised whether it is permissible to grant leave to a

Government servant who, in exercise of the right conferred by para 5 of this

?Subs, vide Ordinance No XXXIV of 2001 promulgated on 4-8-2001.

278

Ministry's Office Memorandum No. CB/12/63-Imp (I), dated the 18th August,
1966, might apply for retirement after completing 25 years qualifying service, but
before attaining the age of superannuation. It has been held, in consultation with
the Establishment Division, that such a Government servant may be granted leave
as is due and admissible under the rules applicable to him, provided:

(i) that the leave is applied for sufficiently in advance of the date from
which the retirement is sought to be effective;

(ii) that the leave does not exceed the leave which could be granted
under the relevant rules, as leave preparatory to retirement; and

(iii) that the grant of leave will be subject to provision of F. R. 67.

[Finance Division U. O Note No. I094-R-I/67, dated 2-8-1967].

7. 167 If any Government servant seeks employment during leave prepara-

tory to retirement under the Central or a Provincial Government or in an
autonomous or semi-autonomous corporation or body set up by, or under the
Control of the Central or a Provincial Government or in a local body or a local
fund, his leave salary shall be restricted to the amount of anticipated pension in
accordance with Government decision below F. R. 69.

[Finance Division No. F. 4(3)-RS/66, dated 17-11-1966].

LEAVE RULES
Title (F. Rs. 66 to 68):

7. 168 Leave is earned by a Government servant by the period of duty only.

The leave cannot be claimed as a matter of right. In the exigencies of public
service a competent authority has every right to refuse or revoke the leave of any
kind. This discretion, however, does not entitle an authority to alter the nature of
leave applied for. The grant of leave can be refused but the nature of leave, applied
for, cannot be altered under any circumstances.

7. 169 During the period of foreign service, a Government servant will not
earn any leave under the Government. His leave terms during the period of for-
eign services will be regulated by the leave rules of the foreign employer.

7. 170 If a Government servant, who quits the public service on compen-

sation or invalid pension or gratuity, is re-employed and if his gratuity is there-
upon refunded or his pension held wholly in abeyance, his past service thereby
becoming pensionable on ultimate retirement, he may, at the discretion of the

279

authority sanctioning the re-employment and to such extent as that authority may
decide, count his former service towards leave.

7. 171 A Government servant who is dismissed or removed from the pub-

lic service, but is reinstated on appeal or revision, is entitled to count his former

service for leave.

7. 172 Resignation of the public service, even though it is followed imme-

diately by re-employment, should entail forfeiture of past service for the purpose
of leave under the Fundamental Rules and should, therefore, constitute an 'inter-
ruption of duty' for the purpose of 'Supplementary Rules 286'.

Employment during leave (F. R. 69):

7. 173 A Government servant is not permitted to accept any employment

during the period of leave. A competent authority may, however, permit him
to do so.

7. 174 If any Government servant seeks employment during leave prepara-

tory to retirement under the Central or a Provincial Government or in an
autonomous or semi-autonomous corporation or body set up by, or under the con-
trol of the Central or a Provincial Government or in a local body or a local fund,
his leave salary should be restricted to the amount of pension to which the
Government servants will be entitled on retirement.

Return from leave on Medical Certificate (F. R. 71):

7. 175 If a Government servant is granted leave on medical certificate, he

cannot be permitted to return to duty without first producing a medical certificate
of fitness in such form as may be prescribed by the competent authority. A
Government servant who is granted leave for reasons of health may also be
required to produce a medical certificate of fitness irrespective of the fact whether
leave was granted to him with or without a medical certificate.

Lapse of leave (F. R. 86):

7. 176 The leave at the credit of a Government servant in his leave account
shall lapse on the date of compulsory retirement.

Affixation of holidays (S. Rs. 209 to 211):

7. 177 Leave ordinarily commences from the day following that on which
transfer of charge is effected and ends on the day preceding that on which charge
is resumed.

280

7. 178 Where the day immediately preceding the day on which the
Government servant's leave begins or immediately following the day on which
the leave expires is a holiday or one of a series of holidays, the Government ser-
vant may leave his station at the close of the day before or return to it on the day
following such holiday or holidays. This is, however, subject to the condition that
where holidays are prefixed or suffixed to leave, the leave and consequent
arrangements of pay and allowances will take effect from the first day after the
holidays or the last day before the holidays, respectively. In the order for the grant
of leave mention should be made regarding the permission to the Government ser-
vant to prefix or suffix holiday or holidays as the case may be.

Leave Account (F. R. 76):

7. 179 The leave account of a gazetted Government servant is maintained

by the audit officer concerned. The leave account of a non-gazetted Government
servant is maintained by the head of the office in which he is employed. The leave
account in case of those Government servants who have elected the Revised
Leave Rules, is maintained in Form ATC-8.

Disability Leave (F. R. 83):

7. 180 All Ministries/Divisions may grant special disability leave to a gov-

ernment servant who is disabled by injury intentionally inflicted or caused in, or
in consequence of, in due performance of his official duty or in consequence of
his official position. This leave is granted only when the disability manifested
itself within 3 months of the occurrence to which it is attributed. If, however, the
President is satisfied as to the cause, the disability leave may be granted in those
cases also where the disability manifested itself more than 3 months after the
occurrence of the cause.

7. 181 The period of leave will be such as is certified to be necessary by a

medical board. Any extension of the leave will be permissible on the certificate of
the medical board. The total leave should not exceed 24 months.

7. 182 Special disability leave can be combined with any other kind of
leave. This may be granted more than once if the disability is aggravated or repro-
duced in similar circumstances at a later date but not more than 24 months leave
will be granted in consequence of any one disability. The leave is counted as duty
in calculating service for pension and is not debited to the leave account. Leave
salary during disability leave shall be equal to full pay for the first 180 days and
half pay for the balance period.

7. 183 The special disability leave may also be granted to a Government

servant who is disabled by injury accidentally incurred or incurred in or in

281

consequence of due performance of his official duties, or in consequence of his

official position or by illness incurred in the performance of any particular duties
which has the effect of increasing his liability to illness or injury beyond the
ordinary risk attaching to the civil post which he holds. The disability due to
disease should, however, be certified by medical board to be directly due to the
performance of the particular duty and the President should be convinced that the
disability was so exceptional in character or that the circumstances of its occur-
rence were such as to justify such unusual treatment as the grant of disability
leave.

Study Leave (F. R. 84 & Appendix 9 of Vol-II):

7. 184 Study leave may be granted to Government servants to enable them

to study scientific, technical, or similar problems or to undergo special courses of
instructions, such leave is not debited against leave account.

7. 185 Study leave is granted on half pay and the maximum period should
not exceed 2 years. Extraordinary leave may also be combined with the study
leave and in that case the condition of the maximum period will not apply.

7. 186 During the study leave a study allowance at the prescribed rates is
granted for the period spent in prosecuting a definite course of study at a recog-
nised institute.

Casual Leave:

7. 187 The casual leave is not treated as absence from duty and the pay of
the Government servant is not intermitted. The grant of casual leave is always
subject to the condition that it does not cause evasion of the rules regarding date
of reckoning pay and allowance, charge of office, commencement and end of
leave and return to duty.

7. 188 The maximum period of casual leave admissible during a calendar

year is 20 days. Any balance of casual leave not availed of lapses with the end of
a year. The casual leave cannot be combined with any other type of leave or join-
ing time.

Quarantine Leave (App. 3 F. R. & S. R. Vol-II):

7. 189 Quarantine leave is in the nature of extra casual leave and is grant-
ed on account of absence from duty necessitated by order not to attend office in
consequence of infectious disease in the family, or household of a Government
servant. Infectious diseases are; cholera; smallpox; plague; typhus fever;
cererospinal meningitis or any other disease declared as infectious by the

282

Government. The quarantine leave may be granted by the Head of the office on a
certificate of a medical or public health officer. Normally the period of quarantine
leave should not exceed 21 days, but in exceptional circumstances it can extend
upto 30 days. Any further leave required in excess of this period should be treat-
ed as ordinary leave as admissible to a Government servant. The quarantine leave
may also be granted in combination of other leave subject to the maximum
referred to above. A Government servant on quarantine leave is not treated as
absent from duty and his pay is not intermitted.

7. 190 A civil servant may be granted quarantine leave outside his leave
account to the extent that his authorised medical attendant recommends and the
period of such leave is treated as duty with full pay and allowances of the post
held by him at the time of proceeding on leave.

Authorities Empowered to Grant Leave

(S. Rs. 206 to 207):

7. 191 Excepting the disability leave, any leave may be granted to non-
gazetted Government servant by an authority who is competent to fill up the post
by the person if it was vacant. In case of a Gazetted Officer no leave can be grant-
ed until a report on the title to leave has been obtained from the audit officer con-
cerned. But in case of leave on full pay not exceeding 120 days, other than leave
preparatory to retirement, it can be granted to him if the Government servant con-
cerned records a certificate to the effect that the leave applied, is due to him and
the sanctioning authority is also satisfied on the basis of the facts known to him
that the leave is admissible.

Leave on Medical Certificate

(S. Rs. 220 to 231):

7. 192 In all cases where there is no reasonable prospect of a Government

servant being fit to resume the duty the medical officer should not recommend the
grant of leave. In all such cases the opinion that the Government servant is
permanently unfit for Government service should be recorded in the medical
certificate. Every medical certificate implies that no recommendation for leave
mentioned therein will be evidence to claim to any leave not admissible to the
Government servant under the rules.

7. 193 Before any Gazetted Officer is granted his leave or extension of

leave on medical certificate he should obtain a certificate in the form prescribed
in S. R. 222 from the authorised medical attendant. Any leave granted to him will
be on the basis of the certificate issued by the medical committee on the form pre-
scribed in S. R. 224 or 226 as might be the case. The grant of such a certificate
does not in itself confer upon the Government servant any right to leave. In case

283

of a non-gazetted Government servant the medical certificate can be signed by a

registered medical practitioner.
7. 194 The leave applied for on medical certificate cannot be refused. The
authority competent to sanction leave may, however, at its discretion, secure a
second medical opinion by requesting the Civil Surgeon or medical board, as the
case may be, to have the applicant medically examined. The form of certificate
has been prescribed in S. R. 229.

7. 195 No Government servant who is granted leave on medical certificate

will be permitted to resume duty unless a certificate of fitness from an authority
of an equal status, which granted the medical certificate is obtained and produced
to the department concerned.

Grant of Leave (S. Rs. 232 to 234):

7. 196 In case where all applications for leave cannot be granted on

account of the exigencies of public service a competent authority, in deciding as
to which applicant should be granted leave, should take into account the follow-
ing considerations: ?

(i) The Government servant who can for the time being best be spared.
(ii) The amount of leave due to the various applicants.

(iii) The amount and character of the service rendered by each applicant
since his last return from leave.

(iv) The fact that any applicant was recalled from last leave.

(v) The fact that any such applicant has been refused leave previously
in the interest of public service.

The Revised Leave Rules, 1980:

7. 197 Leave is admissible to a civil servant and granted to him by the com-
petent authority at the following rate and scale: ?

(i) Leave on full pay. ?A civil servant will earn leave only on full pay.
It is to be calculated at the rate of four days for every calendar
month of the period of duty rendered and credited to the leave
account as "Leave on full pay"; duty periods of 15 days or less in a
calendar month being ignored and those of more than 15 days being
treated as a full calendar month for the purpose. If a civil servant

284

proceeds on leave during a calendar month and returns from it dur-

ing another calendar month and the period of duty in either month
is more than 15 days, the leave to be credited for both the incom-
plete months will be restricted to that admissible for one full calen-
dar month only.

(ii) Accumulation. ?There is no maximum limit on the accumulation of

such leave.
(iii) Vacation Department. ?The provision in (i) above will not apply to
a vacation department: in its. case, a civil servant may earn leave on
full pay (a) when he avails himself of full vacation in a calendar
year?at the rate of one day for every calendar month of duty
rendered, (b) when during any year he is prevented from availing
himself of the full vacation?as for a civil servant in a non-vacation
department for that year, and (c) when he avails himself of only a
part of the Vacation?as in (a) above plus such proportion of thirty
days as the number of days of vacation not taken bears to the full
vacation.

Grant of Leave:

7. 198 (i) Leave on full pay. ?The maximum period of leave on full pay
that may be granted at one time will be as follows: ?

(a) Without medical certificate =120 days

(b) With medical certificate = 180 days

plus

(c) On medical certificate from leave = 365 days

account in entire service.

If some one has already availed himself of this concession under the
previous leave rules, that period would be debited to the maximum
of 365 days.

(ii) Leave on half pay. ?(a) Leave on full pay may be converted into
leave on half pay, at the option of the civil servant; the debit to the
leave account will be at the rate of one day of the former for every
two days of the latter, fraction of one-half counting as one full day's
leave on full pay. The request for such conversion will be specified
by the civil servant in his application for the grant of leave.

(iii) Leave preparatory to retirement. ?The maximum period upto

which a civil servant may be granted leave preparatory to retirement

285

will be 365 days. It may be taken, subject to availability, either on

full pay, or partly on full pay and partly on half pay, or entirely on
half pay, at the discretion of the civil servant.

Counting of Leave:

7. 199 Leave may be applied for, expressed, and sanctioned, in terms of

days.

Carry forward of leave:

7. 200 All leave at credit in the account of a civil servant who was in ser-
vice on the 1st July, 1978 is to be carried forward and expressed in terms of leave
on full pay.

The leave account in such cases will, with effect from 1st July, 1978 or in
the case of civil servant who was on leave on that date with effect from the date
of his return from leave, be recast as under: ?

(i) LAP

(a) 1 month = 30 days

(b) 1 day = 1 day

(ii) LHAP

(a) 1 month = 15 days

(b) 2 days = 1 day

Fractions if any, will be ignored.

Recreation Leave:

7. 201 It may be granted for 15 days in a calendar year, the debit to the
leave account will, however, be for 10 days. This leave is not admissible to a civil
servant in the Vacation Department.

Leave not due:

7. 202 It may be granted to all Government servants on full pay, to be

offset against leave to be earned in
entire period of service, subject to
service it shall not exceed 90 days
on half pay. It will be granted only
servant resuming duty. Such leave
tion of sanctioning authority.
future, for maximum period of 365 days in the
the condition that during the first 5 years of
in all. Such leave may be converted into leave
when there are reasonable chances of the civil
will be granted sparingly and to the satisfac-

286

Special leave:

7. 203 A female civil servant, on the death of her husband, may be granted
special leave on full pay, when applied for, not exceeding 130 days. This leave
shall not be debited to her leave account. Such leave will commence from the date
of death of her husband. She should produce the death certificate along with her
application for leave or separately.

Maternity Leave:
7. 204 A female Government servant may be granted maternity leave on
full pay for the period which may extend upto ninety days from the date of its
commencement or 45 days from the date of confinement whichever is earlier.
Leave of any other kind may be combined with the maternity leave. The maternity
leave may be granted to permanent as well as to temporary Government servants.
With the exception of the employees of Vacation Departments, maternity leave
may not be granted for more than three times in the entire service of a female civil
servant. For confinements beyond the third one the female civil servant would
have to take leave from her normal leave account. Spells of Maternity Leave
already availed of will be accounted for against the three times limit.

Extraordinary Leave (Leave without pay):

7. 205 (i) The Extraordinary leave may be granted on any ground upto a
maximum period of five years at a time, provided the civil servant to whom such
leave is granted has been in continuous service for a period of not less than ten
years. The maximum period of five years will be reduced by the period of leave
on full pay or half pay, if granted in continuation with extraordinary leave.
*[E. O. L of five years is admissible to a Government servant for each 'spell of ten
years of continuous service. If, however, a civil servant has not completed ten
years of continuous service on each occasion/time, E. O. L. without pay for a max-
imum period of two years, may be granted at the discretion of the head of his
Ministry/Division/ Department.

Maximum leave availed during one continuous period should also not
exceed 5 years. ]

(ii) This leave may be granted irrespective of the fact whether the civil
servant is a permanent or temporary Government servant.

(iii) The Authority empowered to grant leave may commute retrospec-

tively the periods of absence without leave into extraordinary leave (F. R. 85).

'Amended vide Finance Division O. M. No. F I(68)-R4/84 dated 2-7-1991.

287

7. 206 (a) Refusal of leave preparatory to retirement and Encashment of

Leave. ?(i) If in case of retirement on superannuation or voluntary retirement on
completion of thirty years qualifying service a civil servant cannot, for reasons of
public service, be granted leave preparatory to retirement duly applied for in sut
ficient time, he will in lieu thereof be granted lump sum leave pay for the leave
refused to him subject to a maximum of one hundred and eighty days leave on full
pay.

(ii) Such leave can be refused partly. & sanctioned partly but the cash
compensation shall be admissible for the actual period of such leave so refused
not exceeding one hundred and eighty days.

(iii) The payment of leave pay in lieu of such refused leave may be made
to the civil servant either in lump sum at the time of retirement or may, at his
option, be drawn by him month-wise for the period of leave so refused.
(iv) For the purpose of lump sum payment in lieu of such leave, only the
"Senior Post Allowance" will be included in "Leave Pay" so admissible.

(v) In case a civil servant on leave preparatory to retirement dies before

completing one hundred and eighty days of such leave, his family shall be
entitled to lump sum payment equal to the period falling short of one hundred and
eighty days.

(b) Power to refuse leave preparatory to retirement, etc: ?

(i) Ordinarily, leave preparatory to retirement shall not be refused.

(ii) All orders refusing leave preparatory to retirement to a civil servant

and recalling civil servant from leave preparatory to retirement shall
be passed only by the authorities specified below: ?

*[For civil servants in BPS-20 Chief Executive;

and above.

For civil servants in BPS-17 Appointing Authority

to 19. prescribed in rule 6 of the

civil Servants (Appoint-

ment, Promotion and
Transfer) Rules, 1973; and

*Amended vide Finance Division O. M. No. F1(2)R. 4/2000, dt. 21-2-2001.

288

For civil servants in BPS-16 Appointing Authority

and below prescribed in rule 6 of the

Civil Servants (Appoint-

ment, Promotion and
Transfer) Rules, 1973.

(iii) All proposals regarding refusal of Leave Preparatory to

Retirement to the Officers in BPS-17 and above shall be
submitted to the respective appointing authorities with
detailed justification atleast three months before the officer is
due to proceed on such leave. "].

(c) Option for Encashment of Leave preparatory to Retirement: ?

(i) a civil servant may, fifteen months before the date of superan-
nuation or thirty years qualifying service on or after the 1st
July, 1983 at. his option, be allowed to encash his leave
preparatory to retirement if he undertakes in writing to
perform duty in lieu of the whole period of three hundred and
sixty-five days or lesser period which is due and admissible.
*[Provided that a civil servant who does not exercise the
option within the specified period shall be deemed to have
opted for encashment of L. P. R. l.

This amendment shall be effective from the 5th March, 1990.

(ii) In lieu of such leave, leave pay may be claimed at any time
during the period at the rate of pay admissible at the time the
leave pay is drawn for the actual period of such leave subject
to a maximum of one hundred and eighty days. The rate of
leave pay will be the rate admissible on the date such leave
would have commenced. The leave pay may be drawn at any
time for the period for which duty has already been rendered.

[Finance Division Notification F. l(73)-R4/84, dated 15-10-19851.

A civil servant shall be entitled to the leave pay during the period of

leave at the revised rate of pay due to the general revision of pay of
civil servants with effect from the 1st June, 1994. The leave period
also includes the period of leave preparatory to retirement (LPR).

[Finance Division's O. M. No. F. 1(6)-R. 4/93 dated 26-l-1995.

?Added vide Finance Division S. R. O. 257(l)/90 dated 11-3-1990.

289

(iii) If at any time during such period leave is granted on account of ill
health supported by medical certificate or for performance of Haj,
the amount of cash compensation on account of leave pay will be
reduced by an amount equal to the leave pay for half the period of
leave so granted, for example, if an employee who has opted for
encashment of such leave, has taken sixty days leave, his cash com-
pensation equal to thirty days leave will be forfeited.

(iv) The civil servant will submit the option to the authority competent
to sanction leave preparatory to retirement, who will accept the
option and issue formal sanction for the payment of cash compen-
sation.

(v) For the purpose of payment in lieu of such leave, only the "Senior
Post Allowance" will be included in "Leave Pay" so admissible.

( Finance Division Notification No. F. l(73)-R4/84, dated 18-12-1984].

Reference Finance Division's O. M. No. F. l(19)-R3/83 dated 11-7-1984.

In case the leave of any kind including Extraordinary Leave without pay is taken
during the last 15 or 12 months by a retiring Government servant, who opts for
encashment of L. P. R. except on grounds contained in the above reference, the
period of such leave will be reduced from 180 days or lesser period for which the
encashment is allowed.
[Finance Division O. M. No. F. l(73)-R4/84 dated 10-12-1989].

Encashment of LPR upto 180 days will also be admissible to a civil

servant who renders 31 years or more qualifying service and who seeks voluntary
retirement on three month's notice in terms of Finance Division's O. M. No. 591-
R4/83, dated 4-9-1983 treating the last year of his service" (including the notice
period) as duty performed during LPR. It is further clarified that such a
Government servant would also be entitled to encash his LPR upto maximum of
180 days subject to the same terms and conditions as laid down in Rule 18-A of
the Revised Leave Rules, 1980 as amended from time to time read with Finance
Division's O. M. No. F l(19)-R3/83, dated 11-7-84 and F. l(73)-R4/84, dated
10-12-1989 respectively.

[Finance Division O. M. No. F. l(8)-R4/90 dated 2-6-1991].

In-service death:

7. 207 In case a civil servant dies, or is declared permanently incapacitated

for further service by a Medical Board while in service, a lump sum payment
equal to leave pay upto 180 days out of the leave at his credit will be made to his

290

'family' as defined for the purpose of family pension or as the case may be, to the
civil servant.

(Finance Division's Notification No. F. l(34)-R4/85, dated l-9-l985.

Indication of reasons of leave not necessary:

7. 208 It will not be necessary to specify the reasons for which leave has
been applied, so long as that leave is due and admissible to a civil servant. Leave
applied for on medical certificate will not be refused. The authority competent to
sanction leave may, however, at its discretion, secure a second medical opinion by
requesting the Civil Surgeon/Medical Board to have the applicant medically
examined.

Commencement/end of leave:

7. 209 Instead of indicating whether leave starts/ends in the forenoon or

afternoon leave may commence from the day following that on which a civil
servant hands over the charge of his post. lt may end on the day preceding that on
which he resumes duty.

Recall from leave:

7. 210 If a civil servant is recalled to duty compulsorily with the persona!

approval of the head of the his office from leave of any kind, that he is spending
away from his headquarters, he may be granted a single return fare plus daily
allowance as admissible on tour from the station where he is spending his leave
to the place where he is required to report for duty. In case he is recalled to duty
at headquarter and his remaining leave is cancelled the fare then admissible will
be for one way journey only. If return from leave is optional, no concession is
admissible.

Overstayal after Sanctioned Leave:

7. 211 Unless his leave is extended by the head of his office, a civil servant
who remains absent after the end of his leave is not entitled to any remuneration
for the period of such absence, and double the period of such absence will be
debited against his leave account. Such debit, if there is insufficient credit in the
leave account, be adjusted against further earning. Such double debit will not
preclude any disciplinary action that may be considered necessary under the rules.

Leave Salary:

7. 212 The leave salary on average pay is calculated on the basis of the
average pay drawn during the twelve complete months immediately preceding the

291

month in which the leave is taken or in the case of leave taken on or after 1st July,
1969 leave salary is admissible at a rate equal to the pay last drawn by the
Government servant before the commencement of the leave, if the same be more
than the average pay. Leave salary on half pay will be half of the average pay/pay
last drawn as mentioned above.

*[A civil servant shall be entitled to the leave pay at the revised rate of
pay if a general revision in pay of civil servants takes place or an annual incre-
ment occurs during the period of leave of the civil servant].

Leave ex-Pakistan:

7. 213 Leave on full pay may also be granted as leave ex-Pakistan to a civil
servant who applies for such leave or who proceeds abroad during leave, or takes
leave while posted abroad or is otherwise on duty abroad, and makes a specific
request to that effect. The leave pay to be drawn abroad shall, however, be
restricted to a maximum of Rs. 3, 000 per month. Such leave pay shall be payable
for the actual period, of leave spent abroad subject to a maximum of 120 days at
a time. The concession of drawing leave salary outside Pakistan is, however, not t
admissible to those Government servants who were appointed after the 17th May,
1958. They will draw their leave salary in Rupees in Pakistan irrespective of the
country where they spend their leave. Leave ex-Pakistan will be regulated and be
subject to the some limits and conditions as prescribed in rules 5, 6 and 9 of
Revised Leave Rules, 1980.

Combination of different type of leave:

7. 214 One type of leave may be combined with joining time or with any
other type of leave otherwise admissible. But the leave preparatory to retirement
cannot be combined with any other kind of leave.

Explanatory Instructions for filling up

the Leave Account Form:
7. 215 The leave account will be maintained for all civil servants of the
Federal Government who were in service on the 1st July, 1978 including those
who were on leave on that date and have not opted to retain the existing leave
rules and others, who enter service on or after 1st July, 1978.

7. 216 All leave at credit in the account of a civil servant who was in
service on the 1st July, 1978 shall be converted in terms of leave on full pay at the

?Amended vide Finance Division S. R. O. No. 1172(I)/94 dated 21-9-1994.

292
following rates: ?

(i) L. A. P.

(a) 1 month 30 days

(b) 1 day 1 day

(ii) L. H. A. P.

(a) 1 month 15 days

(b) 2 days 1 day.

(Fractions if any to be ignored).

7. 217 The leave account shall commence with an opening entry "Due on
1st July, 1978" or in the case of a civil servant, who was on leave on 1st July, 1978
with effect from the date of his return from leave. For the purpose of computing
the leave at credit, the service upto 30th June. 1978 will be taken into account. The
leave due in terms of leave on full pay in days will be noted in Column No. 21.

7. 218 (i) In calculating the leave earned on full pay at the rate of 4 days
for every calendar month the duty period of 15 days or less in a calendar month
shall be ignored and those of more than 15 days shall be treated as a full calendar
month for the purpose. If a civil servant proceeds on leave during a calendar
month and returns from it during another calendar month and the period of duty
in either month is more than 15 days, the leave to be credited for both the incom-
plete months will be restricted to that admissible for one full calendar month only.
There shall be no maximum limit on accumulation of this leave.

(ii) The provision in (i) above will not apply to a vacation department.
In its case, a civil servant may earn leave on full pay (a) when he avails himself
of full vacation in a calendar year?at the rate of one day for every calendar
month duty rendered (b) when during any year he is prevented from availing him-
self of the full vacation?as for a civil servant in a non-vacation department for
that year, and (c) when he avails himself of only a part of the vacation?as in (a)
above plus such proportion of thirty days as the number of days of vacation not
taken bears to the full vacation.

7. 219 (a) Leave on full pay may be converted into leave on half pay at the
option of the civil servant; the debit to the leave account will be at the rate of one
day of the former for every two days of the latter, fraction of one half counting as
one full day's leave on full pay. The request for such conversion shall be speci-
fied by the civil servant in his application for the grant of leave.

(b) There shall be no limit on the grant of leave on half pay so long as
it is available by conversion in the leave account.

293

7. 220 L. P. R. on full pay will be noted in column No. 10 while that on half
pay in columns No. 13 and 14.

7. 221 Leave not due may be granted on full pay to be offset against leave
to be earned in future for a maximum period of 365 days in the entire
period of service, subject to the condition that during the first five years of service
it shall not exceed 90 days in all. Such leave may be converted into leave on half
pay. It shall be granted only when there are reasonable chances of the civil ser-
vant resuming duty.

7. 222 The grant of Special Leave, Maternity Leave, Disability Leave,

Extraordinary Leave, payment of leave pay for refused L. P. R. upto a maximum of
180 days, lump sum payment equal to full pay upto 180 days out of leave at cred-
it made to the family of a Government servant, whose death occurs while in ser-
vice. Seaman sick leave, Department leave. Study leave, Hospital leave and
Quarantine leave shall be noted in column No. 22, Maternity leave other than
three times in entire service shall, however, be debited to the relevant column of
the leave account.

7. 223 When a Government servant applies for leave columns 2 to 7 shall

be filled in showing the period of duty upto the date preceding that on which a
Government servant intends to go on leave. The full calendar months to be noted
in column 5 hall be worked out on the lines indicated in para 7. 207 above.

7. 224 When a Government servant returns from leave columns 8 to 23

shall be filled in according to the nature of leave. If leave not due is availed off
the minus balance to be shown in column No. 21 should be written in red ink.

Joining Time (F. Rs. 105 to 108):

7. 225 The joining time is granted to a Government servant in order to

enable him: ?

(a) to join a new post which he is appointed while on duty in his old
post; or

(b) to join a new post?

(i) while returning from leave on average pay not exceeding 4

months; or

(ii) if he was not given sufficient notice regarding his appointment

to the new post, on return from any leave other than that
specified in (i) above; or
294

(c) to travel from the port of debarkation or in case of air journey from
first airport of call in Pakistan to organize his domestic establish-
ment, on return from leave out of Pakistan for more than 4 months;
or

(d) (i) to proceed from a specified station to join a post in a remote

locality, which is not easy of access; or

(ii) to proceed on relinquishing charge of a post in a remote

locality to a specified station.

7. 226 The joining time in respect of clauses (c) and (d) above is not admis-
sible to the holders of posts of Judge of a High Court and Secretary to the National
Assembly.

7. 227 The following are some important decisions under the rules referred
to above?

(a) No joining time, joining time pay and travelling allowance should
be granted to a Provincial Government servant who is appointed to
a post under the Federal Government, while on duty in his old post,
but joins his new post after termination of his employment under the
Provincial Government by resignation or otherwise. When the
employment of a particular Government servant is in the wider pub-
lic interest, this rule may be relaxed.

(b) A Government servant, who proceeds on leave on average pay not

exceeding 4 months from his old post in another station where he is
spending the leave, should be granted joining time for one day only
in terms of S. R. 293.

(c) The Government servants, who are appointed to the posts under the
Federal Government on the results of the competitive examination
which is open to both Government servants and others, are allowed
the joining time and joining time pay as follows: ?

(i) Joining time is admissible to all Government servants serving

under the Federal Government and to Provincial Government
servants who hold substantive permanent posts.

(ii) The joining time pay is admissible to those Government ser-

vants only (including those of a Provincial Government) who
hold permanent posts in a substantive capacity.

295

(iii) Travelling allowance on transfer is allowed only in such cases,

where joining time pay is admissible under (ii) above.
(d) The joining time and travelling allowance of Military Officers in
civil employ are governed by the civil rules. For the purposes of
these rules, privilege leave under the military rules should be treat-
ed as leave on average pay of not more than 4 months duration,

(e) The time reasonably required for journeys between the place of
training and the station to which the Government servant is posted
immediately before or after the training should be treated as part of
training. This ruling does not apply to probationers holding training
posts and they are entitled to joining time when transferred.

(f) In cases where a Government servant is entitled to joining time on

the expiry of leave, if he joins his new appointment before the
expiry of such leave plus joining time admissible, the period short
taken should be considered as leave not enjoyed and a correspond-
ing portion of the leave cancelled without any reference to the
authority which sanctioned the leave. If, however, the Government
servant concerned does not desire to avail himself of the full joining
time admissible to him, the period of leave and joining time may be
adjusted in accordance with his option.

(g) If vacation is combined to leave, it should be treated as leave for cal-

. culating leave on average pay not exceeding 4 months and leave out

of Pakistan for more than 4 months for purposes of FR 105(b) (i)

and (c) respectively.

(h) The joining time admissible on return from leave out of Pakistan for
more than 4 months is reckoned from the date of disembarkation at
a Pakistan port. It is also admissible to a Government servant even
if he does not make any journey from the port of disembarkation so
as to enable him to organize his establishment.

(i) When a Government servant is allowed joining time on return from

leave and is posted to a place in remote locality, he should arrive at
specified station within the period of his leave and the joining time
admissible under FR 105(b) or (c) and from the specified station
onward his joining time will be regulated under F. R. 105(d).

7. 228 In terms of FR 106 a Local Government is competent to make rules

regulating the joining time admissible under F. R. 105 and specify the places and
stations to which clause (d) would be applicable. The Federal Government in their
capacity as Local Government have framed rules which are contained in S. Rs 293
to 306-A.

296

7. 229 A Government servant on joining time is treated as on duly and the

joining time pay is regulated as under?

(a) If transferred to join a new post, while on duty in his old post, he is
entitled to the pay which he would have drawn, had he continued in
his old post or the pay which he will draw on taking charge of his
new post, whichever is less.
(b) Where joining time is allowed on return from leave, a Government
servant will draw the leave salary during the joining time at the rate
prescribed for the payment of leave salary in Pakistan. No joining
time pay is admissible on return from extraordinary leave, except
the extraordinary leave, not exceeding 14 days in continuation of
other leave.

(c) For the joining time
a place in remote locality
he was on duty in his
even in the case of a
fer.
admissible from a specified station to and from
he would be entitled to the pay as though
post in the remote locality. This holds good
Government servant, who is on straight trans-

7. 230 No extra-pay should be drawn in any case by a relieving

Government servant until the transfer of charge is completed in such cases where
the charge consists of several-scattered works, which the relieving and the
received officers are required to inspect together on the orders of the superior offi-
cers. In a case of like nature the relieving officer would be treated as on duty, pro-
vided the time taken by him for taking over charge is deemed as reasonable by his
superiors and will draw the presumptive pay of his permanent post. If he was offi-
ciating in a post he will draw that pay provided it was not more than the pay he-
would draw in his new post, otherwise he is entitled to draw the presumptive pay
of his substantive permanent post. If he returns from leave, he would draw pay of
the permanent post. During the period the transfer of charge is completed both the
relieved and relieving Government servant would be entitled to the concession of
free quarters or house rent allowance in lieu thereof.

7. 231 During the courses of joining time under clauses (b) and (c) of F. R.
105 a military commissioned officer subject to the civil leave rules would be enti-
tled to the leave salary subject to the minimum prescribed by the Military author-
ities under F. R. 90.

7. 232 The overstayal of joining time is wilful absence from duty and may
be treated as misbehaviour for purposes of F. R. 15. No pay or leave salary is
admissible after the expiry of the joining time as admissible under the rules.

297

7. 233 If in the interest of public service, a person who was employed

under an agency or institution other than the Government or was on leave from
there, s appointed to a post under the Government he may be granted joining
time, at the discretion of the Local Government, for the period of preparation and
making journey to join the post. Similarly he may be allowed joining time for
preparation and journey to join his original post after termination of his employ-
ment with the Government. During the joining time he will draw the pay or leave
salary as the case may be, he was drawing in his post with the private employer
or the pay of the post under the Government, whichever is less.

Foreign Service (F. Rs 109 to 127):

7. 234 Under Section 10 of the Civil Servants Act, 1973, every Civil
Servant, not recruited specifically to serve in a particular area or region, is liable
to serve anywhere within or outside Pakistan, in any post under the Federal
Government or any Provincial Government or local authority, or a corporation or
body, set up or established by any such Government. If a Government servant is
deputed to serve under a Local Fund, quasi-public body, semi-Government orga-
nization, a statutory or a private body and receives his pay from a source other
than the general revenues, he is treated as on 'foreign service'. Deputation on
foreign service in Pakistan is within the competence of a Local Government but
transfer to foreign service out of Pakistan requires the sanction of the President.
The terms of foreign service will be regulated vide Establishment Division O. M.
No. 18/48/81-R. 3(CV) dated 24th April, 1982 and Finance Division O. M. No.
5(5)-R7/79, dated 29th January, 1984.

7. 235 With the attainment of the provincial autonomy, however, it was

held that transfer to foreign service out of Pakistan was also within the compe-
tence of a Provincial Government. This view was upheld and it was decided that
the Provincial Government could sanction transfer on foreign service out of
Pakistan, but it was suggested to them that they should consult the Federal
Government before hand and take into consideration their views also.

7. 236 (i) The Government servants holding permanent or temporary posts

and drawing pay from the general revenues may be sent on foreign service. The
requests from the foreign employer in this behalf should be processed very care-
fully with a view to determine that duties to be performed after the transfer are
such as would, for public reasons, be rendered by that particular Government ser-
vant. The proposals received from the private employers should be scrutinized
more rigorously. The loan of a Government officer to a private undertaking should
be regarded as a very exceptional case requiring special justification.

298

*|(ii) Government servants are not allowed to seek employment with

private bodies outside Pakistan on their own. They should apply only against
posts advertised in the country through the Bureau of Emigration and Overseas
Employment and the maximum period for which they may remain abroad shall
not exceed 5 years. If this condition is not complied with, the Government servant
concerned shall have to resign from Government service).

7. 237 While on foreign service Government servant remains in the cadre

or cadres in which he was included in a substantive or officiating capacity imme-
diately before his transfer to the foreign service. He may also be given promotion
in a substantive or officiating capacity to a higher post in another cadre. When the
promotion of a Government servant who is on foreign service is to be considered
the duties performed by him in his post under the foreign employer and the
promotion given to his juniors in the cadre should also be taken into account.

7. 238 When the transfer of a Government servant to foreign service in

Pakistan is sanctioned, the period for which he is so transferred, the post which he
shall hold in foreign service and the pay which he shall receive in such service
must be precisely specified in the order sanctioning the transfer. If it is intended
that he shall receive any remuneration or enjoy any concession of pecuniary value
in addition to his proper pay, the exact nature of such recommendation or
concession must be similarly specified. No Government servant will be permitted
to receive any remuneration or enjoy any concession which is not so specified and
if the order is silent as to any particular remuneration or concession, it must be
assumed that the intention is that it shall not be enjoyed.
7. 239 The salient features of foreign service are as under: ?

(i) The Government servant will be treated to be on foreign service

with effect from the date he makes over charge of his post under the
Government. He shall revert from foreign service on the date he
takes over charge of his post under Government. If he takes leave
before joining his post under Government the date of reversion from
foreign service will be decided by the Government.

(ii) During the period of foreign service, the person concerned will be
entitled to pay, joining time pay, leave salary, allowances and
travelling facilities (including passage for himself and his family to
the place of employment under the borrowing Government and
back on termination of the foreign service) in accordance with the
regulations of or the terms and conditions offered by the borrowing
Government/Organization.

?Added vide Establishment Division O. M. No. 1/23/66 TIV dated 24-6-1978.

299

(iii) The foreign employer (and where foreign employer is not agreeable
to pay the pension contribution) the Government servant concerned
as the case may be, will during the period of foreign service, pay to
the Government of Pakistan pension contribution. The contribution
will be paid in foreign currency if the foreign service is outside
Pakistan in accordance with the relevant rules and at the rates
prescribed from time to time by the government of Pakistan. The
remittance shall be made by the foreign employer or the
Government servant concerned through normal banking channels to
the parent office of the Government servant concerned in Pakistan
with a covering letter showing the relevant head of account. The
parent office will send copies of challans and schedules to the
Accounts Officer concerned for information and necessary action.
On delayed payment of these contributions, the provisions of S. R.
307 shall apply. Till such time as the rates of pension contributions
are ascertained and intimated by the Audit Office concerned the
foreign employer or the Government servant concerned shall
pro-visionally pay pension contribution in foreign currency at a
uniform rate of 33-1/3% of the mean of minimum and maximum of
the pay scale of the post held by him at the lime of his proceeding
on foreign service, plus other emoluments (reckonable for pension
which would have been admissible to him had he not been deputed
on foreign service).

(iv) During the period of foreign service the Government servant

concerned will continue to subscribe to the G. P. Fund, the
remittance of which should invariably be supported with a G. P.
Fund schedule mentioning therein the G. P. Fund Account Number
and the name of the Accounts Officer maintaining the account. The
remittance should be made to the parent office of the Government
servant concerned. The parent office will send copies of challans
and schedules to the Accounts Officer concerned for information
and necessary action. As regards the Benevolent Fund and Group
Insurance Premium contribution, this should be remitted directly by
the Government servant concerned through the normal banking
channels to the Board of Trustees, Federal employees Benevolent
and Group Insurance Fund, Near Zero Point, Islamabad, with the
prescribed schedule, duly completed.

(v) The leave terms of the person concerned during the period of his
foreign service will be regulated according to the rules of or the
terms and conditions offered by borrowing department,
Government/Organization. Leave salary due in respect of such leave
will be payable by the borrowing Government or Organization to

300

the person concerned. No part of leave earned by him during the

period of foreign service will be credited to his leave account with
the Government nor will any liability in respect of leave salary on
account of such leave devolve on the Government. The Government
will not recover any leave salary contribution from the borrowing
Government or Organization. *|The leave earned by a Government
servant, but not avaited/allowed during the period of foreign service
in Pakistan will be credited to his leave account on reversion to the
Government department. For this purpose, the autonomous bodies/
corporations will maintain proper leave account of the Government
servants on deputation with them. The encashment of leave on the
basis of the rules/regulations of the autonomous/corporations, will
not be admissible to such Government servant].

(vi) The person concerned will not be entitled to receive any leave salary
from Government in respect of disability leave on account of any
disability arising in or through foreign service, even though this
disability might manifest itself after the termination of foreign

service.

(vii) During the period of foreign service, the person concerned will not
be entitled to any medical facility in respect of himself and family
members at the expense of the Government.

(viii) The person concerned will be on deputation with the borrowing

Government or Organization for the "period orginally agreed upon.
Any extension beyond the original period of deputation will not be
made without the approval of the Government of Pakistan, and will
be treated as an irregularity on the part of the person concerned and
may call for disciplinary action.

(ix) If the person concerned during the period of his deputation becomes
entitled to any additional benefit, or is appointed to any post
involving alteration in his emoluments, he will intimate particulars
of such appointment to the Government of Pakistan for information.
Any modifications of the terms invloving additional liabilities on
the Government will require their prior approval.

(Establishment Division O. M. No 18/48/81 R-3 (CV). dated 24-4-1982).

7. 240 The foreign employer (and where foreign employer is not agreeable
to pay the pension contribution) the Government servant concerned as the case
may be. shall during the period of foreign service, pay to the Government of

*Subs. vide Finance Division O. M. No. F. 5(2) Reg(7)/87, dated 28-1-1987.

301

Pakistan pension contribution in foreign currency in accordance with the relevant

rules and at the rates prescribed from time to time by the Government of Pakistan.
The remittance shall be made by the foreign employer or the Government servant
concerned through normal banking channel to the parent office of the
Government servant concerned in Pakistan with a covering letter showing the
relevant head of account. The parent office will send copies of challans and
schedules to the Accounts Officer concerned for information and necessary
action. On delayed payment of these contributions, the provisions of SR. 307 shall
apply. Till such time as the rates of pension contributions are ascertained and
intimated by the Audit Office concerned the foreign employer or the Government
servant concerned shall provisionally pay pension contribution in foreign
currency at a uniform rate of 33 1/3% of the mean of minimum of the pay scale
held by him at the time of his proceeding on foreign service, plus other
emoluments (reckonable for pension) which would have been admissible to him
had he not been deputed on foreign service.

7. 241 It has further been decided that the Lending Department should
invariably work out the rate of pension contribution and incorporate the same in
the terms and conditions of the persons concerned deputed on foreign service
within Pakistan or outside Pakistan. To illustrate, the rate of the pension contri-
bution will be as under in respect of an officer of BPS-17, the minimum and
maximum of the pay scale of which is Rs. 1600 and Rs. 3040 respectively: ?

(i) Mean Rs. 1600 Rs. 3040

---------------------------- = Rs. 2320.

(ii) Rate of pension contribution @ 33-1/3% will be

2320 x 100

------------= 773. 33 or Rs. 773 per month.

100 x 3

7. 242 Under the instructions contained in the Finance Division O. M. No.

F. 5(5) R. 7/79-1407, dated 15-12-1981, no leave salary contribution is recover-
able from the foreign employers but leave/leave salary is to be sanctioned/paid
during the period of foreign service by the foreign employers, that period being
not countable for earning leave with the Government of Pakistan. In view of this
position, pension contribution will be payable by the foreign employer during the
entire period of foreign service including the period of leave availed of by the per-
son concerned with the foreign employer.

(Finance Division (Reg Wing) O. M. No. 5(5)R-7/7') dated 29-1-1984).

SUPPLEMENTARY RULES
Extent of application (S. R. 1):

8. 1 The Supplementary Rules apply to those Government servants only who are governed by
the Fundamental Rules and their pay is debitable to the Federal Revenues.

Definitions (S. R. 2):

8. 2 Some of the important items defined below have been used in the Supplementary Rules in
the sense here explained:

(i) Actual Traveling Expenses means the actual cost of transporting a Government servant with
his domestic servants and personal luggage, including charges for ferry and other tools and for
carriage of camp equipment, if necessary. It does not include charges for hotels, travelers
bungalows or refreshments, tips and expenses on breakage of crockery and furniture, etc.

(ii) Apprentice means a person deputed for training in a trade or business with a view to
employment in Government service, who draws pay at monthly rates from the Government during
such training but is not employed in or against a substantive vacancy in the cadre of a
Department.

(iii) Camp Equipage means apparatus for moving a camp.

(iv) Camp Equipment means tents and the requisites for pitching and furnishing them or, where
tents are not carried, such articles of camp furniture as it may be necessary, in the interest of the
public service for a Government servant to take with him on tour.

(v) Competent authority in relation to the exercise of any power means the President or any
authority to which the power is delegated by or under these rules.

(vi) Day means a calendar day beginning and ending at midnight; but an absence from
headquarters which does not exceed 24 hours is reckoned for all purposes as one day at
whatever hours the absence begins or ends.

(vii) Family means a Government servant's wife, Legitimate Children and step-children, residing
with and wholly dependent upon him. Except in rules 109A, 116, 141 A, 155A, 15513 and 163, it
includes in addition his parents, sisters and minor brothers, if residing with and wholly dependent
upon him. Not more than one wife is included in a family for the purpose of these rules.

Government decisions. (1) The Government have decided that the term ' Children' used in this
rule includes major sons and married daughters so long as they are residing with and wholly
dependent on the parent (the Government servant).

[Finance Division Corr. No. F. 1(43)-R. I(2)/58, dated the 20-3-1959].

(2) It has been decided that, subject to the following conditions, an adopted child of a
Government servant not subject to Hindu Law shall be treated as a member of the Government
servant's family for the purpose of the traveling allowance rules:

(i) the Government servant has no legitimate or step-child of his own;

(ii) prior approval of the Head of the Ministry/Division concerned is obtained for adopting child;

(iii) Government's liability will be restricted to one adopted child only; and

(iv) an adopted child will cease to be a member of the family if, after his adoption, the
Government servant has a legitimate or step-child of his own.

[Finance Division O. M. No. F(27)-R 2(RWP)/63, dated 27-12-1965. read with OM.
of even No. dated 14-6-1966].

The term legitimate children in the rule does not include adopted children except those adopted
under the Hindu Law.

In case of Government servants not subject to Hindu Law also an adopted child will be treated as
a member of Government servant's family subject to the following conditions:

(i) The Government servant has no legitimate or step child of his own;

(ii) prior approval of the head of Ministry/Division is obtained for adopting child;

(iii) Government liability will be restricted to one adopted child only; and

(iv) an adopted child will cease to be a member of the family if after his adoption the Government
servant has a legitimate or step child of his own.

[Finance Division O. M. No. E. 7(27) R-2 (RWP)/63. dated 27-12-19651.

(viii) Grain Compensation Allowance means a form of compensatory allowance which may be
granted to low paid Government servant on account of a temporary or abnormal rise in prices of
food grains in the locality where they serve.

(ix) Head of Department means any authority which the President may by order declare to be the
Head of a Department for the purpose of these rules.

(x) Holiday means (a) a holiday prescribed or notified under section 25 of the Negotiable
Instruments Act 1881, and (b) in relation to any particular office, a day on which such office
is ordered, by Notification of the Government in Gazette, to be closed for the transaction of
Government business without reserve or qualification.

(xi) Probationer means a Government servant employed on probation in or against substantive

vacancy in the cadre of a department.Explanation. According to Audit Instruction (2), below F. R.
9(6), the term "Probationer" does not cover a Government servant who holds substantively a
permanent post in a cadre and is "on probation" to another post. To differentiate between a
"probationer" and a person "appointed on probation' it has been explained, that while a
'probationer' is one appointed in or against a post substantively vacant with definite condition of
probation, a person 'on probation' is one appointed to post (not necessarily vacant substantively),
for determining his fitness for eventual substantive appointment to that post.There is nothing in
these' Audit Instructions to prevent a Government servant substantive in one cadre (e. g. a First
Division Assistant holding a lien on a post borne on the Central Secretariat

Service, Class II) from being appointed (either through selection by a departmental committee or
as a result of competitive examination through the Federal Public Service Commission) as a
"probationer" in or against a post borne on another cadre (like the Pakistan Audit and Accounts
Service, the Customs Service and the Income Tax Service, Class I), when definite conditions of
probation such as the passing of departmental examinations are prescribed. In such a case, the
Government servant should be treated as a "probationer" and (subject to specific rules, if any, to
the contrary) allowed only, as initial and subsequent pays, the rates of pay prescribed for the
probationary period, irrespective of whether those rates are actually included in or shown
separately from, the time scales of the services concerned. The case of departmental candidates
of the same Department promoted by selection (e. g. an S. A. S. Central Service Class III,
Superintendent or an A. A. O. of the Pakistan Audit Department promoted by selection to the
Pakistan Audit and Accounts Service within the quota for such promotion) is, however, different. If
the concerned Ministries/Divisions of the Government of Pakistan consider it expedient, these
"promoted" men may properly be put "on probation" for a period to sec if they make good in the
actual work of a Class I officer and have liens (active or suspended) retained for them on their
former posts, meanwhile to provide for their possible reversion. But, whatever the departmental
arrangements be to test their capacity etc., during the
" on probation" period, their initial pay should be fixed under the operation of the normal rules
regulating pay fixation.(xii) Public Conveyance means a train, steamer, or other conveyance
which plies regularly for the conveyance of passengers.

Medical Certificate of fitness (S. Rs. 3 to 4-A):

8. 3 The medical certificate of fitness for Government service should be in the Form prescribed
in S. R. 3. When a candidate for appointment in a B-l to B-15 post is sent for medical
examination, the examining medical officer or board should be asked to obtain on the medical
certificate the thumb and finger impression in respect of illiterates and signature in respect of
literate candidates in their own presence, so that these may be compared by the head of office
with those in the Service Book.

8. 4 The certificate should be signed by a commissioned medical officer of the Government or

by a medical officer in charge of civil station and in case of employment in Railways, by a medical
officer of the Railway. For a female candidate, a certificate by a female medical practitioner may
be accepted by the competent authority. In cases where the pay of the candidate is not likely to
be more than 750 rupees at the time of his confirmation, medical certificate signed by a licentiate
or medical graduate may be accepted. Where a temporary appointment is likely to continue for
more than three months the candidate should be required to produce a medical certificate of
fitness either immediately or within a week of the date of appointment from the authorised
medical attendant. In all matters of doubt the case should be referred to the Civil Surgeon. If a
person was appointed for less than three months in the first instance and then his appointment
was extended to go beyond three months or he was transferred to another post without a break
so as to exceed the three months period, he should be called upon to produce a certificate within
a week from the date of orders sanctioning his retention in that office or joining the new office.

8. 5 The following instructions apply to medical examination of candidates appointed direct to

BPS-16 & above posts under the Federal Government excepting persons recruited through
competitive examination held by the FPSC for which separate rules exist:

(i) All persons not already in service under the Federal Government should be required to
undergo medical examination. The examination should be by a Medical Board if the post is
permanent, or quasi-permanent or is likely to last for more than a year and by a Civil Surgeon if
the post is likely to last for not more than a year. If an appointment initially made for a period not
more than a year is subsequently extended beyond that period, the person concerned should be
required to undergo medical examination by a Medical Board.

(ii) Persons already in temporary service, under Federal Government will also be subject mutatis
mutandis to the general rules in (i) above, provided that any person appointed to a post not likely
to last for more than a year who has already been medically examined by an authority not lower
than a Civil Surgeon in respect of a previous post need not undergo examination again until and
unless the period of the post is extended beyond one year. If such a person has already been
examined by a Medical Board in respect of his previous appointment and if standard of medical
examination prescribed for the new post is the same, then he need not be required to undergo a
fresh medical examination before confirmation.

(iii) A person who is already permanent or quasi-permanent in a post under the Federal
Government need not be medically examined on an appointment to BPS-16 and above post;
provided that if the new appointment is not in the normal line of promotion of the person
concerned and requires different medical standard from that required in his permanent or quasi-
permanent appointment, or the rules for recruitment to the new appointment prescribe a fresh
medical examination in respect of all candidates, he shall undergo a fresh medical examination
by the prescribed standard and by the prescribed medical authority.

8. 6 A Government servant who on his first appointment in a temporary capacity obtained a

medical certificate of fitness from his authorised medical attendant and who is ubsequently
appointed in a substantive permanent vacancy in the same office or elsewhere without a break in
service should at the time of his confirmation, obtain a certificate of fitness from a civil surgeon or
a commissioned medical officer. If he was already examined by any of these officers he need not
do it again. This rule is, however, not applicable to female Government servants and those in
receipt of pay not exceeding Rs. 50.

Note: - The old limit of Rs. fifty would normally cover all BSP-1, 2 or 3 Government
servants, in the present context.

8. 7 The following Grades of Government servants are exempted from producing a medical
certificate of health:

(a) A Government servant recruited through a competitive examination who had to undergo
medical examination in accordance with the regulations prescribed for appointment to
Government service; (b) A Government. servant in BPS-4 and above appointed in a
temporary vacancy of less than three months duration;

(c) A Government servant of BPS 1, 2 or 3 appointed in a temporary vacancy of less than 6

months duration; (d) A temporary Government servant, who has already been medically
examined in one office, if transferred to another office without a break in his service. He should
obtain a certificate from the head of the office from which he is transferred to the effect that he
had already produced the requisite medical certificate of health;

(e) A retired Government servant re-employed immediately after retirement; and

(0 A non-career diplomat appointed as Ambassador/Minister in a foreign country.

8. 8 (a) When a Government servant is promoted from a non-qualifying service paid from a
Local Fund to a post in Basic Pay Scale 4 and above or is reappointed after resignation or
forfeiture of past service, he should be required to produce a medical certificate of health. In other
cases of re-employment a competent authority will decide as to whether a certificate should be
produced or not.

(b) Government servants in BPS 1, 2 or 3 should also be required to produce a certificate from a
Civil Surgeon.

Compensatory Allowance (S. Rs. 5 to 7):

8. 9 The Compensatory Allowance attached to any post is not admissible to a Government
servant from the date he relinquishes charge of the post.

8. 10 In case of leave, other than leave preparatory to retirement, the title to compensatory
allowance remains intact if it does not exceed four months. If the leave originally sanctioned is
extended but the total period docs not exceed 4 months, the compensatory allowance will still be
admissible. In case, however, the first or subsequent extension of leave takes the period beyond
4 months, the compensatory allowance will be admissible upto the date of expiry of the original or
extended leave not exceeding 4 months or the date of orders of extension which causes (he total
period of leave to exceed 4 months whichever is earlier. The 'extra-ordinary leave' is included in
the term 'leave'. If vacation is combined with leave, the entire period of vacation and leave should
be treated as one spell of leave for the purpose of these rules.

8. 11 The term 'temporary transfer' means deputation or transfer to duty in another station, which
is expressed to be for a period not exceeding 4 monthsThe compensatory allowance is
admissible on a temporary transfer subject to a limit of 4 months. If the period is extended beyond
4 months, the compensatory allowance can be drawn upto the date of orders of extension. The
joining time, if any, is added to the period of 4 months.

Grain Compensation Allowance (S. R. 6-A):

8. 12 The Grain Compensation Allowance may be sanctioned by a competent authority upto a

maximum of Rs. 3 per month to those Government servants whose pay (including overtime
payments, fees and pension) does not *exceed Rs. 30 in a month. A Government servant, who is
stationed in a territory administered by local Government and which pays Grain Compensatory
Allowance to their employees, may be granted Grain Compensation Allowance on the same
terms and conditions as the local Government have laid down. This

* Note: The old limit of Rs 30 would normally cover HI'S I or 2 employees in the present context.

allowance may be drawn during leave, if the authority sanctioning the leave certifies that on the
expiry of leave the Government servant will be re-appointed to a post to which the Grain
Compensation Allowance is attached. It is admissible during temporary transfer also if the above
condition is satisfied and the Government servant does not draw this allowance in the post to
which he is transferred.

Allowance for the expensiveness of living (S. R. 6-B):

8. 13 An allowance granted owing to the expensiveness of living other than a Grain

Compensation Allowance or House Rent Allowance may be drawn during leave if it was certified
by the competent authority that on the expiry of leave he was likely to return to the same post or
at another station which he will be entitled to the similar allowance and the Government servant
also certifies that he or his family continued to reside, for the period for which the allowance is
claimed, at any of the above mentioned stations. In case of temporary transfer also, the
compensatory allowance can be drawn if the above conditions are fulfilled and the Government
servant does not draw any such allowance at the station to which he has been temporarily
transferred.

8. 14 A Government servant, on return from leave, if appointed to the same post, will draw during
the leave the compensatory allowance, which he was drawing prior to his proceeding on leave. In
case he is appointed to some other station or post, but carrying the same rate of compensatory
allowance, then there will be no change and he will draw the compensatory allowance at the
same rates during the leave. But if [he other post carries a similar allowance at a reduced or
enhanced rate, the allowance at the same rate at which he was drawing it immediately before
proceeding on leave or the rate admissible for the post to which he is expected to return,
whichever is less will be admissible. Where a post does not
carry a similar allowance, no allowance will be admissible during leave.

House Rent Allowance (S. R. 6-C):

8. 15 The House Rent Allowance may be drawn during the leave or temporary transfer if the
likelihood of return to the same post or to another station in which he will be entitled to a similar
allowance is duly certified. The Government servant concerned should also certify that either he
or his family continued to reside, for the period for which the allowance is claimed, at the station
from which he proceeded on leave or was transferred or that he continued to incur the whole or
part of the expenditure on rent for which the allowance was granted. When accepting this
certificate the competent authority should satisfy itself that the Government servant was unable or
could not reasonably be expected to avoid the expenditure and if it is not satisfied, the allowance
may not be allowed during leave. Where the Government servant certifies that he incurred a
considerable part of the expenditure, it is open to the competent authority to allow a part of the
allowance.

Motor Car Allowance (S. R. 6-D):

8. 16 The Motor Car Allowance and motor cycle allowance are admissible during leave or
temporary transfer if the following conditions are fulfilled:

(i) the substantive pay of the Government servant for the period of claim does not exceed Rs. 1,
500.

(ii) the likelihood of Government servant's returning to the same post or to another post in which
the maintenance of a motor car or motor cycle is advantageous from the point of view of
efficiency, is duly certified by the competent authority; and

(iii) the Government servant certifies that he continued to maintain the vehicle, incurred
expenditure on its upkeep and that it was not used by anybody else during the period.

Note. See also para 8. 22 (ii).

Horse Allowance (S. R. 7):

8. 17 The Horse Allowance or the allowance for keeping any other animal is admissible during
leave and temporary transfer subject to the conditions in Para 8. 16 (ii) and (iii).

Conveyance Allowance (S. R. 7-A):

8. 18 A conveyance allowance to which the obligation of maintaining a motor vehicle or a horse

or other animal is not attached is not admissible during leave or temporary transfer.

Compensatory Allowance (S. R. 7-B):

8. 19 Compensatory Allowance, provision for which has not been made in the foregoing rules,
may be drawn during leave or temporary transfer subject to the following conditions:

(i) the likelihood of the Government servant's appointment to the same post or any other post
carrying a similar allowance, on return from leave or temporary transfer, is duly certified by the
competent authority, and
(ii) the Government servant concerned certifies that he continued to incur the whole or
considerable part of the expenditure for which it was granted, during the period in question. The
competent authority has to be satisfied about the appropriateness of the expen-
diture, otherwise it can withhold the payment of the whole or part of the allowance.

8. 20 With a view to adopting a uniform policy and to obviate all misunderstanding the authority
sanctioning the leave or transfer should invariably embody in the original sanctioning orders, in
terms of S. Rs. 6-A to 7-B, a certificate regarding the likelihood of the Government servant
returning to the same post or station, as the case may be.

8. 21 If the above certificate is not embodied in the original order sanctioning the leave or
transfer and is given subsequently, it will not be considered as a valid certificate acceptable to the
audit, except in cases where such an order is revised before the Government servant actually
hands over charge to proceed on leave or temporary transfer. There is. however, no objection to
accept such a certificate in past tense, if the original sanction to the leave was accorded after the
event, i. e., after the close of leave then sanctioned. What is wanted by audit is a written
assurance by the competent authority that not later than the time he formally sanctioned the
original leave, he then intended to repost the grantee to a qualifying post. The fact that the
grantee was so posted on return from leave or temporary transfer may be logically corroborative,
but not conclusive evidence of this intention, because the sanctioning authority may have
intended otherwise when he first became aware of the fact of absence, but changed the mind
before the leave actually ended. In view of this the contention that the fact of returning to a
qualifying post dispenses with the need of a declaration of intention is not correct and a prior
certificate is essential in all such cases.

8. 22 In partial modification of the orders contained in S. R. 5 to S. R. 7-B, the admissibility of the

various compensatory allowances during leave would be as under:

(i) House Rent Allowance. House Rent Allowance would be admissible during the entire period of
leave including leave preparatory to retirement.

[Finance Division O. M. No. F. 12(3) R-13/77 D No. 156. dated 9-3-I977].

(ii) Residence-cum-Office-Conveyance Allowance. Residence Office Conveyance Allowance and

Motor Cycle Car Maintenance Allowance sanctioned to Government servant in terms of the
Scheme of Revised National Pay Scales and Fringe Benefits and posted at Islamabad, Karachi,
Lahore, Peshawar, Multan, Quetta, Rawalpindi, Faisalabad and Hyderabad (including Kotri), is
not admissible during the period of leave in accordance with the Finance Division O. M. No. F.
3(3)-Imp. 1/77, dated 3rd July, 1977.

(iii) Local Compensatory Allowance. Would be admissible during the period of leave including L.
P. R.

[ Finance Division O. M. No. F. 4(4) R 13/780 dated I2-10-I978).

(iv) Senior Post Allowance. Senior Post Allowance would be treated as part of pay for the purpose
of drawal of leave salary during the period of leave including leave preparatory to retirement.

(Finance Division O. M. No. E 2(11) Imp 1/77 dated 3-7-I977].

(v) Entertainment Allowance. Entertainment Allowance may be drawn during the period of leave
on average pay, other than leave preparatory to retirement, upto a maximum of four months, if
(a) the authority sanctioning the leave certifies that the officer is likely on the expiry of the leave,
to be posted to the same B. P. S. post from which he proceeds on leave or to a similar post to
which entertainment allowance is attached.

(Finance Division O. M. No. F. 3(3)/lmp. 1/77 dated 2-10-1977]

(b) Entertainment Allowance during leave will be at the same rate, as on duty, regardless of the
amount of leave salary.

[Finance Division O. M No. F. 9(4) R 13/78 dated 24-9-78].

Drawal of Compensatory Allowance during Joining Time (S. R. 7-C):

8. 23 If a Government servant is on joining time under F. R. 105 (a) and was in receipt of tentage
in his old post and will also be entitled in the new post, then he can draw it during the joining time
at the lower of the two rates. An allowance sanctioned for the expensiveness of living can also be
drawn during the joining time in a similar way.

Fees (S. Rs. 9 to 12):

8. 24 Subject to any orders issued to the contrary by the President, the fees received by the
medical officers in civil employ for services other than professional attendance may be retained
by them in full and no portion thereof is required to be credited to the Government. The medical
officer can receive fees for services other than professional attendance at the rates fixed by the
Government from time to time.

8. 25 The medical officers should not undertake any work involving the acceptance of fees from a
private person or body without a general or special sanction of the competent authority. In cases
where the fees are divisible between a medical officer and Government the total amount should
first be paid in a Government treasury and the share of the medical officer may be drawn through
a refund bill. The medical officer concerned should keep a complete record of the work done and
the fees received.

8. 26 Where private bacteriological, pathological and analytical work is carried out in Government
laboratories and Chemical Examiners Department,40% of the fees is credited to the Government
and 60% is allowed to the Director of Laboratory or the Chemical Examiner, as the case may be,
for dividing it with his assistants, and subordinates, in a just and equitable manner. In case of
those Government servants however who had been holding posts in the Laboratories or
Chemical Examiners Department on or after 28th September, 1934, the share of the Government,
would be 25%. They are not entitled to any share in the saleproceeds of the vaccines used for
prophylactic purposes such as T. A. B., Cholera, Influenza and Plague vaccines.

8. 27 The rates of fees prescribed for the medical officers are the maximum rates. They are free
to reduce the rates or remit them totally, if they are entitled to keep the whole amount of fees.
Where the fee is divisible between theGovernment and the medical officer, the latter can charge a
lower rate of fee if heconsiders it necessary in view of the pecuniary circumstances of the patient
or due to other reasons provided the approval of the Local Government is obtained in this behalf.
In that event the share of the Government will be calculated on the basisof the actual amount of
the fee realised instead of the scheduled rate.

8. 28 No work for a State or a private or public body can be undertaken or fee accepted therefor
by a Government servant without the sanction of the competent authority. Except where the
Government servant concerned is on leave, the competent authority should certify that the work
can be undertaken withoutdetriment to his official duties and responsibilities.

8. 29 When the amount of fee paid to a Government servant is in excess of Rs. 50 non-recurring
and if recurring Rs. 50 a year, one third of its should be315 credited to the general revenues. If
due to credit of one-third of fee to the general revenues, a Government servant is left with an
amount of less than Rs. 50 if non-recurring, or Rs. 50 a year, if recurring then he should not be
paid less thanRs. 50 in each case. Non-recurring and recurring fees should be dealt with
separately and not added for purposes of crediting one-third to the generalrevenues. In the case
of former, the limit of Rs. 50 should be applied in eachindividual case and in the latter case the
limit should be applied with reference to the total recurring fees for the financial year.

8. 30 The fees received by the Government servants for giving expert evidence on technical
matters before a court of law will be governed by the above provisions of rules.

8. 31 This rule, however, does not apply to fees received by the Government servants from a
university or other examining body in return for their service as examiners and from a board of
secondary education for services rendered as reviewers of books. This also does not apply to
fees received by Government servants for participation in a radio broadcast or television
programme or contribution of any article or writing of any lecture to any news
papers or periodical if such broadcast or television programme or contribution or letter is of a
purely literary, scientific or artistic character.

(Finance Division O. M. No. F. 10(4) RI/77, dated 15-8-I977].

TRAVELLING ALLOWANCE

Nature of Journeys:

8. 32 A Government servant may be required to perform a journey on:

(a) tour,

(b) transfer, and

(c) for other purpose mentioned in Section X and Section XII to Section
XX of Division VI of the Compilation of Fundamental Rules and Supplementary Rules.

8. 33 'Tour' means absence on duty from the headquarters of a Government servant either within
or, with proper sanction, beyond his sphere of duty. (S. R. 61).

8. 34 (i) 'Transfer' means the movement of a Government servant from one headquarters station
in which he is employed to another such station, either

(a) to take up the duties of the new post, or

(b) in consequence of change of his Headquarters.

(ii) A transfer at one's own request is not treated as a transfer for the public convenience and for
drawl of T. A. under S. R. 114. Categories of Civil Servants for
purposes of Mileage Allowance (S. R. 17 to 20):

8. 35 There are four Categoriesof Government Servants for purposes of mileage allowance (as
defined in Para 8. 43) is as under:
(a) The First Category includes Civil Servants in B-17 and above, all others in receipt of pay
exceeding Rs. 5330 per month.
(b) The Second Category includes all Civil Servants in receipt of pay exceeding Rs. 1725 but
not exceeding Rs. 5330 per month.

(c) The Third Category includes all other Civil Servants excluding those in B-l & 2.

(d) The Fourth Category includes Civil Servants in B-l & 2. The provision in S. Rs, shall be
deemed to have been modified accordingly. These orders shall take effect from 1-7-1994.

[Finance Division O. M. No. F. 1(34)-R. 9/94, dated 13-11-1994].

8. 36 The term 'pay' occurring in the foregoing rules includes all emoluments drawn under F. R.
9(21) (a) (i), (ii) & (iii).

8. 37 When a Government servant holds a substantive post and is appointed to officiate in

another post, the officiating appointment will be taken into account for purposes of rates of
travelling allowance admissible to him. If a Government servant does not hold any substantive
post his classification for purposes of travelling allowance should be regulated with reference to
the pay drawn by him.

8. 38 The travelling allowance of an officer who is promoted or reverted with retrospective effect
should not be revised for the intervening period, unless actual change of duties is involved.
Normally a bill is audited with reference to the facts known at the time of the presentation of the
claim, but if a bill is not presented before the promotion or reversion is actually notified, there will
be no objection to the Audit to recognize the retrospective effect of thenotification.

8. 39 A competent authority may place a Government servant or a class of Government servants

in a grade higher or lower than that stipulated above, reasons for which should be duly recorded.
In exercise of these powers certain officers have specially been classed as Category I and
Category II officers vide Appendix 15 of F. Rs. Vol. II. All female Government servants, who are
Category III officer for the purpose of travelling allowance are treated as Category II officers for all
authorised journeys on duty.

8. 40 A Government servant in transit from one post to another ranks in Category for the
purposes of travelling allowance, to which the lower of the two posts would entitle him.

8. 41 The travelling allowance of re-employed pensioners is regulated as follows:

(a) In the case of officers whose pension is held in abeyance, the T. A. admissible will be
determined with reference to pay drawn by them if it does not exceed the maximum pay of the
post; otherwise it will be determined with reference to the maximum pay of the post.

(b) In the case of officers who are allowed to draw the whole or a part of their pension in
addition to pay. the T. A. admissible will be determined with reference to pay plus pension subject
to the condition that only such portion of the pension will be taken into account for
this purpose as together with the pay, does not exceed the maximum pay of the post.
For the purpose of these orders 'pension' means the gross pension originally sanctioned, i.e. the
amount sanctioned before commutation or surrender of l/4th pension in lieu of gratuity under the
Pension-cum-Gratuity Scheme promulgated in the Ministry of Finance O. M. No. (4) F. 12(2)
RI/53 dated 4th March, 1954 and O. M. No. F. I (46) RI(2)/57 dated 27th December, 1957.
8. 42 The classification of those persons who are not whole time Government servants is
determined by the competent authority on individual merits.
Mileage Allowance (S. Rs. 29 to 48-D):

8. 43 The mileage allowance is an allowance calculated on the distance travelled which is to

meet the cost of a particular journey. The journey between two places should be performed by the
shortest of the two or more practicable routes or by the cheapest of such route, if it is equally
short. When there are alternate railway routes and the differences between them in terms of cost
and time is not great travelling allowance may be allowed by the route actually used. The shortest
route is that by which a traveller can arrive at his destination most speedily by the ordinary modes
of travelling. If a Government servant has travelled by a route which is cheaper, but not the
shortest, he may be allowed mileage allowance for the route actually used.
8. 44 In cases where journey is actually performed by a route which is not the shortest or
cheapest, due to special reasons a competent authority may permit mileage allowance by that
route after duly recording the reasons therefor. When road mileage is claimed between two points
connected by railway, it is open to a competent authority either to allow full road mileage or limit it
to what would have been admissible had the Government servant travelled by accommodation to
which a Government servant is entitled and he had to travel by road. In such a case a competent
authority may allow to draw the road mileage subject to the condition that it does not exceed the
railway fare to which he would have been entitled, had there been available the class of
accommodation in which he was entitled to travel. (S. R. 31). 8. 45 Where a Government servant
claims road mileage for journey performed by road in his personal car, between places connected
by railway the controlling officer may, at his discretion, accept the claim if he is satisfied that the
journey by road had to be performed in the public interest.

(Para 8 of the Finance Division O. M. No. F. 2(1) Rev. 1/72, dated 20-12-1972].

8. 46 Mileage allowance is admissible from the residence of the Government servant to the
railway station or the airport or the sea/river port, as the case may be, at his headquarters and
from the railway station or the airport or the sea river port to the place of his temporary residence
at the out-station. [Para 7 of the Finance Division O. M No. F. 2(1) Rev. 1/72, dated 20-12-1972].
Journey by Railway:

8. 47 Civil servants when travelling on tour or transfer by the Pakistan Railways, are entitled to
rail accommodation according to the scales indicated below:

(i) Category-I Civil servants in BPS-17 and above and all those in receipt of pay exceeding Rs.
5330 p. m. Accommodation of the highest class by whatever name be it
called. (ii) Category-II Civil servants drawing pay exceeding Rs. 1725 p m but not exceeding Rs.
5330p. m. -First class (sleeper) accommodation. If travelling on a line which does not provide 1st
class (sleeper), the next lower class.

(iii) Category-III All Civil servants excluding those in BPS-1 and BPS- 2. First class (Sitter)
accommodation. If travelling on line which provides no 1st Class (Sitter) accommodation, the next
lower class.

(iv) Category-IV Civil servants in BPS-l and BPS-2. Lowest class by whatever name be it called.

The relevant provisions in FRs and SRs may be treated as having been modified to the extent
indicated above. These orders shall take effect from 1st July, 1994.

[Finance Division OM. No. F. 1 (34) R-9/94, dated 13-11-1994],

8. 48 For special reasons to be recorded, a Government servant or a class of Government

servants may be declared by competent authority to be entitled to accommodation of a higher
class than that normally admissible to him. (S. R. 35). Journey by Sea or by River Steamer:
8. 49 The Government servants are entitled to the following classes of accommodation for
journeys by sea or by river steamer within the Pakistan waters: -

(a) A Government servant of first Category: Highest Class. (b) A Government servant of
Second Category: If there are two classes only on the steamer, to the higher class and if there
are more than two classes to middle or second class.

(c) A Government servant of third Category: If there are two classes

lower class. If there are three classes middle or second class. If there are four classes third class.
(d) A Government servant of fourth Category: Lowest Class. (S. R.40).
8. 50 Where the steamer company has two rates of fares, one inclusive of diet and other
exclusive of diet, the word 'fare' as above would mean fare exclusive of diet. If the company
allows some rebate for not partaking food, the fare would be calculated by deducting rebate
therefrom. (S. R. 41).

8. 51 In cases where the classes of accommodation on a steamer do not conform to the

classification given above, the matter should be referred to the competent authority for a decision.
(S. R. 42).
8. 52 If a Government servant is offered suitable accommodation on a Government vessel, he is
entitled to one daily allowance instead of a mileage allowance. The Government servant is not
permitted to decline this offer and draw mileage allowance. (S. R. 44).

Journey by Road:

8. 53 The following are the rates of road mileage, w. e. f. 21-8-1991.

Mode of travel Rate per kilometre

1 2

(a) Personal car or by engaging a full taxi. Rs. 3

(b) Motor Cycle or Scooter. Rs. 1

(c) Bicycle, animal back or foot. Rs 0. 75

(d) Public transport plying for hire on single scat basis:

(i) For Govt. servants in BPS 7 and above Rs 0. 50

(ii) For Govt, servants BPS-6 and below. Rs 0. 30

(c) Travel by Air.

Government servants in BPS-17 and above and those in receipt of pay
exceeding *|Rs. 5400 p m. shall be allowed to travel by air w. e. f.
1-6-1994]

**[Transportation of Motor Car may be permitted by any means of trans-

port but its transportation cost be restricted to the expenditure for EVK
transport].

[Finance Division O. M No F I (16)-Reg. (9)/91 dated 21-8-1991].

8 54 Government servants are allowed to use the mode of transport as
below:

Grade of Government servant

Personal car and hiring of a full taxi. Category I officers, in the case ofothers, a taxi
may be engaged if the
urgency of the situation so demands

*Subs, by Finance Division O. M No F-l(33) Reg 9/94. dated 19-10-1994

**Added vide Finance Division O M No Ed(16)-Reg. (9)/9l, dated 26-9-1991.

Mode
transport
Personal car and hiring of a full taxi
Personal motor cycle /scooter
Bicycle,Public transport plying for hire
on single seat basis
of
Grade of Government servant
Category I officers in the case of
others,taxi may be engaged if the
urgency of the situation so
demands with the approval of
thecontrolling officer
Category I & II
All government servants

[Finance Division O. M. No. F. 2(1) Imp. 1/77 dated 29-4-1977 read with O. M. No. 2(49)-Reg.
9/78 dated 20-9-1978].

8. 55 These rates, except in the case of Para 52 (e) will be admissible from the residence at
headquarters to the residence at the temporary place of duty of the Government servant. The
term '"Personal Car" means a car registered in the name of the Government servant or in the
name of any member of his family as defined in S. R. 2(8) for purposes of T. A. Rules. (S. R. 45
read with Para. 4 of the Ministry of Finance O. M. dated 20-12-1992).

8 56 Under special circumstances a competent authority may, for reasons to be recorded, allow
mileage at higher rates than those fixed above. (S. R. 47).

8. 57 In calculating road mileage fractions of a Kilometre should be omitted from the total of a bill
for any one journey, but not from the various items which make up the bill. (S. R. 48).

Revision of Travelling Allowance Rules:

8. 57-A Reference Finance Division's O. M. No. F. 2(l)Rev. l/72, dated 20-12-1972 as amended
from time to time as a result of querries from some quar ters and in pursuance of S. R. 30(b), it
has been decided to reimburse the toll tax on Motor Way paid by an officer while travelling in an
official vehicle on official duty/tour on production of original receipt in token thereof. This
concession will, however, not be admissible to the one who is permitted to travel on official duty
by his own Car.

[Finance Division O. M. No. l(5)R. 9/98-345 dated 12-5-1999].

Journey by Air:
8. 58 The travel by air means journeys performed in the machines of public air transport
companies regularly plying for hire. It does not include journeys performed by private aeroplanes
nor air taxies. (S. R. 48-A).

8. 59 Travel by air is permissible on tour or transfer:

(a) In the case of an officer of first grade, at his discretion. (b) In any other case, where a
competent authority certifies that air travel is urgent or necessary:

Provided that general permission may be granted by the President to any Government servant or
class of Government servants to travel by air, as a matter of routine, in connection with a
specified journey or journeys.

All Government servants irrespective of pay drawn or post held by them shall travel in economy
class while undertaking journeys on duty by air within Pakistan.

[S. R. 48-B read with Finance Division O M. No. F. 1 (34) R (9)/71, dated the 27-12-1971, and O.
M. No. F. 2 (II)-Reg. 9/77-D. 2/77, dated 21-3-1977].

8. 60 (i) A Government servant entitled to travel by air may draw one air fare or cost of the return
air fare of the appropriate class, if such tickets are available plus one daily allowance for each day
of air journey. If he has to provide separate conveyance at his own expense for his servants and
luggage, he may draw 1/2 of the railway fare or l/4th of the steamer fare, as the case may be, in
lieu of the daily allowance. [S. R. 48-C (b)].

(ii) Government servants have been allowed to perform domestic travel by any airline and T. A.
will be allowed on the production of air ticket actually charged.

[Finance Division O. M. No. F. 1 (7)-R. 9/93-D. 409 dated 12-8-1993].

(iii) Those who are not authorised to travel by air, if they perform an air journey on tour, are
entitled to travelling allowance as if they had travelled by rail, road or steamer subject to the
condition that travelling allowance should not exceed that which would have been admissible, if
they had been authorised to travel by air. (S. R. 48-D).

Daily Allowance:

8. 61 (i) The Daily Allowance is a uniform allowance for each day of absence from headquarters
and is intended to cover the ordinary daily charges incurred by a Government servant in
consequence of such absence. The daily allowance may be drawn by a government servant
whose duties required that he should travel and may be drawn while on tour and also on transfer,
as admissible under the rules. (S. R. 49).

(ii) The personnel from Defence, Police etc. who are/will not be funded by the USAID/any other
foreign donor agency under their policy; while participating in NIPA Courses and undertaking
study tour abroad shall henceforth be paid daily allowance etc. at the same rates as being paid by
the foreign funding agency to their civil fellow participants.

[Finance Division O. M. No. F. 3 (8)-R 10/90-500. dated 26-5-1991].

8. 62 The rates of daily allowance (w. e. f. 28th September, 1994) are as

follows: -
 Special RatesOrdinary Rates
Pay Limit
per dayper day
Rs.
Rs. Rs.

1245 to 2000 80 65

2001 to 3000 100 85

3001 to 4000 120 100

4001 to 5000 145 120

5001 to 6000 175 150

6001 to 7000 215 180

7001 to 8000 260 225

8001 to 9000 300 280

9001 to 10000 350 300

10001 and above 400 350

[Finance Division O. M. No. F. 1 (22)-Reg. 9/94. dated 28-9-1994].

8. 62-A Revised Daily Allowance under Pay Scales 2001. Daily Allowance rates presently fixed
with reference to pay drawn shall be increased and related to Basic Pay Scales as under:

BPS Special Rates Ordinary Rates

Per day (Rs. ) Per day (Rs. )

1-4 110 80

5-11 120 100

12-16 200 180

17-18 350 320

19-20 450 400

21-22 550 450

(Finance Division O. M. No. F. l(5)lmp. /2001, dated 4-9-2001].

(a) Daily allowance will be admissible only for the actual night (s) at the out-station for which
Daily Allowance claimed. Where night slop is not involved and if absence from headquarters
exceeds four hours half daily allowance will be allowed.

(b) Government servants upto BPS-1-19 may stay in Government Guest Houses, Public Sector
Corporations Rest Houses and *[Motels/Hotels (Minus five star hotels)]. They can claim actual
room rent charges on production of receipts subject to a maximum of three D. A. in specified
stations and one and a half D. A. at non-specified stations.

(c) Government servants in BPS-20 and above may stay in hotels and claim room rent
*[Charges on Production of receipts] subject to a maximum of three D. A. for specified stations
and 1-1/2 D. A. at non-specified stations. If however, the room rent charges are in excess of the
maximum ceiling aforementioned,fifty per cent of the additional amount will be paid by the
Government.

(Finance Division O. M. No. 1(2)-Reg (9)/9l, dated 21-8-1991).

Clarification. (i) Daily allowance on domestic tours where stay for a night or more is involved will
be admissible only for the night (s) spent at outstations.

(ii) Half daily allowance will be admissible only in those cases where the absence from
headquarters does not involve stay for the night and no daily allowance is drawn for any night
stay. It cannot be drawn in addition to any daily allowance drawn for night stay.

[Finance Division O. M. No F. 1 (2) Reg. (9)/91. dated 2-11-1991].

8. 63 (i) A Government servant who has, of necessity, to stay in a hotel may, in addition to the
above daily allowance be allowed reimbursement of actual single room rent including taxes,
duties and service charges subject to the production of hotel receipts/Vouchers, up to the
following maximum per day:

Localities where special Daily Allowance rate is admissible: Three times the amount of Special
Daily Allowance. Localities where Ordinary Daily Allowance rate is admissible:
One and a half times the amount of ordinary Daily Allowance.

[Finance Division O. M. No. 2(1) Imp. 1/77 dated 29-4-1977].

(ii) In case of non-availability of a single room, the touring civil servant may be allowed to book a
double room for his exclusive use. The reimbursement is to be restricted to his normal entitlement
only.

*Added vide Finance Division O. M. No. E. l(2)Reg. (9)/91, dated 23-11-1991.

(iii) Two officials while on tour at the same station, may be allowed to book a double suit in a hotel
and share it. In such a case either of them have jointly to certify that separate single
accommodation was not available to them and that each one of them is claiming not more than
one-half of the room rent restricted to each individual entitlement; this certificate shall be
appended to the T. A. bill of both officials.

(iv) A Government servant who stays in a Government Hostel, Inspection Bungalow, lodge or
residential Club will, in addition to the daily allowance, be allowed reimbursement of actual charge
for stay in single room/suit on production of receipts/vouchers subject to the condition that such
charges do not exceed the amount of daily allowance admissible at the station.
8. 64 Special rate of daily allowance shall be admissible at Hyderabad, Islamabad, Karachi.
Lahore. Faisalabad, Multan, Peshawar, Quetta, Rawalpindi, Northern Areas *(Bahawalpur,
Sargodha, Sialkot. Sukkur and Gujranwala).

[ Finance Division O. M. No. F 2 (1) Imp. 1/77 dated 20-4-19771.

8. 65 (a) Daily Allowance, for each calendar day, will be admissible for the period of absence on
duty from headquarters (including the time spent in transit). Not more than one daily allowance
will be admissible on any calendar day. A fraction of a calendar day will be reckoned as a
calendar day for this purpose.

Note. - "Calendar day" in sub-para (a) above means a day beginning on one midnight and ending
on the next midnight.

(b) In the case of departure from headquarters, the rate of daily allowance during transit will be
the same as admissible at the station of immediate destination. In the case of return to
headquarters the rafe will be the one admissible at the last station of temporary duty before return
to headquarters.

(c) The period of absence from headquarters will commence from the time of departure of the
Government servant from his office or residence, as the case may be, till the time of his return to
his office or residence, as the case may be. The competent authority authorizing the tour will
decide whether the Government servant should proceed on temporary duty from his office or
residence.

(d) The period of forced delays in transit will be treated as part of the total transit period.

8. 66 Daily Allowance may not be drawn for day on which a Government servant does not reach
a point outside a radius of ten miles from his headquarters or return to his headquarters from a
similar point.

[Finance Division O. M. No. F. 2 (1) Rev. 1/72 dated the 17-10-19731.

*Added vide Finance Division O. M. No. 2(8)R-9/9l, dated 21-9-1991.

8. 67 Mileage allowance shall be admissible from the residence of the Government servant to the
railway station or the airport or the sea/river-port as the case may be. at his headquarters and
from the railway station or the airport of the sea/river-port, to the place of his temporary residence
at the outstation.

8. 68 Where a Government servant claims road mileage for journey performed by road in his
personal car. between places connected by rail, the controlling officer may at his discretion,
accept the claim if he is satisfied that journey by road had to be performed in the public interest.

8. 69 Except as specified in Para 8. 71, daily allowance at full rate will be admissible for the
entire period of continuous halt on temporary duty.

8. 70 In case of temporary duty at a hill station exceeding thirty days. Heads of Departments
have full powers to sanction daily allowance for the entire period of continuous halt of a
Government servant.

8. 71 Daily Allowance is admissible on Sundays and public holidays falling during the period of a
Government servant's temporary duty at an outstation but not when he is on. casual leave.
8. 72 A Government servant who takes casual leave immediately on the conclusion of temporary
duty will draw daily allowance for the day of departure from the outstation to which he would have
been entitled had he not proceeded on casual leave.

8. 73 Percentage increase in the rates of mileage allowance in localities shown in Appendix 18-A
to the compilation of F. Rs. and S. Rs. Vol. II is calculated on the mileage allowance as indicated
in Para 8. 53 respectively, which
are as follows:

Increase in the
Province Name of locality rate ofroad
mileage
Desert Talukas of Tharparker 50 per cent.
Sindh 50 percent
District.
Bhangi Khel Ilaqa in Mianwali 33-1/3
percent.District.Murree and Kahuta Tehsil33-1/3 percent
in 33-1/3 pre cent.Rawalpindi
Punjab District.Places beyond the external 33-1/3 33-1/3 per cent
per cent.boundary of the Dera GhaziKhan
District. 33-1/3 per cent

Mansehra (except the Kagan Valley, 25

per centi. e., the track beyond Balakot upto
Gitti Das arid AbbottabadTehsils in the25 per cent
Hazara Districtand transbordertracts, i. e.,
places beyond the external
boundaries of the Districts of Hazara,
Peshawar, Mardan, Kohat, Dera Ismail
N. W. F. P.
Khan and Bannu except Chitral and the
portion of the road from
Peshawar to Kohat which lies in the Tribal
territory.
Chitral and the Kaghan Valley in the 33-1/3 percent.
Mansehra Tehsil of the Hazara District, i.
e., the track beyond Balakot up to Gitti Das.

Baluchistan The whole of Baluchistan except Nasirabad 33-1/3 per cent.

Sub-Division, Sibi District.
Kashmir
The whole of Jammu and Kashmir State. 33-1/3 per cent in
the case of
journeys which
can be per formed
by motor transport.
100 per cent in the
case of journeys
which can not be
performed by
motor transport
subject to a
minimum of Re.
1per mile in the
 case of offi-
cers of Grade-I
Do.
Gilgit&Baltastan

[Finance Division O. M No. F. 2(5)-Rev. 1/73, dated 10-7-1973 and even number, dated 19-10-
1973].

8. 74 When Government Officers are permitted at their own request to attend meetings,
conferences or congresses held in Pakistan and any public interest is likely to be served by their
attendance, they may be allowed a single railway fare of the class of accommodation to which
they are entitled for the Journey both ways without any road mileage or daily allowance for halts.
But if an officer is sent to attend the meeting officially, he is entitled to travelling allowance as
admissible under the normal rules. (S. R. 54).

8. 75 A Government servant on tour on official duty is not entitled to recover from Government
the cost of transporting his family or his personal luggage, conveyance, tents and camp
equipage. (S. R. 55).

8. 76 In cases of localities, where travelling is unusually expensive, a competent authority may.

by general or special order, increase the rate of mileage allowance or daily allowance either in a
definite ratio or in any other suitable manner. It is in pursuance of these orders that Hyderabad.
Islamabad. Karachi, Lahore, Rawalpindi, Faisalabad, Multan, Quetta and Peshawar, Northern
Areas, *(Bahawalpur, Sargodha. Sialkot, Sukkur and Gujranwala| have been declared as
expensive localities and higher rates of daily allowance have been fixed therefor. Similarly
provision has been made in Appendix 18-A. The special rates of daily allowance are. however,
not applicable to Government servants touring in and
about those cities under circumstances entitling them only to daily allowance, if
their headquarters are situated within the municipal limits of the respective cities.
(S. R. 56).

8. 77 When a Government servant of a Category lower than first Category is required by the
order of a superior authority to travel by special means of conveyance the cost of which exceeds
the normal travelling allowance admissible to him. he may draw the actual cost of travelling in lieu
of the daily allowance and mileage allowance. The bill for the actual cost should be duly
supported by a certificate signed by the superior authority and countersigned by the controlling
officer stating that the use of special means of conveyance was actually necessary and specify
the circumstances which rendered it necessary. (S. R. 57).

Journey on tour:

8. 78 The headquarters and limits of the sphere of duty of a Government servant are fixed by a
competent authority. (S. Rs. 59 & 60).

8. 79 It is for a competent authority to decide whether an absence from headquarters is on duty

or not. It can also impose restriction upon the frequency and duration of Journeys to be made on
tour by any Government servant.(S. R. 63).

8. 80 If the pay of a particular Government servant has been so fixed as to compensate him for
the cost of all journeys, other than journeys by rail or steamer, within his own sphere of duties, he
is not entitled to draw any travelling allowance for such journeys, other than journeys by railway
and steamer. In case he has to undertake a journey on duty beyond his sphere of duty, he may
draw travelling allowance as admissible under the rules including such part of it as is within his
sphere of duty. (S. R. 64).

8. 81 A Government servant, not in receipt of a permanent travelling allowance, draws travelling

allowance for journeys on tour in the shape of daily allowance. The daily allowance is drawn for
absence from headquarters on duty. The absence begins when a Government servant actually
leaves his headquarters and ends when he actually returns to the place where his headquarters
are situated irrespective of the fact whether he halts there or not. (S. Rs. 68 & 70).

Added vide Finance Division O. M. No. 2(8) Reg. 9(91) dated 21-9-1991.

8. 82 If an officer of the Vacation Department proceeds on tour and then avails of vacation
without returning to his headquarters, he is entitled to the travelling allowance for the outward
journey only. (S. R. 70).
8. 83 Daily Allowance may be drawn for any day on which a Government servant reaches a point
outside a radius of ten miles from his headquarters or returns to his headquarters from a similar
point. Daily Allowance may be drawn during a halt on tour or on a holiday occurring during a tour.
(S. Rs. 71 & 72 read with Paras 6, 9, 10 & 11 of the Ministry of Finance O. M. dated 20th
December, 1972).

8. 84 If a competent authority is satisfied that daily allowance is not sufficient to cover the
travelling expenses of a Government servant, it can permit him and for that matter any class of
Government servants to draw mileage allowance instead of daily allowance for the whole period
of absence from headquarters under any conditions it may deem fit to impose. (S. R. 75).

8. 85 Normally a Government servant may exchange his daily allowance for mileage allowance
for any day on which he travels by railway, or steamer or both or travels more than 20 miles by
road. In cafe a continuous journey extends over more than one day, the exchange should be
made for all such days and not only for a part of them. The short journeys within a radius of ten
miles from headquarters should not be added to other journeys when calculating the distance
covered by road. [S. R. 76 (a)].

8. 86 When a journey by road is combined with journey by railway or steamer or both mileage
allowance may be drawn for journey by road, but this allowance will be restricted to the daily
allowance admissible to him, unless the road journey exceeds 20 miles. At the place of halt at
outstations a Government servant is not entitled to draw any daily or mileage allowance for
journeys within a radius of 10 miles, as his daily allowance is intended to cover such expenses. If,
however, he goes beyond a radius of 10 miles, then he can draw a daily allowance or mileage
allowance if the road journey exceeds 20 miles. [S. R. 76 (b)].

8. 87 The Government servants of the Survey of Pakistan and Geological Survey of Pakistan
cannot exchange daily allowance for mileage allowance for a journey in the field. But if they have
to travel on special duty or by a public or hired conveyance, daily allowance can be exchanged
for mileage allowance. If actual travelling expenses for a journey to and from the field or any other
journey where camp equipment is carried, exceed the mileage allowance, such actual travelling
allowance may be paid to them in lieu of the daily allowance. The exchange should be made for
the whole journey and not for a part of it. Whenever for such part of month as he spends in the
field, the actual cost of camp equipment and baggage exceeds half the amount of daily allowance
admissible for the month, he may retain half his daily allowance and exchange the other half for
the actual cost. The bill for the actual cost should be prepared in detail and countersigned by the
sanctioning authority. (S. Rs. 87 & 88).
8. 88 In case of an officer of the Geological Survey of Pakistan, in addition to the concessions in
the preceding paragraph a competent authority may permit him, on public grounds, at the
beginning or end of the field season, to send a portion of domestic servants, baggage and camp
equipment by the direct route to and from the field, when he himself travels by another route in
order to undertake an economic or engineering enquiry. He can recover the actual cost of
transporting such servants, baggage and camp equipment in addition to the travelling allowance
admissible to him [S. R. 88 (b)].

8. 89 Where travelling allowance is not admissible under the rules, a competent authority may,
by general or special orders, allow a Government servant the actual cost of hiring a conveyance.
It also covers the cases in which it is equitable to allow Government servants to draw the actual
cost of conveyance where the circumstances are not actually covered by any other rule. It also
applies to Government servants on transfer from one office to another in the same station, when
they have to change the residence also.

8. 90 When a B-l to B-15 Government servant is dispatched on duty to a place at some distance
from his office or is called for duty outside normal working hours, by a special order of an officer
the expenditure incurred may be paid to him and charged to the contingencies. While claiming
this amount the Head of the office should certify that the expenditure was actually incurred, was
unavoidable and is within the schedule scale of charges for the conveyance used. It should also
be certified that the Government servant is not entitled to travelling allowance for the journey, was
not granted any compensatory leave and will not otherwise receive any special remuneration for
the performance of duty, which necessitated the journey. (S. R. 89).

Grant of conveyance charges and daily allowance to civil servants who perform short visits on
official duty between Islamabad and Rawalpindi:

8. 91 (i) Civil servants in BPS 1 to 15 shall be allowed bus fare or wagon fare, as utilised taxi hire
shall be allowed in emergent and exceptional cases at the instance of an officer not below the
rank of a Deputy Secretary in writing.

(ii) Civil Servants in BPS 16 and above shall be allowed the taxi charges as also to those officers
who travel by their own transport, as per the revised rates. (Annexure).

(iii) Half daily allowance shall be admissible to all civil servants, in addition to the conveyance
charges referred to above, whose absence from headquarters exceeds four consecutive hours on
any day. Such period of absence shall be calculated from headquarters or residence and end at
the time of return to headquarters or residence, as the case may be, provided no daily allowance
shall be admissible to those who are detached from duty in their parent
office/Department/Division located in Islamabad/Rawalpindi and have to work in another
office/department/Division at Rawalpindi/Islamabad, respectively, under specific orders of the
controlling officer.

(iv) Civil servants in BPS 1 to 15 posted in Karachi/Lahore who perform short visits from the
station of their posting to the suburbs and vice versa, on official duty, shall be allowed the same
rates as in (iii) above. The taxi charges shall be allowed at the rate of *[Rs. 3. 00) per kilometre to
officers in BPS-16 and above, as also to those officers who travel by their own transport.

(v) Where the means of locomotion has been provided at the expense of Government, no
conveyance charges shall be admissible.

(vi) Single-room rent in a hotel shall not be admissible.

[Finance Division O. M. No. 4(12)-Reg. (9)/87, 950/88 dated 1I-8-I988].

Annexeture

**TAXI CHARGES

For one Way For

For return
To return
Journey (Rs)
From Journey (Rs. )
Secretariat Officers located in
48.oo 96.00
Blocks Islamabad Saddar Rawalpindi
Supreme Court of
do 52.50 105.00
Pakistan (Rwp)
Offices located near
do 48.oo 96.00
Jail in Rawalpindi.
do Ayub Hall 49.50 99.00
Rawalpindi General
do 39.00 78.00
Hospital
do Islamabad Airport 48.00 96.00
CDA Office
Blocks Islamabad Offices located in
39.00 78.00
Saddar area
Rawalpindi

do Supreme Court of43.00 .87.00

Pakistan (Rwp)
do Ayub Hall 40.50 81.00

do Offices located near39.00 78.00

Jail in Rawalpindi.

do 39.00 78.oo
Islamabad Airport
do General Hospital 30.00 60.00

*Increased vide Finance Division O. M. No. F. I(16)-Reg. 9/91. dated 2I-8-1991.

**Revised vide Finance Division F. 1(9) R. 9/90, dated 18-2-1992.

Grant of Conveyance /daily allowance to civil servants performing journeys

on official duty between Karachi/ Lahore and suburbs:

8. 92 The Civil servants posted in Karachi/Lahore, who perform short

visits from the station of their posting to the suburbs and vice versa, on official
duty are allowed conveyance/daily allowance as under: -

(i) Civil servants of B-l to 15 are allowed bus or wagon fare as actually utilized. With the written
permission of an officer, not below the rank of Deputy Secretary, Taxi hire may be allowed in
emergent and exceptional cases. Officers of BPS 16 and above are allowed conveyance Charges
@ *Rs. 3. 00 per kilometre when they travel by taxi or in their own transport where the means of
locomotion have been provided at the expense of Government, nothing shall be admissible in any
case.
(ii) Daily allowance is admissible to all Civil servants, whose absence from headquarters exceeds
eight consecutive hours on any day. The period of absence is calculated from the time of
departure from office or residence and end at the time to return to office or residence, as the case
may be.

(iii) Room rent in a hotel is not admissible in such cases.

[Finance Division O. M. No. F. 2(2) R. 9/76-D/138/77. dated 16-4-1977].

Grant of Conveyance charges to the B-l to B-15 staff who arc required to
stay late after office hours or who attend office on Sundays and closed Holidays:

8. 93 The President has been pleased to decide that government employees in B-l to B-15 and
Stenographers in B-16 who are detained in the office beyond two hours of the usual closing time
and who attend office on Sundays and other closed holidays will be granted conveyance charges
at the following rates: -

[Finance Division O. M. No F 2(I) R-9/80 dated 28-7-1980].

Roles of Conveyance charges

When detained in OfficeFor attending Office

beyond two hours of theon Fridays and
usual closing time closed Holidays
(i) BPS-1&2. 4 50 5. 50
BPS-3 to 15 and
(ii) Stenographers in B- 5 50
16

(Finance Division O. M. No E. 1(I2)/IMP 11/91 dated 29-6-1991. ]

'Revised vide Finance Division O. M. No F. l(16)Reg. 9/91, dated 21-8-1991.

*[The other existing conditions regulating the grant of conveyance

charges shall continue to apply).

Journeys within 10 miles, by reserved Railways Compartment and by President and

Ministers:

8. 94 A Government servant travelling within ten miles of his headquarters on duty may recover
the actual amounts, which he might have paid on ferry or other tolls and fare journeys by railway
or other public conveyance.(S. R. 90).

8. 95 When a Government servant travels by reserved railway accommodation on requisition, the

entire cost of haulage is borne by Government. Any person travelling with the Government
servant, in the reserved accommodation has to pay the usual fares to the Railway. The
Government servant concerned should specify the number of persons, who travelled with him
and also certify that tickets were purchased by them. If he wants any additional accommodation
for luggage and staff, he should make his own arrangements with the Railway and pay for them.
Such a Government servant is not entitled to any travelling allowance. (S. R. 92).
8. 96 If a Stenographer or a personal clerk to an officer has to travel with an officer in the
reserved accommodation in the interest of public service, he should purchase a ticket for the
class of accommodation to which he is entitled under the rules. The expenditure on reservation
charges should be borne by Government Servant himself. (S. R. 92).

8. 97 The travelling allowance of President and Ministers is regulated under the special rules
framed for the purpose. (S. R. 95).Journey of a newly appointed Government servant:

8. 98 Generally speaking travelling allowance is not admissible to a Government servant for the
journey to join his first post in Government service. In case of appointments made to posts
outside Pakistan or in Gilgit or Chitral, competent authority may allow travelling allowance to join
a post under the Government. Likewise the Surveyor General or Director of Survey may grant rail
and steamer fares to Khalasis and Government Servants in B-l, 2 and 3 on enlist-
ment for their journey to Field Headquarters. (S. R. 105, 105-A and 105-B).

8. 99 When a pensioner or a Government servant who is thrown out of service due to reduction
of establishment or abolition of his post is re-appointed, the appointing authority may permit him
to draw travelling allowance for such of journey as lies in Pakistan. (S. R. 107).

Added -ride Finance Division O. M. No. 12(1O)R-II/5O dated 13-7-1951.

8. 100 If a Government servant on first appointment, cannot join his duties except by sea.
competent authority may grant him free passage by sea from one part of Pakistan to another
such part. (S. R. 108).

8. 101 When travelling allowance is paid on first appointment it will be regulated as a journey on
tour, but no daily allowance will be paid for halts. For this purpose the Category of person will be
determined by the post, which he will join. (S. Rs. 112 and 113).

Journey on Transfer (S. Rs. 114 to 126):

8. 102 A Government servant is entitled to mileage allowance for a journey on transfer including
transfer from military to civil employ. But the travelling allowance on transfer from one station to
another will be admissible only if the transfer has been made for public convenience and the
Government servant is paid for the transit period. A transfer on request is not treated as for public
convenience and as such a Government servant is not entitled to travelling allowance unless the
competent authority decides otherwise. In cases where a Government servant is transferred at
his own request an intimation to that effect should be sent to the respective audit officer. Unless
such an intimation is forthcoming the transfer will be treated as for public convenience.

8. 103 Journey on Transfer. A Government servant is entitled to the following: -

(a) Transfer Grant:

Government servant Government servant not

possessing a family possessing a family

*One month's pay. *Half month's pay.

"Note. In cases where a government servant possessing family moves to the new station alone
may draw transfer grant at the rate at least equal to the amount admissible to a government
servant not possessing family provided he finally opts to do so on transfer. "
[Finance Division O. M. No. 4(3)-R. 9/87-Dy. 1520/91 dated 24-12-1991].

(b) Transfer grant is admissible in all cases where travelling allowance on transfer is otherwise
admissible under the existing rules.

[Finance Division O. M No. F. 2 (1 )/Rev. 1/77, dated 31-5-1973].

(c) Actual rail, air or steamer fare for the Government servant and one or half fare for each
member of the family. If he travels by road he may draw road mileage at the rate applicable to
him. If two members of family accompany him he can draw additional load mileage

'Revised vide Finance Division O. M. No. F. 1 (16) Reg. (9)/91 dated 21-8-1991.

and if more than two members of family accompany him three times that rate.

(d) Daily allowance during journey period:

One daily allowance at special rate is payable to the Government servant for every 480 K. M. of
road distance. In case of journey on transfer by air, one daily allowance for each calendar day of
the actual period taken in transit will be admissible.

(e) Daily allowance on arrival at the new place of posting:

One daily allowance at the rate applicable to the station is payable in respect of the Government
servant and in respect of each member of his family above 12 years and one-half of the full rate
for every child above the age of 12 months, for the day of arrival at the
new place of his posting.

Clarification. As admissibility of T. A. and transfer grant in cases of transfers between the twin
cities of Islamabad and Rawalpindi is not quite clear in various quarters, it is, therefore, clarified
that:

(a) Transfer T. A. is admissible where change of residence is involved, in consequence of

change of headquarters, and

(b) Transfer T. A. is not admissible where

(i) change of residence is not involved in consequence of change of headquarters, or

(ii) change of residence takes place otherwise than in consequence of change of headquarters.

The transfers between Rawalpindi and Islamabad where change of residence is involved, also
entail expenditure on various items. Among other things,this fact may kindly be borne in mind by
the administrative authorities while deciding upon such transfers.

[Finance Division O. M. No. F 2 (3)-R. 9/78, dated the 25-2-1978]-

(f) Transportation of personal effects:

(i) The maximum of limit upto which personal effects can be transported at Government expense
is as follows:
Grade of
Kilograms If not possessing a
Government
If possessing a family family
servant
Grade 1 4500 2240

Grade II 3000
1500

Grade III
1500 760

Grade IV 560
380

(ii) Cost of carriage of personal effects upto the maximum number of Kilograms as in sub-para (i)
will be allowed at the rate of *0. 148 paisa per kilogram per kilometre or *2. 96 paisa per kilometre
per unit of 20 kilograms from the residence of the government servant at the old station to his
residence at the-, new station, irrespective of the mode by which the personal effects are carried.
(It will not be necessary to call for receipts in support of his claim of cost of transportation of
personal effects). (S. R. 116 read with paras 14 & 15 of the Ministry of Finance O. M. dated 20th
December, 1972).

8. 104 A Government servant may draw the actual cost of transporting at owner's risk
conveyance and horses on the following scale:

Oracle of Government
Scale allowed
servant

First Two horses and 1 carriage or motor car or

motor cycle.

Second A carriage and a horse or Motor cycle or a

motor car.
Third One horse or a motor cycle or a bicycle.

If the following conditions are fulfilled: -

(i) the distance travelled exceeds 132 Kilometres;

(ii) the possession of a horse or conveyance will be advantageous from

the point of view of efficiency of the Government servant in the
post which he is going to join; and

(iii) conveyances or horses are actually transported by railway, steamer

or other craft.

8. 105 In the case of motor car the cost of transporting a chauffeur or

cleaner and for each horse the cost of transporting one syce and one grasscutter
may be drawn. When transported by steamer the actual cost of transportation
includes gate pass, river dues, loading and unloading charges. The conveyance

*Subs vide Finance Division O. M No. 1(16) Reg. 9/91, dated 3-10-I99I,

may be transported by passenger train, but if it is transported by goods train, it is

permissible to charge to the government the packing charges and transport charges to and from
the goods shed provided it does not exceed the cost of transportation of conveyance by
passenger train. This rule applies mutatis mutandis to a Government servant of third grade who
carries an ordinary cycle. (S. R. 116).

8. 106 When a Government servant travels by Government steamer he is not entitled to

mileage allowance either for himself or for the family. He is entitled to free transport of himself, his
family, servants and their bonafide personal effects and of conveyance and horses. He may draw
in addition daily allowance of his grade, (S. R. 116).

8. 107 (i) The rate of allowance admissible to Government servant who transports his motor car
or motor cycle/scooter by road between stations connected by rail or steamer or partly by railway
or partly by steamer is entitled to draw *[Rs. 3. 00] per Kilometre in respect of a motor car and
*[Re. 1. 00] per Kilometer in respect of a motor cycle/scooter. If a Government servant and his
family travel in their own car he can draw actual railway fare for himself and one or half for each
member of his family. In that case transportation charges for car/motor cycle/ scooter will not be
admissible. [S. R. 116 read with para 16 of the Ministry of Finance O. M. No. F. 2(1)-Rev. 1/72,
dated the 20th December, 1972,
Para 5 of O. M. No. F. 2(49)-Reg, 9/78, dated 20-9-1978 and O. M. No. 2(2) R. 9/79, dated 23rd
January, 1979).

**[(ii) Transportation of motor car may be permitted by any means of transport but its
transportation cost be restricted to the expenditure for EVK transport. ]

8. 108 (i) Civil servants from outstation while proceeding to Northern Areas/Chitral on transfer,
are often stranded at the airport because of cancellation of flight due to unfavorable weather
conditions. During the period of forced halt, the individual concerned are compelled to incur
expenditure on board PIA meeting only the hotel expenses. To avoid hardship in such cases, it
has been decided that the civil servants concerned may be allowed daily allowance @ 50%
of their normal entitlement for each day of forced halt, subject to a certificate being furnished by
the PIA in the following form:

Certified that Flight No.............................by which Mr. ...........................

an employee of.............................................. while under orders of transfer,

scheduled to travel to Northern Areas/Chitral, was cancelled due to bad weather

conditions. He actually travelled on........................................................................

after........................................days of forced halt.

[Finance Division O. M. No. F. 2(40)-R-9/77 dated 6-5-1979].

*Amended vide Finance Division O. M. No. 1 (16)-Reg. (9)/91 dated 21-8-1991.

**Added vide Finance Division O. M. No. F. I (I6)-Reg. (9)/9l dated 26-9-1991.
(ii) Impression seems to exist in certain quarters that after dispensing with the production of
receipts [vide Para 8. 108 (i)] the cost of transportation of personal effects up to the maximum
permissible limit can be claimed and paid without regard to the actual effects transported. That is
not so. The position is that the provisions of S. R. 116(e) continue to remain in force. Accordingly,
the Government servant claiming the cost of transporting personal effects is required inter alia:

(a) to render a certificate to the effect that the actual expenses incurred are not less than the
amount claimed; and (b) to indicate, in that certificate, the weight of personal effects
actually carried and the amount actually paid for their transport.

The Controlling Officer has to exercise the usual scrutiny of the claim, and record a certificate to
that effect as required under S. R. 116 II (e).
[Finance Division O. M. No. F. 2(1)-Rev. 1/77, dated 11-1-1973].

8. 109 Those Government servants who are carried free of charge by

Pakistan Air Force planes to and from Gilgit are entitled as under: -

(a) If the family of the Government servant travels with him: -

(i) half the mileage allowance calculated for the Government servant himself; and

(ii) mileage allowance in full for personal effects as stipulated in the preceding paragraphs subject
to the condition that any luggage taken-by the Government servant with him in the
aeroplane should be taken into consideration in allowing the maximum bandage; and

(b) If the family travels by road, mileage allowance in respect of the members of the family will
be admissible in terms of the provisions of the preceding paragraphs in addition to that at (a)
above. (S. R. 116).

8. 110 A member of a Government servant's family who follows him within six months of the
date of transfer or precedes him by not more than one month may be treated as accompanying
him. If any member of the family travels from a place other than the old station of the Government
servant, travelling allowance may be allowed to him provided it does not exceed the railway fare
from old to the new station. For the purpose of this rule, the category of a Government servant
should be determined with reference to the facts on the date of transfer, while number of fares
admissible to the Government servant should be determined with reference to the facts on the
date of journey. Where travelling allowance is claimed for the members of the family their number,
relationship and ages should be mentioned, in the T. A. bill. [S. R. 116 (b) (iii)].

8. 111 When the family of a Government servant precedes or follows him and proceeds to a
station other than the new station, the period of one month or six months should be calculated
from the date of relinquishment of charge at the old station. If they precede to the new station of
posting the limit should be calculated with reference to the date of taking over charge at the new
station. [S. R. 116-Government Decision No. (6)].

8. 112 There is no objection if the personal effects do not accompany a Government servant for
good and sufficient reasons, but are carried within a reasonable time of the date of his journey on
transfer. The controlling officer should also certify on the body of the bill that he has scrutinised
the details and satisfied himself that the claim is reasonable. (S. R. 116-Government Decision No.
1).
8. 113 When a Government servant is not entitled to carry horse or motor car at Government
expense, there is no objection to their inclusion as a part of personal effects, provided these are
within the prescribed maximum limit of maundage. (S. R. 116-Auditor-General's Decision No. 2).

8. 114 Where a Government servant is transferred from station 'A' to station 'B' and again
transferred within a reasonable short time to station 'C he may be paid cost of transportation of
personal effects from station 'A' to station 'C in the following manner:

(i) The total weight carried from station 'B' to station 'C and from station 'A' to station 'C should not
exceed the maximum prescribed in the rules.

(ii) The total cost of transporting the effects from station 'A' to station 'B', from station 'B' to station
'C should not exceed the amount admissible from station 'A' to 'B' plus that admissible from
station
'B' to station 'C. (S. R. 116-Audit Instruction No. 3).

8. 115 When a Government servant, in superior service, is transferred from one post to another
and under the orders of competent authority has to hand over charge of his old post or take over
charge of the new post at a place other than the headquarters or his headquarters are changed at
a place other than the headquarters or his headquarters are changed while he is on tour and has
to proceed to the new station direct without returning to the headquarters he should be allowed
travelling allowance as on tour from the place of handing over charge to the new headquarters or
to the place of taking over charge. He will also be entitled to all the concessions in respect of
members of his family, personal effects and conveyance, etc., as stipulated in S. R. 116 (S. Rs.
116-A& 116-B)

8. 116 If the family of a Government servant, on his transfer, travels to a station other than the
new headquarters, travelling allowance for the family may be drawn. This is subject to the
condition that this should not exceed the travelling allowance, which would have been admissible
had the family gone to the new headquarters direct. (S. R. 116-C).

8. 117 A Government servant appointed to a new post while in transit from one post to another
will draw travelling allowance for so much of the journey as he has accomplished when he
receives fresh orders and for the journey from the place at which he receives orders to his new
station. (S. R. 123).

8. 118 If a Government servant proceeds on leave on average pay not exceeding four months
after making over charge of the old post and before taking over charge of the new post, he is
entitled to the usual T. A. irrespective of the fact whether the order of the transfer was received
before or after the commencement of leave. If the leave is for more than 4 months on average
pay with the exception of the Special Disability Leave whether granted by itself or in combination
with leave on average pay he is not entitled to any travelling allowance. (S. R. 124).

8. 119 When a Government servant takes leave other than leave on average pay for 4 months
while in transit from one post to another he may draw railway or steamer fares or the road
mileage for self and family in accordance with T. A. on transfer rules for so much of the journey to
join the new post as he has accomplished before the order granting him leave is received. If a
Government servant returns from leave other than leave on average pay not exceeding 4 months
and is posted to a station other than than from which he proceeded on leave, the controlling
officer may permit him to recover the transportation charges for personal effects and conveyance,
if any. Transfer Grant is not admissible in such cases. [(Auditor's-General's letter No. 1276-A/1-73
(i)dated 13-11-70) SRs 125 & 126].
8. 120 If the headquarters of a government servant is transferred from Islamabad to Rawalpindi
or vice versa and the residence is also changed in consequence thereof. T. A. on transfer is
admissible.

[Finance Division U. O. No. D. 378-Rev. 1/73, dated 18-7-1973)

8. 121 In regard to question as to the time limit which could be allowed between change of
headquarters and 'consequential shifting of residence for purposes of T. A. on transfer from
Islamabad to Rawalpindi and vice versa, the Finance Division, have decided that the claim could
be admitted by treating the non-allotment of Government accommodation at the new
headquarters as a good and sufficient reason for the purposes of Government Decision No. 1
below :
S. R. 116, subject to the condition that a certificate is furnished by the competent
administrative authority to the effect that the Government servant concerned had

applied for allotment of a residential accommodation in Rawalpindi/Islamabad, as the case may

be, and that the same could not be allotted to him earlier.

[ Finance Division U. O. No. F. 2(48)-1349, dated 24-12-1973].

Journey to attend an examination:

8. 122 A Government servant is entitled to draw travelling allowance as on tour (but no daily
allowance for halts), for the journey to and from the place at which he appears in an obligatory
examination or any other examination prescribed by the competent authority. The travelling
allowance cannot be drawn more than twice for any particular examination or standard of
examination. If a competent authority is satisfied that candidate has culpably neglected the duty
of preparing himself for an obligatory examination or did not display a reasonable standard of
proficiency in an examination, which was not obligatory, it can disallow the payment of travelling
allowance to him. (S. R. 130).
8. 123 The Government servants summoned by or at the request of Federal Public Service
Commission or of Government for interview not connected with advertised posts may be granted
travelling allowance as on tour. They may be paid daily allowance also in a few exceptional cases
at the discretion of the Federal Public Service Commission. The Provincial Government servants
called for interview for appointment under the Federal Government may be paid travelling
allowance, which will be charged to the Federal Government and the Establishment Officer of the
Federal Government will be the Controlling Officer in this behalf. The Civilian Government
servants called for interview and medical examination for Emergency Commission, may also be
paid travelling allowance
according to the Army Instructions. (S. R. 132).

Journey on proceeding on or returning from leave:

8. 124 Normally, a Government servant is not entitled to travelling allowance for a journey made
during leave or while proceeding on or returning from leave. Under special circumstances a
competent authority may, however, permit a Government servant to draw travelling allowance in
such cases as if on a journey on tour.

8. 125 A Pakistan Commissioned Officer serving with the Frontier Corps, when proceeding or
returning from leave, is entitled to the same concessions, as would have been admissible to him,
while in military employ. (S. R. 137).

8. 126 The Surveyor-General of Pakistan may grant, rail and steamer fares to Khalasis and
other Government servants in Category 1, 2, or 3, on their proceeding or returning from leave to
and from the place at which they were recruited. He may also grant travelling allowance to
Surveyors and other subordinates when proceeding or returning from leave if their homes are
situated in Provinces other than that in which they are employed. (S. R. 140).

8. 127 If a Civil servant is recalled to duty compulsory with the personal approval of the Head of
office, from leave of any kind he is spendingaway from his Headquarters, he may be granted a
single return fare plus daily allowance as admissible on tour from the station he is spending leave
to the place he is required to report for duty. In case he is recalled to duty at headquarters andhis
remaining leave is cancelled the fare then admissible will be for one way journey only. If return
from leave is optional, no concession is admissible. If the Government servant recalled to duty is
entitled to travelling allowance under S. R. 124 he may not draw the above travelling allowance
unless he abandons his claim to mileage allowance under S. Rs 115 to 116. (S. R. 142). (Revised
Leave Rules, 1980).

Journey on retirement or termination of employment:

8. 128 (a) A Government servant is allowed T. A. to the extent specified below, in respect of the
journey from the place of his last posting to his home town, performed during leave preparatory to
retirement or on or after retirement.

(i) Actual. fare by rail or steamer of class to which he was entitled immediately before his
retirement for-himself and for each member of his family. For journeys by road between places
not connected by rail or steamer mileage allowance will be allowed.

(ii) Cost of transportation of personal effects to the extent admissible to him immediately before
retirement for journeys on transfer.
(iii) In addition to the cost of transportation of personal effects cost of transportation of personal
car or motor cycle or scooter shall, however, be calculated by road and restricted to the distance
by the practicable route. The rate of allowance admissible in such cases shall
be *Rs. 3. 00 per kilometre for a motor car and *Re 1. 00 per Kilometre in respect of a motor
cycle/scooter.

[Para 17 of Finance Division O. M. No. l-2(l)Rev. 1/72 dated 20-12-72].

(iv) In addition to the T. A., a Government servant proceeding on retirement shall also be allowed
Transfer Grant to the extent admissible on transfer from one station to join duty at an other
station.

[Finance Division O. M. No. F. 2 (l)-lmp-1/77. dated 26-7-1978].

"Amended vide Finance Division O. M. No. F. 1 (I6)-Reg. (9)/9l, dated 21-8-1991.

The term "retirement", for this purpose mean retirement on attaining the age of superannuation,
or on completion of prescribed service limit or voluntary retirement,
on completion of 25 years qualifying service or invalid pension or compulsory retirement. [Finance
Division O. M. No. F. 2 (l)-Rev. l/72, dated 20-12-1972],

(b) Advance payment for expenditure as at (a) above shall be made and be treated as final
payment.

(c) The home town shall be determined according to entries pertaining to the permanent
address of the Government servant in his service record oraccording to the declaration made by
him for purpose of leave travel concession.The Government servants who have not declared their
home town may be askedto do.
[Finance Division O. M. No. 2 (42)/R-9/75, dated 24-11-1975).

(d) The term 'retirement' shall mean, retirement on attaining the age of superannuation, or on
completing prescribed service limit, or voluntary retirementon completion of 25 years qualifying
service or on invalid pension, or compulsory retirement.

(e) A civil servant, who did not avail himself of the concession during the Leave Preparatory to
Retirement may do so within six months after the actual date of retirement. If a civil servant dies
within the aforesaid six monthsperiod, without availing himself of the concession, this may be
allowed to the family on application to the Head of Department and should be availed of before
the expiry of six months from the date of retirement of the deceased or within three months of the
date of his death, whichever may be later. In case of re-employment immediately on retirement or
within six months of the date of retirement, the time limit of six months will commence from the
date on which the period of re-employment concludes.

[Finance Division O. M. No. F. 2 (5)/R-9/76, dated 3-3-1976],

(0 (i) The concession of retirement T. A. in case of re-employment is admissible only to those

retired civil servants who get re-employment in Government Departments and not those re-
employed in autonomous/semiautonomous organisations or private companies.

(ii) A retired civil servant is entitled to avail of the T. A. concession any time during leave
preparatory to retirement or after his retirement but before the expiry of the time limit of six
months after the date of retirement.

(iii) In the case of re-employment during leave preparatory to retirement or within six months from
the date of retirement, a retired civil servant can avail of the concession any time before the
termination of his re-employment or within a period of six months from the date on which his re-
employment period ends.

(Finance Division O. M. No. F. 2 (28)/R-9/80, dated 10-3-198!].

(g) The employees, whose home towns are in Gilgit, Baltistan and Chitral and who, of necessity,
have to travel by air on their journey on retirement, are allowed travelling allowance as under: -

(i) For the portion of journey connected by rail, rail fare of the class of entitlement.

(ii) For the portion of journey connected by road, mileage allowance at the prescribed rate.

(iii) Air fare (economy class) for self and family from Rawalpindi/ Peshawar, as the case may be
up to the airport near the home town.

[Finance Division O. M. No. F. 2(I)-Rev. 1/72, dated 20-12-1972].

8. 129 No person is entitled to any travelling allowance for a journey made after termination of
employment. A competent authority, for special reasons to be recorded, may, however, permit any
Government servant to draw travelling allowance for such a journey. (S. Rs. 146 & 147).

8. 130 The Surveyor General of Pakistan is competent to allow payment of railway/steamer

fares to discharge Khalasis and other Government servants in Category 1, 2, or 3 for the journey
to the place at which they were enlisted.
(S. R. 149).
8. 131 A Government servant temporarily employed in Government service in Gilgit and Chitral,
who was paid travelling allowance to join his post, may, on the termination of his employment, be
granted travelling allowance to the place he was engaged. The claim in this behalf should be
preferred within three months of the date of termination of service and the competent authority
should certify that the person intends to make the journey. (S. R. 151-A).

8. 132 The T. A. in all these cases will be granted as on tour, but no daily allowance is
admissible for halts on the journeys. (S. R. 153).

Grant of travel assistance to families of Government servants,who die while in service:

8. 133 The family of Government servant, who dies while in service, will be allowed travel
assistance equal to the amount of travelling allowance, transfer grant and cost of transportation of
personal effects, as stipulated in para 8. 128 to enable the family to perform the journey from the
station of the last posting of the deceased Government servant to his home town or to such other
place to which the family intends to proceed subject to the condition that in the latter case the
amount should not exceed that would have been admissible upto the home town. For this
purpose the drawing and disbursing officer concerned may draw the amount admissible in
advance and pay to the eldest member of the deceased's family on application to the Head of the
Department in which the deceased Government servant was working at the time of his death. The
application should contain the following particulars: -

(a) Name of the deceased Government servant.

(b) Designation and name of the office in which he was working.

(c) Name and address of the applicant.

(d) His/her relationship with the deceased.

(e) Home town of the deceased Government servant or the place to

which the family intends to proceed.

(0 Names of family members and their ages.

(g) Approximate weight of personal effects to be transported.

The application should be countersigned by a BPS-17 or above Civilian

officer or a Commissioned Officer of Armed Forces, who should record a
certificate thereon as under: -

"Certified that I personally know the above particulars to be correct".

[Finance Division O. M No. F. 2(1) Rev. 1/72, dated 6-2-1973 & No. F. 2(62) R-9/78 dated 12-12-
1978].

Journey to give Evidence or to attend a Court of Law as Assessor or Juror:

8. 134 If a Government servant is summoned to give evidence in a criminal case, a case before
a court martial, a civil case to which Government is a party or a departmental enquiry held by a
duly constituted authority in Pakistan or in foreign territory and the evidence is based on the facts
which came to his knowledge in the discharge of his public duties, he may draw travelling
allowance as for a journey on tour attaching to his bill a certificate of attendance given by the
court or of other authority which summoned him. The Government servant should not accept any
payment of expenses from the court and obtain and attach to the bill a non-payment certificate
from the court. If the court is situated within 10 miles of his headquarters and thereby the
Government servant is not entitled to any travelling allowance, he may accept the actual travelling
expenses from the court provided he is not in receipt of a permanent travelling allowance. (S. R.
154).

8. 135 When a Government servant is on leave and is summoned to give evidence in the
circumstances stated above he may be paid travelling allowance to and from the place where he
is spending leave. (S. R. 154).

8. 136 In case a Government servant is summoned to give evidence on behalf of the State in a
case not connected with his official duties or to serve as an Assessor or a Juror, he is not entitled
to any travelling allowance except that which is paid by the court under its own rules. If the court
pays him any sum as subsistence allowance or compensation, apart from payment for travelling
expenses, he must credit that sum to the Government before drawing full pay for the day or days
of absence. Such absence will, however, be treated as duty. (S.R.155 read with Establishment
Division O. M. Nos. 3/50/58-SEI, dated 5th July, 1954 and 2/31/63-SI, dated 25th October, 1967).

Journey to obtain medical treatment or certificate:

8. 137 If a non-Asiatic member of Superior Civil Service is serving at a station where there is no
Government medical officer to attend to him, the Government servant or a member of his family
may go to the nearest station where there is such a medical officer and draw travelling allowance.
Where the patient is too ill to travel, travelling allowance may be granted to the nearest medical
officer from and to his headquarters. In both the cases the application for travelling allowance
should be supported by a certificate from the medical officer to the effect that medical treatment
was necessary and in the latter case that the patient was too ill to travel. The controlling officer
may require this certificate to be countersigned by the Administrative Medical Officer of the
Province. (S. R. 155-A)'

8. 138 In the case of members of a Superior Civil Service or any member of their family, if the
medical officer first consulted considers the case to be of such serious or special nature that he is
unable or unwilling to treat it, he may, with the prior approval of the Administrative Medical Officer
of the Province give a certificate authorising the officer or a member of his family to draw
travelling allowance to and from the nearest station where adequate treatment is available. If the
patient is not in a fit condition to travel, the medical officer may be called and paid travelling
allowance therefor. Where prior approval of higher authorities cannot be obtained without danger
to the patient this should be done subsequently. (S. R. 155-B).

8. 139 If a Government servant has to leave his station in order to get medical treatment
elsewhere in view of the fact that there was no Government medical officer at that station, he may
draw the travelling allowance on production of a certificate from the medical officer whom he had
consulted. (S. R. 156).

8. 140 The travelling allowance is not admissible for journeys to get medical fitness certificate or
health certificate on first appointment to the Government service. (S. R. 156, Government
Decision No. 1).

8. 141 Where anti-rabic treatment facilities are not available and a Government servant has to
proceed to another station to get the treatment, he may draw the travelling allowance on
production of a certificate from the authorised medical attendant (Principal Medical Officer of the
district or any other medical officer so authorised by the competent authority) to the effect that in
his opinion the journey was absolutely necessary. This concession is also admissible to a
Government servant on leave. (S. R. 156-A).

8. 142 If a Government servant is stationed at a place where there is no medical officer and he
is required to obtain a medical certificate in support of an application for an original grant of leave,
he may draw travelling allowance for the journey undertaken to obtain the certificate. When the
application is for extension of leave, no travelling allowance is admissible. Similarly if a
Government servant having acquired a medical certificate is directed to appear before a Medical
Board he may draw travelling allowance for the journey to appear before the Board, provided he
appears before the Board for the original leave and not for any extension. In both the cases the
journey should not be undertaken without the previous permission of the controlling officer,
provided it can be obtained without risk to the Government servant requiring medical advice. (S.
Rs. 157 & 158).

8. 143 In case a Government servant is required to apply for invalid pension in the interest of
public service and he has undertaken a journey to appear before a Medical Board, he may draw
his actual travelling expenses subject to the maximum of the travelling allowance as admissible. If
he has to return to the headquarters, he may draw travelling allowance for the return journey also
in the same manner. In both the cases the T. A. bill should be duly supported by a certificate from
the controlling officer that he was directed to apply for an invalid pension voluntarily. A competent
authority, after satisfying itself that the circumstances of the applicant are such as to justify the
concession, may allow him to draw actual travelling expenses subject to the maximum stated
above. (S. R. 160).

8. 144 In all the above cases the travelling allowance may be drawn as on tour without any daily
allowance for halts on tour. (S. R. 162).

Journey in attendance of an incapacitated Governmentservant or member of his family:

8. 145 A medical officer of Government, who considers that a Government servant on whom it
is his duty to attend professionally should leave his station to obtain medical advice or treatment
or to proceed on leave and that it is unsafe for him to travel unattended, may accompany him and
draw T. A. as admissible on tour. If he himself cannot accompany he may arrange for another
attendant, who will get the normal travelling allowance if he is a Government servant and actual
expenses if otherwise. When a Medical Officer's opinion as tothe necessity of an attendant
cannot be obtained before the commencement of the journey, a certificate to that effect would be
deemed sufficient. (S. K. 163).

Journey on a course of training:

8. 146 (i) When a Government servant or any person not already in Government service has to
undergo a course of training a competent authority may allow him to draw travelling allowance, as
per scale decided by it, for the original journey to and the last journey from the place of training
and for halts at such place. The travelling allowance may also be granted for holidays and
vacations and journeys during the course of training. The scale should be so fixed as not to
exceed the travelling allowance admissible to Government servants of similar status on duty at
the place of training. (S. R. 164).

(ii) A military officer in civil employ, when detailed to attend a military course of instruction, is
entitled to draw travelling allowance as admissible to a military officer in military employ in similar
circumstances. (S. R. 164-A).

Journey to attend a Darbar:

8. 147 A Government servant permitted to attend a Durbar at a place other than his
headquarters may draw travelling allowance as on tour.

Supply of free accommodation on railway journeys:

8. 148 The special railway accommodation is provided as per rules promulgated by the
President from time to time. The President may reserve a full special train for himself, whereas
the Ministers and Army Chief of Staff, can reserve a saloon. Other Service Chiefs, Chief Justice
of Pakistan, Secretaries, Joint Secretaries and other officers of that status, Auditor-General of
Pakistan, may reserve a 4-berth compartment or a coupe in air-conditioned coach. The Judges of
the Supreme Court, Chairman, Federal Public Service Commission, D. G. S. & D., D. G. P. &T.,
D. G. (Health), Director Intelligence Bureau and Governor, State Bank of Pakistan may reserve a
I class coupe compartment in an ordinary train service or in an air-conditioned coach. These
reservations are permissible only if the duration of the journey falls between 11p. m. and 6 a. m.
When a Government servant travels in a carriage reserved by requisition, the carriage is entirely
at his disposal and may be detached or detained at any railway station at his request. (S. R. 166
to 173).

8. 149 When a Government servant is allowed free transit by railway otherwise than in
accommodation reserved by requisition, whether on free pass or otherwise, the mileage
allowance drawn for the journey should be reduced by the amount of fare, which he would have
paid, but for free transit. The reduction should cover the full number of fares covered by the pass,
unless the Government servant concerned certifies that he did not use the pass in respect of any
fares for which reduction has not been made. If a Government servant is in receipt of a
permanent travelling allowance and uses free pass on railway within his sphere of duty, he should
deduct from his permanent travelling allowance for the month the
amount of the railway fares which he would have paid, if he had not travelled on pass. When a
Government servant is entitled to travel in a higher class of accommodation by paying railway
fare for a lower class, he should reduce the claim of his travelling allowance by the amount by
which the fare of the class in which he travels exceed the fare actually paid. (S. Rs. 176 to 178).

Journey by sea, air, road;where means of conveyance are provided by State:

8. 150 If a Government servant travels by sea or river steamer, the cost of which has been paid
by the Government or a Local Fund, he is not entitled to any travelling allowance except the daily
allowance. Where servants and luggage are sent separately at the expense of the Government
servant concerned, he may draw in addition the actual cost of transporting them. When a
Government servant is provided free transit by sea or river steamer, otherwise than in a
Government vessel, the mileage allowance should be reduced by the amount of fare which he
would have paid, but for free transit. This does not apply to cases in which a Government servant
is allowed a free pass by a Steamship company without cost to Government. The Government
servants travelling in Government vessels are not entitled to recoupment of any portion of
charges payable by them for board provided on vessels. They should settle their messing bills
direct with the commander of vessel. (S. Rs. 180 & 181).

8. 151 When a Government servant is allowed free transit by air he may draw the daily
allowance which cannot be exchanged for mileage allowance. If a part of journey is performed by
other means of locomotion, he may draw mileage allowance in lieu of daily allowance for that part
of journey. Where separate conveyance has to be provided for servants and luggage at the
expense of the Government servant, he may draw 1/2 or one-third of the railway or steamer fare
of the class of accommodation to which he is entitled, if the two places are connected by railway
or steamer respectively or the daily allowance of half the mileage allowance, if otherwise. If,
however, the Government servant performs a part of journey by other means of locomotion, he
may draw mileage allowance admissible for the part. (S. R. 181-A).
8. 152 Where any other person accompanies, a Government servant on a journey by air, who is
not entitled to travel in that machine, the sanction of the Head of the Department should be
obtained or if the Government servant is him self the Head of the Department, the permission of
the Ministry/Division concerned is necessary. One 1st Cass or half 1st class fare should be paid
for all "nonentitled" persons. (S. R. 181-B).

8. 153 When a Government servant performs a journey, otherwise than by railway, steamer or
air, by means of locomotion provided by the Government, a Local Fund, etc. and does not pay the
cost of its use or propulsion, he may draw the daily allowance on any day on which he is absent
from his headquarters for more than 8 consecutive hours and may not exchange it for mileage
allowance. If part of journey is performed by other means of locomotion, he may draw, in lieu of
daily allowance, mileage allowance for the part of journey.

8. 154 Where separate conveyance has to be provided for servants and luggage at the
expense of the Government servant, he may exchange it for mileage allowance calculated for the
journey and draw in addition the mileage allowance admissible for journey by other means of
locomotion, if any. (S. R. 182).

8. 155 In cases where a Government servant, has to pay all the cost of use or propulsion of the
conveyance, he may draw the normal travelling allowance as admissible under the rules subject
to the deduction of such fixed hire or charge which a competent authority supplying the
conveyance may fix. (S. R. 183).

8. 156 The above rules are not applicable to Government servants of the Fourth Category they
are entitled to normal travelling allowance even if they are provided free transit by any means of
locomotion other than railway, steamer or air. (S. R. 184).

8. 157 When a Government servant travels by motor car, which has been supplied to him at the
expense of the Government on the condition that he bears the cost of maintenance, he is entitled
to travelling allowance as follows: -

(i) If he travels by motor car for more than 20 miles in one day, he may draw for the first 20 miles,
the mileage allowance of his grade and for the remainder of the journey three-fourth of such
mileage allowance.

(ii) - If the journey by motor car is combined by road by other means of conveyance, he may draw
mileage allowance for first 20 miles or for the journey by other conveyance, whichever is greater
and for the remainder of the journey three-fourth of mileage allowance.

(iii) If the journey by road is combined with journey by railway or steamer, he may draw mileage
allowance for journey by railway and steamer in addition to the mileage admissible under (i) and
(ii) above for the journey by road. (S. R. 185).

8. 158 When a chauffeur makes a journey by road on the Government owned motor car in his
charge, he may draw daily allowance of his grade if the journey involves an absence of at least
one night from his headquarters. He is not entitled to any travelling allowance if such absence is
not involved. (S. R. 186).

Allowances with Rates and background permissible toFederal Government Employees:

8. 159 A statement showing different kinds of allowances with rates and background permissible
to various categories of Federal Government servants is given hereinafter in the

Annexure.
STATEMENT OF ALLOWANCES WITH RATES AND BACKGROUND

Name / When Enhance

Nature of Rates Sanc- ment if Admissibilitv Background

Allowances tioned any

10. Overtime Rs. 10/- 1-6-1991 -do- While a duly beyond

Allowance in 1947 Rs. 36/- office-hour

to staff per day Vide Finance Div's

O. M. No F. 4(l)-R.
Car Driver Authority
5/

91 dated 11-8-1991

11. Conveyance On Working days 1991

Charges for official in BPS

for late 1-2 (Rs. 4. 50 per

sitting. day) for officials in

After BPS-3-15 cand 16

Office (non-gazetted)

hours (Rs. 5. 50 per day)

(ii) On closed

holidays

for officials in

BPS 1-2 (Rs. 5. 50

per day) for

officials in BPS

3-15 and 16(non-

 gazetted) (Rs. 8. 00

per day)

a. Data Control 1-7-

12. Computer All Government Computer opeiator &
1988

Allowance Staff upto BPS- organizations qualified personnel

15 Rs. 500/-p. m. hearing fullfledged working on computers

b. Computer computer upto BPS-16& below

personnel in Centre/Cell for

BPS 16-18 working on

Rs. 1000/p. m. wholetime basis

c. In BPS 19 &

above Rs. 1500/-

p. m.

13. House rent 30% of minimum 1950 1994 All Government All employees not

Allowance of the relevant pay Servants provided with Govern-

scale at other ment accommodation and

station 45% of the paid along with pay to

compensate the
minimum of the
employees.

relevant pay scale -do-

at Islamabad

Rawalpindi. Karachi

Lahore, Peshawar.

Quetta. Hyderabad,

Multan, Faisalabad
 Gujranwala

Bahawalpur.

Sargodha, Sialkot

and Sukkur.

14 Conveyance Motor Car 355/- 1990 All Government Paid alongwilh pay to all

employees posted at
Allowance Allowance p. m. Servants
speet-

Govt. Servant fie stations like Islamabad

Karachi. Lahore,
who draw pay
Peshawar

Quetta. Rawalpindi.
of Rs. 3240/- 193/p. m.
Hyder-

abad. Multan Faialabad

Authority Vide Finance Divi-
and

sion's O. M. No. F.
Motorcycle/ 130/-p. m. not residing within their
3

Scooter (O-R. 5/90 dated work premises.

18-11-1990

Other allowance 196/-p.

m.

Please Click here to view the Nature of Allowances table

10. Overtime Rs. 10/- 1-6-1991 -do- While a duly beyond

Allowance in 1947 Rs. 36/- office-hour

to staff per day Vide Finance Div's

O. M. No F. 4(l)-R.
Car Driver Authority
5/

91 dated 11-8-1991
11. Conveyance On Working days 1991

Charges for official in BPS

for late 1-2 (Rs. 4. 50 per

sitting. day) for officials in

After BPS-3-15 cand 16

Office (non-gazetted)

hours (Rs. 5. 50 per day)

(ii) On closed

holidays

for officials in

BPS 1-2 (Rs. 5. 50

per day) for

officials in BPS

3-15 and 16(non-

gazetted) (Rs. 8. 00

per day)

a. Data Control 1-7-

12. Computer All Government Computer opeiator &
1988

Allowance Staff upto BPS- organizations qualified personnel

15 Rs. 500/-p. m. hearing fullfledged working on computers

b. Computer computer upto BPS-16& below

personnel in Centre/Cell for

BPS 16-18 working on

Rs. 1000/p. m. wholetime basis

 c. In BPS 19 &

above Rs. 1500/-

p. m.

13. House rent 30% of minimum 1950 1994 All Government All employees not

Allowance of the relevant pay Servants provided with Govern-

scale at other ment accommodation and

station 45% of the paid along with pay to

compensate the
minimum of the
employees.

relevant pay scale -do-

at Islamabad

Rawalpindi. Karachi

Lahore, Peshawar.

Quetta. Hyderabad,

Multan, Faisalabad

Gujranwala

Bahawalpur.

Sargodha, Sialkot

and Sukkur.

14 Conveyance Motor Car 355/- 1990 All Government Paid alongwilh pay to all

employees posted at
Allowance Allowance p. m. Servants
speet-

Govt. Servant fie stations like Islamabad

Karachi. Lahore,
who draw pay
Peshawar
 Quetta. Rawalpindi.
of Rs. 3240/- 193/p. m.
Hyder-

abad. Multan Faialabad

Authority Vide Finance Divi-
and

sion's O. M. No. F.
Motorcycle/ 130/-p. m. not residing within their
3

Scooter (O-R. 5/90 dated work premises.

18-11-1990

Other allowance 196/-p.

m.

1-7-2000 All Pakistan

15. Foreign Different rates 1949 These allowances are
Missions

Allowance from missions abroad through admissible in Foreign

and to missions Ministry of Foreign Countries to meet the

Entertain- were enforced affairs actual expenses.

ment from 1-1-1991

Allowance which are still

operative in

few cases

revision has

been made in

recognition of

price rise and

other require-

ments.
 20% of the pay

subject to a

maximum of

Rs. 800/-

16. Design Engineers drawing 1983 All Offices of the The Design Allowance is

pay in B-17(Rs. admissible to Architects

Allowance Federal Govt, where
4OO am

p. m)B 1-18 full time job is doing Town Planners holding

(Rs. 500p. m. )B 19 in design office. Master's or Engineering

degree in Architecture
(Rs. 600 p. m. )B-20
and

(Rs. 700/-p. m. ) Authority Finance Div. No. 1 Town Planning and work-

(l)-Imp/83 dated ing full time in Design

18-8-1983 Offices.

(i) Sessional 20-1-

17. Sessional 1. Ministry of Law, Exclusive of seven days
94

Allowance/ Allowance 35% Justice & Parlia- before and seven days

Conveyance of basic pay mentary Affairfs after session.

& Diet (ii) Diet Charges 2. N. A.

Charges & beyond 6 p. m. 3. Senate

Honorarium BPS-1-2 Rs. 11/-

per day

BPS 3-16 (non-G)

Rs. 17/-

BPS 16 above
 Rs. 45/- per day

(iii) Conveyance

& Late Sitting

Charges.

BPS 1-2

Rs. 12/- per day

BPS 3-16 (Ngs)

Rs. 18/-per day

(iv) Honorarium

50% of Pay

subject to

maximum of two

months pay in a

year.

Grant of financial assistance in the cases of death of Governmentservants at the station of

duty:

8. 160 The expenses on the local burial on the cost of transportation of dead body are met by the
Government to the extent indicated below: -

(i) Cases in which the dead body of the deceased Federal non-gazetted Government servant is
buried locally. The actual cost of the local burial is reimbursed by the Government to the extent
specifically applied for by the bereaved family subject to a maximum of*[Rs. 5000. 00] in each
case.

(ii) Cases in which the dead body of the deceased Federal Government
servant is transported to home town:

(a) If the dead body transported by rail. -Actual cost of transportation of dead body of the
deceased from his last station of duty to home town will be met by the Government.

(b) If the dead body is transported by road. -**[Actual cost of such transportation shall be met by
Government subject to a maximum of Rs. 8. 00 per kilometre. The distance shall be calculated
from the residence of the deceased in his last stationof duty to his home town].
(c) Transportation of dead body by air. -**[Actual cost of transportation will be permissible if
direct air service is available from the last station of duty to his home-town or the nearest airport.
For journey from such an airport dead body shall be transported by road at the rate prescribed at
(b) above]. In additionally the family members may be allowed one single economy class fare to
accompany the dead body. For this purpose 'family' means wife, and children residing with and
wholly dependent upon the deceased. The air fare claimed on this account will be in lieu of the
family's normal entitlement for T. A. as admissible on retirement. In case the deceased employee
was a bachelor two attendants may be allowed to accompany the dead body.

Revised vide Finance Division O M. No. F-3(2)-K. 9/95, dated 21-9-1995, read with O M. of even
number dated 6-2-1996.
**Amended vide Finance Division O. M. No. F. 3(3)-R 9/95, dated 21-9-1995.
8. 161 *[ Actual cost of transportation of dead body shall also include
charges on crating where necessary, not exceeding Rs. 1600. 00].

8. 162 (i) The expenditure incurred may be reimbursed to person or body (not necessarily a
family member) who incurs it. But application for reimbursement of the expenditure will as at
present, continue to be made by a member of the family except where there was no member of
family or when the expenditure happens to be incurred by an administrative authority as a result
of combat, e. g., during actual action by a Police or Customs or Central Excise staff and the like.
The office of the deceased shall satisfy itself about such claims.

(ii) The expenditure involved should be met from within the sanctioned budget grant of the
administrative Ministry/Division/Department/Office concerned.

(Finance Division O. M. No. F. 2(12) R-9/73/917, dated 20-8-1973 and F. 2(12) R 9/73/1294-74,
dated 26-6-1975].

(iii) In the case of death of the wife of a Government servant (only one wife) her dead body shall
also be allowed to be transported to the home town of the Government servant concerned at
Government expense in addition to the facility of an attendant.

[Finance Division O. M. No. F. 2(5) R-9/80-D. 213/80, dated 4-3-1980].

(iv) In cases where death occurs in an accident or is un-natural of a family member of a

Government servant as defined in SR. 2(8), his/her dead body shall also be transported to the
home town of the Government servant concerned at Government expense to the extent as laid
down in this Division's O. M. of even number dated 21st September, 1995, in addition to the
facility of an attendant as laid down in para 2 of the O. M. dated 20th August, 1973.

[Finance Division O. M. No. F. 3(2) Reg-9/95, dated 24-9-1995].

Transportation of the dead body of a Government Servant deputed abroad on temporary

duty:

8. 163 In the event of the death abroad of Government servant deputed outside Pakistan on
temporary official duty, the expenditure connected with the death, to the extent supported by the
relevant vouchers in original and certificate as the minimum by the Head of Pakistan Embassy or
Pakistan Mission in the

*Amended vide Finance Division O. M. No. F. 3(2) R-9/95, dated 21-9-1995.

country concerned, is borne by the Government as follows: -
(i) If the dead body is burried/cremated locally in the country where the Government servant was.
deputed, the total cost of burial/cremation; or

(ii) If the dead body is transported to Pakistan, the total cost of such transportation including
incidental expenses incurred for preparation of the body for transportation, such as embalming
and local transportation charges etc.

[Finance Division O. M. No. F. 4(2) R-9/72. dated 17-4-1972]Form of T. A. Bill:

8. 164 (a) Travelling Allowance Bill of a B-16 and above Government servant is prepared on
Form T. R. 20 (Rule 254 of the Compilation of the Treasury Rules-Vol. I).

(b) Travelling Allowance Bill for a B-l to B-15 Government Servant is prepared on Form T. R. 25
[Rule 277 (1) of the compilation of the Treasury Rules].

8. 165 Bill for advance of T. A. may be prepared either on the prescribed form or in the form of a
simple receipt.

Head of Account of T. A. Advances:

8. 166 (a) Advance of T. A. on transfer is classified under the head of account 4000 ADVANCES
NOT BEARING INTEREST 4100 ADVANCES REPAYABLE- 4101 O. B. ADVANCES (CIVIL). If
the Government servant is transferred to another account circle, the debit should be passed on to
that circle for adjustment. (Rule 265 of the General Financial Rules, Vol. I read with Article
36 of Account Code, Vol. I).

(b) The advance of T. A. on tour is debitable to the service head to which the pay is charged.
(Rule 269 of General Financial Rules, Vol. I read with Article 32 of Account Code, Vol. I).

Duties of a Controlling Officer (S. Rs. 191-195):

8. 167 In every Ministry, Department or office a competent authority has to appoint an officer, as
'Controlling Officer' for the purpose of travelling allowance of each Government servant or class
of Government servants. A particular Government servant may be designated as his own
controlling officer. Every Travelling bill, other than permanent travelling allowance or bill of
thosewho have been specifically exempted under S. R. 193 or any other rules, shouldbe duly
signed or counter-signed by the controlling officer. The duties of countersignature cannot be
delegated by a controlling officer to his subordinates.

8. 168 A controlling officer is required, before signing or counter signing a bill: -

(i) to scrutinize the necessity, frequency and duration of journeys and halts for which travelling
allowance is claimed and disallow whole or part of the travelling allowance, if he is satisfied that
the journey was not necessary or the halt was excessive;

(ii) to scrutinize the distance (s) given in the bill;

(iii) to satisfy himself that mileage allowance for journeys by rail or steamer has been claimed at
the rate of accommodation admissible to a Government servant and actually used by him;

(iv) where actual expenses on account of cost of transportation of servants or personal luggage
are also claimed, to see that these are according to the prescribed scale and are reasonable;
(v) to check any tendency to abuse the option of exchanging daily allowance for mileage
allowance;

(vi) to satisfy himself before permitting a claim for higher class of accommodation under S. R. 38
that the Government servant actually bought a through ticket at the rate claimed and that it was
not possible to purchase a through ticket at a cheaper rate; and

(vii) to observe any subsidiary rules or orders which a competent authority may frame for his
guidance.

8. 169 Although both the controlling officer and the audit officer have to scrutinize the
correctness of the T. A. claim, but it is the controlling officer, who has to share the major part of
responsibility in this behalf. The audit officer exercises merely a test check on the distances and
other relevant facts contained in the T. A. bill, in order to ensure that the Government servants
claim the railway orsteamer fare for the class of accommodation to which they are entitled and
have actually travelled in that class. They may be asked to give a certificate in their T. A. bill to the
effect that they have actually travelled in the class of accommodation for which the travelling
allowance has been claimed. In cases where a Government servant has to travel in a higher or
lower class of accommodation in the interest of public service, this fact should be duly
communicated to the audit either in the T. A. bill or through a separate covering letter.

Where road mileage has been claimed the Government servant should be asked to record a
certificateabout the mode of conveyance (own car, borrowed car, full taxi, motor cycle/ scooter or
by taking a single seat) actually used. In the column "Purpose of Journey" the specific purpose
should invariably be mentioned. In some of the T. A. bills submitted to Audit, the purpose of
journey is often indicated by such vague expression as 'official business', 'official duty' and 'official
tour', etc. As it is necessary to know the exact purpose for which journey is undertaken in order
todetermine whether the cost of the journey is correctly debitable to the Government, an indica
tion as to the specific purpose of the journey is essential. The controlling officers, in terms of S. R.
195, are responsible to ensure that the specific purpose of the journey is always indicated on the
T. A. bill. This requirement should invariably be complied with in order to obviate the delay which
otherwise occurs as a result of the submission of incomplete T. A. bills, which have to be returned
by Audit. Where the purpose of the journey is of a secret nature, it may be indicated in a separate
letter signed by the Controlling Officer and sent in a sealed cover to the Audit Officer concerned
by name.

RECORD OF SERVICE

B-16 and above Government Servants (S. R. 196):

8. 170 The record of the service of a BPS-16 & above officers is kept by the respective audit
officer in such form as may be prescribed by the Auditor General of Pakistan. In pursuance of
these powers the Auditor-General has decided that a 'History of Service' will be maintained for
every gazetted officer,which will contain the following information: -

Name; Qualification; Date of birth; Date of joining service; Domicile; Province of origin; Mother
tongue; Stations of appointment; Dates of officiating and substantive appointments; Leave and
suspensions, etc.

Any literary work done by the Government servant or any title conferred upon him are also
mentioned therein. B-l to B-15 Government Servants (S. Rs. 197 to 205):
8. 171 A Service Book must be maintained for every BPS-1 to BPS-15 Government servant
holding a substantive post on a permanent establishment or officiating in a post or holding a
temporary post with the exception of the following:

(a) Government servants who are recruited for purely temporary vacancies and are not eligible
for permanent appointment.

(b) Policemen of rank not higher than that of Head Constable.

The Service Book is supplied for the Government servant at his own cost on his first appointment
to Government service. This is kept in the custody of the head of office and transferred with him
from office to office. If he resigns from service or is discharged from the service without fault, the
service book may be given to the Government servant after making an entry to this effect in the
Service Book. Where a pensioner asks for his Service Book, it can be handed over to him after
recording the following certificate over the signature of the proper authority: -

"Mr. ................left the service on pension on.. ". ...................and this

Book is returned to him at his own request".

8. 172 Every step in a Government servant's official life should be recorded in his Service Book
and each entry attested by the head of office. There should be no erasure or overwriting and all
corrections should be neatly made and properly attested.

8. 173 The period of suspension, leave or other interruptions, should be duly recorded and
attested. In order to ensure that there is no omission as to create any complications at the time of
pension, it is permissible for a Government servant to examine his Service Book from time to
time. He should rather sign against every entry in the appropriate column.

8. 174 If a Government servant goes on foreign service his Service Book should be sent to the
audit officer. The audit officer will make the entries over his signature in respect of order
sanctioning the transfer, the effect of transfer in regard to leave admissible during foreign service
and any other particulars deemed necessary by him and return the Service Book to the
department. On the Government servant's return from foreign service the Service Book should be
sent to the audit officer again who will make necessary entries in regard to the foreign service. No
entry relating to the time spent in foreign service can be attested by any authority other than the
audit officer.

8. 175 In so far as those Government servants are concerned for whom Service Book is not
required to be maintained Service Roll should be maintained, which should contain particulars
regarding date of enrolment, marks of identification, posts held, promotions, demotions, absence
from duty with or without leave and other interruptions in service.

JOINING TIME

Transfer from one post to anotherin the same station (S. R. 293):

8. 176 Joining time for one day only is allowed when the appointment to another post does not
involve change of residence from one station to another. A holiday counts as a day for the
purpose of this rule.

Transfer to another station:

8. 177 The maximum joining time admissible to a Government servant on transfer from one
station to another is 30 days, Six days are allowed for preparation and in addition the time taken
in actual journey calculated as under: -

One day for each

By Railway 250 miles.

By Ocean Steamer 250 miles or any longer time actually.

By River Steamer 80 miles occupied in journey.

By Motor-car 80 miles.

By Air Number of day(s) actually taken in the air journey.

8. 178 A day is allowed for any fractional portion of any distance as prescribed above. In cases
of journey by steamer the limit of 6 days for preparation may be extended to cover any period
unavoidably spent in awaiting the departure of the steamer. Travel by road not exceeding 5 miles
to and from the Railway Station or Steamer Ghat at the beginning or end of journey is not
counted towards joining time. Friday does not count as a day for purposes of these rules, but
Fridays are included in the maximum limit of 30 days.

8. 179 An authority sanctioning a transfer is competent to reduce the period of joining time as
admissible under these rules, if special circumstances so require.

General Orders (S. Rs. 296 to 302):

8. 180 The joining time is normally calculated by the route which travellers ordinarily use
irrespective of the route by which the Government servant has actually travelled.

8. 181 If a Government servant is required to make over charge at a place other than his
headquarters, joining time should be calculated from that place. When a government servant is
appointed to a new post, while in transit from one post to another, his joining time begins from the
day following that on which he received orders for transfer. But a second period of 6 days for
preparation is not allowed in such cases.

8. 182 Where a Government servant takes leave while in transit from one post to another, the
period which has elapsed since he relinquished charge of the old post should be included in his
leave. If, however, the leave is on medical certificate, the period may be treated as a joining time.
When a government servant is appointed to a new post while on leave not exceeding 4 months,
the joining time will be calculated from his old station or from the station at which he is spending
leave, whichever will entitle him to lesser joining time.

8. 183 The period of joining time may be extended beyond 30 days if there are special
circumstances to justify the extension.

TRAVELLING ALLOWANCE OUTSIDE PAKISTAN

Categorisation of Officers and Non-official Leaders and Members of Delegations:

8. 184 The terms mentioned in the succeeding paras are allowed to Government officials and
non-officials proceeding to places outside Pakistan on official business and Pak-based officers
and staff posted in various Missions abroad while travelling on duty abroad except on transfer.
For the purpose of Travelling Allowance officers and non-officials are categorised as follows:

I. 'Ministers. '[Members of National Assembly/Senate]. Heads of Diplomatic Missions, Chairman

Joint Chiefs of Staff Committee, the three Services Chief, Secretaries to the Government of
Pakistan, Officers above the rank of Joint Secretary, 3BPS 21 officers serving in Federal
Government, Military Officers of the rank of Major General/equivalent and above in the Armed
Forces corresponding to BPS 21 and 22 officers on the Civil side and non-official leaders of
delegations.

II. Officers of the rank of Joint Secretary to the Government ofPakistan, Ministers Diplomatic
rank), 'Military Officers of the rank

'Finance Division O. M. No. F. 2(6)-R. 10/72, dated 18-1-1972.

'Added vide Finance Division O. M. No. F. 1(48)-R. 10/86. dated 22-3-1987.
'Finance Division O. M. No. F. 1(7)-R. 10/80, dated 10-5-1980.
'Finance Division O. M. No. F. 1(16)-R. 10/81, dated 30-7-1981.
'Finance Division O. M. No. F. 1(48)-R. 10/74-834, dated 7-7-1975.

of Brigadier, 'BPS-20 officers in Federal Government Departments/offices out side the Secretariat
and non-officials other than leaders of delegations. [An officer holding current charge of the post
of Joint Secretary draws pay and allowances of his own post in Basic Scale-19, he is not entitled
to TA/DA etc. admissible to Category-II officers].

III. Other diplomatic and non-diplomatic officers in BPS-17 and above and other Military
Commissioned Officers 2[excluding officers who draw pay in BPS-17 on account of move-over
from lower scale].

IV. Officials in BPS 3-16 and Military Officials of corresponding ranks.

V. BPS 1 & 2 Government officials and Military Personnel in corresponding positions.

[Para 2 of Appendix-7 of FR & SR, Vol. II].

T. A. for different kinds of Journeys:

8. 185 (i) When travelling abroad by air, road or sea each officer will be entitled to actual cost of
passage by public transport in accordance with the class of accommodation to which he is
entitled in Pakistan. Non-officials will, for this purpose be treated as officers of the first grade.

(ii) When travelling abroad by rail the officials and non-officials will be entitled to actual fare of the
class to which they are entitled under para 8. 185.

(iii) Travel by sea will not be under taken except with the prior permission of the Head of the
Department and in the case of Heads of Missions, the Ministry of Foreign Affairs; the permission
will not be accorded except for valid reasons and only after taking into account the extra cost
involved (including emoluments during the journey period). In such cases the period spent in
waiting for a passage by ship and on the journey by sea should not be treated as duty, joining
time, etc but may be treated as leave if duly applied-for and sanction.
'Finance Division O. M. No. F. I(7)-R. 10/80. dated 2-8-1980.

'Added vide Finance Division (Regulations Wing-ll) O. M. No. F. l(60)-R. 10/83. dated 4-4-1984.

(iv) When the officer performs journey by road travelling allowance is admissible as under:

S. By
By own car or underBy public
No. Nature ofconveyance
own conveyance
journey provided by
arrangement plying for hire
Government

Charges for
Under S. R. 182 single seat in
Actual cost of railwaythe public
Journey (Daily
fare by the shortestconveyance or
between Allowance will
roule for the class ofrailway fare of
1 places be admissi-
accommodation tothe grade to
connected byble at the
which which the
rail. prescribed
the officer is entitled. officer is
rate).
entitled
which ever is
less.
(i) Officers of
Categories I, II & III,
will be
entitled to mileage
allowance at the rates
appli-
cable for the time being(i) Officers of
in force provided theCategories I
officer certifies that he to III will not
had not performed theadopt this
road journey by taking mode
a single seat in a taxi,of travel.
Joumey motor, omni bus or
between motor lorry plying(ii) Officials of
2 places not-do- for hire. Categories
connected by IV &V will be
rail. (ii) There will be noentitled to
occasion for travelling the fare of a
under own single seat by
arrangements byomni bus or
officials oftaxi plying for
Categories IV & V. hire between
the places
involved.
Note: for the purpose
of S. R. 182 daily
allow-
ance will be admissible
at the ratesprescribed
in the schedule.
Gradation of Government Officers and non-official leaders and members of delegations for
the purposes of railway journey:

8. 186 For the purpose of railway journey within a country abroad referred to in paragraph 8.
185, the Government Officials of the First, Second, Third and Fourth Grades [as defined in
Supplementary Rule 17(9)] and nonofficials will be entitled to the class of accommodation shown
against each:

(a) Officers of the first grade drawing First Class (Pullman)Pay exceeding Rs. *5330/- and
nonofficials.

(b) Officers of the first grade drawing First Class (Ordinary), pay not exceeding Rs. *5330/-

(c) Officers of the second grade Second Class.

(d) Officers of the third and fourth grade. Third Class.

(i) In cases where the railways of any country provide only two classes of accommodation, the
Second, Third and Fourth grade officers will be entitled to the lower class of accommodation.

(ii) Rates of daily allowance for countries which have not been specified in the schedule shall be
determined in each case in consultation with the Ministry of Finance. (Appendix-7 FR &
SR. Vol. II).

Travel by Air on Official duty Abroad:

8. 187 (a) The Government has decided that henceforth travel abroad while on official duty will
be allowed only in business class for those entitled to First Class except for the President, the
Prime Minister, Speaker National Assembly, Chairman Senate, the Chairman Joint Chiefs of Staff
Committee, the three Services Chief, Federal Ministers, Federal Secretaries, Governor State
Bank of Pakistan, Senators and Members of the National Assembly.

[Finance Division O. M. No F. 1(41)-R. 10/87, dated 3rd July. 1989. and amended vide Finance
Division O M of even number dated 26th November & 7lh December 1989, No 1(6) R. 10/91,
dated 4th & 26th August 1991 and F. 1(16), R10/93, dated 17th January, 1994 respectively]

8. 188 The Government has decided that henceforth, Federal Ministers and all those
government servants entitled to first class air travel facility during official duty abroad shall travel
by business class and all those allowed business class shall travel by economy class.

*Subs, vide Finance Division O. M. No. F. I(34)-R. 9/94, dated 13-9-1994.

The above decision shall be applicable to all Government servants including defence personnel,
employees of attached departments, autonomous and semi-autonomous bodies, corporations
and other institutions under the administrative control of various Ministries/Divisions.

The existing rules and general orders on the subject shall be deemed to have been modified to
the extent indicated above with immediate effect.[ Finance Division O M. No. E. I(16)-R 10/93
983. dated 16 -111996]

Daily Allowance for the journeys outside Pakistan:

8. 189 An official when travelling by rail on tour outside Pakistan shall be entitled, in addition to
actual rail fare, to daily allowance subject to following conditions:

(a) 50% of the normal rate of daily allowance shall be paid for every 24hours of the rail journey
and 25% of the transit rate of daily allowance for every six hours or fraction thereof calculated
from the time of departure from the last station to the time of arrival of the
next station of duty; and

(b) On the outward journey, daily allowance will be allowed at the rate admissible at the next
place of duty and on the return journey, at the rate admissible for the last place of duty.

[Finance Division O. M. No. F 7(9)-R. 2(RWP)/62. dated 30-6-1962].

The rate at which the daily allowance is to be calculated when more than one place is to be
visited in a single day is not mentioned in the Government Decision No. 1. In order to clarify the
position, it has been decided in consultation with the Ministry of Finance that in such cases the
period of journey should be added together for calculating daily allowance for transit at the rates
mentioned in the Government Decision No. 1, under para 3 of Appendix 7 of F. R. & SR, Vol. II.

[Finance Division Letter No. Rules 4/1/62. dated 31-10-1962]

(i) (a) In respect of each night spent at a place of halt outside the headquarters on official duty,
daily allowance will be admissible in accordance with the prescribed rates. Except for category (I)
the daily allowance rates are consolidated rates to cover the cost of accommodation, of meals
and of incidental items like tips, taxi hire porterage etc. while at the place of hall. Rales of daily
allowance for category (V) Government officials shall be one-half of the rates prescribed for
category (IV) against the station concerned.
(b) Whenever the official is treated as State Guest and boarding and lodging arrangements
abroad are made by the host, will be entitled to 30% of the Daily Allowance. Where the host
country provides cash subsistence allowance, present practice of allowing difference between the
prescribed DA. and the subsistence allowance will continue.

(c) During transit by air the daily allowance admissible will be the same as for State Guests. On
the outward journey, daily allowance will be allowed for each day of transit at State Guest rate for
the next place of his duty. Similarly, on the return-journey daily allowance will be allowed for each
day of transit at the State Guest rate for the place where he last stayed on duty.

(Finance Division O. M. No F 2(6) R 10/72. dated 18 1-1972].

(ii) An official when treated as a State Guest receives 30% of the normal rate of daily allowance at
the station concerned. It was represented that this rate of daily allowance was not sufficient to
meet incidental expenses in Saudi Arabia. The President was pleased to decide that Government
Officials who were treated as State Guests in Saudi Arabia should, as a special case, be allowed
the actual expenses limited to 50% of the normal rate of daily allowance at the station concerned.

[Finance Division O. M No. 20(3)-R (RWP0/60, dated 8-12-1960].

(iii) The daily allowance for the transit period is admissible to Government servants only if they
perform an overnight journey by air and do not, therefore, become entitled to daily allowance
under para (i) (a) or (b). If no overnight journey is involved, no daily allowance is admissible for
the transitperiod under para (i) (a), but daily allowance at the appropriate rate for each nightof halt
on duty shall be permissible.
[Finance Division O. M No. F 7(4)-R. 2(RWP)/61, dated 14-4-1961].

(iv) (a) The Government officials visiting Saudi Arabia on official temporary duty during the Haj
season shall be entitled to the following facilities:

(a) Free government or hired accommodation.

(b) Free transport.

(c) (i) Daily allowance for officials in

BPS- i 7 and above.... U. S. $ 50 per day.

(ii) Daily allowance for officials in

BPS-16 and below.... U. S. $ 35 per day.

[ Finance Division 0 M No. F 1(1) R 10/83, dated 20-2-1983].

(b) If free government or hired accommodation and free transport in addition to daily allowance as
laid down in the Office Memorandum No. F. 1(1 )-R-10/83. dated 20th February, 1983 is already
admissible in such cases, it has been decided that 15% daily allowance for miscellaneous
expenditure will not be admissible in addition.

[Finance Division O M. No E I(46) R I0/84. dated 31 -7-1984].

(v) The extra amount spent by a Government servant proceeding abroad on the purchase of
foreign exchange in the form of traveller's cheques equivalent to the amount of daily allowance in
U. S. dollars against the advance of daily allowance sanctioned to him, shall be reimbursed on
production of necessary receipt.

(vi) The daily allowance in Pakistani rupees will be calculated on the basis of selling tales
applicable to U. S. $ in cash or traveller's cheques on the date of purchase as notified by the
State Bank of Pakistan. Original receipt from the Bank from which foreign exchange has been
purchased will be attached With the T. A. bill.

[Finance Divison O. M No E I(2)-R 10/82. dated the 22-3-1982

(vii) For a period not involving the spending of a night at the place of halt but exceeding in
duration 12 hours and in case of officers of the- Missions abroad also requiring journey beyond 5
miles of the headquarters one half of the normal rate of daily allowance will be admissible.
Likewise for periods exceeding 6 hours only one-fourth of the normal rate will be admissible.

(Peart) of Appendix 7 of FR & SR, Vol. ll]

(viii) It is further clarified that one-half of the normal daily allowance or one-fourth of that rate is
not admissible for periods exceeding 12 hours or 6 hours respectively, in cases where spending
of a night at the place of halt is involved. In other words, one-half of the normal rate of daily
allowance or one-fourth of that rate for the specified periods is admissible only in cases where
spending of a night at place of halt is not at all involved.

[ Finance Devision O. M. No. F l(13) R. 10/81. dated the 10-5-1981].

(ix) Whenever the period of continuous stay at one station exceeds 28 nights, the rate of daily
allowance will be reduced by 10% beyond the period of 28 nights. If the duration of stay exceeds
56 nights, the rate will be reduced by 15% beyond the period of 56 nights.

(x) In the case of category (I), the normal rate of daily allowance mentioned in paragraphs 8. 189
(i) (b), (vii), 8. 189 (vii), 8. 192 & 8. 202 (ii) means the all in rate for category (II).(xi) In the
absence of specific orders to the contrary officials and nonofficials accompanied by their wives
will receive charges only for single accommodation, anything extra being paid by the persons
concerned themselves.

Luggage:

S. 190 During travel carriage of luggage will not be allowed at Government expense, provided
that reimbursement may be claimed in respect of official records and equipment carried for
purposes of official work but prior permission of the competent authority. should be obtained for
this: provided further that *[persons in category (i) while travelling by air on temporary duty abroad
will be entitled to earry at Government expense, personal luggage not exceeding 14-lbs. in
addition to the free baggage allowed by the air company on
the air ticked.

Accommodation:

8. 191 (i) In case of Officers of Category (1). accommodation referred to in the schedule will
consist of a room plus bathroom in bathroom in a hotel except where for representational reasons
a suit of rooms has to be hired but the cost of

[Part 7 of Appendix 7 of FA & GSR VOL II]

iii) A category (1) officer for whom accommodation in a hotel is not arranged by the Pakistan
Embassy concerned and who stays in a hotel under his own arrangement shall, in addition to the
daily allowance for category (I), be allowed reimbursement of the actual charges of single room
accommodation not exceeding the amount of daily allowance admissible to category (II) officer on
production of hotel bills, provided that where no receipt is produced, daily allowance will be
admissible as prescribed for category (II) officers.

Note In such a situation the concerned officer will be allowed advance of foreign exchange equal
to daily allowance of category (II plus category (II) and this advance will be adjusted on return of
the officer to Pakistan by producing the hold bills-.

(iii) The cost of accommodation in respect of category (I) officers should not ordinarily exceed the
daily allowance rates admissible to category (II) official at a particular station. In exceptional
cases where accommodation on cheaper rate could not be arranged. the Mission has the
discretion to exceed the prescribed limit. it is not necessary to obtain Government sanction where
daily allowance exceed the prescribed limit in such exceptional cases.

[Ministry of Foreign Affairs O. M No Rules -6/7/62. dated 9 -12-1964]

Amended vide Finance Division O M No F. 1(28)-R 10/73 dated 17-6-1974]

(iv) An official on visit abroad will henceforth be allowed 50% of the permissible daily allowance in
cash while the remaining daily allowance upto 50% will be reimbursed only on production of hotel
rent receipts.
The foregoing does not apply to Category-I Officials for whom there are separate rules regarding
hiring of accommodation. They will continue to be governed by the existing rules.

[Finance Division O M. No. F I(10)-R. 10/93. dated 29-9-1993].

Clarification. -It is clarified" that there is no restriction on payment of full D. A. advance to the
Government servants proceeding on official tours abroad. However, 50% of D. A. meant to cover
accommodation charges will be admissible in the final. T. A. adjustment bill on production of hotel
receipts/ vouchers.

The above provisions are not applicable to category-I official for whom there are separate rules
on the subject.

[Finance Division O. M. No. F. l(10)R. 10/93. dated 11-1-19941.

Taxi Charges:

8. 192 Travel from Airport to residence (or vice versa) should be treated as a single journey and
transport charges allowed accordingly even though the journey may be performed in two (or
more) bits by different modes of transport e. g. from airport to the city terminal by public bus or by
air transport company bus and from the city terminal to residence by taxi cab.

[Finance Division O. M. No. F. l(50)-R. 10/78. dated 17-5-1979].

Entertainment Allowance:

8. 193 Entertainment Allowance will be limited to the Chiefs of Defence Services,

Ministers/Advisers and Secretaries of Federal Government. However, every case will be referred
to the Ministry of Finance for clearance.
[Finance division O. M No F. 2(6)-R. 10/72, dated 18-1-1972].

Outfit/Subsistence Allowance:

8. 194 Government servants deputed for training abroad under Foreign Technical Assistance
Programmes are, in some cases, given an equipment allowance by the donor
Government/Agency. Government-sponsored scholars under the Overseas Training Scheme and
doctors selected for higher training abroad under the Federal Government Scheme are granted
an equipment allowance of Rs. 500 by the Federal Government. With a view to introducing
uniformity in this regard, it has been decided to grant an outfit allowance of Rs. 500 to
Government servants deputed for training abroad except to India,
Burma or Ceylon, whose pay does not exceed Rs. 500 p. m. subject to the following conditions: -

(i) The allowance will be granted subject to production of a certificate to the effect that the amount
has been actually spent on the purchase of clothes, etc., required in connection with stay abroad;

(ii) It will be admissible only once during the entire service of the Government servant concerned;
and
(iii) It will not be granted to a Government servant who draws, or has previously drawn, an outfit
allowance under any other rules or orders or from a foreign Government/Ageney.

Note: -These orders lake effect from the 1st February. I960.

[ Finance Division O M No F. 2(3)R. 8/60, dated 16-2-1960]

8. 195 With effect from 1st May, 1977 the amount of outfit allowance payable to Government
servants proceeding abroad on temporary duty/training shall be enhanced from Rs. 500 to Rs.
750 and the pay limit for the admissibility of this Allowance shall be increased from Rs. 650 to Rs.
1000 similarly, the amount payable to Probationary officers shall be increased from Rs. 450 to Rs.
600. The other existing conditions regulating the grant of outfit allowance shall remain the same.

[ Finance Division O. M. No. F. 2(2)IMP. 1/77, dated 5-5-1977]

8. 196 Grant of Subsistence Allowance to Government Servants proceeding abroad on training

otherwise than under a Foreign Technical Assistance Programme. The Government servants
proceeding abroad on training under a programme sponsored by a Government Department
otherwise than under a Foreign Technical Assistance Programme and where the entire expenses
are borne by the Government of Pakistan itself have been reviewed having regard to the
prevalent cost of living abroad. Sanction of the President is conveyed to the following revised
rates of subsistence allowance to be admissible w. e. f. 2nd July, 1995 in cases of training
involving a period of more than one week: -

Other
U. S. A.Countries
andCanada (except
India, Bangla-
desh ana
Srilanka
$ 810. 00 per $
Trainees attached with educational/ 750. 00 p. m.
$ 750.00 p.m
technical institutions.
month
Trainees-attached with
$ 1200. 00 $ 1050. 00 p.
workshops,factories and industrial
permonth m.
establishments.

Half pay in foreign exchange will be admissible as in the case of trainees

getting subsistence allowance from the foreign agencies, as hitherto fore.

2. For India, Bangladesh and Srilanka, the rates of subsistence allowance will be fixed in
specific cases as and when required.

3. These orders shall apply to all civil government servants including civilians paid from
Defence Estimates, employees of Railways, T&T and P. O.Department.

(Finance Division O. M No. F. 6(l)-R. 10/83-4l6-95. dated 15-6-1995].

8. 197 Terms admissible to Government servants proceeding abroad under Foreign Technical
Assistance Programme or as Trainees otherwise. It has been decided that in cases of foreign
trainings sponsored/funded by the foreign Governments and donor agencies requiring medical
examination from specified hospitals/clinics, other than Government institutions, the expenses
incurred by the eligible government servants may be reimbursed.
2. *(Likewise fee for TOEFL, GRE and IELTS tests, which, if a prerequisite for selection of the
nominee by the agency will also be reimburseable subject to the condition that the nominee
qualifies the test with the required score].

3. The above orders will come into force with immediate effect.

[Finance Division O M No F 3(24)-R I0/87-6I4, dated 23-8-1995].

Subs vide Finance Division O M. No. F. 3(24) R-10/87-392. dated 12-9-1996.

Entitlement of TA/DA to Senior Executives in Management Grades in

Corporations/Autonomous/Semi-AutonomousOrganisations etc under Administrative
Controlof Federal Ministries/Divisions while on Tour Abroad:

8. 198 The executives in M-I, M-II, and M-III. while on tour abroad shall be treated as equivalent
to Secretary, Additional Secretary and Joint Secretary to the Federal Government respectively for
determining entitlement to D. A. As regards entitlement to T. A. while on tour abroad the
executives referred to above, shall travel by air in *economy class. For the portion of journey, if
any, lying within-Pakistan, they shall travel by economy class.

[Finance Division O M. No. F. l(40)-R. 10/79, daled 7-5-1980. ]

Note -(i) All Government servants irrespective of the pay drawn of post held by them, including
the officers employed in the various Autonomous/Semi-Government Organisations/Corporation*
under the scontrol of the Federal and Provincial Governments, are required to travel in economy
class while under-taking journey on duty by air within Pakistan.

Note. -(ii) No officer of any corporation and aulonomous/semi-aulonomous body or organisation

whether he is a deputations or a regular officer of the corporation and whether he has been
appointed by the Government or by the Corporation itself shall travel in first class during air
journey within Pakistan.

[Finance Division O. M. No. F. 2(14)-Reg. (9)/77. dated the 14-5-1977).

Utilization of PIA Services by Officers and Official Delegations Travelling by Air on

Government Expenses:

8. 199 All Government Officers and members of official delegations proceeding abroad at
Government expense are required to book their passage with PIA. Even in cases where travel is
to be performed by foreign carriers the bookings are required to be arranged through PIA on
Form 'A' after prior Clearance of Finance Division.

[Finance Division O. M. No F. 3274/Ef/Exp/80. dated 3-7-1980).

8. 200 (i) All Government officers and official delegation proceeding abroad at Government
expenses should travel by PIA to the maximum possible extent. According to the instructions
contained in para 2(5) of the OM referred to above, for return journey from abroad if PIA flight is
available after one or two days, the officer/delegation may be authorised to overstay for a
maximum of two days and undertake travel by PIA's first available flight. For the extended period
of overstay necessary provision for admissible DA etc. may be made.

*Revised vide Finance Division O. M. No. F. 1(16)-R. 10/93-983 daled 16-11-1996

(ii) There is no provision, however, that in case a Government servant is required for approved
official reasons to break his journey at a point between two places on a sector covered by PIA, he
may be allowed to overstay to catch the PIA flight for onward journey. To meet this situation, it has
been decided that the officer/delegation may be allowed to wait for a maximum of 3 days for
catching PIA flight where journey has been broken for official purpose at a point between two
places on a sector covered by PIA. Similarly for onward journey officers/delegations may be
allowed to travel one or two days before the scheduled date to enable them to catch the PIA
flight. Cases where journey has to be broken for private purposes will, however, continue to be
referred to this Division and dealt with on merits of each case.

(iii) It has further been decided that prior approval of Finance Division for travelling by foreign
airline will not be required in the case of Federal Ministers and Advisors, Provincial Governors
and Ministers, Federal Secretaries, Provincial Chief Secretaries, Officers of the Armed Forces of
the rank of Lt. Generals and above and Judges of the Supreme Court and High Courts, if suitable
PIA flights are not available.

8. 201 @[The Additional Secretary-in-Charge of a Ministry/Division shall also be allowed to travel

by a foreign carrier without the prior approval of Finance Division if suitable PIA flights are not
available. ]

[Finance Division's O. M. No. 2(2)/E. F/Exp/79-4678, dated 22-11-1981],

Miscellaneous Expenditure:

8. 202 *(i) Officers on duty abroad may be allowed 15% of D. A. for miscellaneous expenditure
including local transport terminal taxes, telephone and telegram charges. This 15% of D. A. will
be in the nature of an advance and officers could incur expenditure on these items, in excess of
15% of D. A. by claiming it from the local Embassy and the Embassy would then get the
reimbursement from the Ministry concerned. Only actual expenditure on these items will be
reimbursed. The officers will have to certify the actual expenditure incurred on these items and
submit vouchers, if possible. If actual expenditure is
less than 15% the officer will refund the balance.

**(ii) Civil servants and non-officials who, while on temporary duty ibroad, are treated as State
Guests shall not be allowed 15% of daily allowance.

@ Added vide Finance Division's O. M. No. 038 E. F (Exp)/96. daled 26-3-1996.

*Finance Division O. M. No. 2(6)-R. 10/72. dated 4-4-1972.
"Finance Division O. M. No. F. l(10)-R. 10/75. dated 3-11 1975.

They will, however continue to draw daily allowance @30% of the normal rate as
admissible under the existing orders.

Transportation of the Dead Body of a Government Servant who dies while Deputed Abroad
on Temporary Duty:

8. 203 In the event of the death abroad of a Government servant deputed outside Pakistan in
connection with temporary official duty, the expenditure connected with the death, to the extent
supported by the relevant vouchers in original and certified as the minimum by the Head of
Pakistan Embassy or Pakistan Mission in the country concerned, will be borne by Government as
follows: -
(i) If the dead body is buried/cremated locally in the country where the Government servant was
deputed, the total cost of that local burial/cremation; or

(ii) If the dead body is transported to Pakistan, the total cost of such transportation including
incidental expenses incurred for preparation of the body for transportation, such as embalming
and local transportation charges, etc.

(iii) *[The entitlement shall be applicable mutatis mutandis also to those Federal Government
servants whe die while on deputation outside Pakistan in connection with a course of training
financed entirely by the Government of Pakistan. ]

[Finance Division O. M. No. F. 4(2)-R. 9/72, dated 17-4-1972].

Added vide Finance Division O. M. No. F. 2(12)-R. 9/73, dated 21-3-1973.

PENSION RULES

Terms used in the Pension Rules explanation:

9. 1 The various terms used in the pension rules are explained below:

(i) Age. When a Government Servant is required to retirement, or cease to be on leave, on

attaining a specified age, the day on which he attains that age is reckoned as a non-working day,
and the Government servant must retire, revert, or cease to be on leave (as
the case may be) with effect from and including that day (Art. 14 CSRs).

(ii) Family. The 'family' for the purpose of entitlement of gratuity/ pension benefits under the
Pensioncum Gratuity Scheme include the following relatives of the Government Servant:

(a) wife or wives, in the case of a male Government servant (unless there is a judicial
separation wife continues to be a member of the Government servant's family irrespective of
the fact whether she has been living with him or not);

(b) husband, in the case of female Government servant (a female Government servant can
exclude her husband from being a member of her family);

(c) children of the Government servant;

(d) widow or widows and children of a deceased son of the Government servant Pension-cum-
Gratuity Scheme 1954).

(iii) Foreign Service. Means, service in which a Government servant receives his substantive pay
with the sanction of Government from any source other than the revenue of the Government of
Pakistan or of a Province or the Railway Fund (Art. 27 C. S. Rs).

(iv) General Revenue. For the purposes of pension include Provincial Revenues. (Art. 28 C. S.
Rs).

(v) Local Fund. The expression 'Local Fund' denotes:

(a) revenue administered by bodies which by law come under the control of the Government
whether in regard to the proceedings generally or to specific matters such as the sanctioning of
their budgets, sanction to the creation or filling up of particular appointments, the enactment of
leave, pension or similar
rules;

(b) the revenues of any body which may be specially notified by the Government as such. (Art. 33
C. S. Rs).

(vi) No Demand Certificate. Means a certificate by the Department concerned that all the dues
against the retiring Government servant up to the date of retirement have been realized and
nothing is now outstanding against him. Such a certificate is also required to be obtained from the
Estate Office concerned.

(vii) Pension. a periodical payment made by Government in consideration of past services

rendered by a Government servant .Except when the term "Pension" is used in contradistinction
to Gratuity "Pension" includes Gratuity. (Art. 41 C. S. Rs).

(viii) Rule of Proportions. Pension is chargeable according to the "Rule of Proportions" when the
charge is debitable to several accounts in the proportions in which, the aggregate pay drawn by
the Government servant during the whole of his qualifying service has
been paid from them. (Art. 45 C. S. Rs).

Classification of Pension:

9. 2 Compensation Pension.

(a) If a Government servant is selected for discharge owing to the abolition of a permanent post,
he shall, unless he is appointed to another post, the conditions of which are deemed by authority
competent to discharge him to be at least equal to those of his own, have the option:

(i) of taking any compensation pension or gratuity to which he may be entitled for the service he
has already rendered, or

(ii) of accepting another appointment or transfer to another establishment even on a lower pay, if
offered, and continuing to count his previous service for pension.

Note. Government servant cannot refuse offer of alternate employment.

(b) A Government servant not employed in a substantive permanent capacity is granted

Compensation Gratuity/Pension if he is discharged aftercompleting qualifying service of 10/25
years or more owing to the abolition of his post or is replaced by a "qualified" candidate.

[Finance Division O. M. No. OB-2/12/63-Imp. (I), dated I8-8-1966].

9. 3. Invalid Pension. (a) An invalid pension is awarded, on his retirement from the public
service, to a Government servant who by bodily or mental infirmity is permanently incapacitated
for the public service, or for the particular branch of it to which he belongs. The infirmity has,
however, to be certified by a duly constituted Medical Board.

(b) If a temporary Government servant is retired for inefficiency due to mental or physical
infirmity he shall be allowed pensionary benefits as if he was required to retire in terms of Rule
10-A, of the Fundamental Rules.

(c) In case an officer dies before his retirement, his pension is calculated, as if he was retired on
Invalid Pension on the date following the date of his death. (Pension-cum Gratuity Scheme,
1954).

9. 4. Superannuation Pension.

A superannuation pension is granted to a Government servant who is entitled or compelled, by

rule, to retire at a particular age. (Art. 458 C. S. Rs).

In terms of Civil Servants (Amendment) Act, 1976 a civil servant is required to retire on
completion of 60 years of age.

9. 5. Retiring Pension.

(i) A retiring pension is granted to a Government servant who is permitted to retire after
completing qualifying service of 25 years.
Such a pension is also granted to Government servant who is required by Government to retire
after completing twenty five years qualifying service or more.

(ii) Subject to provisions of Essential Services (Maintenance) Act, 1952, a Government servant
other than a Government servant against whom a departmental proceeding is pending has the
right to retire from service after completion of 25 years qualifying service. Such a Government
servant shall, at least three months before the date on which he intends to retire, be required to
submit a written intimation to the authority competent to fill the appointment by him at the time of
submitting that intimation indicating the date on which he intends to retire. Such an intimation,
once submitted shall be final and shall not be allowed to be modified or withdrawn. However,
before formal acceptance of the request he may, if so, desired, withdraw his application for
premature retirement.

(iii) Government has the right to retire any Government servant after he has completed 25 years
qualifying service.

(Finance Division O. M. No. OB-2/l2/63-Imp(l) dated 18-8-I966].

(iv) The term retirement used in Section 19(1) of the Civil Servants Act, 1973 includes
"Compulsory Retirement" under the Government servants (Efficiency & Discipline) Rules, 1973.

(v) In case of voluntary retirement of Government servants the Heads of Departments are
responsible for ensuring verification of qualifying service by the Audit within one month from the
date of receipt of application for voluntary retirement after 25 years qualifying service. If the
qualifying service comes out to be less than 25 years, the Government servant will have to
continue in service till he completes that length of service. The fact of the shortfall in the qualifying
service should be pointed out by the Head of the Department to the Government
servant concerned before the expiry of the three months notice period.

Category ofAuthority competent to accept request for

Officers retirement

B-21 and*Prime Minister. The summary after the approval by

above...... the Minister concerned is to be submitted through the
Establishment Division.

Secretary of the Ministry/Division, which

B-17to20.............. administratively controls the cadre or department to
which the post
belongs.
B-
Head of Department.
16.......................
B-l to 15............... Head of Department or Head of Office.

(Establishment Division O. M. No. 1/5/73-CV, dated 6-6-1974].

[Finance Division O. M. No F. 8(5)-Reg. (6)/73, dated 4-1-1975 read with Auditor-General,
letter No. 32-A/69-66, dated 6-2-1975].

(vi) The requests for voluntary retirement on completion of 25 years qualifying service should be
submitted to the competent authorities mentioned below:
9. 6. Conditions of qualifying service. (i) Unless it be otherwise provided by special rule or
contract, the service of an officer begins to qualify for pension from the date he takes charge of
the office to which he is first appointed.

[Article 358 of the C. S. Rs as introduced vide Finance Division Note No. DF. l(15)-Reg. (6)/72.
dated 31-1-1973].

"Note. In the existing rules, for the allocation and transaction of the business of the Federal
Government, wherever the words "Prime Minister" occur the same shall be deemed substituted
by the word "Chief Executive" vide Order No. 7 of 1999, dated 30-10-1999.

(ii) The service must be under Government. A Government servant does not qualify his service for
pension unless he is appointed and his duties and pay are regulated by the Government. (Arts.
361, 362 C. S. Rs).

(iii) The employment must be substantive and permanent. (Arts. 361,

368 C. S. Rs).

(iv) A Government servant not employed in a substantive permanent capacity who has rendered
more than 5 years continuous temporary service counts such service for the purpose of pension
or gratuity excluding broken periods of service, if any, rendered previously. *[Continuous
temporary and officiating service of less than five years immediately followed by confirmation is
also count for pension or gratuity as the case may be. (Art. 371-A C. S. Rs)].

(v) Only the service paid from the General Revenues qualifies for pension. Foreign service also
counts for pension provided the pension contribution was paid as required under the rules. The
effective service rendered by a Government servant in an autonomous or semi-autonomous body,
in a post appointment to which is, by law, required to be made, and the salary of which is required
to be fixed by the Federal Government or a Provincial Government is treated as effective service
rendered in a post in Government service.
[Articles 385. 386 CSRs. Finance Division O. M. No. OB-2/12/63-Imp-(l). dated 15-11-1969].

(vi) The continuous service rendered by contingency paid staff prior to their being brought on the
regular establishment, from 1st October, 1957, will count in full and continuous service before that
date to count in half for purpose of pension.

[Finance Division O. M. No. F-3(12) Reg. 6/72, dated 2-4-1975].

(vii) Civil employees who, prior to their civil employment, have rendered whole time satisfactory
paid, enlisted or commissioned service including service rendered as a cadet in a Military Training
School between the 3rd September, 1939 and the 31st March, 1946 in His Majesty's forces which
did not earn a service pension and who have been appointed in a civil pensionable post on or
before the 18th July, 1949 are allowed to count the completed years of such service up to a
maximum of five years, for the purpose of civil pension.
[Article 357-AA C. S. Rs Finance Division Notification No F. 24(8)-Rs (3)/70 dated 10-12-1970].

(viii) All periods of leave, other than extraordinary leave, count as service qualifying for pension.
(Art. 407 C. S. Rs).

*Subs. vide Finance Division Notification No. 5(1) R. 6/7711, dated. 22-10-1985.

(ix) The period of suspension followed by reinstatement or superannuation count towards

qualifying service for pension.

(Finance Division O. M. No. F. 5(1) Reg. (b)/77. dated 24-2-1977 and CSR 417-A notified under
Finance Division O. M. No. F. 12(8) Reg. (6)/79 dated 10-11-1980].

(x) In case where a Government servant is compulsory retired following a period of suspension
ordered under Government Servants (Efficiency and Discipline) Rules, 1973 pension or gratuity is
admissible only for the period of service rendered excluding the period of suspension.

(xi) Resignation of the public service, dismissal or removal on account of misconduct, insolvency
or inefficiency or failure to pass an examination entails forfeiture of past service. Subject to any
order of the President made on compassionate grounds a Government servant who is removed
or dismissed shall not be entitled to any compensation pension, gratuity or benefit accruing from
Government contribution to a contributory provident fund. Resignation of an appointment to take
up another appointment in which the service counts for pension is not a resignation of the public
service for the purpose of pension. (Art. 418 C. S. Rs).

(xii) Any interruption in the service of an officer entails forfeiture of his past service. The
authorised leave of absence, suspension immediately followed by reinstatement and time
occupied in transit from one appointment to another are not treated as interruption for the
purpose of qualifying service. (Art. 420 C. S. Rs).

(xiii)The authority who sanctions the pension may commute retrospectively periods of absence
without leave into extraordinary leave. [Art. 421 C. S. Rs and F. Rs 85(b)].

9. 7 Condonation of interruption and deficiencies. (i) Upon such conditions as it may think fit
in each case to impose, the authority competent to fill the appointment held by a Government
servant at the time condonation is applied for, where he to vacate that appointment, may condone
all interruptions in his service, provided such interruption is not due to any fault or wilful act of the
Government servant, like unauthorised absence, resignation or removal from service. This power,
however, cannot be exercised to condone breaks in temporary and officiating service specifically
excluded from the category of qualifying service under Article 371-A C. S. Rs. Interruptions due to
removal on account of reduction and retrenchment of a post should be deemed to have been
condoned. [Art 422 C. S. Rs read with Finance Division O. M. No. F. 5(1)
Reg (6)/77 dated 24-2-1977].

(ii) A deficiency of a period not exceeding six months in the qualifying service of a Government
servant shall be deemed to have been condoned automatically. The authority competent to
sanction pension may condone a deficiency of more than six months but less than a year, subject
to the following conditions:

(a) the Government servant has died while in service or has retired under circumstances
beyond his control, such as on invalidation or abolition of his post, and would have completed
another year of qualifying service; if he had not died or retired.

(b) the service rendered by him had been meritorious, (iii) A deficiency of full one year or more
cannot be condoned.

(iv) These provisions will not apply to Government Servants who have rendered less than five
years continuous service.

[Finance Division O. M. No. OB-2/12/63-lmp (I) dated 18-8-1966 and

F. 1(7) Reg. (12)/80 dated 2-4-1984).

9. 8 With reference to Finance Division's Office Memorandum No. F. 12 (8) Reg. (6)/81, dated the
13th November, 1982, wherein it was clarified that the benefit of condonation of deficiency in
qualifying service of a Government servant in terms of clauses (1) and (2) of Article 423-C. S. R
will not be admissible in a case where service rendered by a Government servant does not by
itself qualify for PENSION OR GRATUITY under the rules.

2. A doubt has still been expressed in certain quarters whether the said clarification applies also
in cases of death while in service or retirement on superannuation or on invalidation on medical
grounds for purposes of grant of pension/gratuity. It is hereby clarified that the clarification
referred to in para 1 above equally applies for the purposes of grant of pension/gratuity in cases
of death while in service or retirement on superannuation, or on invalidation on medical grounds.
In other words, the benefit of condonation of deficiency in
qualifying service is not admissible in any case where service rendered by a Government servant
does not by itself qualify for pension or gratuity under the prescribed rules.

[Finance Division O. M. No F. 12(8)-Reg. (6)/81. dated 7-8-1985].

Emoluments reckoned for pension:

[Finance Division O. M. No F. 12(8)-Reg. (6)/81. dated 7-8-1985].

Emoluments reckoned for pension:

9. 9 The term "Emoluments" means the emoluments which a

Government servant was receiving immediately before his retirement and includes: -
(i) Pay as defined in FR 9(21)(a)(i)
(ii) Personal pay.
(iii) Technical pay.
(iv) Special pay of all types and nature.
(v) Dearness Allowance.
(vi) Increments accrued during L. P. R.

(vii) Indexed pay (Notification No. F. 12(2)/Reg. 16/84 dated

13-10-1985).

(viii) Senior Post Allowance, [ will apply to officers who retire on or after
1-5-1977 vide Finance Division O. M. No. F. 6(2) Reg. (6)/77, dated
10-5-1977].

(ix) Any other addition to pay which may specifically be declared by President as emoluments
reckoning for pension. [Finance Division O. M. No. F. 4(4)-Reg. (6)/74, dated 8-12-1972].

(x) The emoluments or pay drawn by a Government servant who is transferred on foreign service
in an autonomous or semiautonomous body, in a post appointment to which is by law,required to
be made and the salary which is required to be fixed, by the Federal Government or a Provincial
Government are treated as emoluments or pay drawn in a post in Government service. [Art.486
C. S. Rs, Finance Division Notification No. F. 4(4) Rs/68,
dated 30-1-1971].

(xi) For the purposes of calculation of emoluments in respect of civil servants posted abroad
during the period of last three years or a portion thereof the Dearness Allowance and Senior Post
Allowance, which they would have drawn in Pakistan, but for their posting
abroad should be taken into account and included in the term emoluments on notional basis.

[Finance Division O. M. No. F 6(1) Reg. 1/75. dated 11-3-1977 and F. 6(2)-Reg. (6)/77, dated 30-
7-1977).

(xii) Reference Finance Division's O. M. No. F. 1(12) Imp-II/91, dated 19-08-1991. The sanction of
the President is conveyed for the fixation of pay due to revised pay scales of 1991 on National
Basis, in respect of those Government servants, who are on LPR on
01-06-1991, for the purpose of calculation of their pension.

[ Finance Division (Regulation Wing) O. M. No. F. 1(12) Imp-11/91.

dated 17-10-1991].

*Amended vide Finance Division O. M. No. F. 6(4) Reg. (6)/79 dated 22-3-1981 and F 1(9) Imp.
11/86 dated 1-7-1986.

9. 10 Average Emoluments. (i) The term 'average emoluments' means the average calculated
upon the last 12 months of service. However, if the pay of a Government servant has been
reduced otherwise than as penalty under the Government Servants (Efficiency and Discipline)
Rules average for the purpose of pension may, at the option of the pensioner, be calculated on
the basis of the emoluments drawn or which would have been drawn, during the last 3 years of
service [Art. 487 C. S. R. read with Finance Division O. M. No. 6(9)-Reg. (6)/78 dated 15-2-1979
and 16-6-1979].

(ii) If during the last twelve months or three years of his service a Government servant has been
absent from duty on leave with allowance, or having been suspended, has been reinstated
without forfeiture of service, his emoluments, for the purpose of ascertaining the average, should
be taken into account at what they would have been had he not been absent from duty or
suspended. If during the last twelve months or three years of his service, a Government servant
has been absent from duty on leave without allowance (not counting for pension) or there was
suspension without reinstatement the period so passed should be disregarded in the calculation
of the average and equal period before the twelve months or three years included. (Art. 487
CSRs).

(iii) If during the last twelve months or three years of his service an officer's pay has been refixed
as a result of revision or upgradation of the scale of the post held by him with retrospective effect,
but arrears have not been allowed nor recoveries made in respect of the past period, his
emoluments for the purpose of calculating the average, should be taken, as what they would
have been if the arrears would not have been disallowed or the recoveries would have been
made. [Art. 487-I-A of C. S. Rs vide Finance Division O. M. No. F. 4(4) Reg.
(6)/74, dated 8-12-1972].

Amount of pension:

9. 11 (a) The amount of pension that may be granted to a Government servant is determined by
the length of service. Fractions of a year are not taken into account in the calculation of any
pension admissible to a Government servant. The full pension admissible under the rules is not
given as a matter of course. The service rendered should be really approved. If the service has
not been thoroughly satisfactory, the authority sanctioning the pension should make such
reduction in the amount as it thinks proper. [Art. 470 C. S. Rs].

Note. 1. The amount of any pension shall not be reduced under this Article without affording to the
person entitled to it, by means of a notice in writing an opportunity to show cause against the
proposed reduction. "

[Finance Division Notification No. S. R. O. 482 (K)/72 dated 30-3-1972]

Note. 2. A Government servant compulsory retired under the Government

Servants (Efficiency and Discipline) Rules, 1973, shall be entitled to pension or gratuity as
admissible under normal rules and the certificate of 'thoroughly satisfactory service' is not
required in his case. "

[ Finance Division Notification No. F. l(21)-Reg. (6)/80 dated I-1-I98I].

(b) According to the existing orders pension is calculated at the rate of 70 per cent of average
emoluments on completion of 30 years qualifying service. Where qualifying service is less than
30 years but not less than 10 years, proportionate reduction in percentage is made. Any amount
of pension in excess of Rs. 2000 is reduced by 50 per cent. It has now been decided that with
effect from the 1st July, 1983, the aforesaid cut-off of Rs. 2000 shall be further increased to Rs.
2500 in the case of those Government servants who retired after the said date of 1-7-1983 or will
retire after that date.

[Finance Division O. M. No. F. 12(13)-Reg. (6)/82(c) dated 18-8-I983).

(c) If a Government servant employed in a substantive and permanent capacity in pensionable

service retires or is selected for discharge owing to the abolition of his permanent post after
completing qualifying service of 5 years but less than 10 years, he may be granted a gratuity not
exceeding one month emoluments for each completed year of qualifying service. If such a
Government servant has completed qualifying service of 10 years or more at the time of his
retirement or discharge, as the case may be, he may be granted the ordinary pension.

(d) Temporary Government servants who retire from service in the usual course, i. e., on
attaining the age of superannuation or on being declared incapacitated for further service or who
elect to retire after completion of 25 years qualifying service, are treated at par with permanent
Government servants and as such are entitled to gratuity or pension as the case may be in
accordance with (b) above. If, however, a temporary Government servant is discharged from
service owing to the abolition of his post or replacement by a 'qualified' candidate he is entitled to
an ordinary pension on completion of qualifying service of 25 years or more and to a gratuity not
exceeding one month's emoluments for each completed year of qualifying service subject to a
maximum of Rs. 50, 000 on completion of 10 years but less than 25 years qualifying service. No
gratuity or pension is admissible to such temporary Government servants, who at the time of
discharge have rendered service of less than 10 years.

[Finance Division O. M No. OB-2/12/63-lmp (I), dated 18-8-1966, No. F. 8(14)-R6/68.

dated 25-11-1968 & F. 3(1) (Reg. -6) dated 20-11-1984].

(e) The amount of pension of a Government servant who has the right to retire on a retiring
pension should not be less than the amount to which he would have been entitled if he had
exercised this right, notwithstanding the fact that the emoluments may be reduced by reason of
his appointment to another post carrying lower pay, otherwise than as a penalty.

[Finance Division No. 0B-2/12/63-lmp (I), Pt. dated 28-7-1970].

Rates and scale of pension:

9. 12 (i) Pension is calculated at the rate of 70% of average emolument's on completion of 30

years qualifying service. Where qualifying service is less than 30 years but not less than 10 years
proportionate reduction in percentage is made. In case of employees joining service on 1-7-1986
or later the pension will be calculated on the basis of 'Emoluments'. The existing employees
retiring on or after 1-7-1986 have option to get their pension calculated on the basis of
'Emoluments' provided the post held by them was on a regular basis. If any such employee was
in receipt of special pay for holding current charge of higher post or full additional charge of an
equivalent post, the special pay will be divided by twelve months in terms of CSRs 486. This
average will be added to the emoluments. The pension table regulating all the four pensions
namely Compensation Pension, Superannuation Pension, Invalid Pension and Retiring Pension
is as under: -

Completed year of Scale of pension expressed as fraction

qualifying service of average emolument/emoluments

10 70/300

11 77/300

12 84/300

13 91/300

14 98/300

15 105/300

16 112/300

17 119/300
18 126/300

19 133/300

20 140/300

21 147/300

22 154/300

23 161/300

24 168/300

25 175/300

26 182/300

27 189/300

28 196/300

29 203/300

30 and above 210/300

Note. 1. In calculating pension or restoring commentated portion there of fraction of a rupee,

which is less than fifty paisas is ignored and that of fifty paisa and more will count as one Rupee
(Finance Division O. M No. F. 11(1) Reg-6/85 dated 1-7-1986 and No. F. 10(4) Reg. (6)/86 dated
17-7-1986].

2. The Civil servant retiring on or after 1-7-1986 would be allowed benefit in pension to the
extent of 2% of his gross pension for each extra year of service rendered by him beyond 30
years of qualifying service subject to a maximum of 10% of his gross pension. [Finance
Division O. M. No. F. 11(2) Reg. (6)/86 dated 1-7-1986],

(ii) If for a pensioner with qualifying service of 30 years or more the amount of a pension
calculated under sub-para (i) falls short of the amount of pension (inclusive of dearness
increases) that would have been admissible under the existing rules, or exceeds it by less than
Rs. 45, the amount under the revised formula be so increased as to make such difference one of
Rs. 45. Where qualifying service is less than 30 years but not less than 10 years proportionate
reduction at the rate of Rs. 1. 50 for each year short of 30 years should be made
while working out the amount of minimum increase mentioned above.

Benefit for extra year of service after completion of 30 years:

9. 13 A civil servant is allowed the benefit to the extent of 2% of gross pension for each extra year
of service put in by him beyond 30 years qualifying service subject to maximum of 10% of his
gross pension from 1-7-1986. The benefit of extra year of service has normally been allowed on
completed year of service. Superior Courts in certain cases, however, allowed the benefit for the
fraction of a year by counting more than six months service put in by a civil servant beyond 30
years as one year.

2. The case has been re-considered in the light of the Judgement of Supreme Court of Pakistan
and existing regulations on the subject. In terms of CSR-423(1) a deficiency of a period not
exceeding six months in qualifying service of an officer is deemed to have been condoned
automatically. Cases of pension under reference should henceforth be dealt with in accordance
with the above referred CSR.

[Finance Division O. M. No. F. 1 (I)-R. 6/99. dated 2-6-1999].

Pensioners' Benefits:

9. 14 Pensioners who retired prior to 1st May, 1977 bo allowed an increase in pension w. e. f. 01-
06-1991 at 20% on existing pension (inclusive of ad hoc increases). All pensioners be allowed
increase in their pension at the rate of 12% w. e. f. 01 06-1991. For pensioners who retired before
01-05-1977. this increase will be over and above the increase of 20% mentioned above.

(i) The above increase will not be admissible to those retired on or-after 01 -06-1991.

(ii) For the purpose of admissibility of the ad hoc increase sanctioned in this O. M. the term
'pension' means pension before commutation and/or surrender of l/4th for gratuity plus
dearness/ad hoc increases/ Indexation/Ad hoc Relief in pension sanctioned from time to time.

(iii) The ad hoc increase will also be admissible on family pension granted under the Pension-
cum-Gratuily Scheme 1954. Liberalized Pension Rules, 1977, on pension sanctioned under the
Central Civil Services (Extra-Ordinary Pension) Rules as well as on the Compassionate
Allowance under CSR-353.

(iv) If the gross pension sanctioned by the Federal Government is shared with any other
Government in accordance with the rules laid down in Part-IV of Appendix III to the Accounts
Code Volume-I. the amount of the ad hoc increase will be apportioned between the Federal
Government and the other Government concerned on proportionate basis.

(v) Commutation/Gratuity of any part of ad hoc increase will not be permissible.

(vi) In the case of re-employed pensioners, the ad hoc increase sanctioned in this Office
Memorandum shall not be admissible to them during the period of their re-employment.

(vii) The benefit of ad hoc increase sanctioned in this Office Memorandum will also be admissible
to those Civil Pensioners of the Federal Government who are residing abroad (other than those
residing in India and Bangladesh) who retired on or after 15-08-1974 and are not entitled to, or
are not in receipt of pension increase under the British Government's Pension (Increases) Act.
The payment will be made at the existing official rate of exchange.

2. Government servants who have retired on or alter 01-07-1990 till the introduction of revised
pay scales i. e. 01-06-1991, be allowed pension/ commutation on the basis of pay that would
have been admissible to them had the pay revision been effected on the date of their retirement
discounted by 12%.

3. Pension shall be calculated for the pensioners from time to lime in accordance with the
latest rules.
4. The above benefits will also be admissible on family pension.

[Finance Division (Regulation Wing-II)O. M. No F. 6 (4)/Reg. (6)/9l dated 03-10-1991

issued in supersession of Finance Division O. M. No F. 6(3)/R. 6/91 dated 22-8-1991)

Clarification. It is clarified in consultation with Auditor General of Pakistan that medical

examination will be must on additional amount of commutation if it is applied after 03-10-1992
(After one year of the issue of Finance Division O. M. dated 03-10-1991).

[Finance Division (Regulation Wing-ll) O. M. No. F 6 (4)/Reg. (6)/9l

dated 19-04-1993]

9. 15 The President has been pleased to sanction with effect from 01-07-1995 increase in
pension to all civil pensioners of Federal Government including those paid from Defence Services
Estimates as well as retired armed forces personnel at the rates as follows: -

Increase in Pension

(i) Pensioners retired upto 30-04-1977............ 15%

(ii) Pensioners retired between 01-05-1977 to

31-05-1993............................... 10%

(iii) Pensioners retired between 01-06-1991 to

31-05-1993............................... 05%

1. For the purpose of admissibility of the increase in pension sanctioned in this O. M. "the terms
'Pension' means pension before commutation and or surrender of l/4th for gratuity plus
dearness/ad hoc increases/ Indexation/ad hoc relief, in pension sanctioned from time to time.
Gross pension of retired Government employees would not be less than Rs. 300 per month and
in the case of family pension not less than Rs. 150 per month for the purpose of
calculation of the above increase.

3. The increase in pension will also be admissible on family pension granted under the Pension-
cum-Gratuity Scheme, 1954, Liberalized Pension

Rules, 1977, on pension sanctioned under the Central Civil Services (Extraordinary Pension)
Rules as well as on the Compassionate Allowance under
CSR-353.

4. If the gross pension sanctioned by the Federal Government is shared with any other
Government in accordance with the rules laid down in Part-IV of Appendix III to the Accounts
Code Volume-I, the amount of the increase in pension will be apportioned between the Federal
Government and the other Government concerned on proportionate basis.

5. Commutation/Gratuity of any part of increase in pension will not be permissible.

6. In the case of re-employed pensioners, the increase in pension sanctioned in this Office
Memorandum shall not be admissible to them during the period of their re-employment.
7. The benefit of increase in pension sanctioned in this O. M. will also be admissible to those
Civil Pensioners of the Federal Government who are residing abroad (other than those residing in
India and Bangladesh) who retired on or after 15-08-1947 and are not entitled to, or are not in
receipt of pension increase under the British Government's Pension (Increases) Acts. The
payment will be made at the existing official rate of exchange.

[Finance Division (Regulation Wing) O. M. No 4 (3)/Reg. (6)/95.

dated 29-06-19951.

Grant of Increase in Pension to

civil pensioners of the Federal Government

including civilians paid from Defence Estimates:

9. 16 The President has been pleased to sanction w. e. f. the 1st July. 1983 and until further
orders, a further Dearness Increase in pension @ 10% of pension subject to a maximum of Rs.
200 per month to civil pensioners of the Federal Government, including those paid from the
Defence Services Estimates who retired upto the 30th June, 1983. For the purpose of
admissibility of the increase sanctioned in this O. M.. the term "pension" means gross pension (i.
e. pension before commutation and/or surrender of l/4th thereof) plus dearness/ad hoc increases
in pension sanctioned from time to time where admissible.

2. If a person is in receipt of more pensions than one. the Dearness Increase will be calculated on
the aggregate of all his gross pensions subject to the prescribed maximum of Rs. 200.

3. The Dearness Increase will also be admissible on family pensions granted under the
Pension-cum-Gratuity Scheme, 1954/Liberalised Pension Rules, 1977 and on pensions
sanctioned under the Central Civil Services (Extraordinary Pension) Rules, as well as on the
Compassionate Allowance under CSR 353.

4. If the gross pension sanctioned by the Federal Government is shared with any other
Government in accordance with the rule laid down in Part-IV of Appendix III to the Account Code,
Volume 1, the amount of the Dearness Increase will be apportioned between the Federal
Government and the other Governments concerned on proportionate basis.

5. Commutation of any part of the Dearness Increase will not be permissible.

6. In the case of re-employed pensioners, the Dearness Increase sanctioned in this Office
Memorandum shall not be admissible to them during the period of their re-employment.

7. The additional ad hoc increase in pension sanctioned in Finance Division's O. M. No. F.

12(l)Reg (6)/81, dated 25-7-1981 was admissible to those Government servants who retired upto
31-12-1982. The dearness increase in pension which was sanctioned vide Finance Division's O.
M. No. F. 12(1) Reg. (6)/82, dated 17-6-1982 was admissible to (hose who retired upto 30-6-1982
as well as to those who would retire after that date. It has since been decided that the dearness
increase sanctioned in the said O. M. of 17-6-1982 will be admissible only to those who have
retired upto 30 6-1983.

[Finance Division O. M. No. F. 12(l3)Reg. (6)/82 B dated 18-8-1983].

9. 16-A The President has been pleased to allow increase in pension with effect from 1st July,
1999 to civil pensioners of the Federal Government including civilians paid from Defence
Estimates at the following rates: -

Increase in Pension

(i) Pensioners in BPS 1 ? 16 ................ 25%

(ii) Pensioners in BPS 17 and above........... 20%

2. For the purpose of admissibility of the increase in pension sanctioned in this O. M. the term
'Pension' means pension before commutation and or surrender of 1/4 for gratuity plus
dearness/ad hoc increases/indexation/ad hocrelief, in pension sanctioned from time to time.
Gross pension of retired Government employees would not be less than Rs. 300/- per month and
in the case of family pension not less than Rs. 150/- per month for the purpose of calculation of
the above increase.

3. The increase in pension will also be admissible on family pension granted under the
Pension-cum-Gratuity Scheme, 1954, Liberalized Pension Rules, 1977 on pension sanctioned
under the Central Civil Services (Extraordinary Pension) Rules as well as on the Compassionate
Allowance under CSR-353.

4. The increase in pension will also be admissible to those Government servants who would
retire between the period commencing from 1st July, 1999 and introductions of revised pay
scales.

5. If the gross pension sanctioned by the. Federal Government is shared with any other
Government in accordance with the rules laid down in part-IV of Appendix III to the Accounts
Code, Volume-I, the amount of the increase in pension will be apportioned between the Federal
Government and the other Government concerned on proportionate basis.

6. Commutation/Gratuity of any part of increase in pension will not be permissible.

7. In the case of re-employed pensioners, the increase in pension sanctioned in this Office
Memorandum shall not be admisible to them during the period of their re-employment.

8. The benefit of increase in pension sanctioned in this O. M. will also be admissible to those
Civil Pensioners of the Federal Government who are residing abroad (other than those residing in
India and Bangladesh) who retired on or after * 15th August, 1947 and are not entitled to, or are
not in receipt of pension increase under the British Government's pension (increases) Acts. The
payment will be made at the existing official rate of exchange.

[Finance Division O. M, No. F-4(l)-R. 6/99, dated 23-7-1999].

Family Pension:

9. 17 (i) In the case of death of a civil servant while in service gratuity in lieu of one fourth of the
gross pension will be allowed. The rate of gratuity as from 1-7-1986 would be determined on the
basis of age next birthday of the deceased civil servant in accordance with the new Commutation
Table. In

*Amended vide Finance Division O. M. No. F 4(1)-Res 6-/99. dated 19-8-1999.

addition, family pension will be admissible at 50% of the gross pension to the widow for her life or
till her remarriage. In the case of death of widow the family pension will be admissible to the sons,
if any, until they attain the age of 21 years and *(the eldest surviving unmarried daughter till her
marriage; if the eldest daughter marries or dies the next eldest daughter till her marriage". ). The
entitlement of family pension to the eligible members of family other than widow will be for a
period of ten years or un expired period of ten years.

[Finance Division O. M. No. F. 12(13) Reg. (6)/82 (A) dated 18-8-1983 and
O. M. No. F. 10(3) Reg. (6)(ii) dated 1-7- 1986]

(ii) In the case of death of a pensioner after retirement family pension at 50% of the pension (net,
or gross, as the case may be), will be admissible to the widow or sons or daughters as in (i)
above.

9. 18 (i) The following relief to the widows, dependents, retarded and incapacitated children
and invalid pensioners shall be allowed w. e. f. 1st June, 1994:

(a) Restoration of commuted value/gratuity portion of families on completion of required period.

(b) Grant of family pension to dependent disabled/retarded children for life without any age limit.

(c) Elimination of second medical board for the invalidated pensioners for eligibility of
commutation.

[Para 8 of Finance Division O. M. No. F. 1 (2)-lmp/94 (i) dated 15-06-1994].

(ii) Government servants who have retired on or after 01-06-1993 till the introduction of revised
pay scales i. e. 01-06-1994, be allowed pension/ commutation on the basis of pay that would
have been admissible to them, had the pay revision been effected on the date of their retirement,
discounted by 12%.

[Para 9 of Finance Division (Regulation Wing) O. M. No. F. 1 (2)-lmp/94 (i),

dated 15-6-1994].

9. 19 With reference to Para 8(a) of Finance Division's O. M. No. 1(2)- Imp/94(i) dated 15th
June, 1994 regarding restoration of commuted value/ gratuity of families on completion of
required period the queries have been raised: -

(i) "Whether the commuted portion/gratuity will also be restorable in family pension cases i. e.
both death in service and death after retire

*Subs vide Finance Division O. M. No. F. 2(2) Reg 6/90 dated 03-117-1997.

ment and if the commuted portion/gratuity that has become due for restoration before 1-6-1994
may be restored on due date or w. e. f. 1-6-1994?

(ii) Family pension in case of death during service of Government servant is allowed at 50% of
gross pension after allowing gratuity in lieu of l/4th of gross pension, while in the case of death
after retirement, it is allowed at 50% of the net pension. It is not clear whether
on the expiry of its payment, the commuted value/gratuity portion of pension will be allowed in full
or at 50% thereof.

2. It is hereby clarified that:

(i) The commuted portion/gratuity that has become due for restoration before 01-06-1994 will not
be restored on due date but w. e. f. 01-06-1994.

(ii) Restoration of commuted value/gratuity portion of families, means, 50% of the pension *net or
**gross (as the case may be) which has been surrendered by the deceased Government servant
in lieu of commutation or gratuity if not restored in his life time.

[Finance Division (Regulation Wing)O. M. No. F 4 (10)-Reg 6/94-1. dated 11-6-1995].

3. Medical examination will be must on additional amount of commutation if it is applied after

15-06-1995 i. e., after one year of the issue of Finance Division's O. M. No. l(2)-Imp. /94 (i) dated
15-06-1994.

(Finance Division O. M. No. F. 4 (10)-Reg. 6/94. dated 11-06- 1995].

Medical Examination for the purpose of Commutation of Pension on invalidation:

9. 20 Under the provision of Fundamental Rule 10A the authority competent to fill the post held by
a Government may require the government servant to appear before a medical authority for
medical examination if, in the opinion of the competent authority, the government servant is
suffering from a disease which renders him/her unfit for the proper and efficient discharge of his
duties or from a disease which is communicable and is likely to endanger the health of other
government servants. The Forms of medical certificate are set out under Supplementary Rule
4AA. If the medical Board finds that the government servant concerned is suffering from disease
which renders him permanently unfit for government service and recommends that he/she may
be invalidated from government service, then the competent authority may require the
Government Servant to retire from service and may grant him such invalid pension and/or gratuity
as may be admissible to him/her under the Rules.

2. Under Rule 3 of Civil Pensions (Commutation) Rules, 1925. a Government servant is

entitled to commute for a lump payment any portion, not exceeding one half, of any pension
which has been or may be granted to him under civil rules. 6(2) of these Rules inter alia provides
that commutation become absolute, that is, the title to receive the commuted portion of the
pension shall cease and the title to receive the commuted value shall accrue, on the date on
which the Medical Board signs the medical certificate. The requirement of medical examination
inder the Civil Pensions (Commutation) Rules, 1925, is a separate and distinct requirement from
the requirement of medical examination required for invalidation of government servants. This
requirement of medical examination was valid in case of retirement on superannuation, on
invalidation or on retirement on retiring pension. This requirement was however waived off if
commutation was asked for within one year of the date of retirement. But in cases of premature
retirement on medical grounds, the requirement of medical examination for the purpose of
commutation of pension was NOT waived off as stated in Finance Division O. M. No. 5(1)-Reg.
6/77 dated 20-5-1978.

3. The above requirement of second medical examination in case of invalidated pensioners

was eliminated vide para 8(c) of the Finance Division O. M. No. F. l(2)-Imp/94 (0 dated 15-6-1994.
A question has arisen as to when the commutation now becomes 'absolute' in terms of the Civil
Pensions (Commutation) Rules, 1925. The matter has been re-examined in the Finance Division.
The exact intent of para 8(c) of Finance Division O. M. dated 15-6-1994 referred to above is that
the Medical Board which is convened for invalidation of a Government Servant may also assess
expected age in terms of the Civil Pensions (Commutation) Rules, 1925, and the government
servant retired on invalid pension may be saved the trouble of Second Medical examination for
the purpose of commutation. In other words the requirement of medical examination for the
purposes of Civil Pension (Commutation) Rules, 1925, per se was not waived off. It has therefore
been decided that when a Medical Board is convened for invalidation of a government servant,
that Medical Board may also be specifically requested to report its recommendation in FORM 'C
appended to the Civil Pensions (Commutation) Rules, 1925 alongwith Medical Certificate under
SR 4AA.

4. These instructions shall take immediate effect and will also be applicable to cases of
invalidation already referred to Medical Board but medical certificate not recorded on the date of
issue of this O. M.

[Finance Division O. M. No. F. 5 (l)-Reg. 6/98, dated 14-11-1998).

9. 21 The widows of civil servants who had died while in service prior to 24th March, 1954. The
President has been pleased to decide that such widows may also be paid family pension w. e. f.
1st July, 1987 for life at the rate of 50 per cent of the gross pension admissible to the deceased
civil servant in each case.

(i) No arrears for the period prior to 1st July, 1987 would be admissible.

(ii) The family pension shall be admissible to the widow for life or until remarriage.

(iii) The other instructions on the subject will be the same as applicable to family pensions which
were in existence on 1st July. 1983.

[Finance Division O. M No. F. 5(4) Reg. (6)/87. dated 11-8-1987 and Finance Division O M No. F
5(5)-Reg (d)/87, datetl 23-8-1987]

Grant of Commutation to the Widow of Government Servant retired on Superannuation but

expired before signing his Pension/ Commutation claims:

9. 22 Commutation upto 50% of gross pension is admissible to a civil pensioner at his option.
Under the existing procedure, the entitlement of commuted value upto 50% of gross pension
becomes valid as and when a Government servant, while in service or on retirement, exercises
his option for commuted value of pension on prescribed Form (CSR-25 Revised).

2. It has been decided that the family of a deceased Government servant, who after having
retirement on superannuation could not sign his pension papers due to death, will also be entitled
for the commuted value of pension w. e. f.1-7-1999.

(Finance Division O. M. No. F 13 (I)-Reg 6/04, dated 6-7-1999]-

Grant of Commutation to the Widow of Government Servant retired on invalidation by

Medical Board but expired before signing his pension/commutation claims:

9. 22-A It has been decided that the family of a deceased Government servant, who after having
retirement on invalidation by Medical Board, could not sign his pension papers due to death, will
also be entitled for the commuted value of pension henceforth.

[Finance Division O. M. No. F. 13(l)-Reg. 6/94. dated 22-5-2001]

Admissibility of Pension for Life to a Widower:

9. 23 Under existing rules/orders on the subject, family pension is admissible to widower of a
deceased female government servant for a period of 10 years or unexpired portion of 10 years
and to a widower for life or until re-marriage. It is also stated that w. e. f. 01-03-1992 the widower
of deceased female government servant will also be entitled to family pension for life or until re-
marriage.

2. The other instructions on the subject will continue.

[Finance Division (Regulation Wing-ll) O. M No F. 2(2) Reg (6)91. dated 12-3-1992].

Pension-cum-Gratuity Scheme 1954:

9. 24 In accordance with the provisions of Pension-cum-Gratuity Scheme, the payment of

pension/gratuity or both is regulated as under: -

(i) A Government servant who has rendered five years qualifying service or more but less than ten
years qualifying service may be granted a gratuity not exceeding one months' emoluments for
each completed year of qualifying service. In case of invalidation and death the rate will be 1-1/2
months pay for each completed year of service. This amount will be paid to him at the time of his
retirement or to his family in the event of his death while in service. In this case no pension is
admissible.

(ii) In case a Government servant dies before his retirement, his pension is calculated, as if he
retired on invalid pension on the date following the day of his death, and his family will be paid the
gratuity calculated on the basis of the formula at Para 9. 17 above. In addition the family will also
be entitled to a monthly Family Pension at 50% of the full amount of pension. The widow will be
entitled to the family pension for the life or till her remarriage. In the
case of death of widow, the family pension will be admissible to the sons, if any. until they attain
the age of 21 years and *(The eldest surviving unmarried daughter till her marriage; if the eldest
daughter marries or dies the next eldest daughter till her marriage).

[Finance Division O. M. No F. 12(13) Reg (6)/82(A). dated 18-8-1983).

(iii) Where a pensioner dies after his retirement family pension at the rate of 50% of the pension
(net or gross), as the case may be will be paid to the widow or sons or daughters as in (ii) above.

*Subs. vide Finance Division O. M. No. F. 2 (2) Reg 6/96 dated 3-7-1997.
(iv) The commutation will be allowed upto 1/2 of the full pension

(v) The family for the purpose of payment of death-cum-retirement gratuity/pension includes the
following relations of the Government servant: -

(a) Wife or wives in the case of male Government servant. (Unless there is a judicial separation
wife continues to be a member of the Government servant's family irrespective of
the fact whether she is living with him or not).

(b) Husband in the case of a female Government servant (A female Government servant can
exclude her husband from being a member of her family). He will be entitled to the
Family Pension only for ten years.

(c) Legitimate children of the Government servant.

(d) Widow or widows and children or deceased son of Government servant.

9. 25 On completion of five years qualifying service by him every Government servant should
make a nomination in Form "A' or 'B' conferring on one or more persons the right to receive the
gratuity in the event of his death. If the nomination is in respect of more than one person then
their relative shares should also be specified. The nomination can be cancelled or changed at any
time. The nomination should be sent to the audit officer in respect of the employees of BPS 16
and above and to the Head of Office in respect of officials upto
BPS 16.

9. 26 When the amount of gratuity becomes payable to the family of the Government servant,
the payment is made according to the following procedure: -

(a) The amount of gratuity is paid to the nominee or the nominees in accordance with the
specified share.

(b) Where a valid nomination was not in existence or the full amount was not covered by the
nomination, the amount of gratuity will be paid in equal shares to the members of the family with
the exception of sons, unmarried daughters, grandsons and grand daughters who '
have attained the age of 21 years and married daughters and grand-daughters whose husbands
are alive. The share of the widow/ widows and children of a deceased son will, however, be
limited to that as would have been admissible to the son, had he not died.

9. 27 In cases where a Government servant does not leave any family as mentioned above, the
gratuity will be paid in equal shares to his brothers and unmarried sisters below the age of 21
years, widowed sisters, father and mother.
No Gratuity is, however, payable at all if government servant does not leave any
family or eligible dependent relatives as specified above.

9. 28 (i) The family pension, in the event of death of Government servant, will be payable to the
members of his family or to his dependent relatives in the following order, i. e. the title will pass
from one to the next in the event of former having died or became otherwise ineligible: -

(a) Widow of the deceased, if he was a male Government servant or to the husband of
deceased, if she was female. If the Government servant had more than one wife, but the total
number of surviving widows and children does not exceed four, the pension is divided in equal
shares among the widows and children (excluding sons and,daughters above the age of 21 years
and the married daughters); where the number of surviving widows and children is more than
four; the pension will be divided in such a way that each surviving widow should get 1/4th of
pension and the balance if any, will be divided equally amongst the surviving children (excluding
the sons above the age of 21 years and married daughters).

(b) Eldest surviving son upto the age of 21 years.

(c) *[The eldest surviving unmarried daughter till her marriage; if the eldest daughter marries or
dies the next eldest daughter till her marriage].

(d) Eldest widowed daughter.

(e) Eldest widow of a deceased son of the Government servant.

(f) Eldest surviving son upto the age of 21 years of a deceased son of
the Government servant.
(g) Eldest surviving unmarried daughter upto the age of 21 years of a
deceased son of the Government servant.

(h) Eldest widowed daughter of a deceased son of the Government

servant.

(ii) If the pension was not payable to any member of family as detailed
above, it is payable in the following order: -

Father, mother, eldest surviving brother upto the age of 21 years, eldest surviving unmarried
sister upto the age of 21 years and eldest surviving widowed sister.

*Amended vide Finance Division O. M. No. F. 2 (2) Keg. 6/% dated 3-7-1997.

(iii) The pension to the above persons will be payable if it is proved that such person was
dependent on the deceased Government servant for support. The pension will cease to be
payable as soon as a female gets married or remarried or a brother, unmarried sister attains 21
years of age.

(iv) The pension will be payable to one member at a time. When it is not, payable to him/her on
account of his/her death or due to the reasons as stated above, the pension will be paid to the
next claimant in the order of eligibility.

(v) Where gratuity/pension is payable to minor or minors payment is made to the regularly
appointed Manager or Guardian. Where there is no guardian, the sanctioning authority may allow
the payment to their mother. In case the mother is not alive or was judicially separated from the
Government servant in his life time, the sanctioning authority may nominate any suitable person
to be the guardian for the purpose. For female Government servant, the payment can be made to
the father of minor children.

(vi) The President has been pleased to decide that, with effect from 24th September, 1997, if an
employee remains missing or unheard of for a period of 12 months to the satisfaction of the
Department concerned, family pension may be allowed to his heirs as admissible under the
prescribed rules provided that: -

(a) The spouse of the pension claiming to be entitled to the pensionary benefits of the missing
person shall, before such benefits are paid, guarantee, through affidavit or as the pensionary
authority may require, the repaymet of pensionary benefits to the missing person if subsequently
he appears and makes any claim thereto.

(b) The pensionary authority shall not be responsible for repayment of any pensionary benefits
to the missing person which have already been paid to his spouse or family members who shall
personally be responsible for satisfaction thereof on appearance of the missing person.

[Finance Division O M No. F. 2(1) Reg. 6/67, dated 25-9-1997].

9. 29 In continuation of Finance Division's O. M. No. F. 2(1)-Reg. 6/97 dated 25-9-1997 on the

subject, the concession admissible thereunder shall also be admissible in cases a pensioner
remains missing or unheard of for a period of 12 months to the satisfaction of, the Department
concerned, family pension may be allowed to his heirs as admissible under the prescribed rules
and subject to the condition mentioned in O. M. dated 25-9-1997 referred to above.

[Finance Division O. M No F. 2( 1) Reg 6/99. dated 8-5-1999].

NOMINATION FOR DEATH-CUM-RETIREMENT GRATUITY

Form 'A'

When the Government servant has family and wishes to nominate one member there of.

1 hereby nominate the person mentioned below, who is a member of my family and confer on him
the right to receive any gratuity that may be sanctioned by the Government in the event of my
death while in service and the right to receive on my death any gratuity which having become
admissible to me on retirement may remain unpaid at my death:

Name and
relationshipof the
Contingencies
person if any towhom
on the appening
Name and the right conferred on
Relationshipwith ofwhich the
addressof the nominee shall pass
nomineeAge nomination
nominee" in the event of the.
shall become
nominee pre-deceasing
invalid
the Government
servant

Dated this..................................day of...................................19

19....................................................................

at..

Witnesses to signature.

1..................

2..................

Signature of Government servant.

(To be filled by the Head of office in the case of a B-l to B-15 Government servant. )

Nomination by...

Designation........

Office................

Signature of Head of Office.

Designation..
Dale.............
Form 'B"

Then the Government servant has a family and wishes to nominate more than one member
thereof.

I hereby nominate the persons mentioned below, who are members of my family, and confer on
them the right to receive, to the extent specified below, any gratuity that may be sanctioned by the
Government in theevent of my death while in service and the right to receive on my death, to the
extent specified below, any gratuity which having become admissible to me on retirement may
remain unpaid at my death:

Name(s) Name, address,

and Relationship Amount
withGovernment relationship of person if
of share
any.to whom the right
address(es) Age of conferred on the
servant gratuity
nominee shall pass in
payable
of the event of the
to
nominee(s) nominee redeceasing
each
theGovernment servant

N B. The Government servant should draw lines across the blank space below the last entry to
prevent the insertion of any name after he has signed.

Dated this..........

day of...

Witnesses to signature

I..............

Signature of Government servant.

(To be filled in by the Head of office in the case of B-l to B-15 Government servants )

Nomination by..........................

Designation...............................

Office........................................

Signature of Head of Office.

Designation...........................

Date......................................
*Note. -This column should be filled in so as to cover the whole amount of the gratuity

Indexation of pension:

9. 30 The pensions of all (he Civil pensioners of the Federal Government are to be indexed in
relation to the cost of living at the rales specified from time to time. The concession would be
admissible to all the existing pensioners w. e. J. 1st July, 1985 and to all pensioners retiring on or
alter that dale. The pension admissible at any time will be the pension due under the normal rules
multiplied by the index applicable from time to time.

9. 31 For the purpose of indexation the term pension would mean gross' pension, i. e. pension
before commutation and/or surrendered of one fourth thereof including any dearness/ad hoc
increases in pension sanctioned from time to time.

[Finance Division O. M. No. F. 11(1) Reg. (6)85 dated 26-6-1985 and

F 1(1)-Reg (6)/86(A)dated l-7-1986]

Commutation of Pension:

9. 32 A Government servant is entitled to commute for a lump payment any portion, not
exceeding 1/2 of pension excluding the indexed amount of pension which has been or may be
granted to him.

9. 33 The application for commutation should be addressed to the sanctioing authority. On

receipt of the application the sanctioning authority will transmit to the applicant a copy of the
Accounts Officer's Certificate of the lumpsum to be paid on commutation, and direct him to
appear for examination before a medical authority to be prescribed by the sanctioning authority.
The applicant must appear before the medical authority within 3 months of the dale of orders of
the sanctioning authority. This intimation will be treated as administrative sanction for
commutation, but will lapse if the medical examination is not held within the prescribed period. If
the applicant does not appear before the medical authority within the prescribed period, the
sanctioning authority may, at its discretion, renew the administrative sanction for a further period
of three months. The applicant can withdraw his application by written notice dispatched at any
time before medical examination, but this option will expire on the appearance before a medical
authority.

9. 34 The commutation will become absolute i. e., the title to receive the commuted portion of
pension will cease and the title to receive the commuted value will accrue, on the date on which
the Medical Board signs the medical certificate. Whatever the date of actual payment, the amount
paid and the effect upon the pension will be the same as if the commuted value was paid on the
date on which the commutation became absolute. If the pensioner died on or after the day
following that on which commutation became absolute, but before receiving the commutation
value, this value will be paid to his heirs.

9. 35 Commutation is not subject to medical certificate nor to administrative sanction if it is

asked for within one year of the date of retirement. The date of application by the retired civil
servant, in such a case, will be the date of commutation becoming absolute. Where commutation
is applied for before retirement the commutation will become absolute on the date of retirement. A
civil servant retiring on or after 1-7-1986 after attaining the age of 60 years will be allowed
commuted value of pension as applicable to age of sixty years instead
of the age of 61 years, if he applies for commutation while in service.

[Finance Division O. M. No. F. 4(3) Reg. (6)/86. dated 1-7-1986 and F. 11(1) Reg. (6)/85-II. dated
16-4-1985].
9. 36 In the case of provisional pension, the commutation may be provisionally sanctioned on
that basis. When the pension is finally sanctioned, the final payment order should be substituted
for the provisional payment order for purpose of commutation as also for all other purposes. In
the case of premature retirement on medical grounds the requirement of medical examination will
not be waived.
Commutation Table:

9. 37 The lumpsum payable on commutation is to be calculated in accor-

dance with the following table:

Age next Number of years Age next Number of years Age next Number of years

birthday purchased birthday purchased birthday purchased

20 50. 6304 41 30. 8007 62 14. 2105

21 49. 6676 42 29. 8907 63 13. 6090

22 48. 7066 43 28. 9800 64 13. 0239

23 47. 7467 44 28. 0891 65 12. 4549

24 46. 7884 45 27. 1990 66 11. 9017

25 45. 8314 46 26. 3172 67 11. 3643

26 44. 8758 47 25. 4444 68 10. 8428

27 43. 9215 48 24. 5816 69 10. 3371

28 42. 9688 49 23. 7301 70 9. 8472

29 42. 0179 50 22. 8911 71 9. 3729

30 41. 0089 51 22. 0658 72 8. 9142

31 40. 1218 52 21. 2563 73 8. 4708

32 39. 1767 53 20. 4638 74 8. 0427

33 38. 2336 54 19. 6896 75 7. 6299

34 37. 2929 55 18. 9348 76 7. 2322

35 36. 3551 56 18. 2002 77 6. 8496

36 35. 4203 57 17. 4860 78 6. 4818

37 34. 4885 58 16. 7925 79 6. 1287

38 33. 5603 59 16. 1191 80 5. 7901

39 32. 6361 60 15. 4649

40 31. 7160 61 14. 8290

9. 38 Ministries/Divisions etc., should ensure that while approaching the

medical authorities for constituting medical boards, relevant papers etc., are sent
to them complete in all respects, well in advance of the next date of birth of the
Government servant concerned.

Pension and Commutation under Revised Pay Scales 2001

9. 38-A. Pension. The Government has made the following reforms in

pension/commutation scheme w. e. f. 1-12-2001 in respect of civil pensioners of
Federal Government including civilian paid from Defence Estimates as well as
retired Armed Forces Personnel.

(a) Commutation Table shall be replaced by the new Commutation

Table.

(b) Commutation upto 40% of gross pension shall be admissible at the

option of the pensioner.

(c) The additional benefit of 2% - 10% for extra years of service after
completion of 30 years of qualifying service in respect of Civil
Pensioners shall be discontinued.

(d) The increase in pension @ 20% -25% to Civil Pensioners allowed

vide this Division's O. M. No. 4(l)-Reg. 6/99 dated 23-7-1999 shall
be discontinued.

(e) The benefit of restoration of surrendered portion of pension in lieu

of commutation/gratuity shall be withdrawn.

(f) In future, the increase in pension to the pensioners shall be allowed

on net pension instead of gross pension.

(g) All the pensioners shall be allowed an increase in net pension

(inclusive of dearness increases allowed in the past) as follows: -

Increase in net pension

(i) Pensioners who retired prior to the 15%

introduction of 1991 Basic Pay Scales.

(ii) Pensioners who retired prior to the 10%

introduction of 1994 Basic Pay Scales
but on or after the Introduction of 1991
Pay Scales.

(iii) Pensioners who retired on or after the 5%

introduction of 1994 Basic Pay Scales

and upto the date of introduction of
revised Basic Pay Scales i. e. 1-12-2001.

*[DELETED] COMMUTATION TABLE UNDER PAY SCALES 2001

Age next No. of years Age next No. of years

Birthday Purchased Birthday Purchased

20 40. 5043 51 17. 6526

21 39. 7341 52 17. 0050

22 38. 9653 53 16. 3710

23 38. 1974 54 15. 7517

24 37. 4307 55 15. 1478

25 36. 6651 56 14. 5602

26 35. 9006 57 13. 9888

27 35. 1372 58 13. 4340

28 34. 3750 59 12. 8953

29 33. 6143 60 12. 3719

30 32. 8071 61 11. 8632

31 32. 0974 62 11. 3684

32 31. 3412 63 10. 8872

33 30. 5869 64 10. 4191

34 29. 8343 65 9. 9639

35 29. 0841 66 9. 5214

36 28. 3362 67 9. 0914

37 27. 5908 68 8. 6742

38 26. 8482 69 8. 2697

39 26. 1009 70 7. 8778

40 25. 3728 71 7. 4983

41 24. 6406 72 7. 1314

42 23. 9126 73 6. 7766

43 23. 1840 74 6. 4342

44 22. 4713 75 6. 1039

45 21. 7592 76 5. 7858

46 21. 0538 77 5. 4797

47 20. 3555 78 5. 1854

48 19. 6653 79 4. 9030

49 18. 9841 80 4. 6321

50 18. 3129

Option. (a) All the existing civil employees (BPS 1 to 22) of the Federal Government shall within
45 days from the date of issue of this office memorandum (Finance Division O. M. No. F.
1(5)/Imp/2001) exercise an option in writing, addressed to the Audit Office concerned in the case
of employees in BPS 16 and above and to the DDO concerned in the case of employees in BPS
15

*The words 'Existing and Revised Pay Scales" deleted vide Finance Division letter No.
F 1(5)/imp/2001 dated 3-11-2001.and below, either to draw pay in th existing Basic Pay Scales of
1994 or in the revised Basic Pay Scales and pension/commutation scheme 2001 as specified in
this O. M. Option once exercised shall be final.

(b) An existing employee as aforesaid, who does not exercise and communicate such an option
within the specified time limit, shall be deemed to have opted to continue to draw salary in basic
pay scales of 1994 and Pension/ Commutation as per existing formulae.

The government servant who will retire w. e. f. 1-7-2001 shall be given the benefit of revised pay
scales on presumptive basis discounted by 5% increase in pension if availed, subject to the
condition that all those who may like to avail this benefit should opt for the entire package i. e.
revised schemes of Basic Pay Scales as contained in Part-I and revised package of pension as
contained in Part-Ill of this O. M.

All existing rules/orders on the subject shall be deemed to have been modified to the extent
indicated above. All existing rules/orders not so modified shall continue in force under this
scheme.

Anomalies. An Anomalies Committee shall be set up in the Finance Division (Regulations Wing)
to resolve the anomalies if any, arising in the implementation of this Office Memorandum.

(Finance Division O. M. No. F. 1(5) Imp/2001 daled 4-9-2001].

9. 39 The commuted amount of pension equal to l/4th of the gross amount of pension shall be
restored on completion of the number of years for which commuted value was paid. In restoring
the commuted portion of pension fraction of a-year shown in the commutation table which is less
than six months will be ignored and that of six months and more will count as one year.

(Finance Division O. M. No. F. 10(8) Reg. (6)/85. daled 25-6-l985].

-9. 40 No further commutation will be permissible on the commuted

portion of the pension restored.

(Finance Division U. O. note No. 10(8) Reg. (6)/85, daled 2-10-1985).

9. 41 (i) Under the rules a retired government servant is entitled to com-

mute upto one-half of his pension or avail gratuity for one-fourth of pension and
in addition commutation upto one-fourth of pension. From 01-07-1985 only one-
fourth gross pension surrendered for commutation is restorable to retired govern-
ment servants on out-living the period of commutation. No arrears were allowed
prior to 01-07-1985.

(ii) The President has been pleased to decide that all retired government servants including those
paid from Defence Services Estimates who availed the benefit of commutation upto one-half of
pension or gratuity of one-fourth of pension from 01-07-1991, after out-living the period for which
commutation or gratuity (as the case may be) was availed. No arrears shall be allowed for the
period prior to 01-07-1991.

(iii) In restoring the amount of gratuity, the rate of gratuity would be divided by 12 to arrive at the
period of gratuity. For instance if a retired government servant received the gratuity at the rate of
Rs. 160, his period for gratuity works out to 13?33 years or say 13 years. Fraction of a year which
is less than 06 months will be ignored and that of 06 months and more will count as one year.

(Finance Division (Regulation Wing-ll) O. M. No. F. 7(3)/Reg. (6)/9l dated. 3-7-1991].

Anticipatory pension:

9. 42 (a) When a government servant is likely to retire before his pension can be finally assessed
and settled action should be taken for grant of anticipatory pension. For this purpose the
sanctioning authority should furnish to the Audit Officer concerned with all the particulars of
services in respect of the retiring Government servant. The Audit Officer should sanction the
disbursement of pension to which after the most careful summary investigation that he can make
without delay, he believes the Government servant to be entitled. Such disbursement should be
made only after the following declaration has been signed by the retiring Government servants: -
"Whereas the (here state the designation of the officer sanctioning
the advance) has consented provisionally, to advance to me a

pension of Rs.................................per month and lump sum gratuity

of Rs.................................. in anticipation of the completion of the

enquiries necessary to enable the Government to fix the amount of my pension and gratuity, I
hereby acknowledge that, in accepting this advance, I fully understand that my pension and
gratuity are subject to revision or the completion of the necessary formal enquiries, and I promise
to base no objection to such revision on the ground that the provisional pension and gratuity now
to be paid to me exceeds the pension and gratuity to which I may be eventually found entitled. I
further promise to repay any amount advanced to
me in excess of the pension and gratuity to which I may be eventually found entitled. " (Art. 922
C. S. Rs).

(b) If the Audit Officer considers it likely that the Government servant would be entitled to a
gratuity only, one-sixth of the amount of such probable gratuity should, upon a similar declaration,
be disbursed monthly until the amount is finally settled. (Art. 923 C. S. Rs).

(c) The payment of the anticipatory pension should be so arranged that it is not delayed beyond
the first day of the month following the month in which Government servant is due to retire. (Art.
924 C. S. Rs).

(d) Administrative as well as audit and account authorities must exercise the power to sanction
anticipatory pension, whenever required, to avoid any delay in the payment of pension.

[Para l(c) of the Finance Division O. M. No. F. 6(4)-Reg. (6)/79 dated 22-3-1981]

9. 43 If for any reason it is apprehended that the pension payment order cannot be issued
within the prescribed time in the case of normal retirement, one month before retirement and in
the case of premature, voluntary or compulsory retirement or death, within three months of the
date of event a provisional order authorizing payment of 80% of the admissible pension may be
issued by the competent authority without referring the case to the audit office within one month
of the expiry of the prescribed time.

[Finance Division O. M. No. F. 5(1) Reg. (6)/77. dated 24-2-19/7],

Wounds, Injuries and Extraordinary Pension:

9. 44 Where a Government servant is injured, killed or dies of injuries received during the
execution of public duty, a pension or gratuity may be granted to him or to his family in
accordance with the following rules.

9. 45 Pension/Gratuity for injury or death in course or consequence of duty. The classification of

disabilities and the criteria for determining their attributability to service under the Central Civil
Services (Extraordinary Pension), Rules is detailed in Annexre, along with the rate and scale of
disability/death pension and gratuity.

ANNEXURE
 Children 's pension

Class Child Child

of Pension Gratuity without own with own mother

Injury mother living

DISABILITY PENSION/GRATUITY

A 20% of pay subject to a 6 months 5% of pay, subject to a 2-1/2% of pay subject to

maximum of Rs. 600 p. m. pay- maximum of Rs. 100 and a maximum of Rs. 50

and a minimum of Rs. 100 a minimum of Rs. 50 per and a minimum of Rs. 25

p. m. (Note. ?After death it child. per child.

will devolve on the widow. )

Children's pension

Class Child Child

of Pension Gratuity without ownwith own mother
Injury mother living

4% of pay subject to a2% of pay subject to a

15% of pay subject to a
maximum of Rs 80 andmaximum of Rs. 40 and
B maximum of Rs 450 and aNil
minimum of Rs. 40 perminimum of Rs. 20 per
minimum of Rs. 75 p. m.
child. child.
DEATH (SPECIAL FAMILY) PENSION/GRATUITY

20% of pay subject to a 6 months 5% of pay, subject to a 2-1/2% of pay subject to

maximum of Rs. 600 p. m. pay. maximum of Rs. 100 and a maximum of Rs. 50

and a minimum of Rs. 100 a minimum of Rs. 50 per and a minimum of Rs. 25

p. m. child. per child.

9. 46 The pensions/gratuities mentioned in this para will be in addition to the pensions and
gratuities admissible under the normal rules.
9. 47 These rules will continue to be applicable to the Government servants transferred to
foreign service in Pakistan, liability for any claim in this respect will be that of the foreign
employer.

(Finance Division O. M. No. F. 2(3) Reg. 7/74, dated 31-5-1974].

Pension to members of former I. C. S.:

9. 48 An officer of the former Indian Civil Service who has been 25 years in the service and who
has rendered 21 years active service, will on his resignation being accepted, be entitled to an
ordinary pension of Rs. 13, 333. 34 per annum. Such an officer will submit his application for
permission to resign the service and for a pension or gratuity to the Government of Pakistan
through the Provincial Government under which he is employed at the time. If he is employed
under a Ministry/Division of the Government of Pakistan, the application should be sent through
such Ministry/Division. The Government of Pakistan will on receipt of the application and after
scrutiny sanction pension and send the application together with the sanction to Accountant-
General, Pakistan Revenues, who will issue Pension Payment Order.

9. 49 As soon as an officer gives over charge of his office the Accountant General, Pakistan
Revenues, should furnish the following information to the Government of Pakistan:

(1) Name of officer.

(2) Date on which he made over charge of his office.

(3) The amount of leave granted, if any.

(4) Date upto (and including) which leave allowance have been drawn.

(5) What demands, if any, are outstanding against the officer.

The pension or gratuity should be sanctioned subject to the recovery of

the outstanding amount if any.

[Article 974 C. S. Rs. Finance Division O. M. No. OB-2/12/63-lmp. (1). dated 18-8-1966
and Finance Division O. M. No. F 4(4) RS/68, dated 30-1-1971).

Measures to avoid delay in the finalization of pension cases:

9. 50 All authorities dealing with pension cases should bear in mind that delay in the payment of
pensions involves pecuniary hardship. The monthly income of a wage earner ceases at a time
when he may be needing money the most. So it is essential to ensure that a retiring Government
servant begins to receive his pension on the date on which it becomes due. With this end in view,
the procedure for preparation of pension papers and sanction of pensions have been simplified.
The most important factors relevant to the determination of the amount of pension/gratuity are the
length of qualifying service rendered by a Government servant before retirement/death and
average emoluments. Information in both these respects is computed on the basis of the
information available in the History of Services/Service Book/records of the Government servant
concerned. The simplified procedures themselves cannot bring about the desired results unless
the authorities concerned take effective steps to ensure that service record are kept up-to-date
and complete. In order to achieve this object the following measures have to be adopted.

History Files:
9. 51 All Divisions/Departments/Offices should maintain a History File of each B-16 & above.
This file should contain (a) Gazette Notification (b) Charge Report (c) a separate Card or Booklet
showing the date of Assumption and Relinquishment of Charge of each post and emoluments
drawn, and (d) Leave Account showing the various kinds of leave taken by the officer from time to
time. As soon as an officer is transferred to another Department or Office, his 'History File' should
also move with him to the new Office or Department. The History File should be shown to the
officer concerned in January every year and his acknowledgement obtained on it after settling
any discrepancy that may be
noticed.

9. 52 History Files in respect of the officers belonging to the occupational groups controlled by
the Establishment Division, e. g., DMG, OMG, Police etc. shall be maintained by the
Division/Department in which the officer is appointed from time to time and not by the
Establishment Division. When such an officer is transferred to an other office his History File
should also be sent to his new Department who will then be responsible to maintain it for so long
as he remains there.

History of Service:

9. 53 The Audit offices should compile History of Services in respect of B-16 and above regularly
and keep them up-to-date.

Service Books:

9. 54 Service Books in the prescribed form should be maintained in duplicate, in respect of all
the B-l to B-15 Government Servants. If the work justifies a whole time officer should be
exclusively designated for supervising maintenance of Service Books. One copy of the Service
Book should be kept in the custody of the head of the office in which the Government servant is
employed and transferred with him from office to office. Every step in a Government servant's
official life must be recorded in his Service Book, and each entry must be attested. It should be
ensured that all entries are duly made and attested and that the Service Book contains no
erasures or over writings, all corrections being, neatly made and properly attested. The second
copy of the Service Book should be kept in the custody of the Government servant concerned
who should ensure that all entries in his service book are recorded and attested in time. The
Government servant should in his own interest, examine his Service Book occasionally in order to
see that it is not only properly maintained but the entries made therein are complete in all
respects. The head of the office should permit a Government servant to examine his Service
Book should he at any time desire to do so. For the purpose of the grant of pension/gratuity,
increment, etc.,to the Government servants, only the original copy of the Service Book will be
consulted, the duplicate copy of the Service Book would serve as a means for completion of the
original Service Book or its reconstruction in the event of its being lost or destroyed.

Verification of service:

9. 55 At a fixed time early in the year the Service Books should be taken up for verification by
the Head of the office, who after satisfying himself that the services of the Government servant
concerned are correctly recorded in each Service Book, should record in it a certificate in the
following form: -

"Service verified upto (date) from (the record from which the verification is made)".

9. 56 If the service cannot be wholly verified from the records (Service Books, pay bills and
acquittance rolls) of any one office, reference shall be made to the heads of other offices in which
the Government servant has served.
9. 57 If. in any particular case, it is not possible to verify the service of a Government servant
from the official records, a statement of the Government servant in writing as to the particulars of
his service, statements in writing of other officers who were his contemporaries in the
office/department, and documents and letters not forming part of official records may be received
in evidence and the service verified on their basis. The power to admit service under this
provision can be exercised by the authority empowered to sanction pension.

9. 58 On transfer of the Government servant from one office to another, the Head of office
should record in the Service Book the result of the verification of service with reference to pay
bills and acquittance rolls in respect of the whole period during which the Government servant
was employed under him, before forwarding the Service Book to the new office.

9. 59 (a) Verification of service by Audit Officer. The services of a Government servant should
be got verified by the Audit office as soon as he has completed ten years service, thereafter the
next verification should be on completion of 24 years service, i. e., in respect of the intervening 29
years, and then finally it should be verified in respect of the period after 29 years when a
Government servant is actually due to retire. The length of the pensionable service accepted in
audit at these stages should be recorded in both the copies of Service Book of B-1 to B-15
Government servants, with the stamp of verification duly authenticat ed. In the case of B-16 and
above, the fact of verification should appear in the History of Service but if the History of Service
is not up-to-date, the officer concerned should be informed of the accepted length of pensionable
service through a letter.

(b) (1) Special measures for verification of service and computerisation of accounts. In order to
deal with the existing outstanding pension cases in which the entries relating to previous fixation
of pay or verification of service are missing, it shall be incumbent upon the last audit and account
officer dealing with a pension case to verify the same himself on the basis of the available record
without referring the case to any other audit and accounts office.

(2) The verification of qualifying service of all Government servants should be completed by the
administrative and audit authorities concerned.

(3) The salary accounts of the Government servants, if not computerised so far, should be
computerised immediately.

(4) The computer slip is required to indicate up-to-date qualifying service and the status of
government servant, i. e., "temporary", "permanent" or "substantive". These entries are
considered as duly audited.

(5) In case any of the salary accounts remains uncomputerised the audit and account
authorities should issue an up-to-date qualifying service certificate to each Government servant
and, thereafter, such a certificate be issued every year till the audited qualifying service is
reflected in the computer pay slip. The audit and accounts authorities should also give a
certificate that valid nomination papers regarding gratuity are held by them.

[Para l(c). Finance Division O. M. No. 6(4)-Regs (6)/79 dated 22-3-1981].

Allocation of pension between different Departments:

9. 60 (i) The Audit officer should take steps to obtain acceptance of allocation of pension from
the Accounts Officers of the Provincial Governments and the Commercial Departments like
Railways, Posts, Telegraph and Telephone Departments, etc., in respect of service rendered
under them and from the Military Accounts Officer in respect of service paid from Defence
Estimates.
(ii) Finalization of pension cases shall not be held up on this account. If there is any dispute with
regard to the apportionment of pensionary liability, the matter should be sorted out by the Audit
and Accounts Officers involved.

[Para l(h) of the Finance Division O. M. No. F. 6(4)-Reg. (6)/79 dated 22-3-1981].

List of officers and staff due to retire:

9. 61 With a view to ensuring timely action in pension cases the visions/Departments/Offices

should maintain a list showing the dates of retirement of all their officers and staff who are due to
retire in a calendar year and review it quarterly.

Employment of officers and staff on pension work:

9. 62 Depending on the volume of work, one Section Officer or Assistant should be employed
exclusively on pension work. He should be required to make himself conversant with pension
procedures and the method of preparation of pension papers.

Observance of rules relating to grant of secured advances:

9. 63 It should be ensured all secured advances made to Government servants are properly and
adequately secured with mortgage deeds, agreements, etc.,

as prescribed under the rules. It should be ensured that suitable steps are taken at
the appropriate time so as to complete the recovery of other Government dues before the date of
retirement. Officials responsible for the grant and recovery of advances and other outstanding
dues, should be warned that should an advance or any other amount due from the Government
servant be found to be irrecoverable, due to non-observance of prescribed procedure/rules and/or
negligence, it will be liable to be recovered from those officials. If the amount of advance* is not
fully repaid, the retiring Government servant should be asked to give his consent to any
recoveries due from him being effected from the pension/gratuity payable to him.
In case, he fails to give such consent, appropriate legal action should be taken to effect the
recoveries on the basis of the mortgage deeds executed by him at the time of drawing the
advance.

Grant of un-secured advances:

9. 64 No unsecured advances should ordinarily be granted to any Government servant within

six months of the date of his retirement. If any such advance or other dues are already
outstanding, these should be recovered from his pay or leave salary for six months' period upto
the date of his retirement. If, for, special reasons, it becomes necessary to grant an advance of
pay, travelling allowance etc., to any Government servant within six months of his retirement, he
should be required to furnish security of a permanent Government servant, who is not due to
retire within one year before the advance is paid to him.

Government servants proceeding on foreign service and recovery of leave salary and
pension contribution:

9. 65 (i) Full particulars of the officers and staff proceeding in foreign service must be
communicated promptly to the Audit Offices, it should be ensured that the recoveries on account
of pension and leave salary contribution in respect of officials on foreign service are effected and
accounted for by the Audit officers. Where original treasury challans arc not available the missing
credits of leave salary and pension contribution may be adjusted either on the basis of
attested/photostat copies of treasury challans or on production of original/attested copies of
certificate of, foreign employer regarding deposit of contribution
bearing number and date of challans.

[Auditor-General of Pakistan letter No. 1 126-A/29-77. Vol. II dated 3-10-1979].

(ii) In the case of Government servant on deputation to foreign service within Pakistan or abroad,
the leave salary and pension contributions shall be paid by the foreign employees (vide para l(c)
of the Finance Division O. M. No. F. 6(4)-Reg. (6)/79 dated 22nd March, 1981. No leave salary
contribution will however be recovered from foreign service in Pakistan with effect from 1st July,
1982. In case of non-payment of these contributions by the foreign employers in time, the matter
will be taken up by the administrative authorities with the foreign employer concerned, but the
finalization of pension cases shall not be held up nor shall the qualifying service of the
Government servants concerned be reduced on that account.

[Finance Division O. M. No. F. 5(5) R-7/79?1407 dated 15-12-1981).

Checking of service recordsby Audit Department and Controlling Officers:

9. 66 Service records of the Government servants who are due to retire in the next one or two
years should be checked by the Local Audit Parties and by the Controlling Officers while visiting
subordinate offices. For this purpose, a list of Government servants who are due to retire during
the next two years should be prepared and furnished half yearly to the Accountant General
concerned on the 1st January and 1st July each year.

Procedure relating to preparation of pension papers and sanction of pension:

9. 67 With a view to ensuring that a retiring Government servant begins to draw his pension on
the date it becomes due, the following procedure should be followed by the authorities
concerned.

(i) The Heads of Departments (in the case of B-16 and above officers) and Heads of offices (in
the case of B-l to B-15) employees should start the preparation of pension papers in each case
one year before the expected date of retirement without waiting for the formal application from the
Government servant concerned, which is to be submitted not earlier than six months before the
date of retirement.

[Finance Division O. M. No. F. 5(1)-Reg. (6)/77, dated 24-2-1977].

(ii) The Head of the Department or office responsible for initiating the case should start filling
Sections (2) to (5) of Part II of the working copy of the Pension Application Form C. S. R. 25
(Revised) one year before the expected date of retirement.

(iii) Simultaneously, with the starting of preparation of pension papers of a Government servant,
the departmental authorities should consult the records and see whether any recoveries are due
from him on account of misuse of Government funds or losses caused to Government. If there
are any such dues, early steps should be taken to complete the recoveries of the dues before the
date of retirement. If any disciplinary action in this behalf has to be initiated, this should be done
at once, so that it may be possible to finalize the case and complete the recoveries before the
date of retirement. In case such action has already been initiated steps should be taken to finalize
it as quickly as possible so that recoveries may be completed well in time. If any other disciplinary
action is pending, it should also be finalised.
(iv) Six months before the expected date of retirement, the would be pensioner should be asked
to fill in and sign Part I and a fresh copy of the Form and submit it alongwith three specimen
signatures, three photographs and two sets of thumb and finger impression on
the prescribed Form, all duly attested. The photographs and thumb and finger impressions are
not required in the case of B-16 and above officers.

(v) Part I of the working copy should then be filled in by copying from the signed copy received
from the applicant. Similarly, Sections (2) to (5) of Part II of the signed copy should be filled in by
copying from the working copy. Section I of Part II of both the Forms should then be filled in.

(vi) Requests for furnishing 'No Demand Certificate' should be made to all concerned at least six
months before the date of retirement of the Government servant. If any demand is outstanding
against the Government servant, it must be intimated not later than 15 days
after the date of retirement (which should be specified in the request for 'No Demand Certificate').
In case the demand is not intimated within the above time limit the finalisation of pension cases
should not be held up on that account and the Department/office which has
failed to intimate an outstanding demand by the due date should be held responsible.

(vii) The payment of pension should not be held up merely for want of 'NO DEMAND
CERTIFICATE'. In cases in which 'No Demand Certificate' is not available PRO. may be issued
by the Audit Officer concerned for payment at a Treasury subject to the produc-
tion of an undertaking, at the time of the first payment of the pension/gratuity, -by the pensioner,
or his family (in the case of his death) to the effect that any demand coining to the notice within a
period of one year after the issue of P. P. O. would be recoverable from the pension. Failure to
intimate recoveries during this extended period should result in the amount involved being
recovered from the official responsible for the delay. If any
Government dues are found to be outstanding against pensioner within one year from the date of
issue of the P. P. O. the matter shall be referred to Head of the Department for orders before any
recoveries are actually effected from the pensioner.

[Para 1(f) Finance Division O. M. No. F. 6(4)-Reg. (6)/79 dated 22-3-1981].

(viii) In cases where Government servants had retired with less than 10 years service and were
entitled to service gratuity only, it would not be possible to recover Government dues coming to
light afterwards when the gratuity had been paid to them. The payment of such gratuity could,
therefore, be made only after the 'No Demand Certificates' have been issued by the authorities
concerned. In order to avoid hardship in such cases it has been decided that the payment of
gratuity should not be withheld for more than six months after the date of retirement. The onus of
furnishing the certificate or intimating the outstanding dues, as the case may be, within this period
will rest on the Division/Department concerned. The outstanding dues coming to light within this
period may be recovered from the amount of gratuity which should be paid after six months of the
date of retirement without insisting on the 'No Demand Certificate' and the responsibility for
Government dues if any, coming to light thereafter should rest with the officials responsible for the
delay.

(ix) The Head of Department or office should alert the Estate Office six months before the date of
retirement of a Government servant to bring his rent account up-to-date so that the outstanding
dues, if any, are realised before the date of retirement. In case a retired
Government servant is allowed to continue in occupation of Government quarter after the date of
retirement, the Estate Office should ensure future recovery of rent by obtaining personal sureties
instead of withholding the 'No Demand Certificate'.

(x) No Demand Certificates in respect of all Government accommodations occupied by a

Government servant throughout his Service are not necessary. Such a certificate should be
necessary in respect of only the last Government accommodation occupied by him
before retirement. Any outstanding dues in respect of any previous accommodation should be
recovered from the defaulting Estate Officer. Also a 'No Demand Certificate' should be issued
yearly by the Estate Office concerned in the case of all allottee Government servants at a
particular station.

(xi) The signed copy of the Pension Form should be forwarded to the sanctioning authority after
filling up and signing Section (6) of Part II. The working copy may be retained in the initiating
office as an office copy.

(xii) (a) Pension Application Form must be supported by such requisite documents as can be
issued before the actual date of retirement. In case of Invalid Pension, invalidity certificate should
be enclosed in original. Documents which cannot be issued till the date of retirement such as the
Last Pay Certificate and the No Demand Certificate should be sent afterwards separately.

(b) Last Pay Certificate. It shall be mandatory for the drawing and disbursing officers and audit
and accounts authorities to issue Last Pay Certificate within 15 days of the date of retirement of a
Government servant.

[Para (b) Finance Division O. M. No. F. 6(4)-Reg. (6)/79 dated 22-3-1979].

(xiii) Where a Government servant is deceased and family pension is payable to the widow or
other claimants, the following documents have to be sent alongwith the Pension Application
Form:

(a) Application (in original) from the widow/claimants.

(b) Death Certificate (in original).

(c) Postal Address (3 copies).

(d) List of surviving members (3 copies).

(e) Specimen signatures of widow/claimant(s).

(f) Thumb and finger impressions of the widow/claimant.

(g) Non employment certificate (3 copies).

(h) A certificate to the effect that the widow had not judicially separated from her husband (3
copies).

(i) A certificate that the widow had not re-married after the death of her husband.

(xiv) The sanctioning* authority should fill in Section (7) of Part II of the Form. The full pension
admissible under the rules is not to be given as a matter of course, unless the service rendered
has been really approved. If the service rendered has not been thoroughly satisfactory, the
authority sanctioning the pension/gratuity should make such reduction in the amount of
pension/gratuity as it thinks proper. However no reduction in the amount of any pension can be
made without affording to the person concerned, by means of a notice in writing, an opportunity to
show cause against the proposed reduction.
[Finance Division Notification No S. R. O. 482(K)/72-F. 10(7) Rev. (6)/71, dated 30-3-1972].

(xv) After completion of Section (7) of Part II of the Form the sanctioning authority should send
the Form to the Audit Office, alongwith a forwarding letter. In regard to preparation of pension
papers of Government servants on deputation to other Departments it has been decided that
those of a temporary employee may be prepared by the borrowing Ministry/Department, but in the
case of a permanent employee the papers have to be prepared by the Ministry/Division/
Department/Office in which he held a substantive appointment. Likewise the Audit Office dealing
with the borrowing Department, in which the temporary employee was serving will finalise the
pension case and in the case of a permanent Government servant the pension case will be
finalised by the Audit Office in whose jurisdiction falls the Government/Ministry/ Department in
which such a Government servant holds a permanent post in a substantive capacity.

[Finance Division O. M. No. F. 7(2) Reg. (6)/72, dated 18-4 1972 and Auditor-General's letter No.
2244-Pro/50-71, dated 24-9-1975).

(xvi) The Audit Officer, after scrutinizing Part I and Part II and arriving at his own findings about
the correct length of qualifying service and the amount of Pension and Gratuity admissible, record
a gist of his findings from his working papers into Part III of the form.

(xvii) The Audit Officer should issue the Pension Payment Order in cases where all necessary
documents/informations are available with him, a fortnight before the expected date of retirement.

(xviii) When the preparation of a pension case is started a Progress Sheet in the following form
should be attached with it showing the dates by which specific action should be completed. This
sheet should move with the pension case from the administrative authority to the Audit office and
should be returned to the administrative authority after the final Pension Payment Order has been
issued. The return of the Progress Sheet should be watched by the administrative Ministry/
Department and on its receipt back it should be examined at the level of Deputy Secretary in the
case of B-l to B-15 staff and Joint Secretary in the case of B-16 and above view to finding
whether any delay has taken place.

Progress Sheet for pension cases:

9. 68 1. Name of retiring Government servant.

2. Post held.

3. Date of birth.

4. Expected date of retirement.

5 Due date Action

Initiate preparation ofone year before
Initiated Completed
6 pension expected date of
on on
papers. retirement
Checking of records to
sec
one year before
whether any recoveries
7 expected date of
of Go-
retirement
vernment dues are
outstanding.
 Obtaining of forma!
application one year before
8 for pension from would - expected date of
be retirement
pensioner.
Request for furnishingAt least three months
9 'No. before the expected
Demand Certificate. date of retirement
Writing to Estate OfficeFortnight before the
10 to bringexpected date of
rent account up-to-date. retirement
Finalisation of pension
papers in At least three
months before
administrative Fortnight before the
11 departmem and theexpected date of
expected date ofretirement
retirement,
their submission to Audit
Office.

.9. 69 This Progress Sheet should move with the pension papers of the individual concerned
and be returned to the administrative authority after Pension Payment Order has been issued
where observations of Head of Department/D. S. / J. S. should be recorded.

Steps to be taken by the Authorities concerned and the Retiring Government Servant for timely
sanction of Pension:

9. 70 (i) Inspite of instructions issued from time to time in connection with expeditious settlement
of pension cases, complaints are still being received by the Wafaqi Mohtasib Secretariat. The
Wafaqi Mohtasib has been pleased toorder that Finance Division should issue suitable
instructions to all concerned to eradicate inordinate delay in the payment of pension etc.
indicating suitable measures including disciplinary action which may be invoked against the
defaulter in case of inordinate delay.

(ii) Under CSR-906 all authorities dealing with the application for pension, should bear in mind
that delay in the payment of pension involves peculiar hardships, it is essential to ensure that the
retired employees should be able to receive his pension on the date on which it becomes due. In
terms of CSR-907 every employee shall submit a formal application for pension in Part-I of CSR-
25. The employee should, in his own interest submit his formal application for pension to the
departmental authority concerned six months in advance of the date of his actual or anticipated
retirement:

Provided

(a) in cases in which the date of retirement cannot be foreseen six months in advance the
application shall be submitted immediately after the date of retirement is settled; and

(b) an officer proceeding on leave preparatory to retirement in excess of six months, shall
submit the application at the time of proceeding on such leave.

[Paras 1-2 of Finance Division O. M. No. F. 13(4) R. 6/89 dated 24-1-1991].

Steps relating to preparation and disposal of an ordinary pension case:

9. 71 One year before the dale of retirement.

STAGE I

(i) The office responsible for initiating the case starts filling up of working copy of the Pension
Application Form.
(ii) Checks records to sec whether any recoveries of Government dues are outstanding.

(iii) Attach a Progress Sheet showing the dates by which specific action is required.

Six months before the dale of retirement

STAGE II

(i) Obtain formal application from the would-be pensioner.

(ii) Requests the parties concerned for issue of "No Demand Certificate".
(iii) Warns the Estate Office to bring the rent account up-to-date.

Six to three months before the dale of retirement

STAGE III

(i) Completes the pension papers for submission to sanctioning authority.

(ii) Sanctioning authority records orders.

(iii) Forwarding of papers to the Audit office.

Three months to fortnight before the date of retirement

ATAGE IV

(i) Audit Office checks the pension papers.

(ii) Audit Office issues the P. P. O.
(iii) Allows anticipatory pension in case delay is likely to take place in
finalization. After the issue of P. P. O.

STAGE V

(i) Audit Office returns the Progress Sheet

(ii) DS/JS examines the Progress Sheet.

The Vigilance officers will keep a close watch over the pension work in the Ministries as well as
the Attached Departments and Subordinate Offices.

Payment of Pension in Pakistan:

9. 72 (i) Beginning of payment of pension. ?The ordinary pension is payable from the date on
which the pensioner ceases to be borne on the establishment. (Art. 930 C. S. Rs. ).
(ii) Payment of Gratuity. A gratuity is paid in single sum, and not by installments, on receipt of the
Accountant General's authority. (Art. 940 C. S. Rs. ).

(iii) Payment of Pensions. A pension is payable monthly on and after

the first day of the following month. (Art. 943 C. S. Rs. ).

(iv) Death of a Pensioner A pension is payable for the day on which the pensioner dies, the hour
at which death takes place has no effect on the claim.
(Art. 943 C. S. Rs. ).

[Finance Division Notification No. SRO 413(1)/79 dated 19-5-1979].

(v) On receipt of the Pension Payment Order, the disbursing officer should deliver one-half to the
pensioner, and keep the other half carefully in such a manner that the pensioner, cannot have
access thereto. All payments should be entered on both the halves and attested by the disbursing
officer. (Art. 943 C. S. Rs. ).

A pensioner can draw his pension from a District Accounts Officer, Treasury/Sub-Treasury or any
branch of the National Bank of Pakistan.

[Treasury Rule 323 & Finance Division O. M No. F. 3(11) IF-IX/75-288 dated 8-4-1977],

(vi) Payment of pensions by Money Orders. Small pensions upto Rs. 500 per mensum can be
drawn-by pensioners at their option and expense through postal Money Orders, pensioners
drawing up to Rs. 30 per mensum are allowed to draw their pensions at Government expense
through postal money orders.

[Finance Division O. M. No. 4(3)-RI/64, dated 11-2-1965 and F. 4(8) RS/11/68, dated 10-5-1969],

(vii) Personal appearance of pensioners and payment through life certificate. ?As a rule, a
pensioner must take payment in person after identification by comparison with the Pension
Payment Order. A pensioner specially exempted by the Government from personal appearance,
or a female pensioner not accustomed to appear in public, or a male pensioner who is unable to
appear in public in consequence of bodily illness or infirmity, may receive his or her pension upon
the production of a LIFE CERTIFICATE signed by a responsible officer of Government or by
some other well-known and trust worthy person. A pensioner of any description, who produces a
life certificate signed by some person exercising the powers of a Magistrate under the Criminal
Procedure Code, or by any Registrar or Sub-Registrar under the Registration Act, or, by any
pensioned officer who before retirement held a B-16 and above appointment or exercised the
powers of a Magistrate or by a Munsiff, or by any person holding a Government title, is also
exempted from personal appearance. In all such cases the disbursing officer must take
precaution to prevent impositions and must, at least once a year, require proof independent of
that, furnished by the life certificate, of the continued existence of the pensioner. (Art. 944, 945,
946 and947 C. S. Rs. ).

(viii) Drawal of pensions through Agents. A pensioner of any description, resident in Pakistan is
exempted from personal appearance if he draws his pension through a duly authorised agent
approved by Government who must execute a bond to refund overpayments and produce at least
once a year a life certificate signed by any of the persons authorised in para (vii) above. Such
pensions should not be paid on account of period of more than a year after the date of life
certificate last received and the Accountant-General and the disbursing officer should be on the
watch for authentic information of the deceased of any such pensioner and on receipt thereof
should promptly stop further payment. (Art.949 C. S. Rs)
(ix) Drawal of pensions by pensioners not residing in Pakistan. A pensioner not residing in
Pakistan may draw his pension at any Treasury in Pakistan, any branch of the National Bank of
Pakistan through a duly authorised agent who must either produce a certificate by a Magistrate, a
Notary Public or a Banker or the Head of a Pakistan Mission abroad or a gazetted officer duly
authorised by him on each occasion, that the pensioner was alive on the date to which his
pension is claimed, or execute a bond to refund overpayments and
produce such certificate at least once a year. [Art. 949 C. S. Rs read with Ministry of Finance O.
M. No. F. 3(9) IF. IX/77-66, dated 13-8-1977].

(x) Certificate of non-employment. A pensioner is required to append to his bill a certificate as

follows: -

"I declare that I have not received any remuneration for serving in any capacity, either under
Government or under a Local Fund during the period for which the amount of pension claimed in
this bill is due".

Note:-In the case of a pensioner permitted to draw pension after re-employment, this certificate
should be modified according to facts (Art. 953 C. S. Rs. )

(xi) Arrears of pension. :There is now no restriction for the drawal of pension, if it falls into arrears.
The arrears may be paid by the disbursing officer without any reference to the audit office or the
pension sanctioning authority.

[Finance Division O. M. No. F. 5(I)-Reg. (6)/77. dated 21-2-1977].

(xii) *[Omitted]
(xiii) *[Omitted]

(xiv) Future good conduct as condition of payment. Future good conduct is an implied condition of
every grant of pension. The Government reserve to themselves the right of withholding or
withdrawing a pension or any part of it, if the pensioner be convicted of serious crime or be guilty
of grave misconduct. The decision of the President on any question of withholding or withdrawing
the whole or any part of a pension shall be final and conclusive. (Art.351 C. S. Rs. ).

(xv) Taking part in elections and politics. Except with the previous sanction of the Federal
Government, no pensioner shall, within a period of two years from the date of his retirement, take
part in any election or engage in political activity of any kind. The contravention of this provision
shall be deemed to be a grave misconduct. (Art. 351 C. S. Rs. ).

Omitted vide Finance Division Notification No. SRO (l)/83-F 12(18) Reg 6/83 dated 25-6-1983.
(xvi) Commercial employment after retirement If a pensioner who immediately before retirement
was member of any of the All Pakistan Services including the Foreign Service, or of any Central
Superior Civil Service, or a Central Service Class-I or a Central Class-II Gazetted Service, or a
holder of a Class-II Gazetted post, wishes to accept any commercial employment before the
expiry of two years from the date of his retirement he should obtain the previous sanction of the
President for this. No pension shall be payable to a pensioner who accepts commercial
employment without such sanction, in respect of any period for which he is so employed or such
longer period as the President may direct. A Government servant permitted by the appropriate
authority to take up a particular form of commercial employment during his leave preparatory to
retirement shall not be required to obtain subsequent permission for his continuation in such
employment after retirement.

Note. -Commercial employment means employment of any capacity including that of an agent
under a company, firm or individual engaged in trading or in a commercial, industrial, agricultural,
financial or professional business, and includes also a directorship of such company and a
partnership of such firm [Art. 531-B CSRs?Ministry of Finance Notification No. F. 1(8) RI/65,
dated 25-8-1969],

(xvii) Attachment of pensions. No pension granted or continued by Government on political

consideration, or on account of past service or present infirmities or as a compassionate
allowance and no money due or to become due on account of any such pension or allowance,
shall be liable to seizure, attachment or sequestration by process of any Court in Pakistan, at the
instance of a creditor, for any demand against the pensioner or in satisfaction of a decree or order
of any such Court. (Rule 5 under Art. 943 C. S. Rs. ).

(xviii) Agreements for recovery from pensioners. All assignments, agreements, orders, sales and
securities of every kind made by the person entitled to any pension, pay or allowance mentioned
in Para (xvi), above in respect of any money not payable at or before the making thereof, on
account of any such pension, pay or allowance, or for giving or assigning any future interest
therein, are null and void. (Sec. 12 Act XXIII of 1871).

(xix) Recovery from pension on account of loss. ?The President has got the full right to order the
recovery from the pension of an officer of any amount on account of losses found in judicial or
departmental proceedings to have been caused to Government by the negligence or fraud of
such officer during his service. (Art. 351-A C. S. Rs. ).

Payment of pension abroad:

9. 73 (i) A pensioner is entitled to receive his pension in sterling for the period of his residence
outside Pakistan. The term 'residence' includes temporary visits abroad. For this purpose the
pensioner has to intimate to the Audit Officer

concerned in advance that he intends to proceed abroad with effect

from.....................................in connection with........................and his period of

stay will be approximately.......................... On receipt of the information the

Audit office will authorise the payment of pension in Sterling through the State
Bank of Pakistan for the period as intimated by the pensioner or for the period of
his actual stay whichever is less. This authorization will, however, be subject to the availability of
foreign exchange.

(ii) A pensioner domiciled in Pakistan who retired on or after the 18th September, 1969, and
acquires the Citizenship of another country, shall, from the date of his acquiring such Citizenship,
cease to draw his pension in foreign currency.

(iii) Consequent upon the devaluation of Pak. rupee the pensions determined, under the Revised
Pension Rules, 1966 will be converted into Sterling at the new official rate of exchange prescribed
on the devaluation of Pak. rupee. This will apply to all payments made on or after the date of
devaluation of Pak. rupee irrespective of the period to which they relate.

(iv) The payment of pension in Sterling in the case of the pensioners who do not fall within the
purview of Revised Pension Rules, 1966, or who have elected to retain the pre-1966 pensionary
benefits would continue to be governed by the provisions of Art. 934 C. S. R. or Art. 983 C. S. R.
as the case may be, read with Paras 3 & 4 of President's Order No. XIV of 1959. [President's
Order No. XIV of 1959, dated the 24th August, 1959 as amended vide Ordinance No. III of 1981
dated 24-1-1981, Ministry of Finance O. M. No. F. 8(5) RI/59, O. M. No. F.
5(5)-RI (RWP)/62, dated the 26th May, 1962, Notification No. F. 4(3)-R6/69,
dated the 18th September, 1969 and O. M. No. F. 6(22)-Reg. (6)/72, dated the 8th
September, 1972].

(v) The following procedure shall be adopted for drawal of pensions by the Pakistani pensioners
who want payment of their pension being made through Pakistan Mission abroad. Such
pensioners can be placed in the following three categories: -

(i) Federal Government Pensioners (Civil).

(ii) Federal Government Pensioners (Defence),
(iii) Provincial Government Pensioners.

(vi) A Pakistani pensioner belonging to any of these three categories desiring to draw pension
through a Mission abroad, should approach his Audit Officer for this purpose and the Audit Officer
will provide the requisite funds in the Assignment Account of the Ministry of Foreign Affairs
together with necessary foreign exchange.

(vii) The Chief Accounts Officer, Ministry of Foreign Affairs, on receipt of requisite funds in the
Assignment Account and the Payment Authority from Account Office concerned will arrange
payment to the pensioner through the missions concerned. The provision for pension payments in
the account circle of the respective Account Office shall continue to be made as at present in
respect of all the three categories of pensioners mentioned above.

(viii) The mechanism in the Accounts Offices concerned shall be that the Accounts Officers
concerned shall forward both halves of the existing P. P. O. of the pensioner to the Chief Accounts
Officer, Foreign Affairs with a sealed letter of authority for arranging payment through the mission
concerned. The Chief Accounts Officer, Foreign Affairs will record on the P. P. O. an endorsement
showing name of the mission where pension is to be paid and then forward both the halves of the
P. P. O. to the mission concerned. The pensioner will be advised to contact the mission and
receive his own copy of the P. P. O. for getting monthly payment.

[Finance Division O. M. No. F. 1(10) EF(B-ll)/79-2340 dated 17-11-1980],

Re-employment of pensioners:

9. 74 (i) No Government servant may retire with a view to being re-employed, and drawing
pension in addition to pay, whether in the general service or in the service of any Local Fund.

Note. The expression Local Fund denotes revenue administered by bodies which by law or rule
having force of law come under the control of Government whether in regard to the proceedings
generally, or to specific matters such as the sanctioning of their budgets, sanction to the creation
or filling up of particular appointments the enactment of leave, pension or similar rules, and the
revenue of any body which may specially notified by the Government of Pakistan as-such. (Art.
509-A C. S. Rs).

(ii) When a pensioner obtains re-employrnent under Government or in the service of a Local Fund
he should declare to the appointing authority the amount of any gratuity, bonus or pension
granted to him in respect of the previous employment. The authority re-appointing the pensioner
should specifically state in the order of re-employment whether any deduction is to be made from
pension or salary.
Note. A wound or other extraordinary pension and a wound or injury or disability pension or a
disability addition to pension awarded under the military rules shall continue to be drawn by a
retired Government servant, civil or military, during re-employment or ontinued employment, and
shall be subject to the conditions of its award. (Arts. 510, 510-B. C. S. Rs).

(iii) Since statutory public bodies such as the Pakistan Industrial Development Corporation, the
Karachi Development Authority etc. come under the control of the Government either in regard to
proceedings generally or to specific matters and the revenue administered by them constitutes
'Local Fund' the rules relating to the re-employment of Government pensioners in the service of
'Local Funds' are applicable to the pensioners re-employed in all autonomous public bodies
constituted by law.

[Finance Division O. M. No. F. 7(3) Rl (RWP)/61, dated 10-5-1961].

Fixation of pay of re-employed pensioners:

9. 75 The following general principles should be observed in fixing the pay of retired Government
servants re-employed under the Government of Pakistan, Autonomous Bodies and Public Limited
Companies in which Government holds controlling shares: -

(a) Where the new post carries a fixed pay, he should be allowed the pay of that post less
pension.

(b) Where the new post carries a time-scale of pay: -

(i) If the substantive pay last drawn by the officer before retirement was less than the minimum of
the scale of the new post he should be allowed the minimum of the scale less
pension.

(ii) If the substantive pay last drawn was more than the minimum of the scale but less than the
maximum of the scale of new post, his pay should be fixed at the stage in the scale
corresponding to the pay last drawn or if there be no such stage, at the next lower stage in the
scale. From the pay so fixed the amount of pension should be deducted.

(iii) Where the substantive pay drawn immediately before retirement was more than maximum of
the scale of the post in which the officer is employed, his pay may be fixed at the minimum of the
scale of the post in which he is re-employed and he may be allowed to draw his pension in
addition to the pay so fixed subject to the condition that the initial pay fixed phus the amount of
pension does not exceed the substantive pay drawn by him immediately before retirement. Once
the pay is so fixed he will be entitled to draw increments in the scale of the post provided that the
amount of pay (including increments) plus pension does not, at any stage, exceed the substantive
pay drawn before retirement.

(c) A re-employed Government servant should earn increments in all cases where pay has been
fixed in a scale at a stage a lower than the maximum.

(d) In case a re-employed pensioner is promoted to a higher post, his pay should be fixed in
such a manner as if he was a serving officer with the difference that from the pay so determined
the pension would be deducted.

(e) In a case where officiating pay higher than the substantive pay was drawn for a continuous
period of 3 years or more immediately before retirement, the officiating pay drawn before may be
treated as substantive pay for the purpose of those orders.
(f) These principles should also be followed in case of appointments to statutory posts as those
of Governors, Speakers, Ministers etc. A retired official appointed to any statutory post should
draw the pay of the post less the amount of pension drawn by him.

(g) The pay of the retired military personnel re-employed in civil posts may also be fixed in
accordance with the above principles. In their case substantive pay shall also include the
following elements; provided that they were drawn before retirement/release/leave/leave
pending re-retirement for a continuous period of three years or more: -

(i) Command/Staff/Charge Pay.

(ii) Instructional Pay.

(iii) Qualifications Pay.

(iv) Disturbance Pay.

(h) The word 'Pension' wherever used in these orders means pension before communication
and/or surrender.

[Finance Division O. M. No. F. 4(7)-Reg. 7/72, dated the 1-1-1973 read with
O. M. No. F. 4(6)/Reg. -7/73, dated 22-8-1974].

Fixation of pay of retired Government servants including Military Officers re-employed under the
Government and in autonomous bodies:

9. 76 The re-employment and re-employment pay of retired Government servants in civil posts
under the Federal Government and the autonomous bodies should be regulated in accordance
with the following principles: -

(I) Post on which re-employment is made:

(i) Re-employment of retired civil servants should be made in posts equivalent to substantive
posts or temporary posts if held for one year by the Government servant before retirement.

(ii) In the case of Officers of Armed Forces, re-employment should be made on contract in
accordance with the instructions contained in the Establishment Division O. M. No. 14/5/78-D. III,
dated 10-2-1980 in case of civil posts and in the light of orders issued in pursuance of the
Establishment Division No. 14/5/78-D. III dated 11-2-1980 in the case of autonomous bodies. The
equivalent civil post should be determined according to the equivalence formula approved by the
President. (Para 9. 81).

(II) Pay on re-employment under clause (I) above:

(i) (a) When a retired civil servant is re-employed under Federal Government after
superannuation or after completion of 30 years pensionable service, his initial pay should be fixed
at the minimum of the pay scale of the post in which he is re-employed.

(b) When a retired civil servant is re-employed under the Government owned/controlled
autonomous/semi-autonomous bodies and corporations after superannuation or after completion
of 30 years pensionable service, the initial pay of such a Government servant should be fixed at
the minimum of the scale of pay of the post in which he is re-employed.
(c) A re-employed Government servant would earn increments under normal rules.

(d) In addition to pay, as indicated in Clause (a) and (b) full pension will be admissible to the re-
employed civil servant.

(ii) When a retired military officer of the rank of Major/equivalent and above is re-employed under
Federal Government or under an autonomous body in accordance with clause (I) (ii), his pay may
be fixed at the minimum of the equivalent grade in which re-employment is made and in addition,
full service pension as admissible under the rules will be paid. The pay scale of the post will for
this purpose be determined with reference to the equivalence formula
mentioned in Clause (I) (ii).

(iii) The pay of retired Government servants other than those covered by I & II should be fixed in
accordance with the Ministry of Finance O. M. No. F. 47 Reg. 7, 72, dated 1-1-1973 referred to in
Para 9. 79 as amended from time to time.

9. 77 Existing re-employed retired civil servants may opt to be governed by the existing
rules/orders or by the revised orders. Where such a government servant opts to be governed by
the revised orders, his initial pay should be refixed at the minimum of the scale of the post held by
him with effect from the 1st of the month in which option is given and pension may be allowed in
addition as provided in part (II) (i) above.

9. 78 Existing retired officers of the Armed Forces of the rank of Major/ equivalent and above
who were re-employed in civil posts for a specified period may opt either to be governed by their
existing terms and conditions or by the revised orders. Where such re-employed officers opt to be
governed by the revised orders, they will be brought on the revised terms and conditions with
effect from the 23rd December, 1979 on which date the President was pleased to approve the
scheme published vide Establishment Division O. M. No. 14/5/78- D. II, dated 10-2-1980. From
that date, their re-employment would be converted into re-employment on contract on the terms
and conditions laid down in the O. M.of 10-2-1980 for the remaining term of their re-employment
or for a period of 3 years, whichever is less. Their pay will be refixed at the minimum of the scale
of the post held by them w. e. f. 23-12-1979, and if the pay so fixed plus pension is less than pay
received by them immediately before 23-12-1979, the difference may be allowed as personal pay
to be absorbed in future increase of pay.

9. 79 The option will be submitted to the Audit Officer concerned under advice to the
Ministries/Divisions, Departments or offices administratively concerned.

[Finance Division O. M. No F. 4(4)-Reg. 7/78. dated 20-3-1980].

Note. -In the case of re-employment against a post in an autonomous/semi-autonomous body or

Corporation included in Management Grades 3 vide Finance Division O M. No F 6(27)-lmp. 1/79.
dated the 30th April. 1981. and appointment to which is, by law, required to be made, and the
salary of which is required to be fixed, by the Federal Government, the re-employed officer. Civil
or Military will be entitled to draw minimum of the rank/grade from which he has retired. In
addition he will be entitled to pension and perquisites attached to the management posts
concerned.

[ Finance Division O. M. No. F. 4(4)-Reg. 7/78-1520, dated 30-11-1980].

9. 80 The following will be the "principle of equivalence" between the rank held in the Defence
Services with appointment in Basic Pay Scales.
Defence Service Rank Appointment in Basic Pay Scales

Major General and equivalent. B-21 or 22 at the discretion of the Government

Brigadier and equivalent. B-20.

Colonel and Lt. Colonel (with 18 B-19.

to 20 years commissioned service)
and equivalent.

Major and equivalent. B-18.

Captain and equivalent and Lt B-17

and 2/Lt. and equivalent.

[ Establishment Division O. M No 16/4/79-AV. dated 8-8-1979].

9. 81 A Government servant who has obtained a compensation gratuity, if re-employed in

qualifying service, may either retain his gratuity in which case his former service will not count for
future pension, or refund it and count his former service. The intention to refund must be made
immediately on re-employment but the refund may be made by monthly installments of not less
than one third of the Government servant's salary and also not less than the whole gratuity
divided by the number of months which have elapsed since the end of the service for which the
gratuity was given. The right to count the previous service does not revive till the whole amount is
refunded. (Art. 511, 512 C. S. R).

9. 82 A Government servant who has obtained a compensation pension, if re-employed may

retain his pension in addition to his pay subject to the condition that his initial pay on re-
employment plus pension does not exceed his substantive pay at the time of discharge. Such a
government servant is entitled to receive the benefits of increments in his new scale on promotion
to another scale or post without a further corresponding reduction in pension. In case of a
pensioner re-employed in either a permanent or temporary appointment for bona
fide temporary duty lasting for not more than a year, the Government, or where the pension does
not exceed Rs. 200 a month, the officer who controls the establishment on which the pensioner is
to be re-employed, may allow the pension to be drawn in whole or in part even though the sum
total of pay and pension exceeds his substantive pay at the time of his discharge.

In the case of re-employment under a Local Fund, no deduction is made from a Compensation
Pension.The Government of Pakistan may permit a Government servant who has obtained a
Compensation Pension and is afterwards re-employed in a permanent or temporary appointment
duly sanctioned by competent authority to draw his pension in addition to the pay and allowances
of the appointment irrespective of the period of such re-employment.

If the pension of a person does not exceed Rs. 200 a month, it will not be taken into account in
fixing his pay and allowances and, in case of a former Class-III employees or Government
servants in B-l, 2 or 3 where the amount of pension exceeds, of Rs. 200 a month, only so much of
such pension as is in excess of Rs. 200 a month will be taken into account in fixing his pay and
allowances (Art. 514 C. S. Rs).

9. 83 A Government servant who is in receipt of a superannuation or retiring pension will not be

re-employed or continue to be employed in service
paid from General Revenues or from a Local Fund, except on public grounds. In case of re-
employment of such a pensioner, the authority competent to fix the pay and allowances of the
appointment should determine whether the pension should be held in abeyance wholly or partly.
Where the powers of re-employment have not been delegated to the Head of Department the
pensioner on re-employment may not be allowed to draw full pension in addition to the full pay of
the post except when the re-employment or continued employment is for bona fide temporary
duty lasting for not more than a year or the pension does not exceed Rs. 200 a month. In case
the powers have been delegated to any other authority such authority may not allow the
pensioner to draw, in full, a pension of more than Rs. 200 a month in addition to the full pay of the
post. The provisions of sub para (iii) of clause II of para 9. 77 are also applicable in such cases.
(Arts. 520, 521 C. S. R. Ministry of Finance Notification No. 612-R6/69, dated the 7th July, 1970).

9. 84 If the military pension of a person does not exceed Rs. 200 a month, it shall not be taken
into account while fixing his pay and allowances on re-employment in the Civil Department and in
the case of Junior Commissioned Officer and other ranks where the amount of pension exceeds
Rs. 200 a month, only so much as in excess of Rs. 200 shall be deducted from his pay and
allowances in the Civil Department.

[Finance Division Notification No. 6(2)-R6/69. dated 30-9-1969).

9. 85 A Civil Servant, who is re-employed after or continues to be reemployed beyond the age
of 60 years is allowed to draw his pension in addition to the pay of the post.

[Finance Division O M. No. F. 4(3) Reg. 7/76. dated 17-2-1976

and even number, dated 31-10-1977].

Instructions for the Government servants:

9. 86 To ensure that his pension case is finalised expeditious and he begins to draw his pension
on the date on which it becomes due, every Government servant must keep in mind the following
points: -

(i) To ensure that his Service Book is maintained in duplicate and every step of his official life is
recorded therein.

(ii) To see that his service is verified annually and the fact is recorded in the Service Book.

(iii) To see that on completion of 10 and 24 years of qualifying service by him, verification thereof
is done by the Audit Officer concerned, and an entry to this effect is made in the Service Book/
History of Services (in case of B-16 and above or in its absence intimation of accepted length of
pensionable service is received by him through a letter).

(iv) To obtain, in case of his residing in Government accommodation, a 'No Demand Certificate' in
respect of that accommodation annually, from the Estate Officer concerned.

(v) To see that in case of his having served under different Governments necessary allocation of
pension has been made where required, by the Audit Officers concerned.

(vi) To see that for the period of his deputation in foreign service, leave salary and pension
contributions have been recovered from the borrowing Government/Organization and adjustment
carried out.
(vii) To ensure that necessary nominations in Form 'A' or 'B' as the case may be, have been made
by him under Pension-cum-Gratuity Scheme, 1954, and are on record with the administrative
officer concerned or with the Audit Officer in case of B-16 and above.

(viii) To check up that the preparation of his pension papers is started one year before the
expected date of his retirement.

(ix) To settle with the administrative authorities and the Audit Officer concerned, all issues relating
to Government dues outstanding against him within one year before his retirement.

(x) To submit his pension application alongwith three specimen signatures, three photographs
and two sets of his thumb and finger impressions on the prescribed form, six months before the
date of his retirement. (No photographs and thumb and finger impressions are required in case of
B-16 and above.

(xi) B-16 and above Government servant should see that his 'History File' is maintained by his
office and 'History of Services' is correctly published by the Audit Officer concerned.
ANNEXURE

(See Para 9. 45)

PART I

CLASSIFICATION OF DISABILITY

Class 'A':

1. Loss of a hand and a foot or loss of use of two or more limbs.

2. Total loss of eye-sight.

3. Total loss of speech.

4. Total deafness both ears.

5. Paraplegia or hemiplegia.

6. Lunacy.

7. Very severe facial disfigurement.

8. Advanced cases of incurable disease.

9. Wounds, injuries or diseases resulting in a disability due to which a person becomes

incapacitated.

10. Emasculation.

Note. Wounds, injuries or disease of limb resulting in damage of nerves, joints, or muscles
making the whole of limb useless would mean loss of that limb. Cases in which a partial function
is retained will not be included in this class. However if the partial retention of function does. not
help in walking in case of leg or does not help in holding an object even with partial efficiency, it
should be considered as total loss of function. Those cases will also be included in this class
where the earning capacity of the civil servant has been totally impaired
due to the invaliding disability.

Class 'B':

1. Loss of thumb or at least three fingers of hand.

2. Partial loss of one or both feet at or beyond tarsometatarsal joint.

3. Loss of vision of one eye.

4. Loss of all toes of one or both feet.

Class 'C:

1. Limited restriction of movement of joint due to injuries.

2. Disease of a limb restricting performance of duties.

General Note:

When the wound, injury or illness causing the disability is not included in
the above schedule, the disability will be assessed by the Medical Board at the
classification most closely corresponding to those given above.

PART II

PRINCIPLES AND PROCEDURE FOR DETERMINING

ATTRIBUTABILITY TO SERVICE OF DISABILITY

(A) Casualties due to wound or injury:

(1) It should be established in such cases that the cause of the casualty
was the result of duty in service.

(2) Where the injury resulted from the risk inherent in service
attributability will be conceded.

(3) An individual is on duty for 24 hours of the day except when on

leave other than casual leave.

(4) An individual will be deemed to be in the performance of duty

when

(i) he is physically present in his headquarters;

(ii) he is travelling on leave at Government expense;

(iii) when travelling to or from duty (e. g., from residence to place of
duty and back but not whilst he is in his residence);

(iv) whilst travelling on duty i. e., where it is established that but for the
duty he would have not been travelling at all.
(5) Disability resulting from purely personal acts as shaving or similar
private pursuits would not normally be treated as attributable to service.

(6) Disability resulting from violence provoked by performance of duty

will be viewed as attributable to service unless the circumstances of the case
warrant a different conclusion.

(7) If circumstances arc such that service played no part in the causation of disability,
attributability will not be conceded.

Illustration. If a person driving a motor cycle etc., on duty, collides with a truck the injury received
may be attributed to service but if he is out for a walk and sustains injury from a passing truck, his
case will not qualify for the concession.

(B) Casualties due to disease:

(a) The cause of disability resulting from a disease will be regarded as attributable to service
only when it is directly due to risks which may be regarded as peculiar to the circumstances of
duty in service. In determining attributability in such cases due regard should be paid to the
question whether service in a particular region, or of a particular type involved exposure to
exceptional risk of contraction of, or infection by, a disease, as well as to the actual circumstances
of the case.

(b) Attributability will not be conceded, if, though contracted during the period of actual
performance of duty, the disease, is, in the opinion of the medical authorities concerned, due to
risks which cannot be regarded as peculiar to suchduty in service.

(c) Where a disease or its aggravation resulted from the risk of duty attributability/aggravation
will be conceded.

(d) All cases of tuberculosis and bronchial asthma will be accepted as attributable to or
aggravated by service where the medical opinion is in favour of the acceptance.

(e) Attributability/aggravation in all cases of Cardiac disease will be determined in accordance

with the guidelines mentioned at the end of this part.

(0 Where medical or other supporting documents arc incomplete, cases will be dealt with on
merits with due regard to medical opinion and other evidence.

1. Guidelines for determining attributability/aggravation in cases of Cardiac diseases. ? There are

many pre-disposing factors which may precipitate an attack of coronary occlusion. No single
factor can be pin-pointed as being responsible for such an attack. It is, therefore, not easy to lay
any hard and fast rule for awarding attributability/aggravation in such cases. For the guidance of
medical and administrative authorities some of the factors which may precipitate the attack of
heart disease are enumerated below: -

(a) Physical exertion. -Coronary occlusion is known to have precipated during or immediately
following physical exertion. Physical exertion may not necessarily be of an unusual character, i.
e., lifting of a heavy bundle, pushing a stalled vehicle or an up-hill climbing have in many
instances been followed by an attack of Coronary occlusion. The effects of exertion are worse if
the individual is unduly fatigued, has lack of sleep or is under emotional stress.Attributability will
be conceded if a person under-going stress and strain, pressure and counter-pressure by virtue
of the nature of his duties, develops psychiatric problem.
(b) Emotional strain. The occurrence of Coronary disease in person who had been under an un-
usually severe and protracted emotional strain points to a probable relationship between the two.
Separation from families, uncongenial atmosphere, frequent moves, all add to mental strain and
psychological trauma.

2. The question of attributability/aggravation of heart diseases on occurrence in otherwise a

normal individual who is subjected to the above mentioned factors will, therefore, have to be
considered and decided in the light of known history and merits of each case.

3. While dealing with such cases due precaution will be exercised by all concerned to carefully
bring out detailed merits of the case as award of attributability/aggravation depends on their
candid opinion

GENERAL PROVIDENT FUND

(CENTRAL SERVICES) RULES

Constitution of the Fund:

10. 1 The Fund was established under the Provident Funds Act, 1925 as amended from time to
time. Originally the subscription to the General Provident Fund was optional, but from 1st
September, 1953 it has been made compulsory. Now all Federal Government employees
including re-employed personnel having rendered service for more than two years are
compulsorily required to subscribe to the General Provident Fund. The Ministers/Ministers for
State of (the Federal Government are, however, required to subscribe to the General Provident
Fund, from the date of their induction into office.

Subscribers account:

10. 2 As soon as a Government servant is due to complete two years service, an intimation to
that effect should be sent to the Accounts Officer concerned and the latter may be asked to allot a
General Provident Fund account number to the Government servant. When a number has been
allotted, the subscription should be started. The General Provident Fund account number should
be quoted invariably on the schedules and in all correspondence with the accounts officer on the
subject.

Conditions and rates of subscription:

10. 3 The subscription to the General Provident Fund is made by deduction from the monthly
pay bills. If a Government servant is on foreign service, he can pay his subscription in cash in a
Government treasury and forward the treasury challan to the respective accounts officer. * [There
shall be no option to postpone subscription to the General Provident Fund either during leave
(except extraordinary leave without pay) or during the training period. In cases of suspension,
recovery of arrears of subscription towards the fund, will be effected if reinstatement takes place.
However, the subscriber shall be allowed the option of paying in one sum, or in installments, any
sum not exceeding the maximum amount of arrear subscriptions permissible for that period].

*Added vide Finance Division O. M. No F. I(5)-Reg. 7/87 (D-583/90)-D-793/94, dated 1-2-1995

10. 4 There would be uniform rates of subscription towards General Provident Fund effective from 1st June, 1994 vide O.
M. No. F. 1(5)-Reg. 7/87-(D.
583/90) Dy. 793/94, dated the 1st February, 1995 as follows:

Scale Minimum Maximum Mean Minimum Rule Remarks

 subscription
of
(on mean) at
Monthly
the rates shown
subscription
in column 7

1 2 3 4 5 6 7

Rs Rs. Rs. Rs. Rs.

50 Minimum rates of
B. 1 1245 1770 1507. 504523 85 subscription (on
B. 2 1275 1935 1605 0080. 25 mean) will be as
B. 3 1320 2070 1695 00 84. 75 85 under:
Pay Rally Kales

(1) Upto 3%
B. 4 1360 2230 1795. 0089. 7590 Rs. 1600.
B. 5 1400 2390 1895. 0094. 7595 (2) Upto 5%
B. 6 1440 2535 1987 509938 100 Rs. 1601 3000
B. 7 1480 2695 2087. 50 100. 00 100 (3) Above 8%
Rs. 3000.

B. 8 1540 2860 2200. 00 110. 00 110

B. 9 1605 3060 2332. 50 116. 63 120

B- 10 1660 3265 2462. 50 123. 13 125

B. 11 1725 3465 2595. 00 129 75 130

B. 12 1830 3780 2805. 00 140 25 145

B. 13 1950 4110 3030. 00 242. 40 250

B. 14 2065 4480 327250 261. 80 265

B. 15 2190 4845 3517. 50 281. 40 285

B. 16 2535 5490 4012. 50 321. 00 325

B. |7 3880 7360 5620. 00 449. 60 450

B. 18 5085 8745 6915. 00 553. 20 560

B. 19 7750 11600 9675. 00 774. 00 780

B 20 9195 13595 11395. 00 911. 60 920

B. 21 10190 15640 12915. 00 1033. 20 1040

B. 22 10900 17000 13950. 00 1116. 00 1120

Note. The deductions from the pay of employees in BPS 1 -16 on the basis of new rates shall be
made in June to be paid on 1st July. 1994 and for Government employees in BPS-17 and above
w. e. f. June, 1995 paid in July 1995 and onwards, until further orders

10. 4-A Revised uniform rates of subscription towards General Provident Fund. Consequent upon
the revision of basic pay scales for the civil employees of the Federal Government vide Finance
Division's O. M. No. F. l(5)Imp/2001, dated 4th September 2001, it has been decided to review
the rates of subscription towards General Provident Fund as shown in column 6 of the Annex to
this O. M. The deductions from the pay of employees on the basis of new rates shall be made in
December to be paid on 1st January 2002, until further orders.

2. There shall be no option to postpone subscription to the above fund either during leave (except
extraordinary leave without pay) or during the training period.

[Finance Division O. M No. F. 1(5)-Reg. 7/87(l)-583(90)-981/2001, dated 6-10-2001].

STATEMENT SHOWING UNIFORM RATES OF SUBSCRIPTION TOWARDS

GENERAL PROVIDENT FUND EFFECTIVE FROM 1ST DECEMBER. 2001
Vide O. M. No F. l(5)-Reg. 7/87(I)-583/(90)-98l/2O01 dated 6th October. 2001

Minimum
subscription
Rate of
Mini- Maxi- (on mean)
Scale Me an monthly Remarks
mum mum al the rales
subscription
shown in
Column 7

1 2 3 4 5 6 7
Mininum rates of subscription
B-1 Rs 1870 Rs , 520 Rs 2695 R s. 8085
(on mean) will be as under
Rs. 85
B-2 Rs 1915 Rs 8865 Rs 2890 Rs 144. 50Rs 145
Pay Range Rates
B-3 Rs. 1980 Rs 4230 Rs 3105 Rs 155. 25 Rs. 160
(1) Upto 03%

B-4 Rs 2040 Rs 4590 Rs 3315 Rs 165. 75 Rs 170 Rs. 2700

Upto
B-5 Rs. 2100 Rs . 5100Rs 3600 Rs 180. 00Rs. 180 05%
(2) Rs 2701
B-6 Rs. 2160 Rs . 5460 Rs. 3810 Rs 190 50 Rs. 195 to
Rs. 5600

B-7 Rs. 2220 Rs 5820 Rs. 4020 Rs 201. 00Rs. 205 Above
(3) 08%
B-8 Rs. 2310 Rs 6210 Rs. 4260 Rs. 213. 00 Rs 215 Rs. 5600

B-9 Rs. 2410 Rs . 6760 Rs. . 4585 Rs 229. 25 Rs 230

B-10 Rs 2490 Rs 7290 Rs 4890 Rs 244 50 Rs. 245

B-ll Rs. 2590 Rs . 7840 Rs 5215 Rs. 260. 75 Rs. 265

B-12 Rs. 2745 Rs . 8595 Rs 5670 Rs 453. 50 Rs 455

B-13 Rs 2925 Rs . 9375 Rs 6150 Rs 492. 00 Rs 495

B-14 Rs 3100 Rs. 10300 Rs 6700 Rs 536. 00 Rs. 540

B-15 Rs 3285 Rs 11235 Rs . 7260 Rs . 580. 80 Rs. 585

B-16 Rs 3805 Rs. 12655 Rs . 8230 Rs . 658. 40 Rs. 660

B-17 Rs 6210 Rs. 15510 Rs. 10860 Rs . 868. 80 Rs. 870

B-18 Rs 8135 Rs. 19835 Rs 10985 Rs. 1118. 80 Rs. 1120

B-19 Rs 12400 Rs. 24700 Rs 18550 Rs 1484. 00 Rs 1485

B-20 Rs. 14710 Rs. 28010 Rs. 21360 Rs 1708. 30 Rs 1710

B-21 Rs 16305 Rs. 31285 Rs. 23795 Rs 1903. 50 Rs. 1905

B-22 Rs 17440 Rs 34940 Rs 26109 Rs 2095. 20 Rs. 2100

Nominations:

10. 5 As soon as a subscriber joins the Fund he should send to the Accounts Officer a
nomination conferring on one or more persons the right to receive the amount that may stand to
his credit in the event of his death before that amount has become payable or having become
payable has not been paid. The nomination can be in favour of any person, but if a subscriber
has a family (wife or wives, legitimate children, widow or widows and children of a deceased son
and husband in the case of a female Government servant) he cannot nominate any person other
than the members of his family. A bachelor, having given nomination in favour of any person has
to revise it as soon as he gets married.

10. 6 The nomination can be in favour of more than one person. In such a case the amount of
share payable to each nominee should be clearly indicated. Alongwith the nomination a
contingent notice of cancellation should also be sent to the Accounts Officer. The nomination
once made can be revised at any time at the discretion of the subscriber.

10. 7 A copy of the nomination paper may be kept in the service books of the subscribers
drawing pay in Basic Pay Scale 15 and below and in case of those drawing pay in the Basic Pay
Scale 16 and above, in their personal file.

Interest:
10. 8 The Government pay to the credit of the account of a subscriber interest at such rate as
may be determined for each year. The interest is calculated on the amount at the credit of a
subscriber on the last day of the preceding year, less any sums withdrawn during the current year
interest for 12 months and on all sums credited to the subscriber's account after the last day of
the preceding year-interest from the date of deposit upto the end of current year. The amount of
interest is rounded to the nearest rupee. In addition a benefit of 30% over and above the normal
interest for the year payable to the subscriber, would be allowed from 1st July, 1986.

[Finance Division O. M No. F. I(5)/Reg. (7)/87. dated 19-11-87].

10. 9 Where the amount standing at the credit of a subscriber has become payable, interest
should be credited in respect of the period from the beginning of the current year or from the date
of deposit as the case may be, upto the date on which the amount standing at the credit of the
subscriber became payable. The date of deposit for this purpose, in case of recovery from pay bill
would be deemed to be the 1st day of the month in which it is recovered. In case the amount has
been deposited by the subscriber in a treasury/bank, the date of deposit would be deemed to be
the 1st day of the month of receipt if it is received by the Accounts Officers before the 5th day of
that month. But if it is received on or after the 5th day of that month, the first day of the next
succeeding month.

10. 10 While making the final payment in respect of G. P. Fund, the interest will be paid upto the
end of the month preceding that in which payment is made. In the case where the Accounts
Officer has intimated to the subscriber a date on which he is prepared to make payment in cash,
interest would be payable only upto the end of the month preceding the date so intimated. If the
subscriber claiming the payment does not send an application in that behalf within six months of
the date on which the amount standing in the credit with the subscriber become payable, interest
would be payable upto the end of six months after the month in which the amount became
payable. In case of delayed payment of G. P. Fund and residual balance thereof, the payment of
interest may be made up to the end of the month preceding that in which the payment of residual
balance(s) is/are made.

[Finance Division O. M. No. F. I(l)-R. 7/84. dated 9-6-1984],

*Note. Where (he payment of the accumulations in the fund or any part there of standing to the
credit of a subscriber is delayed for administrative reasons (such as accounting for the missing
credits, transfer of account from one audit office to an other audit office or other similar reasons)
interest on the accumulations or, as the case may be the part thereof shall be payable upto the
end of the month preceding thai in which the payment of the accumulations or any part thereof is
made.

10. 11 If a Muslim requests the Accounts Officer in writing that interest may not be calculated on
his accumulation it will be done accordingly, but if he subsequently asks for interest, it will be
credited from the first day of the financial year in which he asks for it.

Advance from the Fund:

10. 12 (a) A temporary advance may be granted to a subscriber from the amount standing at his
credit in his General Provident Fund account subject to the following conditions:

(i) Advance will be granted only if the sanctioning authority is satisfied that the pecuniary
circumstances of the applicant justify it;

(ii) to pay expenses incurred in connection with the prolonged illness of the applicant, the
applicant's spouse or any person actually dependent upon him;
(iii) to pay for the overseas passage for reasons of health or education of the applicant or any
person actually dependent upon him;

*Added vide Finance Division SRO No. 423(1). dated 24-4-1990.

(iv) to pay obligatory expenses on a scale appropriate to the applicant's status in connection with
funerals or ceremonies which by his religion it is incumbent upon him to perform or in connection
with his marriage or the marriage of any member of his family or a female relative actually
dependent upon him;

(v) *[An advance shall not exceed three months' pay or half of the amount at the credit of the
subscriber in the fund whichever is less, except for special reasons. The subscriber shall state the
special reasons in the application submitted for the grant of advance but if the
reason is of a confidential nature which the subscriber does not want to disclose in writing it may
be, or caused to be, communicated to the sanctioning authority personally and confidentially.

(b) A second advance may be allowed but only in rare and exceptional cases and subject to the
following conditions:

(i) A second advance shall be sanctioned by the authority next above the sanctioning authority;

(ii) the authority sanctioning the second advance shall record reasons for sanctioning the second
advance; and

(iii) the outstanding balance of the first advance with interest, if any, shall be recovered from the
amount of the second advance being sanctioned so that only one advance remains outstanding
at one time].

10. 13 The advance may also be allowed to a subscriber to enable him to pay the 'dower' to his
wife on the following conditions:

(a) the applicant should produce evidence within one month of the drawal of the advance that
he had actually paid the 'dower' failing which the advance should be recovered in lump sum;

(b) if the subscriber has already drawn an advance in connection with his marriage no further
advance will be given to him for the purpose of payment of the "dower"; and

(c) the advance should not exceed the limit mentioned above or the actual amount of 'dower'
fixed whichever is less, proof of which should be produced by the subscriber concerned.

*Subs, vide Finance Division S. R. O. No. 423(l)/90, dated 24-4-1990.

10. 14 The subscribers would be allowed advances in a manner that only one advance would
remain outstanding at one time.

[Finance Division O. M. No. F. 1(5)-Reg. (7)/87 dated 19-11-1987].

10. 15 If a Government servant who has not drawn any advance from G. P. Fund previously or
a period of 12 months has elapsed after the final repayment of all previous advances together
with the interest thereon, applies for advance from the G. P. Fund the amount of which may, for
special reasons, exceed three months pay, or 50% of the balance which ever is less, it can be
sanctioned by the competent authority.
10. 16 The advance is recoverable in such instalments as a sanctioning authority may direct,
but such number should not be less than 12 and more than 48. A subscriber may, at his option,
pay more than one instalment in the month. Each instalment should be a number of whole
rupees, the amount of advance being raised or reduced, if necessary, to fix such instalments. The
recovery will commence from the pay of the month in which the advance is drawn. A competent
authority may order the postponement of recovery of advance, if so
requested by the subscriber. Recovery will also not be made except with the subscribers consent,
if he is on leave or in receipt of subsistence grant. After the principal has been repaid the interest
will be recovered. The Muslims, whose deposits do not carry interest are not required to pay
interest on the advances drawn by them (Rule 15).

10. 17 An advance for the construction of a house for occupation by the subscriber himself or
for the purpose of completely reconstructing or for extending/renovating a house owned by him or
by his wife and children or by any of them may be granted subject to the following conditions:

(i) Advance should be as nearly as possible to the terms and conditions laid down in Para 253-A
of the G. F. Rs;

(ii) Advance should not exceed 36 months pay of the subscriber or 1of the amount at the credit of
the subscriber in the Fund, whichever is lesser;

(iii) Land and house constructed thereon is mortgaged to the President within three months of the
drawal of advance. The mortgage deed should be registered within three months of its execution;

(iv) Recovery to be made, at the rate of 7% of the subscribers pay commencing from the fourth
issue of pay after the first installment of advance is drawn. If the amount of advance does not
exceed 18months pay of the subscriber, recovery is made at the rate of 5% of pay;

(v) The advance from the GPF account of a Government servant granted for the construction of a
house, will not be taken into account for the purpose of calculating the total house building"
advance to which a Government servant is entitled.

(vi) Where the amount of advance drawn was less than Government servant's 36 months pay and
he had drawn 80% of the balance at his credit, he may draw additional instalment(s) of advance
from the G. P. F. (for the same house) subject to the following conditions:

(a) the total amount of additional instalment(s) should not exceed the overall limit of 36 months
pay;

(b) the pay for the purpose should be the pay which the Government servant was drawing at
the time of drawing the first instalment;

(c) subsequent instalment(s) should not be sanctioned until at least one year has elapsed from
the date of drawal of the previous instalment.

10. 18 *[Only three non-refundable advances, one each after attaining the age of 45, 50 and 55
years, shall be admissible to a subscriber].

10. 18-A @[A subscriber who has attained the age of 50 years may draw non-refundable advance
to the extent of 100% of balance in the account on the date of application for the grant of
advance].
10. 19 *[A non-refundable advance applied for after the subscriber had attained the age of 45,
years but before attaining the age of 50 years shall be admissible for the purposes and subject to
the conditions mentioned herein:

(i) Construction of a house (anywhere in Pakistan) on land owned by him or by his wife or
children or by any of them. The advance shall mutatis mutandis be governed by the same terms
and conditions as are applicable to an advance granted under rule 15-A.

*Subs. ride Finance Division's S. R. O. No. 423(l)/90 dated 24-4-1990.

@Added under rule 15-B(3) of General Provident Fund (Central Services) Rules, vide Finance
Division Extraordinary Gazette Notification No. F. I(5)-Reg 7/87-D 144/2001. dated 16-2-2001

(ii) Completely re-constructing or for extending or renovating a house already owned by the
Government servant concerned or by his wife and children or by any of them. The advance shall
mutatis mutandis be governed by the same terms and conditions as are applicable to
an advance granted under rule 15-A.

(iii) Purchase of agricultural land.

(iv) Purchase of a house for his residence.

(v) Repayment of loan taken from a financial institution. Conditions:

(a) Save as provided in clause (c), no recovery of the advance shall be made from the
subscriber and the amount advanced shall be treated as part of the final payment of the amount
standing to the credit of the subscriber when the final payment becomes due.

(b) The land purchased, or the house constructed or reconstructed by expending the amount of
the advance shall not be required to be mortgaged with the President.

(c) The first instalment of the advance, or where the subscriber desires to draw the amount of
the advance in a lump sum, shall be drawn only after an agreement is executed between the
subscriber and the President in the forms set forth in the Eighth, Ninth or Tenth
Schedule to these Rules, as the case may be.

(d) In case the reconstructed house, the house, or the agricultural land as the case may be, is
sold or otherwise alienated while the subscriber is in service, the subscriber shall forthwith repay
into the Fund the entire amount of the advance together with interest
accrued thereon, in a lump sum.

(e) In case the advance for purchase of a house is not utilized for the purpose for which it has
been drawn within three months of drawal, the subscriber shall forthwith repay into the Fund the
entire amount of the advance together with interest accrued thereon, in a lump
sum. Satisfactory evidence shall be produced before the Accounts Officer to show that the
advance has been spent within three months of its drawal.

(0 Where an advance is applied to repay a loan taken from a financial institution the sanctioning
authority shall satisfy itself of the amount of loan taken from a financial institution and the balance
payable.The amount of advance shall not, in any case, exceed the balance payable by the
subscriber. The subscriber shall, within a period of two weeks from the date of drawal of the
advance to repay the loan taken from a financial institution, produce satisfactory evidence before
the Accounts Officer to show that the advance has been utilized for the purpose for which it was
drawn, failing which the entire amount will become refundable in lump sum with interest].

10. 20 *[An advance drawn from G. P. Fund account on refundable basis, may be allowed to be
converted into a non-refundable advance if the subscriber has in the meanwhile attained the age
of 45 years].

10. 21 A subscriber having attained the age of 50 years may be granted an advance equal to
80% of the balance standing at his credit in the G. P. F. or 36 months pay, whichever is more for
the purchase of agricultural land from the Government on the same terms and conditions as
stated in the preceding para.

10. 22 A non-refundable advance may be drawn by a subscriber, who has attained the age of
50 years, equal to his 12 months pay or 80% of the balance at his credit in the GPF whichever is
less, in the following cases: -

(i) to defray expenses in connection with the prolonged illness of the subscriber himself or a
member of his family actually dependent upon him;

(ii) to pay for the overseas passage of the subscriber for reasons of health or for the performance
of Hajs

(iii) to pay for the overseas passage for reasons of education of any member of the subscriber's
family actually dependent on him and such other lump sum expenditure as admission or advance
tuition fees of any such member;

(iv) to pay obligatory expenses on a scale appropriate to the subscriber's status in connection
with funeral or other religious ceremonies or in connection with the marriage of any member of his
family actually dependent on him or of a female dependent relative.

(v) With effect from 26th July, 1977, subject to the condition laid down in rules *[15-B] of the G. P.
Fund (Civil Services) Rules, nonrefundable house building advances from G. P. Fund can also be
sanctioned to the subscribers who have attained the age of 45 years

*Subs. vide Finance Division's S. R. O. No. 423(l)/90 dated 24-4-1090.and who do not draw
interest on their G. P. Fund Accounts. This concession is also admissible to such of the
subscribers who have already liabilities to discharge to financial institutions in connection with
construction of their houses:

(a) On having attained the age of 55 years the subscriber may be allowed to draw, at the
discretion of the competent authority, a special non-refundable advance not exceeding 80% of the
amount standing to his credit in the fund.

(b) There is no bar to grant of further non-refundable advances to a person under this rule (15-
E) provided that on each occasion the amount of advance does not exceed 80% of the balance at
credit. Second or subsequent advance may not be allowed until at least a period of one year has
elapsed since the previous advance has been drawn.

10. 23 There is no bar to the grant of a second non-refundable advance to a subscriber, who
has drawn a non-refundable advance previously.

10. 24 After a subscriber has attained the age of 45 years he can be granted an advance equal
to eighty per cent of the amount standing at his credit in the Fund or 36 months pay of the
subscriber whichever is less for the purchase of a house for his residence, subject to the following
conditions: -

(i) no recovery will be made for the advance and it will be treated as part of final payment;

(ii) an agreement will have to be executed in the prescribed form;

(iii) the house is not required to be mortgaged;

(iv) if the house is not purchased within three months of the drawal of advance or it is sold out,
the entire amount of advance together with the interest accrued thereon will have to be repaid to
the Fund in lump sum;

(v) the advance can be drawn in one instalment, but the satisfactory evidence for the purchase of
house will have to be produced to the audit officer within three months of the date of drawal of
advance and the legal receipt for the amount paid will be recorded with the Head of Department.

10. 25 'Advance can be drawn by a subscriber, who has attained the age of 50 years, on a non-
refundable basis, to repay loan taken from a financial institution, subject to the following
conditions:

(a) the advance should not exceed 80% of the amount standing at credit in the Fund;

(b) the sanctioning authority should satisfy itself about the loan taken and the balance still
payable. The amount of advance should not exceed the balance payable; and

(c) the subscriber should within a period of two weeks of the drawal of advance, produce
satisfactory evidence to the audit officer that the advance was utilised for the purpose it was
drawn failing which the entire amount together with the interest will be refundable.

10. 26 The limit of 12/36 months pay in the preceding paragraphs will apply only when the
balance at credit exceeds that limit, otherwise the advance will be restricted to 80% of the
balance.

10. 27 *[No reasons are required to be given for the advances after the subscriber has attained
the age of 50 years. The amount of each advance shall not exceed eighty per cent of the balance
in the account of the subscriber on the date of application for the grant of advance].

Final withdrawal of the accumulations:

10. 28 When a subscriber proceeds on L. P. R. or finally quits the service, the amount standing
at his credit in the Fund is payable to him. In case a subscriber does not proceed on LPR he can
draw the final payment of G. P. F. during the period of 12 months preceding the date of retirement
on attaining the age of superannuation. In case a subscriber is dead before the amount becomes
payable to him or where the amount has become payable before payment has been made, the
payment will be made as under:

(i) When the subscriber leaves a family the payment will be made to the nominee or the nominees
in accordance with the shares fixed for them by the subscriber. If there is no nomination in favour
of any member of the family, the amount will be payable in equal shares to the members of the
family with the exception of the following: -

(a) sons who have attained legal majority;

*Subs, vide Finance Division's S. R. O. No. 423(l)/90 dated 24-4-1990.

(b) sons of a deceased son who have attained legal majority;

(c) married daughters whose husbands are alive; and

(d) married daughters of a deceased son whose husbands are alive.

The widow/widows and child/children of a deceased son would receive only that much share as
the deceased would have received had he been alive and been exempted from the restriction
referred to above.

(ii) When the subscriber does not leave any family, the payment will be made to the nominee or
nominees as the case may be. If there is no nominee, the payment will be made to such
claimants as can produce a legal authority but if the balance payable is Rs. 5, 000 or
less the payment may be made to the heirs of the deceased without legal authority in terms of
Rule 234(1 )(i) of the Federal Treasury Rules.

If any of the claimants mentioned above is a minor, the payment will be made to a person who
can produce a valid guardianship certificate.

Protection of the accumulations:

10. 29 The Government is not bound by or to recognize any assignment or encumbrance

executed or attempted to be created which effect the disposal of the accumulations of a
subscriber, who dies before retirement. The accumulations of a subscriber are not liable to
forfeiture on dismissal or on conviction by a criminal court except for an offence for which the
penalty of forfeiture of the offender's property is prescribed by law. The accumulations are also
protected from attachment by a Court of Law.

10. 30 The adjustment of overpayment from the balance outstanding in the Provident Fund of
the subscriber to the extent of interest in that amount but not from the contribution made by the
official from his salary.

[Finance Division Notification SRO No. 388(I)/2OO1 dated 20-1-2001].

CLASS-IV

10. 31 The former class IV employees are governed by the Central Government (Class IV
servants) Provident Fund Rules. In terms of these rules a Class-IV Government servant is
required to contribute at the rates mentioned in Para 10. 4.

[Finance Division O. M. No. F. I(5)-Reg. (7)/87 dated 19-11-1987].

10. 32 The amount so deducted shall be shown in a separate column of the pay-bill and
classified as revenue receipt under the head "1000 Non-Tax Receipts 1200 Receipts from Civil
Administration and other Functions 1210 Receipts from General Administration 1212 Receipts in
aid of superannuation".

10. 33 The head of office shall record a certificate on the pay-bill to the effect that deductions on
account of provident fund have been made in all cases and where a deduction has not been
made in any case he shall record the reason therefor.
10. 34 A record of the amounts deducted, shall be maintained in a separate proforma statement
to be pasted in. his service book showing the date and amount of deductions made. Each entry
therein shall be attested by the head of office under his signature and shall also be signed by the
Class IV servant concerned. If no deduction is made for any month the fact and the reason
therefore shall be recorded in the statement and the entry shall be likewise attested.

10. 35 Every head of office shall maintain a register showing deductions made on account of
provident fund. This register shall be posted monthly from the pay bills of the Class IV servants
and the entries made in that register shall be reconciled with those made in the several service
books at monthly or other convenient longer intervals.

10. 36 In the service book of a Class IV servant who was contributing to the General Provident
Fund before the commencement of these rules there shall be entered as an opening balance, the
amount, at his credit in the General Provident Fund account, which shall be closed by transfer
credit to the head "1000 Non-Tax Receipts-1200 Receipts from Civil Administration and other
Functions1210 Receipts from General Administration?1212 Receipts in aid of superannuation".
Where any amount subscribed by a Class IV servant but not credited to his General Provident
Account is ascertained subsequently, it shall be added to the opening balance in the service book
after making the necessary transfer entry in his General Provident Fund Account.

10. 37 After a government servant has ceased to be entitled to contribute to the Provident Fund
under these rules, the amount due to him shall be the amount to the credit of his accounts plus
interest thereon calculated for each year at the same rate of interest and in the same manner as
was applicable to the General Provident Fund contributions.

10. 38 The amount of interest payable by the Central Government under these rules shall be
worked out by the Accountant General who shall report after necessary audit checks the amounts
payable separately on account of the provident fund deductions and interest thereon.

10. 39 For the purpose of these rules, the head of the office in which the Class IV servant was
last on duty shall furnish the Accountant Genera! with the service book of the Class IV servant or
a certified copy of the account of the provident fund deductions and the sanction of payment will
be issued by the head of office on receipt of the report of the Accountant General.

10. 40 Where a Class IV servant becomes eligible for contributing to the General Provident
Fund, the amount payable to him shall be transferred to his credit in the General Provident Fund
Account.

10. 41 In all other cases payment shall be made in cash to the Class IV servant, and in either
case an entry shall be made in the service book under the signature of the head of the office
showing the amount paid and the date and authority for payment.

10. 42 Every Class IV servant shall nominate, in accordance with rule 8 of the General
Provident Fund (Central Services) Rules, three persons in order of priority and such nomination
shall be countersigned by the head of the office and pasted in his service book. In case a Class
IV servant dies before receiving payment under rule 12, the amount payable to him under that
rule shall be paid to the surviving nominee first in the order of priority.

10. 43 Payments made to a Class IV servant on account of deductions made under those rules
and interest thereon shall be debited respectively to the head of account "600 Transfer Payments
660 Superannuation Allowances and Pension 669 Others Payments under the Central
Government (Class IV Servants) Provident Fund Rules" and "600 Transfer Payments 610 Interest
616 Others Interest Payable under the Central Government (Class IV Servants) Provident Fund
Rules. "
10. 44 The provisions regarding temporary advances as contained in the General Provident
Fund (Central Services) Rules will be applicable under these Rules also. The accounts of the
deductions and the advances will continue to be maintained by the Drawing and Disbursing
Officers. The withdrawals on account of advances may be debited to the head "4000 Advance
Not Bearing Interest-4100 Advances Payable 4109 Provident Fund". Advances to Government
Servants and recoveries should be adjusted against the same head of account.

FINANCIAL POWERS DELEGATIONS TO SUBORDINATE

AUTHORITIES

Sanctions to expenditure:
(Basic Principles)

11. 1 No subordinate authority is empowered to sanction without the previous consent of the
Ministry of Finance any expenditure, which involves the introduction of a new principle or practice
likely to lead to increase of expenses. Moreover, exercising of financial powers by a subordinate
authority is subject to the observance of any general or special direction, which the authority
delegating or redelegating power may issue at any time.

11. 2 A sanction to expenditure would be operative only when the funds have been appropriated
to meet the expenditure. In case of sanction to a recurring expenditure covering a specified term
of years it would operate when funds are appropriated to meet the expenditure of the first year
and would remain in operation for each year of the specified term subject to appropriation in such
years.

11. 3 The two main principles to be observed in any system of financial control are economy and
regularity, and the success of any system must depend upon the vigour with which they are
observed in day to day administration, Economy means gelting the full value for money, and by
regularity is meant the spending of money for the purposes and in the manner prescribed by lav,.
The two are not necessarily the same thing, for it is conceivable to spend money without
constitutional irregularity and yet wastefully.

11. 4 While the provisions of the General Financial Rules Vol. 1 contain general and specific
instructions on the subject, the principles on which emphasis is essentially laid may be
recapitulated as follows:

(a) that expenditure is incurred with due regard to high standards of financial propriety;

(b) that funds allotted to a Ministry/Division, its Attached, or Subordinate Offices are spent for
the purpose for which they are allocated;

(c) that funds are spent in accordance with relevant rules and regulations;

(d) that the actual expenditure does not exceed the budget allocation;

(e) that the expenditure is not prima facie more than (he occasion demands and that every
Government servant exercises the same vigilance in respect of expenditure incurred from public
funds as a person of ordinary prudence would exercise in respect of expendi-
ture of his own money;
(f) that no authority exercises its powers of sanctioning expenditure to pass an order which will
be directly or indirectly to its own advantage;

(g) that public moneys are not utilised for the benefit of a particular person or section of the
community unless:

(i) the amount of expenditure involved is insignificant; or (ii) the claim for the amount can be
enforced in a court of law; or

(iii) the expenditure is in pursuance of a recognised policy or custom.

(h) that the amount of allowances, such as travelling allowance, granted to meet expenditure of a
particular type is so regulated that the allowances are not, on the whole a source of profit to the
recipient.

11. 5 The requirement that the funds allotted to a Ministry/Division, etc. are spent for the purpose
or purposes for which they are allocated, constitutes an important part of the Legislature's control
over expenditure. The control would be rendered nugatory if the executive authority sanctioned
application of funds for purposes other than those authorised by the Legislature. It is, therefore,
the duty of the Principal Accounting Officer to ensure that the expenditure falls within the ambit of
a Grant or an Appropriation duly authenticated. Expenditure in excess of the amount of Grant or
Appropriation as well as expenditure not falling within the scope or intention of any Grant or
Appropriation, unless regularised by a supplementary Grant, will be treated as unauthorised
expenditure.

11. 6 While sanctioning expenditure out of the funds placed at his disposal the Principal
Accounting Officer will ensure by issuing necessary written instructions to his subordinates or by
other means available to him that the requirements of the relevant rules and regulations are fully
met and that the approval of the Ministry of Finance has been obtained in all cases which are not
covered by any standing authorities that may have been delegated to him.

11. 7 The Principal Accounting Officer is responsible for ensuring that expenditure is not incurred
in excess of the budget allocation. He has also to see that the total expenditure under each of the
sub-heads fixed as units of appropriation under a Grant or Appropriation does not exceed the
allotment thereunder. It is clear that this requirement can be met only if the compiled accounts
reflect the correct position of payments. He should, therefore, ensure by issuing suitable
instructions to the controlling and disbursing officers under him that all payments are correctly
classified under the appropriate heads of accounts and that the
departmental accounts are reconciled every month with the Figures communicated by the Audit
Officer. He should, in addition, keep himself well informed not only of the actual expenditure but
also of the liabilities which have been incurred and must ultimately be met. Any anticipated
excesses and savings should be readjusted by means of reappropriation to the extent powers
have been delegated to the Principal Accounting Officers under the new procedure. It is relevant
to mention, in this connection, that any allotment or reappropriation within a Grant or
Appropriation may be authorised at any time before, but not after, the expiry of the financial year
to which such Grant or Appropriation relates.

Delegation and re-delegation of powers:

11. 8 As a general rule, the powers conferred on an authority under the rules cannot be
delegated by it to an authority subordinate to it without the previous consent of the Ministry of
Finance. The Ministry of Finance, may however, delegate powers to an authority with permission
to re-delegate its powers to a subordinate authority. In cases where an authority has been
empowred to delegate or redelegate powers of appropriation or re-appropriation, it may divide the
primary units of appropriation into such secondary units as it thinks fit and may impose such
restrictions as it may consider suitable upon the use of the powers of appropriation and re-
appropriation.

Powers Delegated to Ministries/ Divisions/Departments:

11. 9 (a) The powers shown in columns 3 and 4 of Annex I to this O. M. shall be delegated to
Principal Accounting Officers in the Ministries/Divisions and the heads of Departments,
respectively. These powers may be exercised by them without consulting the Financial Adviser or
the Finance and Accounts Officer. The Finance and Accounts Officer may, however, be consulted,
wherever considered necessary or advisable but his advice can be over-ruled by the Principal
Accounting Officer concerned. The powers so delegated shall be subject to the observance of
austerity measures taken by the government from time to time and the availability of:

(i) funds, by valid appropriation or re-appropriation where permissible, from within the sanctioned
budget grant; and
(ii) foreign exchange, where required, from within the allocation of foreign exchange sanctioned
for the Ministry/Division concerned provided:

(1) specific provision exists in the foreign exchange budget;

(2) it does not involve re-appropriation from "import" to "invisible" or vice versa;

(3) it does not involve travel by another carrier on routes where PIA flights operate;

(4) it does not involve expenditure on entertainment or contingencies.

(b) Expenditure in first half of the financial year shall be restricted to the following limits: -

(i) Current Expenditure Non-SAP 40% of the total budget allocation in the financial year.

(ii) Current Expenditure: SAP 50% of the total budget allocation in

the financial year.

(iii) Development Exp; Non-SAP 45% of the total budget allocation in

the financial year.

(iv) Development Exp: SAP 50% of the total budget allocation in

the financial year.

(c) The Finance Division will undertake a review of expenditure and receipts in the first half of
the financial year on the basis of the reconciled accounts and formulate a strategy for operation of
the budget in the second half of the financial year. This exercise will be completed by the 20th of
January. No expenditure, except for pay and allowances and other obligatory unavoidable
expenditure will be incurred in the first fortnight of January. The Finance Division will issue
instructions on the basis of the review for the second half of the financial year.

(d) Ministries/Divisions shall send a monthly statement of expenditure (Demand wise) to

Finance Division (Budget Wing) through FA's Organization by 10th of each month.
(e) The financial powers delegated to the Ministries/Divisions under the Fundamental and
Supplementary Rules, General Financial Rules etc., prior to the introduction of Financial Adviser's
Scheme, shall stand enhanced/modified to the extent stated in this Office Memorandum.

(f) Except as specifically provided in Annex-I, further delegation of delegated powers shown in
Columns, 3 & 4 of Annex-I may, as considered appropriate, be made as follows:

(i) By the Secretaries of the administrative Ministries/Divisions, to the officers subordinate to them
in the Ministries/Divisions, without consulting their Financial Adviser;

(ii) By the Secretaries of the administrative Ministries/Divisions, to other officers subordinate to

them, in consultation with their Financial Adviser;

(iii) By the Heads of Departments, to the officers subordinate to them, in their headquarters
offices, without consulting the Financial Adviser;

(iv) By the Heads of Departments, to other officers subordinate to them

in consultation with the Financial Adviser.

Note. The term "Head of Department denotes head of Department as defined in S. R. 2(10)
[Finance Division O M. No. 3(4)Exp. 111/2000. dated 30 6-2000].

ANNEXURE I

[See para 5(a) of the Finance Division's 0 M. No F 3(4)Exp. /111-2000 dated 30-6-2000]
FINANCIAL POWERS DELEGATED TO THE MINISTRIES/DIVISIONS AND THE HEADS OF
DEPARTMENTS

Click here to view Annexture I details

Advance Payments for Execution of Work:

11. 10 The Federal Ministries/Divisions and Departments etc. are required to pay in advance the
estimated expenditure/charges, to the extent indicated below, for the jobs/works to be undertaken
by the following agencies: -

Amount of
Nature ofAdvance
Name of workAdditions/alteration/
Remarks
Agency partitions in the Office
building etc.

(1) P. P. W. Full cost The scheme of epartmentalization of

D. Accounts was implemented in the P. P. W.
D. with the concurrence of the Finance
Division w. e. f. 1-1-1976. According to the
Provision contained
in Para 18 of scheme of the
Departmentalization of Accounts, the Civil
Departments of the Federal Government
or Departments of
Provincial Governments are required to
pay in advance the gross estimated
 expenditure out of their sanctioned budget
grant to the Divisional
Accounts Officer of the PPWD in lump-
sum or in instalments, by such date as
may be specially authorised by the
authority competent to accord technical
sanction to the estimate.

The Economic Coordination Committee of

the Cabinet, in its meeting held on 13-4-
75% of the1971. had
(2) Printing tion ofdecided that the Printing Corporation of
Corpora- Printing work Pakistan. Pakistan be allowed to charge 75% of the
Printing total cost. total
value of jobs it undertakes in advance and
the balance of 25% after delivery of the
printed material.

11. 11 Although the Ministries/Divisions and Departments etc. have full powers for incurring
expenditure on the carrying out the above quoted jobs without obtaining approval of the F. As'
Organizations, such cases are referred to that organizations for their sanction simply on account
of involvement of payment of advances.

11. 12 As the above agencies have been authorised by the Government to carry out the
works/jobs on advance payment basis, the Ministries/Divisions/ Departments etc. are authorised
to make payment of advance in above mentioned cases without obtaining sanction from the F. As
Organizations.
[Finance Division O.M.No.F.3(21) R-12/81,dated 9-12-1981]

BENEVOLENT FUND AND GROUP INSURANCE

Introduction:

12.1 Benevolent Fund and Group Insurance are regulated by the Federal Employees Benevolent
Fund and Group Insurance Act,1969,as amended vide Act .No.XXV of 1975,Ordinance XLIX of
1980 and Ordinance No.VI of 1988.

Broadly speaking, the Act applies to all civil servants including-

(i) person appointed to the Secretarial staff of the National Assembly or the Senate, or
any officer or servant of the supreme court or of the Election Commission, or

(ii) any officer or servant of such body Corporate Institutions, Organizations or

Autonomous Bodies as the Federal Government may, by notification in the official
Gazette, specify, and

(iii) any such person, officer or servant, as aforesaid ,who is on deputation elsewhere or
on foreign service within the meaning of the Fundamental Rules, or

(iv) undergoing study or training in or outside Pakistan, or

 (v) on leave

(vi) under suspension;

but does not include any person who-

a) is an employee of the Railways;

b) has attained the age of 60 years;or

c) is an officer or servant of a Provincial Government on deputation to Federal

Government.

Definitions:

12.2 The family for the purpose means-

In the case of male employee, the wife or wives and in the case of a female employee,the
husband of the employee,and

(b) the legitimate children, parents, minor brothers, unmarried, divorced or widowed sisters of the
employee wholly dependent upon him.

12. 3 The term ' Pay' includes emoluments, which reckon for pension and the pay an employee
would have drawn but for his deputation, suspension or leave.

Benevolent Fund:

12. 4 Every employee is required to pay to the Benevolent Fund a monthly subscription *[equal
to two per cent of his pay maximum Rs. 100. 00].
The amount of subscription, as far as possible, should be deducted at source from
his pay and credited or remitted to the Benevolent Fund.

12. 5 If the amount of subscription, for any reason, cannot be deducted from the pay of the
employee, he should remit it to the officer prescribed for the purpose. Any amount of subscription
remaining unpaid due to inadvertence or negligence of the employee or otherwise should be
recovered from him in such manner as may be prescribed by the rules.

12. 6 Default in the payment of subscription either from the reason that the pay of the employee
was not drawn or due to his inadvertence, negligence or fault or any other reason whatsoever
would not affect his right or the right of his family to receive the benevolent grant, but the amount
of unpaid subscription may be deducted therefrom.

12. 7 On the death of an employee the amount of benevolent grant payable under section 13,
shall be paid to such member or members of his family as he might have nominated in
accordance with the rules in full or in the sharesspecified by him at the time of making of
nomination. Where a valid nominationdoes not exist at the time of death of an employee, the
amount of benevolent grant shall be paid to such member or members of his family, subject to
such conditions imposed with a view to ensuring that the amount is justly and equitably utilized for
the maintenance and benefit of all the members of the family, as may be rescribed by the Board
of Trustees of the Federal Employees Benevolent and Insurance Fund.
12. 8 The provisions contained in paragraphs 12. 5, 12. 6 and 12. 8 will be equally applicable in
the case of payment of the sum assured.

12. 9 The following procedure is to be observed for the collection of premium and subscription for
the Insurance Fund and Federal Employees

*Subs vide Estt. Division's letter No. 14/7/Admn-BT dated 15-9-1988 w. e. f. 4-9-1988.
Benevolent Fund respectively: -

(i) In the case of B-16 & above officers the deductions are to be made by officers themselves from
their paybills/computerised payroll.

(ii) For the establishment the Drawing and Disbursing Officers have to make the deduction from
establishment pay bills/computerised payrolls in respect of Benevolent Fund only.

(iii) No deduction on account of Group Insurance premia is to be made in respect of B-l to B-15
establishment, as it is to be paid by the Government. However, the amount to be paid by the
Government on that account should be worked out at the prescribed rate and shown in the
relevant columns of schedule in Form TR-55-A.

[Finance Division Idler No. F. 6-11/69-B. Ill dated I2-4-I969].

Payment of subscriptions or premia in default:

12. 10 Where the amount of subscription to the Benevolent Fund or the premium to the
Insurance Fund cannot, for any reason, be deducted from the pay of an employee, the employee
shall

(a) in case he is serving abroad, remit the amount to the head of his department; and

(b) in any other case, remit the amount to the Secretary.

12. 11 In the case referred to in clause (a) the head of department and in the case referred to in
clause (b) the Secretary shall deposit the amount received by him to the credit of Benevolent
Fund or, as the case may be, the Insurance Fund, in the National Bank of Pakistan or any other
scheduled bank approved by the Board.

12. 12 Any amount of subscription to the Benevolent Fund or any premium to the Insurance
Fund remaining unpaid due to inadvertence or negligence of the employee or otherwise shall
upon a direction in writing of the Board, be deducted, in the case of an employee of an
Organization, by the head of the Organization, and in any other case, by the Accounts Officer,
from the salary of such employee.

12. 13 Where the Accounts Officer or the head of the Organization as the case may be, upon a
request being made in writing by the employee finds that deduction of the amounts remaining
unpaid will result in any hardship to the employee, he may deduct the amount in such number of
instalments, not exceed ing twelve, as he may decide.

Medical Authority for declaring an employee incapacitated:

12. 14 The medical authority which, in accordance with the rules or regulations governing his
employment, declares an employee to have been completed incapacitated physically or mentally
to discharge the duties of his employment shall be the medical authority for the purposes.
Nomination of beneficiaries of the benevolent fund grant and of the assured:

12. 15 (i) Every employee shall make a nomination conferring on one or more members of his
family the right to receive a specified share of the benevolent grant or the sum assured that may
be payable.

(ii) The employee may provide in the nomination

(a) that, in the event of any one of the nominees predeceasing the employee, the right
conferred upon that nominee under (i) shall pass to such other member or members of the
employee's family as he may specify in the nomination; and

(b) that the nomination in respect of all or any of the nominees shall become void in the event of
the happening of any con tingency specified.

(iii) Every nomination shall be in Form 'A'.

(iv) An employee may at any time cancel a nomination made under (i)and make a fresh
nomination.

(v) A nomination under (i), or a fresh nomination under (iv), made by an employee shall be in
triplicate and one copy of the nomination or, as the case may be, fresh nomination shall be signed
by the head of the office and returned to the employee, one copy shall be placed in the
Confidential Report, or, as the case may be. Service Book of the employee and the third copy
shall be placed in the Master Folder to be maintained by the department concerned.

(vi) A nomination under (i), or a fresh nomination under

(iv), made by an employee shall, to the extent it is valid, take effect on the date on which it is
received by the department to whom it is sent under (v).

12. 16 In accordance with the Federal Employees Benevolent Fund and Group Insurance
(Amendment) Ordinance, 1988 (Ordinance No. VI of 1988) read with Establishment Division
Notifications No. S. R. O. 753 (I)/88 & S. R. O. 754 (I)/88 of 4th September, 1988 the provisions
contained in the preceding paragraph would stand amended w. e. f. 4th September, 1988, to the
extent indicate in the succeeding paragraphs.

"Benevolent grants to be paid from the Benevolent Fund:

12. 17 If an employee

(a) is declared by the prescribed medical authority to have been completely incapacitated
physically or mentally to discharge the duties of his employment and is for that reason retired or
removed from service, he shall be entitled to receive for life such benevolent grant
from the Benevolent Fund as may be prescribed; or

(b) dies during the continuance of his employment, or during retirement before attaining the age
of seventy years, his spouse shall be entitled to receive for life such benevolent grant from the
Benevolent Fund as may be prescribed:

Provided that, if the deceased employee has no spouse or his spouse has died, the other
members of his family shall be entitled to receive benevolent grant from the Benevolent Fund for
a period of fifteen years or up to the date the deceased employee would have
attained the age of seventy years, whichever is earlier:
Provided further that, in the case of an employee who dies after having drawn benevolent grant,
the said period of fifteen years shall be reckoned from the date from which he began drawing
such grant.

Contribution to & benefits from Benevolent Fund:

12. 18 The rate of contribution to the Benevolent Fund and the amount of monthly grant payable
out of the Benevolent Fund will be as under:

S Monthly Rate of MonthlyRate Of monthly

.No Pay Contribution BenevolentGrant
1 501 t0 600 Rs 11 Rs 270
2 601-700 13 300
3 701-702 15 330
4 703-704 17 360
5 705-706 19 390
6 707-708 21 420
7 709-800 23 450
8 801-802 25 480
9 803-804 27 510
10 805-806 29 540
11 807-808 31 570
12 809-810 33 600
13 1801-1900 35 630
14 1901-2000 37 660
15 2001-2100 39 690
16 2101-2200 41 720
17 2201-2300 43 750
18 2301-2400 45 780
19 2401-2500 47 810
20 2501-2600 49 840
21 2601-2700 51 870
22 2701-2800 53 900
23 2801-2900 55 930
24 2901-3000 57 960
25 3001-3100 59 990
26 3101-3200 61 1020
27 3201-3300 63 1050
28 3301-3400 65 1080
29 3401-3500 67 1110
30 3501-3600 69 1140

31 3601-3700 71 1170
32 3701-3800 73 1200
33 3801-3900 75 1230
34 3901-4000 77 1260
35 4001-4100 79 1290
36 4101-4200 81 1320
37 4201-4300 83 1350
38 4301-4400 85 1380
39 4401-4500 87 1410
40 4501-4600 89 1440
41 4601-4700 91 1470
42 4701-4800 93 1500
43 4801-4900 95 1530
44 4901-5000 97 1560
5001&
45 99 1590
above
46 100 1610

Contribution to the Group Insurance Fund:

12. 19 *The rate of contribution to the Group Insurance Fund and the
amount of sum assured to be paid to the family of an employee, with effect from
first January, 1996, shall be as under: ?

S. No. Monthly Pay Rate of Monthly Sum Assured

(Rs. ) Contribution (Rs )

(Rs. )

1 2 3 4

1. Up to 1500 24. 50 70, 000

2. 1501 2000 29. 75 85, 000

3. 2001 2500 35. 00 100. 000

4. 2501 3000 40. 25 115. 000

5. 3001 3500 45. 50 130, 000

6. 3501 4000 50. 75 145, 000

7. 4001 4500 56. 00 160. 000

8. 4501 5000 61. 25 175, 000

9. 5001 5500 66. 50 190. 000

10. 5501 6000 71. 75 205, 000

11. 6001 6500 77. 00 220, 000

12. 6501 7000 82. 25 235, 000

13. 7001 7500 87. 50 250. 000

14. 7501 8000 92. 75 265, 000

15. 8001 8500 98. 00 280, 000

16. 8501 9000 103. 25 295, 000

17. 9001 9500 108. 50 310. 000

18. 9501 10000 113. 75 325. 000

19. 10001 10500 119. 00 340, 000

20. 10501 11000 124. 25 355, 000

21. 11001 11500 129. 50 370, 000

22. 11501 12000 134. 75 3, 85. 000

23. 12001 12500 140. 00 400, 000

24. 12501 13000 145. 25 415, 000

*Subs vide Establishment Division S. R O. 21(1)/96 dated 28-12-1995.

150.50
25. 13001 13500 430,000

155.75
26. 13501 14000 445,000

161.00
27. 14001 14500 460,000

166.25
28. 14501 15000 475,000

171.50
29 15001 15500 490,000

176.75
30. 15501 16000 505,000

182.00
11. 1600 & above & above 520,000
12 20 The Benevolent Grant which was not draw by the ben-
eficiary during his life shall be paid to his family members up to Rs
*[20, 000] on production of an Indemnity Bond -

Provided that, the total amount exceeds Rs. [2o, 000] it shall
be paid on production of a Succession Certificate]

Discontinuance of Grant:

12 21 - (I) The Benevolent Grant shall be discontinued it

(a) an employee retired on medical grounds under clause (a)

of section 13 gets usefully employed or sets up viable
business and his monthly income exceeds Rs 700; or

(b) the recipient of the grant ceases to be a member of the

family as defined in sub-section (5) of section 2

(2) The recipient of grant shall be required to furnish a cer-

tificate every quarter that he has not ceased to be eligible for the grant
on account of marriage, employment or setting up business as the
case may be

Payment of benevolent grant and the sum assured where no valid nomination exists:

12 22 Where no valid nomination made by the employee subsists at the time of his death in
relation to the whole of the amount of the benevolent grant and the sum assured or any part
thereof, the whole amount or as the case may be, the part to which the nomination does not
relate, shall be paid to the member or ?Substituted for "5000" by the S R O No 165(l) 2004, the
Gaz of Pak,, Extr,, Pt II, P. No. 429, dt. March 18, 2004 (w, e, f the 1st December 2003).
members of the family of the deceased employee in the manner hereinafter
appearing: ?

(a) The Board or an officer authorised by it in this behalf, may determine the members of the
family of the deceased employee who are eligible to receive the benevolent grant and the sum
assured:

Provided that if the members of the family of the deceased employee are determined by an officer
authorised by the Board, any member may, within thirty days of such determination, appeal to the
Board.

(b) If the members of the family of the deceased employee agree to nominate any one of them
to receive the benevolent grant and the sum assured, the payment shall be made to that member.

(c) If there is no such agreement, the payment shall be made in the

following manner: ?

(i) if the deceased employee is survived by wife or, as the case may be, husband, the benevolent
grant and the sum assured shall be paid to her or, as the case may be, him; and, in case the
deceased employee is survived by more than one wife, the amount of the benevolent grant and
the sum assured shall be distributed between them in the ratio of the number of members each
one of them will maintain:
Provided that the recipient shall undertake to utilize the amount so received for the maintenance
and benefit of all the members of the family of the deceased employee;

(ii) if the deceased employee is not survived by wife or, as the case may be, husband, the amount
of the benevolent grant and the sum assured shall be distributed amongst the members of the
family of the deceased employee keeping in view the require-
ment of each member.

Submission of application for benevolent grant and Group Insurance:

12. 23 (i) On the death of an employee during the continuance of his employment, the head of the
office of such employee shall forward through the head of the department, an application in Form
'B" to the Board for payment of the benevolent grant and the sum assured.

(ii) When an employee is declared by the medical authority to have been completely
incapacitated physically or mentally to discharge the duties of his employment and is. for that
reason, removed from service, the head of the office of such employee shall forward, through the
head of the department, an application in Form "B" to the Board for payment of the benevolent
grant.

(iii) Upon receipt of an information that a retired employee has died within the period laid down,
the head of the office where from such employee retired shall forward, through the head of the
department, an application in Form 'B' to the Board for payment of the benevolent grant.

(iv) Upon receipt of an application, the Board shall, after making such enquiry and taking such
evidence in the case of an application as it may consider necessary, pay the benevolent grant, or
the sum assured, or both as the case may be. to the person entitled to receive it.

FORM 'A'

Name and Designation of the employee,

Service/Department_______________

I hereby nominate the person/persons mentioned below who is/are

member/members of my family as defined in Section 2 of the Federal Employees
Benevolent Fund and Group Insurance Act, 1969 (II of 1969), to receive the
benevolent grant and the sum assured in the event of my death.

Part-I
(For wife/husband only)

Name of nominee/nominees

Relationship Age Specification

of share

Remarks

Part-I I
(For members of family other than wife/husband)

Name of nominee/nominees Relationship Age Specification Remarks of share

Certified that the member or members of my family mentioned in Part-II
reside with me and are wholly dependent upon me.

The earlier nomination made by me may kindly be treated as cancelled.

Dated--------------------- Signature or thumb impression of the

employee.

(Name in block letters)

Witness: Service and Department

1. (Signature/thumb impression)

(Name and Designation in block letters)

2. (Signature/Thumb impression)

(Name and Designation in block letters)

Signature and seal of the head of

the office.

FORM 'B.

Part I
1. (a) Name of the deceased/incapacitated employee-

(b) Father's/Husband's name-

(c) His/her service or department-

(d) Head of Office-----------------

(e) Station/Place of last posting-

(f) Last appointment held------

2. Pay per month i. e.

(a) Basic pay

(b) Special pay

(c) Technical pay

(d) Personal pay

(e) Indexation pay

(f) ................
3. Date of Birth-

4. Date of entry into Service?

5. Date of death (death cases only)-

6. Date of removal from service on account of

(a) Incapacitating---------------------------

(b) Retirement-------------------------------

(c) Death during service-

7. Name/Names of nominee/nominees (Nomination required both in death

and invalid cases).

Name Age Relation- Profession Marital Monthly

ship status Income

(a)
(b)
(c)
(d)
(e)
(f)

8. Address of nominee(s) of the deceased or incapacitated employee where

correspondence can be made. (In death cases where there is no nomination similar particulars of
eligible dependent may be given).

9. Branch of National Bank of Pakistan nearest to the residence of beneficiary/beneficiaries.

10. Period for which contributions to Benevolent and Group Insurance Funds
were not paid---------------------------------------------------------------

Part II
11. Following Documents must be submitted with Claim:

(a) Annex "A ". ?A copy of last pay certificate by the Head of the Office duly attested by the
Head of Department.

(b) Annex "B". ?Attested photostat copy of the page of service book/
document showing date of birth.

(c) Annex "C". ?Attested photostat copy of the page of service book
showing date of entry in service.

(d) Annex "D". ?(Death Cases only) three copies of death certificate duly attested. These may
be in the form of office order notifying the death, certificate by a medical officer or extract from the
register of births/death of Union Council/Union Committee/Municipal
Committee.

(e) Annex "E". ?(Invalid Cases) A copy of the Medical Board proceedings duly attested by the
Head of the Department. Medical Board must comprise of three Medical Officers one of them
being a specialist. Medical Board proceedings must record the case history
and the exact nature of disability. (See Part IV).

(f) Annex "F". ?Nomination form duly attested.

(g) Annex "G". -?List of family members and dependent i. e., wife/wives, children, father,
mother, minor brothers and unmarried/divorced sisters. The list should indicate name,
relationship,age, marital status, profession, monthly income and present address.

(h) Annex "H". ?Wholly dependence certificate (other than wife and husband) by the Head of
Department.

(i) Annex "I". ?Envelop containing four copies of photographs duly attested in respect of each
nominee or the incapacitated employee bearing the name of the person on the reverse of three
photos and one on the face. In case of purdah observing ladies, photographs will not be required.
A certificate that they are Purdah observing must be attached.

(j) Annex "J". ?Four signatures/thumb impressions on separate sheets (four on each sheet) of
each nominee/dependents/incapacitated employee duly attested by the competent authority.Part
III

CERTIFICATE BY THE HEAD OF DEPARTMENT

1. Certified that the information contained above is correct according to our record.

2. Certified that the above named employee is/was neither a contingency work charged
employee nor a deputation's from any Provincial Government. (In case of a deputation's from one
Federal Government Department to another, the case will be preferred by his parent
Department).

3. Certified that the employee died during the continuance of his service (death cases only).

4. Certified that the employee died after retirement before attaining the age of seventy years
(death after retirement cases only).

5. Certified that the above claim has been preferred for the first time and has not been sent
previously.

N. B. ?Score out which is not applicable.

Dated: -------------?---- Seal & Signature

Head of the Office.

Forward to the Assistant Director, Regional Board, Federal Employees

Benevolent and Group Insurance Funds, Karachi/Islamabad.
Dated--------------------- Seal & Signature.

Head of the Department.

Part IV

INVALIDATION CERTIFICATE FEDERAL EMPLOYEES

[See CSR Articles 442 (d), (e) 443 (a), (b) & (c) and 447]

I. Important Instructions

(a) All columns must be typed.

(b) All columns must be filled. Those not applicable must be crossed.

(c) Head of the Department is personally responsible for accurate completion of this form.

(d) An individual will not be removed from service until Head of the Department has approved
the Medical Board proceedings.

(e) Medical Board must comprise three members one being a Specialist.

Name------------------------------------S/o, D/o, W/o--------------------------------------

Designation------------------------------Office---------------------------------------------

Department------------------------------Total Service------------------------------------

Age: Per Statement/documents------------------per appearance------------------------

Identification Marks------------------------------------------------------------------------

(Left hand thumb impressions/signatures duly attested).

Option: (A detailed statement of medical case, and of the treatment adopted as per CSR 443 (a).
If necessary attach documents).

Signatures & Seal of

Medical Specialist.
2. Opinion of the Medical Board

In consequence of---------------------------------------------------------------------

We consider him/her (name)------------------------------------------------------

(a) To be completely and permanently incapacitated for further service of any kind.

(b) Completely and permanently incapacitated for service in the Department to which he/she
belongs.
(c) Incapacitated for service in the appointment which he now holds but we are of the opinion
that he/she is (or may after resting

for---------------months be) fit for further service of less laborious character than that which he/she
has been doing.

(d) His/her degree of disability ?-------------------------------

(e) His/her incapacity does/does not appear to have been caused/aggravated or accelerated by
irregular or intemperate habits.

Dated: -------------------- President?

(Name, Signature & Seal)

Member-------------------- Member----------------------

(Name, Signature & Seal) (Name, Signature & Seal)

APPROVED/NOT APPROVED

For partial disability See CSR Article 447 (b). If a person is likely to improve after a certain period
he may be given long leave admissible to him instead of invaliding him out of service.

Place-

Dated-

HEAD OF DEPARTMENT,

(Name, Signature and Seal).

(Estt. Division S. R. O. No. 754(IV88 dated 4-9-1988).

CHAPTER XIII APPENDICES

The Civil Servants Act, 1973*

(Act No. LXXI of 1973)

An Act to regulate the appointment of persons to, and the terms and conditions of service of
persons in, the service of Pakistan WHEREAS it is expedient to regulate by law, the appointment
of persons to, and the terms and conditions of service of persons in, the service of Pakistan, and
to provide for matters connected there with or ancillary thereto;

It is hereby enacted as follows: -

1. Short title, application and commencement. - (1) This Act

may be called the Civil Servants Act, 1973.
(2) It applies to all civil servants wherever they may be.

(3) It shall come into force at once.

CHAPTER - I PRELIMINARY

2. Definitions. - (1) In this Act, unless there is anything repugnant in the subject or context, -

(a) "ad hoc appointment" means appointment of a duly qualified person made otherwise than in
accordance with the prescribed method of recruitment, pending recruitment in accordance with
such method;

(b) "civil servant" means a person who is a member of an

*The Act received assent of the President on the 26th September, 1973 and was
published in the Gaz. of Pak., Extr., Pt. I, dt. September 29, 1973.

All-Pakistan Service or of a civil service of the Federation, or who holds a civil post in connection
with the affairs of the Federation, including any such post connected with defence, but does not
include -

(i) a person who is on deputation to the Federation from any Province or other authority;

(ii) A person who is employed on contract, or on work-charged basis or who is paid from
contingencies; or

(iii) a person who is a "worker" or "workman" as defined in the Factories Act, 1934 (XXV of 1934),
or the Workman's Compensation Act, 1923 (VIIIof 1923);

(c) "initial appointment" means appointment made otherwise than by promotion or transfer;

(d) "pay" means the amount drawn monthly by a civil servant as pay and includes technical pay,
special pay, personal pay and other emoluments declared by the
prescribed authority to be pay;(e) "permanent post" means a post sanctioned without
limit of time;

(f) "prescribed" means prescribed by rules;

(g) "rules" means rules made or deemed to have been made under this Act;

(h) "selection authority" means the Federal Public Service Commission, a departmental selection
board, departmental selection committee or other authority or body on the recommendation of, or
in consultation with which any appointment or promotion, as may be
prescribed, is made; and

(i) "temporary post" means a post other than a permanent post.

(2) For the purposes of this Act, an appointment, whether by promotion or otherwise, shall be
deemed to have been made on regular basis if it is made in the prescribed manner.

CHAPTER - II
TERMS AND CONDITIONS OF SERVICE OF CIVIL SERVANTS

3. Terms and conditions. - *[(1)] The terms and conditions of service of a civil servant shall be
as provided in this Act and the rules.

*[(2) The terms and conditions of service of any person to whom this Act applies shall not be
varied to his disadvantage]

4. Tenure of office of civil servants. - Every civil servant shall hold office during the pleasure of
the President.

5. Appointments. - Appointments to an All-Pakistan Service or to a civil service of the

Federation or to a civil post in connection with the affairs of the Federation, including any civil
post connected with defence, shall be made in the prescribed manner by the President or by a
person authorised by the President in that behalf.

6. Probation. - (1) An initial appointment to a service or post referred to in section 5, not being
an ad hoc appointment, shall be on probation as may be prescribed.

(2) Any appointment of a civil servant by promotion or transfer to a service or post may also be
made in probation as may be prescribed.

Where, in respect of any service or post, the satisfactory completion of probation includes the
passing of a prescribed examiation, test or course or successful completion of any training, a
person appointed on probation to such service or post who,

*Section 3 re-numbered as sub-section "(1)" and thereafter sub-section (2) added by the C. S.
(Amdt. ) Act, 1996 (No. V of 1996), the Gaz. of Pak., Extr., Pt. I, dt. 17th March, 1996 before the
expiry of the original or extended period of his probation, has failed to pass such examination or
test or to successfully complete course or the training shall, except as may be prescribed
otherwise, -

(a) if he was appointed to such service or post by initial recruitment, be discharged; or

(b) if he was appointed to such service or post by promotion or transfer, be reverted to the
service or post from which he was promoted or transferred and against which he holds a lien or, if
there be no such service or post, be discharged:

Provided that, in the case of initial appointment to a service or post, a civil servant shall not be
deemed to have completed his period of probation satisfactory until his character and
antecedents have been verified as satisfactory in the opinion of the appointing authority.

7. Confirmation. - (1) A person appointed on probation shall, on satisfactory completion of his

probation, be eligible for confirmation in a service or, as the case may be., a post as may be
prescribed.

(2) A civil servant promoted to a post *[ * * ] on regular basis shall be eligible for confirmation
after rendering satisfactory service for the period prescribed for confirmation therein.

(3) There shall be no confirmation against any temporary post.

(4) A civil servant who, during the period of his service, was eligible to be confirmed in any
service or against any post retires from service before being confirmed shall not, merely by
reason of such retirement, be refused confirmation in such service or post or any benefits
accruing therefrom.

(5) Confirmation of a civil servant in a service or post shall take effect from the date of
occurrence of permanent vacancy in that

*In sub-section (2), the word "Grade" omitted by the Ord. No. III of 1984, the
Gaz. of Pak., Extr., Pt. I, dt. 22nd January, 1984 (w. e. f. 01-07-1983).

service or post or from the date of continuous officiation, in such service or post, whichever is
later.

8. Seniority. - (1) For proper administration of a service, cadre or 1[post] the oppointing
authority shall cause a seniority list of the members for the time being of such service, cadre or
1[post] to be prepared, but nothing herein contained shall be construed to
confer any vested right to a particular seniority in such service, cadre or 1[post], as the case may
be.

(2) Subject to the provisions of sub-section (1), the seniority of a civil servant shall be reckoned
in relation to other civil servants belonging to the same 1[service or cadre] whether serving in the
same department or office or not, as may be prescribed.

(3) Seniority on initial appointment to a service, cadre or post shall be determined as may be
prescribed.

(4) Seniority in 1[a post, service of cadre] to which a civil servant is promoted shall take effect
from the date of regular appointment to that post:

Provided that civil servants who are selected for promotion to a higher 1[post] in one batch shall,
on their promotion to the higher *[post], retain their inter se seniority as in the lower 1[post].

9. Promotion. - (1) A civil servant possessing such minimum qualifications as may be

prescribed shall be eligible for promotion to a 1[higher] post for the time being reserved under the
rules for departmental promotion in 2[ * * * ] the service or cadre to which
he belongs 3[: ]

3[Provided that the posts of -

(a) Additional Secretary and Senior Joint Secretary may, in the public interest, be filled by
promotion from Substituted by the Ord. No. III of 1984, the Gaz. of Pak., Extr., Pt. I, dt. 22nd
January, 1984 (w. e. f. 01-07-1983).

2In section 9, in sub-section (1), omitted, ibid.

3In sub-section (1), at the end full stop subs. & proviso added by the Ord. No. XXXIII of 2001, the
Gaz. of Pak., Extr., Pt. I, P. No. 821, dt. August 4, 2001 amongst officers of regularly constituted
Occupational Groups and services holding, on regular basis,posts in Basic Pay Scale 20; and

(b) Secretary may, in the public interest, be filled by promotion from amongst officers of regularly
constituted Occupational Groups and services holding, on regular basis, posts in Basic Pay Scale
21,in such manner and subject to such conditions as may be prescribed. ]
(2) A post referred to in sub-section (1) may either be a selection post or a non-selection post to
which promotions shall be made as may be prescribed -

(a) in the case of a selection post, on the basis of selection on merit; and

(b) in the case of a non-selection post, on the basis of seniority-cum-fitness.

*[(3) Promotion to posts in basic pay scales 20 and 21 and equivalent shall be made on the
recommendations of a Selection Boardwhich shall be headed by the Chairman, Federal Public
Service Commission. ]

10. Posting and transfer. - Every civil servant shall be liable to serve any where within or outside
Pakistan, in any 2[equivalent or higher] post under the Federal Government or any Provincial
Government or local authority, or a corporation or body set up or established by any such
Government:

Provided that nothing contained in this section shall apply to a civil servant recruited specifically
to serve in a particular area or region:

1Sub-section (3) added by the Ord. No. XLIII of 2000, the Gaz. of Pak., Extr., Pt.
I, P. No. 631, dt. September 6, 2000.

2In section 10, inserted by the Civil Servants (Amdt. ) Act, 1996 (Act No. V of
1996), the Gaz. of Pak., Extr., Pt. I, P. No. 329, dt. March 17, 1996.

Provided further that, where a civil servant is required to serve in a post outside his service or
cadre, his terms and conditions of service as to his pay shall not be less favourable than those to
which he would have been entitled if he had not been so required to serve.

11. Termination of service. - (1) The service of a civil servant may be terminated without notice -

(i) during the initial or extended period of his probation:

Provided that, where such civil servant is appointed by promotion on probation or, as the case
may be, is transferred from one *[service], cadre or post to another *[service] cadre or post, his
service shall not be so terminated so long as he holds a lien against his former post in such
'[service] cadre or post but he shall be reverted to his former *[service], cadre or post, as the case
may be;

(ii) on the expiry of the initial or extended period of his employment; or

(iii) if the appointment is made ad-hoc terminable on the appointment of a person on the
recommendation of the selection authority, on the appointment of such person.

(2) Where, on the abolition of a post or reduction in the number of posts in a cadre or *[service]
the services of a civil servant are required to be terminated, the person whose ervices are
terminated shall ordinarily be the one who is the most junior in such cadre
or *[service].

(3) Notwithstanding the provisions of sub-section (1), but subject to the provisions of sub-
section (2), the service of a civil servant in temporary employment or appointed ad hoc shall be
liable to termination on fourteen days' notice or pay in lieu thereof.
*Substituted by the Ord. No. III of 1984, the Gaz. of Pak., Extr., Pt. 1, dt. 22nd
January, 1984 (w. e. f. 01-07-1983).

Absorption of civil servants rendered surplus. - Notwithstanding anything contained in this Act, the
rules, agreement,contract or the terms and conditions of service, a civil servant who
is rendered surplus as a result of re-organization or abolition of aDivision, department, office or
abolition of a post in pursuance of Government decision may be appointed to a post, arrying
basic pay scale equal to the post held by him before such appointment, if he possesses the
qualifications and fulfils other conditions applicable to that post:

Provided that where no equivalent post is available he may be offered a lower post in such
manner, and subject to such conditions, as may be prescribed and where such civil servant is
appointed to a lower post the pay being drawn by him in the higher post immediately preceding
his appointment to a lower post shall remain protected. ]

2[11B. (1) Where it is brought to the notice of the appointing authority that appointment of a
person to a civil post was made without observing the prescribed procedure or without fulfilling
the prescribed qualification, experience and age limit, it may send a reference to the Federal
Public Service Commission for determination whether he is fit to hold the post to which he was
appointed and, if not, whether he is fit to hold any other post compatible with
his qualification and experience.

(2) On receipt of the advice of the Federal Public Service Commission on a reference made
under sub-section (1), the appointing authority may pass such order of appointment or
termination of service as may be considered by it to be just and equitable:

Provided that if it is proposed to pass order of termination of service in the light of the advice of
the Commission, a reasonable opportunity of showing cause against the order of termination,
shall be provided.

(3) Where an order of appointment is made on the advice of '

Section 11A inserted by the Ord. No. XX of 2001, the Gaz. of Pak... Extr., Pt. I, P. No. 281, dt.
April 14, 2001.

2Section 11B inserted by the Civil Servants (Amdt. ) Ord., 2002 (Ord. No. CXXX
of 2002), the Gaz. of Pak., Extr., Pt. I, P. No. 1999, dt. November 21, 2002.

the commission,it shall be treated as acase of fresh appointment and siniority of such an
appointee shall be determined in accordance with the Civil Servants (Seniority) Rules,1993.]

1[12.Reversion to Lower Post, etc.- (1) A civil servant appointed to a higher post on ad
hoc,temporary or officiating basis shall be liable to reversion to his lower post.
(2) No civil servant shall be dismissed or removed from service or reduced in a rank by an
authority subordinate to that by which he is appointed.
(3) No such civil servant as afoesaid shall be dismissed or removed from service,or reduced in
rank ,untill he has been given a reasonable opportunity of showing cause against the action
proposed to be taken against him.

Provided that his sub-section shall not apply.

(i) where a civil servant is dismissed or removed from or reduced in rank on the ground of
conduct which has led to his conviction on a criminal charge;or
(ii)Where the president or person authorised by him under the rules is satisfied, for reasons to be
recorded in writing,that in the interest of the security of Pakistan or any part thereof,it is not
expedient to give to that civil servant such an opportunity.]

2[12A. Certain persons to be liable to removal, etc. - Notwithstanding anything contained in this
Act or in the terms and conditions of a civil servant appointed or promoted during the period from
the first day of January, 1972, to the fifth day of July, 1977, the President or a person authorised
by him in this behalf may -

1Section 12 substituted by the Act No. V of 1996, the Gaz. of Pak., Pt. I, P. No.
329, dt. 17th March, 1996.
2Section 12-A substituted by the ord.NoXXXIV of 1980,the Gaz.of Pak.,Extr., dt.3rd July,1980.
Note:-Persons whose service has been terminated under section 12-A of the Civil Servants Act
1973,are not disqualified from future employment under Government vide Establishment Division
O.M.No.4/9/78-Rev.I;dt.22-1-1984.

(a) without notice, remove such a civil servant from service or revert him to his lower post: [ * * ]
as the case may be, on such date as the President or, as the case may be, the person so
authorised may, in the public interest, direct; or

(b) in a case where the appointment or promotion of such a civil servant is found by the
President or, as the case may be, the person so authorised to suffer from a defi-
ciency in the minimum length of service prescribed for promotion or appointment to the higher
grade, direct, without notice, that seniority in such case shall count from the date of civil servant
completes the minimum, length of service in such appointment or promotion, as the case may be.
]

2[13. Retirement from service. - (1) A civil servant shall retire from service -

(i) on such date after he has completed 3[twenty] years of service qualifying for pension or other
retirement benefits as the competent authority may, in public
interest, direct; or

(ii) where no direction is given under clause (i), on the completion of the sixtieth year of his age.

(2) No direction under clause (i) of sub-section (1) shall be made until the civil servant has been
informed in writing of the grounds on which it is proposed to make the direction, and has been
given a reasonable opportunity of showing cause against the said direction.

Explanation. - In this Section, "competent authority" means the appointing authority prescribed in
rule 6 of the Civil Servants (Appointment, Promotion and Transfer) Rules, 1973. ]

'In clause (a), omitted by the Ord. No. III of 1984, the Gaz. of Pale., Extr., Pt. I,
dt. 22nd January, 1984 (w. e. f. 01-07-1983).

2Section 13 substituted by the Ord. No. XX of 2000, the Gaz. of Pak., Extr., Pt. I,
P. No. 187, dt. 1st June, 2000.

3In clause (i), substituted for "twenty-five" by the Ord. No. XXXIV of 2001, the
Gaz. of Pak., Extr, Pt. I, P. No. 823, dt. August 4, 2001.

14. Employment after retirement. - (1) A retired civil servant shall not be re-employed under the
Federal Government, unless such re-employment is necessary in the public interest and is made
with the prior approval of the authority next above the appointing
authority:

Provided that, where the appointing authority is the President, such re-employment may be
ordered with the approval of the President.

(2) Subject to the provisions of sub-section (1) of section 3 of the Ex-Government (Employment
with Foreign Governments) (Prohibition) Act, 1966 (XII of 1966), a civil servant may, during leave
preparatory to retirement, or after retirement from Govern-
ment service, seek any private employment:

Provided that, where employment is sought by a civil servant while on leave preparatory to
retirement or within two years of the date of his retirement, he shall obtain the prior approval of
the prescribed authority.

15. Conduct. - The conduct of a civil servant shall be regulated by rules made, or instructions
issued, by Government or a prescribed authority whether generally or in respect of a
specifiedgroup or class of civil servants.

16. Efficiency and discipline. - A civil servant shall be liable to prescribed disciplinary action and
penalties in accordance with the prescribed procedure.

17. Pay. - A civil servant appointed to a post *[ * * ] shall be entitled, in accordance with the
rules, to the pay sanctioned for such post *[ * * ]:

Provided that, when the appointment is made on a current charge basis or by way of additional
charge, his pay shall be fixed in the prescribed manner:

Provided further that where a civil servant has, under an order:

*In section 17, omitted by the Ord. No. III of 1984, the Gaz. of Pak., Extr., Pt. I,
dt. 22nd January, 1984 (w. e. f. 01-07-1983).

which is later set aside, been dismissed or removed from service or reduced in rank, he shall, on
the setting aside of such order, be entitled to such arrears of pay as the authority setting aside
such order may determine.

18. Leave. - A civil servant shall be allowed leave in accordance with the leave rules applicable
to him, provided that the grant of leave will depend on the exigencies of service and be at the
discretion of the competent authority.

19. Pension and Gratuity. - (1) On retirement from service, a civil servant shall be entitled to
receive such pension or gratuity as may be prescribed.

(2) In the event of the death of a civil servant, whether before or after retirement, his family
shall be entitled to receive such pension, or gratuity, or both, as may be prescribed.

(3) No pension shall be admissible to a civil servant who is dismissed or removed from service
for reasons of discipline, but Government may sanction compassionate allowance to such a civil
servant, not exceeding two-thirds of the pension or gratuity which would have been admissible to
him had he been invalided from service on the date of such dismissal or removal.
(4) If the determination of the amount of pension or gratuity admissible to a- civil servant is
delayed beyond one month of the date of his retirement or death, he or his family, as the case
may be, shall be paid provisionally such anticipatory pension or gratuity as may be determined by
the prescribed authority, according to the length of service of the civil servant which qualifies for
pension or gratuity; and any over payment consequent on such provisional payment shall be
adjusted against the amount of pension or gratuity finally determined as payable to such civil
servant or his family.

20. Provident Fund. - (1) Before the expiry of the third month of every financial year, the
accounts officer or other officer required to maintain provident fund accounts shall furnish to very
civil servant subscribing to a provident fund the account of which he is required to maintain a
statement under his hand showing the subscription to, including the interests accruing thereon, if
any, and withdrawals or advances from his provident fund during the preceding financial year.

(2) Where any subscription made by a civil servant to his provident fund has not been hown or
credited in the account by the accounts or other officer required to maintain such account, such
subscription shall be credited to the account of the civil servant on
the basis of such evidence as may be prescribed.

21. Benevolent Fund and Group Insurance. - All civil servant and their families shall be entitled
to the benefits admissible under the Central Employees Benevolent Fund and Group Insurance
Act, 1969 (II of 1969), and the rules made thereunder.

22. Right of appeal or representation. - (1) Where a right to prefer an appeal or apply for review
in respect of any order relating to the terms and conditions of his service is provided to a civil
servant under any rules applicable to him, such appeal or application
shall, except as may be otherwise prescribed be made within thirty days of the date of such order.

(2) Where no provision for appeal or review exists under the rules in respect of any order or class
of orders, a civil servant aggrieved by any such order may, within thirty days of the
communication to him of such order, make a representation against it to the authority next above
the authority which made the order:

Provided that no representation shall lie on matters relating to the determination of fitness of a
person to hold a particular post or to be promoted to a higher post or grade.

CHAPTER - III MISCELLANEOUS

23. Saving. - Nothing in this Act or in any rule shall be construed to limit or abridge the power of
the President to deal with the case of any civil servant in such manner as may appear to him to
be just and equitable:

Provided that, where this Act or any rule is applicable to the case of a civil servant, the case shall
not be dealt with in any manner less favourable to him than that provided by this Act or such rule.

*[23A. Indemnity. - No suit, prosecution or other legal proceedings shall lie against a civil servant
for anything done in his official capacity which is in good faith done or intended to be done under
this Act or the rules, instructions or directions made or
issued thereunder.

23B. Jurisdiction barred. - Save as provided under this Act and the Service Tribunals Act, 1973
(LXX of 1973), or the rules made thereunder, no order made or proceedings taken under this Act,
or the rules made thereunder by the President or any officer authorized by him shall be called in
question in any Court and no injunction shall be granted by any Court in respect of any decision
made, or proceedings taken in pursuance of any power conferred
by, or under, this Act or the rules made thereunder. ]

24. Removal of difficulties. - If any difficulty arises in giving effect to any of the provisions of this
Act, the President may make such order, not inconsistent with the provisions of this Act, as may
appear to him to be necessary for the purpose of removing
the difficulty:

Provided that no such power shall be exercised after the expiry of one year from the coming into
force of this Act.

CHAPTER - IV RULES

25. Rules. - (1) The President or any person authorised by the President in this behalf, may
make such rules as appear to him to be necessary or expedient for carrying out the purposes of
this Act.

(2) Any rules, orders or instructions in respect of any terms

*Sections 23A & 23B inserted by the Ord. No. LXI of 2001, the Gaz. of Pak., Extr.,
Pt. I, P, No. 1525, dt. 7th November, 2001.

and conditions of service of civil servants duly made or issued by an authority competent to make
them and in force immediately before the commencement of this Act shall, in so far as such rules,
orders or instructions are not inconsistent with the provisions of this Act, be deemed to be rules
made under this Act. *Omitted by the Ordinance No. XXVII of 1981, Sec. 3 and Schedule 3. '

The Government Servants

(Efficiency & Discipline)
Rules, 1973

In exercise of the powers conferred by section 25 of the Civil Servants Ordinance, 1973 (No. XIV
of 1973), the President is pleased to make following rules, namely: -

1. Short title, commencement and application. - (1) These rules may be called the
Government Servants (Efficiency and Discipline) Rules, 1973.

1[(2) They shall come into force at once and shall apply to every civil servant. ]

2. Definitions. - In these rules, unless the context otherwise requires, -

(1) "accuse" means a Government servant against whom action is taken under these rules;

2[(2) "authority" means the appointing authority prescribed in rule 6 of the Civil Servants
(Appointment, Promotion and Transfer) Rules, 1973 3[: ]]

3[Provided that in the case of disciplinary proceedings already initiated against a Government
servant before 14th June 2000, the powers of "authority" shall
be exercised by the officer designated as such before the aforesaid date; ]

(3) 'authorised officer" means an officer authorised by

'Sub-rule (2) substituted vide S. R. O. 1809(I)/73, dt. 31st December, 1973.
2Clause (2) substituted by the S. R. O. 336(I)/2000, the Gaz. of Pak., Extr., Pt. II,
dt. 15th June, 2000.

3ln rule 2, in clause (2), at the end full stop substituted by colon and thereafter
proviso added by the S. R. O. 470(I)/2000, the Gaz. of Pak., Extr., Pt. II, P. No. 1035,
dt. july7, 2000.

the authority to perform functions of an authorised officer under these rules *or, if no officer is so
authorised, the authority;

(4) "misconduct" means conduct prejudicial to good order or service discipline or contrary to
Government Servants (Conduct) Rules, 1964 or unbecoming of an
officer and, a gentleman and includes any act on the part of a Government servant to bring or
attempt to bring political or other outside influence directly or indirectly to bear on the Government
or any Government officer in respect of any matter relating to the appointment, promotion,
transfer, punishment,retirement or other conditions of service of a Government servant; and (5)
"penalty" means a penalty which may be imposed
under these rules.

3. Grounds for penalty. - Where a Government servant in the

opinion of the authority -

(a) is inefficient or has ceased to be efficient; or

(b) is guilty of misconduct; or

(c) is corrupt, or may reasonably be considered corrupt because -

(i) he is, or any of his dependents or any other person through him or on his behalf is, in
possession (for which he cannot reasonably account) of pecuniary resources or of property
disproportionate to his known sources of income; or

(ii) he has assumed a style of living beyond his ostensible means; or

(iii) he has persistent reputation of being corrupt; or

Added vide Notification No. 4/2/77-D. I, dt. the July, 1978.

(d) is engaged, or is reasonably suspected of being engaged, in subversive activities, or is

reasonably suspected of being associated with others engaged in subversive activities or is guilty
of disclosure of official secrets to any unauthorised person, and his retention in service is,
therefore prejudicial to national security;

the authority may impose on him one or more penalties.

4. Penalties. - (1) The following are the minor and major

penalties, namely -

(a) Minor Penalties:

(i) censure;
(ii) withholding, for a specific period, promotion or increment, otherwise than for unfitness for
promotion or financial advancement in accordance with the rules or orders pertaining to the
serviceor post;

(iii) stoppage, for a specific period, at an efficiency bar in the time-scale, otherwise than for
unfitness to cross such bar;

(iv) recovery from pay of the whole or any part of any pecuniary loss cause to Government be
negligence or breach of orders;

(b) Major Penalties:

(i) reduction to a lower post or time-scale, or to alower stage in a time-scale;

(ii) compulsory retirement;
(iii) removal from service; and
(iv) dismissal from service.

(2) Removal from service does not, but dismissal from service does, disqualify for future
employment.

(3) In this rule, removal or dismissal from service docs not include the discharge of a person -

(a) appointed on probation, during the period of probation, or in accordance with the probation
or training rules applicable to him; or

(b) appointed, otherwise than under a contract, to hold a temporary appointment, on the
expiration of the period of appointment; or

(c) engaged under a contract in accordance with the terms of the contract.

5. Inquiry Procedure. - (1) The following procedure shall beobserved when a Government servant
is proceeded against under these rules: -

(i) In case where a Government servant is accused of subversion, corruption or misconduct, the
authorised officer may require him to proceed on leave or, with the approval of the authority
suspend him, provided that any continuation of such leave or suspension shall require approval of
the authority after every three months,

1[Provided further that where the authority is President 2[or Prime Minister], the powers of the
authority under this clause shall be exercised by the Secretary, Establishment Division. ]

(ii) The authorised officer shall decide whether in the light of facts of the case or the interests of
justice an inquiry should be conducted through an Inquiry Officer or Inquiry Committee. If he so
decides, the procedure indicated in rule 6 shall apply.

'Proviso added by the S. R. O. 853(I)/84, dt. 30th Sept. 1984.

2In the proviso, added vide Noti. No. S. R. O. 43(I)/86, [7/1/73-D-2/RI], dt. 7th
January, 1986.
(iii) If the authorised officer decides that it is not neces sary to have an inquiry conducted through
an Inquiry Officer or Inquiry Committee, he shall (a) by order in writing, inform the accused of the
action proposed to be taken in regard to him and the grounds of the action; and

(b) give him a reasonable opportunity of showing cause against that action:

Provided that no such opportunity shall be given where the authority is satisfied that in
the interest of the security of Pakistan or any part thereof it is not expedient to give such
opportunity.

(iv) On receipt of the report of the Inquiry Officer or Inquiry Committee or, where no such officer or
Committee is appointed, on receipt of the explanation of the accused, if any, the authorised officer
shall determine whether the charge has been proved. If it is proposed to impose a minor penalty
he shall pass orders accordingly. If it is proposed to impose a major
penalty, he shall forward the case to the authority alongwith the charge and statement of
allegations served on the accused, the explanation of the accused, the findings of the Inquiry
Officer or Inquiry Committee, if appointed, and his own recommendations regarding the penalty to
be imposed. The authority shall pass such orders as it may deem proper.

*[(2) The exercise of powers under clause (i) and (iv) of sub-rule (1) by the authorised officers in
the Pakistan Missions abroad shall, unless already so provided, always be subject to the
approval of the authority. ]

6. Procedure to be observed by the Inquiry Officer and Inquiry Committee. - Where an Inquiry
Officer or Inquiry Committee is appointed, the authorised Officer shall -

*Sub-rule (2) added vide Establishment Division Noti. No. 7/5/75-1)1, dt- the
14th May, 1975.

(1) Frame a charge and communicate it to the accused together with statement of the
allegations explaining the charge and of any other relevant circumstances
which are proposed to be taken into consideration.

(2) Require the accused within a reasonable time, which shall not be less than seven days or
more than fourteen days from the day of charge has been communi-
cated to him, to put in a written defence and to state at the same time whether he desires to be
heard in person.

(3) The Inquiry Officer or the Committee, as the case may be, shall enquire into the charge and
may examine such oral or documentary evidence in support of the
charge or in defence of the accused as may be considered necessary and the accused shall be
entitled to cross-examine the witnesses against him.

(4) The Inquiry Officer or the Committee, as the may be be, shall hear the case from day to day
and no adjournment shall be given except for reasons to be recorded in writing. However, every
adjournment, with reasons therefor shall be reported forthwith to the authorised officer. Normally
no adjournment shall be for more than a week.

(5) Where the Inquiry Officer or the Committee, as the case may be, is satisfied that the
accused is hampering, or attempting to hamper, the progress of the enquiry he or it shall
administer a warning, and if thereafter he or it is satisfied that the accused is acting in disregard
of the warning, he or it shall record a finding to that effect and proceed to complete the enquiry in
such manner as he or it thinks, best suited to do substantial justice.
(6) The Inquiry Officer or the Committee, as the case may be, shall within ten days of the
conclusion of the proceedings or such longer period as may be allowed by the authorised officer,
submit his or its findings and the ground thereof to the authorised officer.

*[6-A. Revision. - (1) Subject to sub-rule (2), the authority may call for the record of any case
pending before, or disposed of by, the authorized officer and pass such order in relation thereto
as it maydeem fit.

(2) No order under sub-rule (1) shall be passed in respect of an accused unless the authorized
officer to be designated by the authority has informed him in writing of the grounds on which it is
proposed to make the order and has been given an opportunity of
showing cause against it, including an opportunity of personal vhearing if requested by the
accused or is otherwise necessary in the interest of justice, in particular, when the authority
contemplates to pass an order adverse to the interest of the accused:

Provided that no such opportunity shall be given where the authority, for reasons to be recorded
in writing, is satisfied that, in the interest of security of Pakistan or any part thereof, it is not
expedient to give such an opportunity. ]

7. Powers of Inquiry Officer and Inquiry Committee. - (1)

For the purpose of an inquiry under these rules, the Inquiry Officer and the Inquiry Committee
shall have the powers of a civil court trying a suit under the Code of Civil Procedure, 1908 (Act V
of1908), in respect of the following matters, namely: -

(a) summoning and enforcing the attendance of any per-

son and examining him on oath;

(b) requiring the discovery and production of docu-

ments;

(c) receiving evidence on affidavits;

(d) issuing commissions for the examination of wirnesses

or documents.

(2) The proceedings under these rules shall be deemed to be judicial proceeding within the
meaning of sections 193 and 228 of the Pakistan Penal Code (Act XLV of 1860).

*Rule 6-A substituted by the S. R. O. 74(I)/2001, the Gaz. of Pak., Extr., Pt. II, P.
No. 275, dt. February 3, 2001.

8. Rule 5 not to apply in certain cases. - Nothing in rule 5 shall apply to a case -

(a) where the accused is dismissed or removed from service or reduced in rank, on the ground
of conduct which has led to a sentence of fine or of imprison-
ment; or

(b) where the authority competent to dismiss or remove a person from service, or to reduce a
person in rank, is satisfied that, for reasons to be recorded in writing by that authority, it is not
reasonably practicable to give the accused and opportunity of showing cause.
1[8-A. Action in respect of Government servant required to proceed on leave. - If a Government
servant proceeding on leave in pursuance of an order under sub-rule (1) of rule 5 is not
dismissed, removed from service, reduced in rank or compulsory retired, he
shall be required to rejoin duty and the period of such leave shall be treated as duty on full pay. ]

2[9. Procedure of inquiry against government servants serving in Provincial Governments or

working on deputation outside their department or service to which they belong. - When a
government servant, to whom these rules apply, is serving under a Provincial government or in a
department, outside the department or service to which he belongs, or in a satutory organization,
corporate body, or local authority, and the borrowing authority wants to initiate disciplinary
proceedings against such government servant under these rules, the borrowing authority shall
forward to the concerned lending authority a report with supporting documents on the basis of
which disciplinary proceedings are proposed, and, if considered necessary, it may with the
approval of the lending authority place him under suspension or send him on forced leave. On
receipt of report from the borrowing authority, the lending authority shall take action as prescribed
by these rules]

1 Rule 8A added vide Notification No. 2/14/73-DI, dt. the 12th March, 1975.
2Rule 9 substituted by the S. R. O. 74(I)/2001, the Gaz. of Pak., Extr., Pt. II, P. No.
275, dt. February 3, 2001.

10. Appeal. - A person on whom a penalty is imposed shall have such right of appeal as may be
prescribed under 1[the Civil Servants (Appeal) Rules, 1977]:

Provided that, where the penalty is imposed by order of the President, there shall be no appeal
but the person concerned may apply for review of the order.

2[10-A. Appearance of Counsel. - No party to any proceedings under these rules before the
authority, the authorised officer, and Inquiry Officer or an Inquiry Committee shall be represented
by an advocate. ]

11. Repeal. - The Government Servants (Efficiency and Discipline) Rules, 1960 in their
application to the Government servants to whom these rules apply 3[and the Civilian Employees
in Defence Services (Classification, Control and Appeal) Rules, 1961]
are hereby repealed, but the repeal thereof shall not affect any action taken or any thing done or
suffered thereunder.

1 In rule 10 substituted by the S. R. O 55(1)/77, the Gaz. of Pak, Extr, Pt. II, dt.

18th january 1977.

2 Rule 10-A inserted by the S. R. O 1412 (1)/74, the Gaz, of Pak, Extr,, Pt. II, dt 16th Novembar,
1974 3In rule 11, inserted by the S. R. O 1809(I)/73, Gaz, of Pak,, Extr,, Pt. II, dt
13. 3The Civil Servants (Appointment,
Promotion & Transfer) Rules, 1973

*S. R. O. No. 1498(I)/1973. - In exercise of the powers conferred by section 25 of the Civil
Servants Act, 1973 (LXXI of 1973), the President is pleased to make the following rules, namely: -

PART - I
GENERAL
1. These rules may be called the Civil Servants (Appointment, Promotion and Transfer) Rules,
1973.

2. In these rules, unless there is anything repugnant in the subject or context, -

(a) "appointing authority" in relation to a post means the person authorised under rule 6 to make
appointment to that post;

1[(b) "Selection Board" means a Board constituted by the Federal Government for the purpose of
selection for promotion or transfer to posts in basic pay scales 19 to 21 and equivalent, consisting
of such persons as may be appointed by Government from time to
time; ]

(c) "Commission" means the Federal Public Service Commission;

2[(d) "Departmental Promotion Committee" means a Committee constituted for the purpose of
making selection

*Published in the Gaz. of Pak., Extr., Pt. II, dt. 20th October, 1973.
Clause (b) substituted by the S. R. O. 430(I)/2000, the Gaz. of Pak., Extr., Pt. II,
P. No. 961, dt. June 26, 2000.

2Clause (d) substituted, ibid.

for promotion or transfer to posts under a Ministry, Division, Department or Office of the Federal
Government in basic pay scales 18 and below and equivalent; ]

1[(e) "Departmental Selection Committee", means a Committee constituted for the purpose of
making selection for initial appointment to posts under a Ministry, Division, Department or Office
of the Federal Government in basic pay scales 1 and above other than appointments which fall
within the purview of the Federal Public Service Commission under rule 3 of the Federal Public
Service Commission (Functions) Rules, 1978. ]

2[(f) * * * * * * * * * *]

3. (1) Appointments to posts shall be made by any of the following methods, namely: -

(a) by promotion or transfer in accordance with Part II of these rules; and

(b) by initial appointment in accordance with Part III of these rules.

(2) The method of appointment and the qualifications and other conditions applicable to a post
shall be as laid down by the Ministry or Division concerned in consultation with the Establishment
Division.

3[(3) Notwithstanding anything contained in sub-rule (1), or the method of appointment laid down
in the recruitment rules, a person who is rendered surplus as a result of the reorganization or
abolition of a Division, department, office or permanent post in per

lClause (e) substituted by the S. R. O. 430(1)2000, the Gaz. of Pak., Extr., Pt. II,
P. No. 961, dt. June 26, 2000.
2Clause (f) omitted vide Notification No. S. R. O. 146(I)/84, dt. 9th Feb., 1984.

3Sub-rule (3) added by the S. R. O. 57(I)/93, the Gaz. of Pak., Pt. II, P. No. 97, dt
26th January, 1993.

-suance of any Government decision or as a measure of economy may be appointed to a post in

the basic pay scale to which he belonged, if he possesses the qualifications, and fulfils other
conditions, applicable to that post. ]

1[(4) Where a person referred to in sub-rule (3), -

(i) possesses educational qualifications which are considered interchangeable with, or equivalent
to, the qualification prescribed in the relevant recruitment
rules; or

(ii) fulfils the prescribed qualifications and the conditions for initial appointment to the post in the
relevant rules except the condition relating to prescribed experience,the appointing authority may,
for reasons to be recorded in writing, relax the requirement of educational qualifications or, as the
case may be, the perscribed experience]

4. (1) In each Ministry, Division, Department or Office of the Federal Government, there shall
be one or more Departmental Promotion Committees, and Departmental Selection Committees,
the composition of which shall be determined by the Ministry or
Division concerned in consultation with the Establishment Division.

(2) Each such Committee shall consist of at least three members one of whom shall be appointed
Chairman.

5. Where an appointing authority for 2[posts in basic scales 15 and below and equivalent]
does not accept the recommendation of a Departmental Selection or Departmental Promotion
Committee, it shall record reasons therefor and obtained orders of the next higher authority.

1Sub-rule (4) added by the S. R. O. 961(I)/99, the Gaz. of Pak., Extr., Pt. II, P. No.
1993, dt. August 25, 1999.

2In rule 5, substituted vide Notification No. S. R. O. 146(l)/84, dated the 9th
February, 1984.

1[6. 2[(1)] The appointing authority specified in column (3) of the table below shall be competent
to make appointment to the various posts in the basic pay scales specified in column (2) of that
table 3[: ]

3[Provided that appointment to posts in Basic Pay Scales 20 and above or equivalent in the
President's Secretariat shall be made by the President. ]
TABLE

S.NO Basic Pay Scale of Posts Appointing Authority

1 2 3
Posts in Basic pay Scales 20
1 4[Prime Minister]
and above or equivalent
Posts in Basic pay Scale 17Secretary of the Ministry or Division
2
to 19 or equivalent Concerned
 Posts in Basic pay Scale16An officer notified by the Secretary of
3.
or equivalent the Ministry or Division Concerned
Posts in Basic pay Scales 3 An officer notified by the Secretary of
4.
to 15 or equivalent the Ministry or Division Concerned
Posts in Basic pay Scales 1 An officer notified by the Secretary of
5
and 2 or equivalent the Ministry or Division Concerned

and above or equivalent.

'Rule 6 substituted by the S. R. O. 246(l)/2000, the Gaz. of Pak., Pt. II, P. No. 681,
dt. 25th May, 2000.

2Rule 6 re-numbered as sub-rule "(1)" by the S. R. O. 829(I)/2000, the Gaz. of

Pak., Extr, Pt. II, P. No. 2321, dt. November 17, 2000.

3ln sub-rule (1), at the end full stop substituted by colon & thereafter proviso
added by the S. R. O. 607(I)/2002, the Gaz. of Pak., Extr., Pt. II, P. No. 2459, dt. 11th
September, 2002.

4 Substituted for "Chief Executive of Pakistan" by the S. R. O. 01(I)/2003, the

Gaz. of Pak., Extr., Pt. II, P. No. 01, dt. 1st Jan., 2003 (W. e. f. 23rd November, 2002).

Notwithstanding anything contained in sub-rule (1), theAppointing Authority specified in column

(4) of the table below
shall be competent to make appointments to the posts specified in column (3) of that table in the
department specified in column (2)thereof

Basic pay
S.No Name of Department Scale ofAppointing Authority
Posts
1 2 3 4
Pakistan Audit Department and
(i)17 to 19 orAuditor General of
1. officers of Interdepartmental
equivalent Pakistan
Cadre of Accounts Group
An officer notified by
(ii)16 or
the Auditor-General of
equivalent
Pakistan
An officer notified by
3 to 15 or
the Auditor -General
equivalent
of the Pakistan
An officer notified by
1 to 2or
the Auditor General of
equivalent
Pakistan
(i)17-19 orDirector General
2. 2[Intelligence Bureau
equivalent Intelligence Bureau
Officers notified the
(ii)1-16 or
Director General
equivalent
,Intelligence Bureau

'Sub-rule (2) added by the S. R. O. 829(I)/2000, the Gaz. of Pak., Extr., Pt. II, P.
No. 2321, dt. November 17, 2000.
2In the table, serial No. 2 and the entries relating thereto added by the S. R. O.
981(l)/2000, the Gaz. of Pak., Extr., Pt. II, P. No. 2537, dt. December 15, 2000

H6-A. Notification not be apply to part-time members. -

Nothing contained in this notification shall apply to the posts of part-time member. ]

PART - II

APPOINTMENTS BY PROMOTION OR TRANSFER

2[7. Promotions and transfer to posts in basic pay scales 2 to 18 and equivalent shall be made on
the recommendation of the appropriate Departmental Promotion Committee and promotions and
transfer to posts in basic pay scales 19 to 21 and equivalent shall be made on the
recommendation of the Selection Boards. ]

8. Only such persons as possess the qualifications and meet the conditions laid down for the
purpose of promotion or transfer to a post shall be considered by the Departmental promotion
Committee or the Central Selection Board, as the case may be.

3[8-A. No promotion on regular basis shall be made to posts in basic pay scales 4[17] to 22 and
equivalent unless the officer concerned has completed such minimum length of service, attended
such training and passed such departmental examination, as may
be prescribed from time to time. ]

8-B. (1) Where the appointing authority considers it to be in the public interest to fill a post
reserved under the rules for departmental promotion and the most senior civil servant belonging
to the cadre or service concerned who is otherwise eligible for promotion does not possess the
specified length of service the authority may appoint him to that post on acting charge basis.

1Rule 6-A inserted by the S. R. O. 473(I)/77, the Gaz. of Pak., Extr., Pt. II, P. No.
900, dt. June 1, 1977.

2Rule 7 substituted by the S. R. O. 430(I)/2000, the Gaz. of Pak., Pt. II, P. No. 961,
dt. 26th June, 2000.

3 Rule 8-A substituted by the S. R. O. 850(1)/98, dt. 25th July, 1998.

4In rule 8-A, substituted for "18" by the S. R. O. 835(I)/2000, the Gaz. of Pak.,
Extr., Pt. II, P. No. 2341, dt. November 20, 2000.

[(2) * * * * * * * * * *]

(3) In the case of a post in 2[basic pay scales 17 to 22 and equivalent], reserved under the
rules to be filled by initial appointment, where the appointing authority is satisfied that no
suitable officer 2[drawing pay in basic pay scale] in which the post exists is available in that
category to fill the post and it is expedient to fill the post, it may appoint to that post on acting
charge basis the most senior officer otherwise eligible for promotion in the organisation, cadre or
service, as the case may be, in excess of the promotion quota.

(4) Acting charge appointment shall be made against posts which are likely to fall vacant for a
period of six months or more. Against vacancies occurring for less than six months, current
charge appointment may be made according to the orders issued from time to time.
(5) Appointment on acting charge basis shall be made on the recommendations of the
Departmental Promotion Committee or the Central Selection Board, as the case may be, save in
the case of 3[post in basic pay scale 22 and equivalent].

(6) Acting charge appointment shall not amount to appointment by promotion on regular basis
for any purpose including seniority.

(7) Acting charge appointment shall not confer any vested right or regular promotion to the post
4[ * * ] held on acting charge basis.

9. Appointments by transfer shall be made from amongst the persons holding appointment on a
regular basis in 5[posts in the sames basic pay scale or equivalent to or identical with] the posts
to be filled 6[ * * ].

1 Sub-rule (2) omitted by the S. R. O. 269(I)/2000, the Gaz. of Pak., Extr., Pt. II, P.
No. 667, dt. May 19, 2000.

2ln sub-rule (3), substituted by the S. R. O. 146(I)/84, dt. 9th Feb., 1984.
3In sub-rule (5), substituted, ibid.
4In sub-rule (7), omitted, ibid,
5In rule 9, substituted, ibid.
6In rule 9, omitted, ibid.
PART - III
INITIAL APPOINTMENT

1 [10. Initial appointment to the All-Pakistan Services, the Civil Services of the Federation and
posts in connection with the affairs of the Federation in basic pay scales 16 and above or
equivalent, except those which under the Federal Public Service Commission
(Functions) Rules, 1978, do not fall within the purview of the Commission, shall be made on the
basis of tests and examinations to be conducted by the Commission. ]

2[11. Initial appointments to posts in basic pay scales 1 to 15 and equivalent shall be made on the
recommendations of the Departmental Selection Committee after the vacancies have been
advertised in newspapers. ]

12. A candidate for initial appointment to a post must possess the educational qualifications
and experience and, except as provided in the rules framed for the purpose of relaxation of age
limit,must be within the age limit as laid down for the posts 3[. ]

3[Provided that unless otherwise specified in the method of appointment, qualifications and other
conditions applicable to a post as laid down under sub-rule (2) of rule 3, the experience
prescribed for initial appointment shall be the post-qualification
experience. ]

4[12-A. Alteration in the date of birth. - The date of birth once recorded at the time of joining
government service shall be final and thereafter no alteration in the date of birth of a civil servants
shall be permissible. ]

13. A candidate for appointment shall be a citizen of Pakistan:

"Rule 10 substituted by the S. R. O. 733(I)/2003, the Gaz. of Pak., Extr., Pt. II, P.
No. 1687, dt. July 28, 2003.
2Rule 11 substituted, ibid.

3In rule 12, at the end full stop subs, by colon and thereafter proviso added by the S. R. O.
970(I)/98, the Gaz. of Pak., Extr., Pt. II, P. No. 2104, dt. Sept. 10, 1998.

4Rule 12-A inserted by the S. R. O. 521(l)/2000, the Gaz. of Pak., Pt. II, dated the
July 31, 2000.

Provided that this requirement may be relaxed with the approval of the Establishment Division:

Provided further that, in the case of candidates to be appointed on temporary basis to posts in the
Pakistan Missions abroad, such relaxation shall not be accorded for a period exceeding one year
at a time.

14. Vacancies in the undermentioned posts shall be filled on all Pakistan basis in accordance
with the merit and provincial or regional quotas prescribed by Government from time to time:

(i) All posts in 1 [basic pay scales 16 and above and equivalent. ]

(ii) Posts in *[basic pay scales 3 to 15 and equivalent] in offices, which serve the whole of
Pakistan.

15. Vacancies in posts in 1[basic pay scales 3 to 15 and equivalent] in offices which serve only
a particular province or region shall be filled by appointment of persons domiciled in the province
or region concerned.

16. Vacancies in posts in ^basic pay scales 1 and 2 and equivalent] shall ordinarily be filled on
local basis.

17. A candidate for appointment must be in good mental and bodily health and free from any
physical defect likely to interfere with the discharge of his duties. A candidate who after such
medical examination as Government may prescribed is found not to satisfy these requirements,
shall not be appointed.

PART - IV
AD HOC TEMPORARY APPOINTMENTS

2[18. When under the Federal Public Service Commission (Functions) Rules, 1978, a post is
required to be filled through the 'Substituted by the S. R. O. 146(I)/84, dt. 9th February, 1984.

2Rules 18 & 19 substituted by the S. R. O. 122(I)/2000, the Gaz. of Pak., Extr., Pt.
II, P. No. 373, dt. March 15, 2000

Commission, the appointing authority shall forward a requisition to the Commission on a

prescribed form immediately. In exceptional cases, ad hoc appointment may, however, be made
for a period of six months or less with prior clearance of the Commission as pro-
vided in rule 19.

19. When the appointing authority considers it to be in public interest to fill a post falling within
the purview of Commission urgently pending nomination of a candidate by the Commission, it
may proceed to fill it on ad hoc basis for a period of six months or
less after obtaining prior clearance of the Commission. The post shall be advertised and the
same procedures as laid down for initial appointment in Part III shall be followed in making ad hoc
appointments. ]

20. Short-term vacancies in the posts falling within the purview of the Commission and
vacancies occurring as a result of creation of temporary posts for a period not exceeding six
months, may be filled by the appointing authority otherwise that through the Commission on a
purely temporary basis after advertising the vacancy.

Chapter - V PROBATION

21. (1) Persons appointed by initial appointment, promotion or transfer shall be on probation for
a period of one year.

(2) The period of probation may be curtailed for good and sufficient reasons, to be recorded, or,
if considered necessary, it may be extended for a period not exceeding one year as may be
specified at the time of appointment.

(3) On the successful completion of probation period, the appointing authority shall, by specific
order, terminate the probation.

(4). If no order is issued under sub-rule (3), on the expiry of the "Part-V added vide S. R. O.
96(I)/82, dt. 21st September, 1982

first year of probation period, the period of probation shall be deemed to have been extended
under sub-rule (2):

Provided that, subject to the provisions of proviso to sub-section (2) of section 6 of the Civil
Servants Act, 1973 in the absence of an order under sub-rule (3), the period of probation shall, on
the expiry of the extended period under sub-rule (2), be deemed to have successfully been
completed.

13. 4The Civil Servants. (Appeal)

Rules, 1977

In exercise of the powers conferred by section 25 of the Civil Servants Act, 1973 (LXXI of 1973),
the President is pleased to make the following rules, namely: -

1. (1) These rules may be called the Civil Servants (Appeal)

Rules, 1977.

(2) They shall come into force at once.

1 [2. In these rules unless there is anything repugnant in the subject or context, -

2[(a) "appellate authority" means, -

(1) in cases relating to discipline, -

(i) where the order is made by the authorized officer, the officer designated as authority
under the Government Servants (Efficiency
and Discipline) Rules, 1973;
(ii) where the order is made by the authority, the officer designated as authority, under the
Rules specified in paragraph (i), for the civil servants immediately next above in rank to
the appellant; and (iii) where the order is made by the Prime Minis-
ter, the President; and

(2) in other cases, the officer or authority next above the authority against whose order the
appeal is preferred and where the order is made by the Prime Minister, the President. ]

'Amended vide Estab. Division's Noti. No. 3/7/79-DI, dt. 28th Jan., 1981.
2Clause (a) substituted by the S. R. O. 178(I)/99, the Gaz. of Pak., Extr., Pt. II, P.
No. 511, dt. March 24, 1999.
*[(b) * * * * * * * * * * ]

(c) "penalty" means a penalty provided for in the Government Servants (Efficiency & Discipline)
Rules,1973.

3. Every civil servant shall be entitled to appeal, to the appellate authority from an order
passed by an authority or an authorised officer imposing upon him any penalty:

Provided that, where the penalty is imposed by an order of the President, the civil servant shall
have no right to appeal but he may apply for review of the order.

4. (1) A civil servant shall be entitled to appeal to the appellate authority from an order passed
by an authority which -

(a) alters to his disadvantage, his conditions of service, pay, allowances or pension; or

(b) interprets to his disadvantage the provisions of any rules whereby his conditions of service,
pay, allowances or pension are regulated; or

(c) reduces or withholds the maximum pension, including an additional pension, admissible to
him under the rules governing pensions; or

(d) terminates his employment or gives notice of such termination otherwise than -

(i) on his reaching the age of superannuation; or

(ii) in accordance with the provisions of the Civil Servants Act, 1973 (LXXI of 1973).

Provided that a person appointed by the President shall, have no right to appeal from an order
passed by the President, but he may apply for review of the order:

"In rule 2, clause (b) omitted by the S. R. O. 178(I)/99, the Gaz. of Pak., Extr., Pt.
II, P. No. 511, dt. March 24, 1999

Provided further that no appeal or review shall lie on matters relating to the determination of
fitness of a person to hold a particular post or to be promoted to a higher post or grade

(2) A member of an All-Pakistan Unified Grades serving under a Provincial Government may
appeal, from the order of the Provincial Government, to the President.
(3) A civil servant appointed by the President may appeal to the President from an order
passed by an authority subordinate to the President.

5. (1) Every person preferring an appeal should do so separately and in his own name.

(2) Every appeal preferred under these rules shall contain all material statements and
arguments relied upon by the appellant, shall contain no disrespectful or improper language, and
shall be complete in itself.

(3) Every appeal shall be submitted through the Head of the office to which the appellant
belongs or belonged, and through the authority from whose order the appeal is preferred.

(4) Every appeal shall be submitted within a period of thirty days of the communication of the
order appealed against.

6. (1) In the case of an appeal under rule 3, the appellate authority shall consider -

(a) Whether the facts on which the order appealed against was based have been established;

(b) Whether the facts established afford sufficient ground for taking action; and

(c) Whether the penalty is excessive adequate, or inadequate, and, after such consideration
shall confirm, set aside or modify the previous order.

(2) In the case of an appeal under rule 4, the appellate authority shall pass soon order as, having
regard to all circumstances of the case, appears to it just and equitable.

(3) The authority from whose order an appeal is preferred under these rules shall give effect to
any order made by the appellate authority.

7. (1) An appeal may be withheld by an authority not lower than the authority from whose order it
is preferred if: -

(a) it is an appeal in a case in which no appeal lies under these rules; or

(b) it does not comply with the provisions of sub-rule (1),

(2) or (3) of the rule 5; or

(c) it is not preferred within the time specified in subrule (4) of rule 5 and no reasonable cause
is shown for the delay; or

(d) it is addressed to an authority to which no appeal lies under these rules; or*

*(e) it is a repetition of a previous appeal and is made to the same appellate authority by which
such appeal has been decided, and no new facts or circumstances are added which afford
grounds for a reconsideration of the case:

Provided that in every case in which an appeal is withheld, the appellant shall be informed of the
fact and the reasons for it:

Provided further that an appeal withheld on account only of failure to comply with the provisions
of sub rule (2) or (3) of rule 5 or clause (d) may be resubmitted within one month of the date on
which the appellant is informed of the withholding of the appeal
and, if resubmitted in a form which complies with those provisions or is addressed to the proper
appellate authority, as the case may be, shall not be withheld.

(2) No appeal shall lie against the withholding of an appeal by an authority competent to do so.

*As amended vide Notification No. 5/1/81-R. I., dt. 26th December, 1981.

8. (1) Every appeal which is not withheld under these rules shall be forwarded to the appellate
authority with an expression of opinion by the authority from whose order the appeal is preferred.

(2) Every appeal by a civil servant serving under a Provincial Government or a local authority,
which is not withheld under these rules, shall be forwarded by the Provincial Government or the
local authority to the Federal Government with an expression
of its opinion.

(3) A list of appeals withheld under rule 7, with reasons for withholding them shall be forwarded
quarterly by the withholding authority to the appellate authority.

(4) An appellate authority may call for any appeal admissible under these rules which has been
withheld by a subordinate authority and may pass such orders thereon as it considers fit.

9. (1) Nothing in these rules shall operate to deprive any person of any right of appeal which
he would have had if these rules had not been made, in respect of any order passed before they
came into force.

(2) All appeals pending immediately before the coming into force of these rules shall be deemed
to be appealed under these rules.

10. The Civil Servants (Classification, Control and Appeal) Rules, 1930, are hereby repealed,
but the repeal thereof shall not affect any action taken or anything done thereunder.

[Authority. - Estt. Div. Notification No. S. R. O. 54(I)/77, dt. 17th January, 1977. ]
13. 5The Civil Servants (Seniority)
Rules, 1993*

S. R. O. 163(I)/93, dated 28-2-1993. - In exercise of the powers conferred by section 25 of the

Civil Servants Act, 1973 (LXXI of 1973), read with section 8 thereof, the President is pleased to
make the following rules, namely: -

1. Short title, application and commencement. - (1) These rules may be called the Civil
Servants (Seniority) Rules, 1993.

(2) They shall apply to all civil servants except those governed under: -

(i) the Police Service of Pakistan (Composition, Cadre and Seniority) Rules, 1985;

(ii) the Occupational Groups and Services (Probation, Training and Seniority) Rules, 1990; and

(iii) the Establishment Division's O. M. No. 1/2/74 ARC, dated 23rd January, 1974, amended vide
O. M. No. 2/1/75-ARC, dated 3rd March, 1976, and as amended
from time to time.
(3) They shall come into force at once.

2. Seniority on initial appointment. - (1) Persons initially appointed on the recommendations of

the selection authority through an earlier open advertisement shall rank senior to those appointed
through a sebsequent open advertisement.

(2) If two or more persons are recommended in open advertisement by the selection authority
their inter se seniority shall be determined in order of merit assigned by the selection authority.

(3) If only one candidate is recommended in open advertisement by the selection authority, he
shall count his seniority from
*Published in the Gaz. of Pak., Extr., Pt. II, dt. 28th February, 1999

(a) the date of recommendation by the selection authority, if he was already holding the same
post an ad hoc basis; and

(b) the date of his joining the post after being recommended by the selection authority, if he was
not already holding the same post.

3. Seniority on promotion. - Seniority in a service cadre, or post to which a civil servant is

promoted shall take effect from the date of regular promotion to that service cadre or post:

Provided that -

(a) Civil servants selected for promotion to higher posts on an earlier date shall be senior to
those selected for such promotion on a later date;

(b) Civil servants selected for promotion to higher posts in one batch shall, on their promotion to
the higher post, retain their inter seniority as in the lower post;
and

(c) Civil servants eligible for promotion who could not be considered for promotion in the original
reference in circumstances beyond their control or whose case was deferred while their juniors
were promoted to the higher post, shall, on promotion, without supersession, take their seniority
with the original batch.

4. Seniority on appointment by transfer. - Seniority in a service, cadre or post to which a civil

servant is appointed by transfer shall take effect from the date of regular appointment to the
service, cadre or post:

Provided that -

(a) persons belonging to the same service, cadre or post selected for appointment by transfer to a
service cadre or post in one batch shall, on their appointment, take
inter seniority in the order of their date of regular appointment in their previous service, cadre or
post; and

(b) persons belonging to different services, cadre or posts selected for appointment by transfer in
one batch shall take their inter seniority in the order of the date of their regular appointment to
the post which they were holding before such appointment and, where such date is the same, the
person older in age shall rank senior.
5. Seniority of officers of the Armed Forces on induction in civil posts. - Officers of the Armed
Forces of Pakistan who are inducted in a civil service, cadre or post in accordance with the
Government orders and instructions shall take seniority in that service, cadre or post from the
date of such induction:

Provided that the officers inducted in one batch shall on induction, retain their inter se seniority as
in the Armed Forces of Pakistan.

6. Inter se seniority of civil servants appointed in the same calendar year. - Persons appointed
by transfer in a particular calendar year shall, as a class, be senior to those appointed by
promotion or by initial appointment to such posts in that year, and persons
promoted to higher posts in a particular calendar year shall, as a class, be senior to those
appointed by initial appointment to such posts in that year.

7. Repeal and savings. - The General principles of seniority circulated vide Establishment
Division's O. M. No. 1/16/69-D. II, dated the 31st December, 1970, and all other existing rules,
orders and instructions relating to seniority except

(i) the Police Service of Pakistan (Composition, Cadre and Seniority) Rules, 1985;

(ii) the Occupational Groups and Services (Probation, Training and Seniority) Rules, 1990; and

(iii) the Establishment Division's O. M. No. 1/2/74 ARC dated 23rd January, 1974, amended vide
O. M. No. 2/1/75-ARC, dated the 3rd March, 1976 and as amended from time to time; are hereby
repealed.

13. 6The Civil Servants (Confirmation)

Rules, 1993*

S. R. O. 285(I)/93, dated 15-4-1993. - In exercise of the powers conferred by section 25 of the

Civil Servants Act, 1973 (LXXI of 1973), the President is pleased to make the following rules,
namely: -

1. Short title, commencement and application. - (1) These rules may be called the Civil
Servants (Confirmation) Rules, 1993.

(2) They shall come into force at once.

(3) They shall apply to all civil servants.

2. Definitions. - In these Rules, unless there is anything repugnant in the subject or context, -

(a) "Foreign Service" means service in which a civil servant receives his pay with the sanction
of Government from any source other than the Federal Consolidated
Fund; and

(b) "lien" means the title of a civil servant to hold substantively a post on which he has been
confirmed.

3. General principles of confirmation. - (1) A civil servant initially appointed to a post, on

probation including a civil servant promoted or appointed to a post on transfer, shall on
satisfactory completion of his probation, be eligible for confirmation in that post:

Provided that the confirmation shall be made only against a permanent post:
Provided further that two or more civil servants shall not be confirmed in the same post and at the
same time or in a post on'which another civil servant holds a lien:

Provided also that a civil servant shall not be confirmed on two or more posts at the same time.

?Published in the Gaz. of Pak., Extr., Pt. II, dt. 15th April, 1993.

(2) A civil servant shall be considered for confirmation strictly in order of his seniority.

(3) No confirmation shall be made against the post vacated on dismissal, removal or
compulsory retirement of a civil servant until his appeal against such dismissal or, as the case
may be, removal or retirement is finally decided.

4. The confirmation shall be made on the recommendations of the Confirmation Committees

constituted for the purpose and with the approval of the authorities specified below: -

Composition of theConfirming
Posts Remarks
Committee authorities
1 2 3 4
Secretary of the
Administrative Ministry
or an above. authority
controlling
the
Service/Cadre/Post
as Chairman, Addition-
al Secretary or a Joint
Secretary where there
is
Posts no Additional
in Secretary
BPS- in the Ministry con-
Prime Minister
20 cerned, and Addl. Sec-
and retary Estt. Division as
above Members. If posts are
in
an Attached Depart-
ment or Subordi-nate
Office, the Head of the
Attached Department
or Head of Office who
controls the particular
Service/Cadre/Post
may be appointed as
Co-opted Member.
Posts Additional Secretary orSecretary of the
in Secretary of theBPS-Administrtive
BPS- 17 to Joint SecretaryMinistry/Division
17to where who controls the
19 Administrative.tary inparticular
the Administrativeservice/cadre/post
Ministry controlling the
service/cadre/post
 as Chairman, and a
Joint
Secretary and a Senior
Deputy Secretary and
a
Senior Deputy
Secretary
of the Ministry
oncerned as embers.If
posts are in an
Attached Department
or aSubordinate Office,
the head of the
Attached Department
or Head of Office who
controls the
particular
service/cadre /post
may be appointed as
Co-opted
ember.vice/cadre/post.
Secretary of the
The administrative ministry
As Officer holding toMinistry/Division
Posts will constitute separate
post in BPS-20 asconcerned of
in committee for posts in the
Chairman and twoHead of
BPS Ministries/Divisions and
officers holding theDepartment
-11 to Attached
post in BPS- 19 asprovided he is
16 Departments/Subordinates
Members. hholding the post
Office.
in BPS-20
Posts *As Officer holding to
in post in BPS-20 as
BPS- Chairman and two
10 officers holding the
and post in BPS- 1 as
below Members.
FOR POSTS BPS-1
TO 2
Dy.Secretary of
the inistry
/Division
concerned or
Head of
Departments or
Head of office
provided he is
holding the post in
BPS-19 or above

*[Provided that in case no post of Joint Secretary or Deputy Secretary exists or the number of
such officers is less than the required number in the administrative Ministry or Division for the
constitution of the Confirmation Committee, other officers of BPS- 20 and BPS-19 in the
concerned Ministry or Division may be included in the Committee:
Provided further that in case there is no post in BPS-20 and BPS-19, officer of one-step below
status in the concerned Ministry or Division may be included in the Confirmation Committee with
the approval of Establishment Division. ]

5. Acquiring of lien. - (1) On confirmation in a permanent post, a civil servant shall acquire a lien
in that post and shall retain it during the period when he -

(a) holds a temporary post other than a post in a service

or cadre against which he was originally appointed;

(b) holds a post on deputation with a Foreign Government, an international organisation, a

multinational corporation or any other organisation outside Pak-
istan;

(c) holds a post in Foreign Service in Pakistan;

*In rule 4, at the end provisos added by the S. R. O. 29(KE)/97, the 4th February,
1997, the Gaz. of Pak., Extr., Pt. II, P. No. 83, dt. March 21, 1997.

(d) is on leave;

(e) is called for duty in the Armed Forces as reservist of

Armed Forces of Pakistan;

(f) is under suspension; and

(g) is on joining time on transfer to another post.

(2) A civil servant acquiring lien as referred in sub-rule (1),

shall cease to hold lien acquired previously on any other post.

6. Termination of lien. - (1) The lien of a civil servant who is reduced in rank or reverted to a
lower post as a consequence of action taken against him under the Government servants
(Efficiency and Discipline) Rules, 1973, shall be terminated against the post
from which he is reduced in rank or, as the case may be, reverted to a lower post:

Provided that such civil servant shall acquire a lien against the lower post.

(2) A civil servant shall cease to hold lien against a post if he takes up an appointment on
selection in an autonomous body under the control of Federal Government, Provincial
Government, local authority or private organisation.

(3) Notwithstanding the consent of a civil servant, his lien on a post under the Federal
Government shall not be terminated until he acquires lien on any other post.

(4) A confirmed civil servant who, of his own accord, joins some other service, post or cadre on
regular basis shall have, after being selected through a regular selection process, the right of
reversion to the previous post against which he shall hold lien only
during the period of his probation on his new service, post or cadre.

7. Repeal. - All existing orders and instructions relating to confirmation of civil servant issued
from time to time are hereby repealed.
13. 7 The Initial Appointment To Civil Posts
(Relaxation Of Upper Age Limit) Rules, 1993*

S. R. O. 284(I)/93, dated 14-4-1993. - 1[In exercise of the powers

conferred by sub-section (1) of section 25 of the Civil Servants Act,
1973 (LXXI of 1973), the President is pleased to make the following
rules, namely: -]

PART I GENERAL

1. These rules may be called the Initial Appointment to Civil Posts (Relaxation of Upper Age
Limit) Rules, 1993.

2. They shall come into force with immediate effect.

PART II GENERAL RELAXATION

3. Maximum age limit as prescribed in the recruitment rules

shall be relaxed in respect of the candidates mentioned in column
(2) below to the extent mentioned against each under column (3): -

Age relaxation
S.No. Category of candidates
admissible
1 2 3
(a) Candidates belonging to Schedule Castes,
Budhist Community, Recognised tribes of the Tribal
(i) 3 years
Areas, Azad Kashmir and Northern Areas for all
posts under the Federal Government.
(b) Candidates belonging to Sindh(Rural) and
Balochistan for
3 years
posts in BPS-15 and below under the Federal
government
1[15]Years or
the number
of years
actually
(ii) Released or Retired officers/per-served in
sonnel of the Armed Forces of the Armed
Pakistan. Forces of
Pakistan
whichever is
less

(iii) Government servants including10 years

contract employees who have com-
pleted 2 years continuous service
on the closing date for receipt of
applications.

(iv) Disabled persons for appointment to posts in

10 years
BPS-15 and below.
*Published in the Gaz. of Pak., Extr., Pt. II, dt. 15th April, 1993.

the substituted by the S. R. O. 519(I)/98, the 25th May, 1998, the Gaz. of
Pak., Extr.,., P No. 1189, dt. June 5, 1998.

4. Where a candidate is entitled to age relaxation under more than one categories specified in
rule 3, he shall be allowed relaxation in age only in one category:

Provided that the President or the Prime Minister may, on extreme compassionate grounds, grant
age relaxation to an individual candidate for a period specified by him in each case no merit.

2[4A. (1) Subject to sub-rule (2) the maximum age limit presribed for initial appointment under any
rules for the time being in force shall be relaxed by a period of five years.

(2) The relaxation in upper age limit shall be over and above the relaxation of age admissible to
candidates specified in rule 3 or in any other rules for the time being in force. ]

3[4B. Notwithstanding the provisions contained in these or in

1In rule 3, in serial No. (ii), substituted for "10" by the S. R. O. 576(I)/2000, dt.
17th August, 2000, the Gaz. of Pak., Extr., Pt. II, dt. August 21, 2000.

2Rule 4A substituted by the S. R. O. 586(I)/99,, the Gaz. of Pak., Extr., Pt. II, P. No.
1211, dt. May 19, 1999.

3Rule 4B added by the S. R. O. 79(I)/95, the Gaz. of Pak., Extr., Pt. II, P. No. 149,
dt. January 23, 1995.

any other rules for the time being in force, the President or the Prime Minister may, on extreme
compassionate grounds, grant age relaxation to an individual candidate for a period not
exceeding three years over and above the relaxation in upper age limit already
admissible, if any. ]

1[4C. Notwithstanding anything contained in these rules, or any other rules for the time being in
force, one-time relaxation in the upper age limit shall be admissible to the persons appointed to
the posts, on ad hoc basis, from the 1st October, 1981, to the 31st
December, 1995, to the extent they are overage for initial appointment to the posts, held by them,
as and when advertised by the Federal Public Service Commission. ]

2[4D. Notwithstanding anything contained in these rules or any other rules for the time being in
force, the President or the Chief Executive may grant age relaxation to the widow, son or
daughter of a deceased civil servant who dies during service for such period as
may be considered appropriate. ]

5. Repeal. - All existing orders and instructions relating to age relaxation issued from time to time
are hereby repealed.

i Rule 4C added by the S. R. O 798(I)98, the 10th july, 1998, the Gaz. of Pak Extr,, Pt. II, P. No.
1651, dt. july 15, 1998.
13. 8The Removal from Service (Special Powers)
Ordinance, 2000 (Ord. No. XVII of 2000)

[Dated, the 27th May, 2000]

ANORDINANCE

to provide for dismissal, removal compulsory retirement from service and reduction to lower post
or pay scale of certain persons from Government service and corporation service !

WHEREAS in view of prevailing circumstances it is expedient and necessary and in the public
interest and further for good governance to provide for measures, inter-alia, dismissal, removal
etc, of certain persons from Government service and corporation service as hereinafter stated;

AND WHEREAS it is necessary to provide for speedy disposal of some cases and for matters
connected therewith or ancillary thereto;

AND WHEREAS the National Assembly and the Senate were suspended in pursuance of the
Proclamation of Emergency of the fourteenth day of October, 1999, and the Provisional
Constitution Order No. 1 of 1999;

AND WHEREAS the President is satisfied that circumstances exist which render it necessary to
take immediate action;

NOW THEREFORE, in pursuance of the Proclamation of Emergency of the fourteenth day of

October, 1999, and the Provisional Constitution Order No. 1 of 1999, as well as Order No.9 of
1999 and in exercise of all power enabling him in that behalf,
the President of the Islamic Republic of Pakistan is pleased to
make and promulgate the following Ordinance: -

1. Short title, extent, commencement and application. - (1)

This Ordinance may be called the Removal from Service (Special Powers) Ordinance, 2000.

(2) It extends to the whole of Pakistan.

(3) It shall come into force at once.

(4) It shall apply to persons in Government service and cor-

poration service.

2. Definitions. - In this Ordinance, unless there is anything

repugnant in the subject or context -

![(a) * * * * * * *]

2[(aa)]"competent authority" means, the 3[Prime Minister]

and where, in relation to any person or class of persons, the 3[Prime Minister] authorizes any
officer or authority, not being inferior in rank to the appointing authority prescribed for the post
held by the person against whom action is proposed to be taken, to
exercise the powers of competent authority under his Ordinance, that officer or authority, and in
relation to an employee of a Court or Tribunal functioning under the Federal Government the
appointing authority or the Chairman or Presiding Officer of the
Court or the Tribunal;

(b) "misconduct" includes conduct prejudicial to good

e (a) inserted by the Ord. No. V of 2001, the Gaz. of Pak., Extr, Pt. I, P.
No. 95, dt. February 3, 2001 and thereafter omitted by the Act No. II of 2003, the Gaz.
of Pak., Extr., Pt. I, P. No. 133, dt. July 16, 2003.

2Clause (a) relettered as clause "(aa)" and before clause (aa). new clause (a)
inserted by the Ord. No. V of 2001, the Gaz. of Pak., Extr., Pt. I, P. No. 95, dt.
February 3, 2001.

3In clause (aa), substituted for "Chief Executive" by the Act No. II of 2003, the
Gaz. of Pak., Extr., Pt. 1, P. No. 133, dt. July 16, 2003

order or service discipline or conduct unbecoming of an officer and a gentleman or involvement or

participation for gain either directly or indirectly in industry, trade or speculative transactions of
abuse or misuse of the official position to gain undue
advantage of assumption of financial or other obligations to private institutions or persons such as
may cause embarrassment in the performance of official duties or functions;

(c) "person in corporation service" means every person in the employment of a corporation,
corporate body, authority, statutory body or other organizations or
institutions set up, established, owned managed or controlled by the Federal Government, or by
or under any law for the time being in force or a body or organisation in which the Federal
Government has a controlling share or interest and includes the Chairman and the Managing
Director, and the holder of any other office therein; and

(d) "person in Government service" includes every person who is a member of an All-Pakistan
Service or of a Civil Service of the Federation or who holds a civil post in connection with the
affairs of the Federation or any employee serving in any Court or
Tribunal set up or established by the Federal Government but does not include a Judge of
theSupreme Court or of High Court or Federal Shariat Court or any Court subordinate to the High
Court, or any employee thereof.

3. *[Dismissal, removal and compulsory retirement etc. ] of certain persons in Government or

corporation service, etc. - (1)

Where, in the opinion of the competent authority, a person in Government or corporation service,
is -

*In section 3, in the marginal note, subs, for "Removal, suspension" by the Ord.
No. V of 2001, the Gaz. of Pak., Extr., Pt. I, P. No. 95, dt. February 3, 2001.

(a) inefficient, or has ceased to be efficient for any reason; 1[or is guilty of being habitually
absent from duty without prior approval of leave; or]

(b) guilty of misconduct; or

(c) corrupt, or may reasonably be considered as corrupt, because -

(i) he, or any of his dependents or any other person, through him or on his behalf, is in
possession of pecuniary 2[sources] or of property, for which he cannot reasonably account for
and which are disproportionate to his known resources of income; or

(ii) he has assumed a style of living beyond his known sources of income; or

(iii) he has a persistent reputation of being corrupt; or

3[(iv) he has entered into plea bargaining under any law for the time being in force and has
returned the assets or gains acquired through corruption or corrupt practices voluntarily; or]

(d) engaged, or is reasonably believed to be engaged, in subversive activities, and his in

service is prejudicial to national security or he is guilty of disclosure of official secrets to any
unauthorized person; or

(e) found to have been appointed or promoted on extra

1 In clause (a), added by the Ord. No. V of 2001, the Gaz. of Pak., Extr, Pt. I, P.
No. 95, dt. February 3, 2001.

2In sub-clause (i), substituted, ibid, for "resources".

3 Sub-clause (iv) added, ibid.

-neous grounds in violation of law and the relevantrules, the competent authority, after inquiry by
the1[Inquiry Officer or the Inquiry Committee appointed] under section 5, may, notwithstanding
anything contained in any law or the terms and conditions of service of such person, by order in
2[writing] dismiss or remove such person from service, compulsorily retire from service or reduce
him to lower post or pay scale, or impose one or more minor penalties as prescribed in the
Government Servants (Efficiency & Discipline) Rules, 1973, 3[ * * ].

4[************]

5[(2) Before passing an order under sub-section (1), the competent authority shall, -

(a) by order in writing, inform the accused of the action proposed to be taken in regard to him
and the grounds of the action; and

(b) give him a reasonable opportunity of showing cause against that action within seven days or
within such extended period as the competent authority may determine:

Provided that no such opportunity shall be given where the competent authority is satisfied that in
the interest of security of Pakistan or any part thereof it is not expedient to give such
opportunity:

1 In clause (e), substituted for "Committee constituted" by the Ord. No. XXIX of
2001, the Gaz. of Pak., Extr., Pt. I, P. No. 805, dt. 10th July, 2001.

2In clause (e), substituted for "the official Gazette" by the Ord. No. V of 2001,
the Gaz. of Pak., Extr., Pt. I, P. No. 95, dt. February 3, 2001.

3In clause (e), omitted, ibid.

4 Proviso omitted, ibid.

5 Sub-section (2) subs, by new sub-sections (2) & (3), ibid.

Provided further that no such opportunity shall be given where the accused is dismissed 1[under
clause (a) of sub-section (2) of section 3A] or where the competent authority is satisfied for
reasons to be recorded in writing that it is not reasonably practicable
to give the accused an opportunity of showing cause.

(3) The dismissal or removal or premature retirement from service or reduction to lower post or
pay scale of a person under sub-section (1) shall not absolve such person from liability to any
punishment to which he may be liable for an offence under any
law committed by him while in service. ]

2[3A. Procedure in case of conviction by a court of law. - (1)

Where a person in Government service or in Corporation Service on conviction by a court of law

is sentenced to imprisonment or fine, the competent authority shall examine the facts and the
grounds on which the order convicting such person was passed by a court of law.

(2) Where on examination the competent authority finds that order of imprisonment or fine is
based on -

(a) established charges of corruption or moral turpitude it shall pass order of dismissal from
service of the delinquent person in Government service or in corporation service to be effective
from the date of his conviction by a court of law; and

(b) charges other than corruption or moral turpitude it may, in the light of the facts and
circumstances of the case, decide as to whether it is a fit case for taking departmental action
under this Ordinance and if it so decides it may, subject to the provisions of sub-

1 In the second proviso, substituted for "or removed from service or reduced in
rank on ground of conduct which has led to a sentence of fine or of imprisonment"
by the Ordinance No. CVI of 2002, the Gaz. of Pak., Extr., Pt. I, P. No. 1687, dt. 29th
October, 2002.

2Section 3A added, ibid.

section (2) of section 3, impose any penalty authorized by this Ordinance as it may deem fit in the
circumstances of the case. ]

4. Suspension. - A person against whom action is proposed to be taken under sub-section (1) of
Section 3 may be placed under suspension with immediate effect if in the opinion of the
competent authority, suspension is necessary or expedient:

Provided that the competent authority may, in an appropriate case, for reasons to be recorded in
writing, instead of placing such person under suspension, require him to proceed on such leave
as may be admissible to him from such date as may be specified by
the competent authority.

*[5. Power to appoint an Inquiry Officer or Inquiry Committee. - (1) Subject to the provisions of
sub-section (2), the com petent authority shall, before passing an order under section 3,
appoint an Inquiry Officer or Inquiry Committee to scrutinize the conduct of a person in
Government service or a person in corporation service who is alleged to have committed any of
the acts or omissions specified in section 3. The Inquiry Officer or, as the case
may be, the Inquiry Committee shall -

(a) communicate to the accused the charges and state ment of allegations specified in the order
of inquiry passed by the competent authority;

(b) require the accused within seven days from the day the charge is communicated to him to
put in a written defence;

(c) enquire into the charge and may examine such oral or documentary evidence in support of
the charge or in defence of the accused as may be considered nec-

*Section 5 substituted by the Ord. No. V of 2001, the Gaz. of Pak., Extr., Pt. I, P. -
No. 95, dt. February 3, 2001.

essary and the accused shall be entitled to crossexamine the witnesses against him; and

(d) hear the case from day to day and no adjournment shall be given except for special reasons
to be recorded in writing and intimated to the competent authority.

(2) Where the Inquiry Officer or, as the case may be, the Inquiry Committee is satisfied that the
accused is hampering, or attempting to hamper, the progress of the inquiry he or it shall record a
finding to that effect and proceed to complete the inquiry in such manner as he, or it, deems
proper in the interest of justice.

(3) The Inquiry officer or, as the case may be, the Inquiry Committee shall submit his, or its,
findings and recommendations to the competent authority within twenty-five days of the initiation
of inquiry.

(4) The competent authority may dispense with the inquiry under sub-section (1) if it is in
possession of sufficient documen tary evidence against the accused, or for reasons to be
recorded in writing, it is satisfied that there is no need of holding an inquiry.

(5) Where a person who has entered into plea bargaining under any law for the time being in
force, and has returned the assets or gains acquired through corruption or corrupt practices
revoluntarily, the inquiry shall not be ordered:

Provided that show cause notice shall be issued on the basis of such plea bargaining to such
person informing of the action proposed to be taken against him and the grounds of such action
requiring him to submit reply within fifteen days of the receipt of the notice. On receipt of the reply,
the competent authority may pass such orders as it may deem fit. ]

6. Powers of the 1 [Inquiry Officer or] Inquiry Committee.

- The 1[Inquiry Officer or] Inquiry Committee shall have power -

(a) to summon and enforce attendance of any person and examine him on oath;

(b) to require the discovery and production of any document;

(c) to receive evidence on affidavits; and

(d) to record evidence.

7. Procedure to be followed by the 1[Inquiry Officer or] Inquiry Committee. - The 1[Inquiry
Officer or] Inquiry Committee shall, subject to any rules made under this Ordinance, have power
to regulate its own procedure, 2[for] the fixing of place and
time of its sitting and deciding whether to sit in public or in private, and in the case of corporate
Committee, to act notwithstanding the temporary absence of any of its members.

8. Order to be passed upon a finding. - Every finding recorded by the 3[ Inquiry Officer or, as
the case may be, Inquiry Committee] under section 5 shall, with the recommendation provided for
in that section, be submitted to the competent authority and the competent authority may pass
such orders thereon as it may deem proper in accordance of the provisions of this Ordinance.

4[9. Representation. - (1) A person on whom a penalty is

imposed under section 3, may, within fifteen days from the date of

1 In sections 6 & 7, inserted by the Old. No. V of 2001, the Gaz. of Pak., Extr., Pt.
I. P' No 45, dt. February 3. 2001.

2ln section 7, substituted, ibid, for ", including".

3ln section 8, substituted, ibid, for "Inquiry Committee".

4Section 9 substituted by the Ord. No. XXXII of 2002, the Gaz. of Pak., Extr., Pt.
I, P. 869, dt. 23rd July, 2002.

communication of the order prefer a representation to the 1[Prime Minister] or such officer or
authority as the 1[Prime Minister] may designate:

Provided that where the order has been made by the 1[PrimeMinister] such person may, within
the aforesaid period, submit a representation to the President.

(2) The President, the 1[Prime Minister], or an officer or authority, as may be designated for the
purpose by the 1[Prime Minister], may, on consideration of the representation, and any other
relevant material, confirm, set aside, vary or modify the order in respect of which such
representation is made. ]

10. Appeal. - Notwithstanding anything contained in any other law for the time being in force,
any person aggrieved by any final order under section 9 may, within thirty days of the order,
prefer in appeal to the Federal Service Tribunal established under the Service Tribunals Act, 1973
(LXX of 1973) 2[: ]

2[Provided that where a representation 3[ * * * ] has been preferred under section 9 but no
decision has been received by or communicated to, the applicant or, as the case may be,
petitioner, within a period of sixty days of its submission to the prescribed authority, he may prefer
appeal to the Service Tribunal within thirty days of the expiry of the aforesaid period. ]

11. Ordinance to override other laws. - The provisions of this Ordinance shall have effect
notwithstanding anything to the contrary contained in the Civil Servants Act, 1973 (LXXI-of 1973)
and the rules made thereunder and any other law for time being in force.

1 in section 9, substituted for "Chief Executive" by the Act No. II of 200. 3, the
Gaz. of Pak., Extr., Pt. I, P. No. 133, dt. July 16, 2003.
2In section 10, at the end full stop substituted by colon and proviso added by
the Ord. No. XIX of 2002, the Gaz, of Pak., Extr., Pt. I, dt. 6th April, 2002.

3 In the proviso, the words "or review petition" omitted by the Ord. No. XXXII
of 2002, the Gaz. of Pak., Extr., Pt. I, P. No. 869, dt. 23rd July, 2002.

12. Proceedings under this Ordinance. - All proceedings initiated on the commencement of this
Ordinance in respect of matters and persons in service provided for in this Ordinance shall be
governed by" the provisions of this Ordinance and rules made thereunder 1[: ]

1 [Provided that the Federal Government may, by notification in the official gazette, exempt. any
class or classes of employees of a Corporation, a corporate body, authority, statutory body or
other organization or institution set up, established, owned, managed or controlled by it or a body
or organization in which it has a controlling share or interest from the provisions of this Ordinance
and such class or classes of employees shall, notwithstanding anything contained in this
Ordinance, be proceeded against and dealt with under the laws and rules applicable to such
employees before the commencement to this Ordinance. ]

13. Pending proceedings to continue. - For the removal of doubts, it is hereby provided that all
proceedings pending immediately before the commencement of this Ordinance against any
person whether in Government service or corporation service under the Civil Servants Act, 1973
(LXXI 1973) and rules made thereunder, or any other law or rules, shall continue under the said
laws and rules, and as provided thereunder.

14. Pensionary benefits etc. - Notwithstanding anything contained in the Ordinance the
payment of pension or other benefits to a person retired or reduced to a lower post or pay scale
under this Ordinance shall, if admissible be regulated in accordance with the law for the time
being in force related thereto.

2[14A. Indemnity. - No suit, on or other legal proceedings shall lie against the competent authority
or an officer or authority 1 In section 12, at the end fullstop substituted by colon and thereafter
provison
added by the Ordinance No. XXIX of 2001, the Gaz. of Pak., Extr, Pt. I, P. No. 805,
dt. 10th July, 2001.

2Sections 14A & 14B inserted by the Ord. No. LXII of 2001, the Gaz. of Pak.,
Extr., Pt. I, P. No. 1527, dt. November 7, 2001.

authorized by it for any thing which is in good faith done or intended to be done under this
Ordinance or the rules, instructions or directions made or issued thereunder.

14B. Jurisdiction barred. - Save as provided under this Ordinance, no order made or proceedings
taken under this Ordinance, or the rules made thereunder by the competent authority or any
officer or authority authorized by it shall be called in question in any Court and no injunction shall
be granted by any Court in respect of any decision made or proceedings taken in pursuance of
any power conferred by, or under, this Ordinance, or the
rules made thereunder. ]

15. Power to make rules. - The Federal Government may by notification in the official Gazette,
make rules for carrying out the purposes of this Ordinance.
16. Removal of difficulties. - If any difficulty arises in giving effect to any of the provisions of this
Ordinance, the President may make such Order, not inconsistent with the provisions of this
Ordinance, as may appear to him to be necessary for the purpose of removing the difficulty.

13. 9The Pensioners' Benefit Account

Rules, 2003

[Islamabad, the 20th January, 2003/

*S. R. O. 65(l)/2003. - In exercise of the powers conferred by section 28 of the Public Debt Act,
1944 (XVIII of 1944) and all other powers in this behalf the Federal Government is pleased to
make the following rules, namely: -

1. These rules shall be called the "Pensioners' Benefit Account Rules, 2003".

2. These rules shall apply to the deposits received in Pensioners' Benefit Account.

3. The pensioners' benefit account shall be opened at the National Savings Centre only.

4. Only one account shall be opened by a retired official of the Federal Government, Provincial
Governments, 1[Azad Government of the State of Jammu and Kashmir] Armed Forces, Semi-
Government and Autonomous Bodies and in case of death the pensioner's eligible member of the
family.

5. The account shall be opened for a period of ten years with a minimum deposit of rupees ten
thousand and in multiple of rupees one thousand subject to the maximum limit of one million
rupees. Provided that no subsequent deposits shall be accepted.

6. If through any cause, the total holding of any depositor is discovered to be in excess of the
limits prescribed in rule 5 whether as a result of. -

(a) direct deposit; or

(b) receipt by transfer; or

*Published in the Gaz. of Pak., Extr., Pt. II, P. No. 121, dt. January 21, 2003.
1 ln rule 4, inserted by the S. R. O. 606 (l)/2003/ the Gaz. of Pak., Extr., Pt. II, P.
No. 1193, dt. June 23, 2003.

(c) deposit on account holder's behalf by any other person; or

(d) inheritance, or award;

the depositor concerned shall be bound immediately to discharge the excess holding and no
profit shall be paid on amount in excess of the maximum prescribed limit.

7. Any profit or payment which may have been made in contravention of rule 6 shall be
refunded to the Government on demand, and in the event of failure to refund, may (in addition to
other remedies for the recovery thereof by the Government) be deducted from any money
payable by the Government to the person who received the profit or payment or from his or her
estate,or be recovered as an arrear of land revenue.
8. Withdrawal from the principal amount shall be in multiple of rupees one thousand and profit
shall cease to accrue in case the balance in the account reduces below the minimum prescribed
limit.

9. Profit shall be payable on completion of each period of one month reckoned from the date
of opening of an account till maturity or withdrawal whichever is earlier. No profit shall be paid for
any period less than one month.

*[10. Service charges on the deposits, if withdrawn before maturity period shall be deducted at
the following rates namely: -

(a) if withdrawn before the completion

of one year from the date of deposit.... @ 2. 00%

(b) if withdrawn after one year but

before completion of two years

from the date of deposit.............. @ 1. 50%

(c) if withdrawn after two years but

before completion of three years

from the date of deposit.............. @ 1. 00%

*Rule 10 substituted by the S. R. O. 86 (I)/2004, the Gaz. of Pak., Exte, Pt. II, P.
No. 131, dt. February 6, 2004.

(d) if withdrawn after three years but before completion of four years from the date of
deposit...........,.. @ 0. 50%

Provided that service charges shall not be deducted in case of premature withdrawal by the
nominee in the event of the death of an account holder. 1

11. The rate of profit on these accounts shall be 11. 04% per annum.

12. The principal deposit on completion of maturity period shall stand re-invested from the date
following the date of maturity, if so requested by the depositor at the rate of return and terms and
conditions prevailing on the said date.

13. The tax on profit from investment made on or after, the 20th January, 2003, shall be
deducted at source at the rate of ten per cent of such profit, if such deposit exceeds one hundred
fifty thousand rupees.

14. Any investment made under these rules and profit earned thereon shall be exempt from
compulsory collection of Zakat at source.

15. The monthly profit, if not drawn on due date shall not earn any further profit.

16. In regard to the procedure for opening of an account, withdrawal of deposit, transfer of
account from one centre to another, nomination of beneficiary and all other matters, the Nation-
al Savings Deposit Accounts Rules, 1974 shall, if not inconsistent
with these rules, apply to the accounts opened under these rules.

17. The depositor shall repay in lump sum any payment made
by mistake or over payment received by him.

18. A person who opens a Pensioners' Benefit Account shall

be bound by these rules.

19. The Federal Government may by order, remove anv difi-

culty arising in the operation of these rules.