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PREFACE
1. The last edition of "Financial Regulations, Volume 1, for Army and Air Force was
issued in 1952. This has been revised and up-dated. All Changes' upto 31st December 1985
have been incorporated in the revised edition. The regulations contained herein supersede the
regulations contained in the 1952 edition.
2. A table of concordance has been added at the end which will help in tracing in 1986 edition
corresponding rules in the superseded edition. The table also gives references on which the
revised regulations are based.
3. Any errors or omissions may be reported to Regulations Directorate, AG's
Branch, GHQ, Rawalpindi.
Rawalpindi ed IjIal Haider Zaidi
20 April 1986 Secretary to the Government of Pakistan
Ministry of Defence
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TABLE OF CONTENTS
Serials Pages
1. Preface i
2. Record of Amendments ii
3. Table of Contents iii-ix
4. List of Annexes x
5. List of Abbreviations xi-xv
CHAPTER 1 - GENERAL PROVISIONS
Rules Pages
6. Shori Title and Commencement 1 1
7. Definitions 2 1-2
8. Powers of the President 3 2-3
9. Validity of joint service instructions, 4 3Army instructions and Air Force instructions
10. Sanctioning of defence expenditure 5 3
11. Financial canons to be observed 6 3-4
12. Exercise of financial powers 7 4
13. Objects on which expenditure may be sanctioned 8 4-5
14. Financial powers of Services Chiefs 9 5-6
15. Expenditure Equalisation Deposit Accounts 10 6-7
16. Additional powers of the Chief of Army Staff and 11 7-8
the Chief of Air Staff17. Financial powers of other authorities 12 8-11
18. Additional powers of RV&M Officers 13 11
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Serials Rules Pages
19. Financial powers of heads of Pakistan 14 11
Ifissions Abroad
20. Powers of officers of the MGO services 15 11-13
21. Powers in respect of MES expenditure 16 13
22. Pensions 17 13
23. Powers are personal 18 13
24. Sanction in instalments 19 13
25. Authorisation of other officer to for an officer 20 13-14
possessing financial powers
26. Financial advisers 21 14 -17
27. Controllers of army and air force accounts 22 17
as financial advisers
28. Communication of sanction to controller 23 17
of accounts
29. Lapsing of sanction 24 17
30. Sanctioning of expenditure not covered by rule 25 17
31. Claims of petty nature 26 17-18
32. Issue of store in exceptional cases 27 18
33. Petty items of recurring expenditure 28 18
34. Expenditure that may not be sanctioned 20 18-19
35. Abandonment of revenue and expenditure 30 19
36. Expenditure against allotment 31 19-21
37. Estimate of operational expenditure 32, 21
38. Financial powers under civil service regulations 33 21-22
39. Wholetime of a government servant 34 22
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Serials Rules Pages
40. Fees and honoraria 35 22-24
41. Cheques 36 25-28
CHAPTER 2 - LOSSES, WASTAGES AND DAMAGES TO
PUBLIC PROPERTY - PROCEDURE AND POWERS TO
WRITE OFF
42. General rules for observance 37 29
43. Losses of store 38 29-40
44. Public money 39 40
45. Loss of public money 40 40-42
46. Exceptions 41 42-45
CHAPTER 3 - PURCHASE OF STORES, TRAINING AIDS
AND TRAINING PUBLICATIONS
47. General rules 42 46
48. Financial powers 43 46-51
49. Despatch of stores 44 51
50. Disposal of surplus, obsolete and waste stores 45 51-53
5l. Procurement of centrally purchased stores 46 53-54
CHAPTER 4 - BUDGET ESTIMATES AND ASSIGNMENTS
52. Budget estimates 47 55-60
53. Assignments 48 60-62
CHAPTER 5 - CLAIMS AND RECOVERIES
54. General rules 49 63-64
55 Adjustment 50 64
56. Recovery of amount due 51 64.65
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Serials Rules Pages
96. Legal representative of a deceased contractor 91 101-102
97. Estimating requirements 92 102
98. Irregular concessions to contractors 93 102
99. Advertisements 94 102-103
100. Tenders 95 103
101. Opening of tenders 96 103-104
102. Errors in tenders 97 104
103. Non-receipt of tenders 98 104
104. Standing security deposit 99 104
105. Contract deeds 100 105
106. Power of attorney 101 105
107. Duration of contracts 102 105
108. Transfer of contracts 103 106
109. Supplies 104 106
110. Advances 105 106
111. Compensation for breach of contract 106 106-107
112. Interpretation of Contracts 107 107
113. Recoveries from securities in default 108 107
114. Payment of bills 109 107-108
CHAPTER 11 - REMITTANCES AND FAMILY ALLOTMENTS
115. Family allotments 110 109
116. Family remittances 111 109-111
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Serials Rules Pages
117. Remittance of credit balances 112 111
CHAPTER 12 - MISCELLANEOUS PROVISIONS
118. Accounts 113 112
119. Statistics of expenditure 114 112
120. Cash and store transactions 115 112
121. Responsibility for expenditure 116 112
122. Fractions in amounts 117 112
123. No demand certificate 118 112-113
124. Submission of claims 119 113
125. Arrears 120 113
126. Contributions 121 113
127. Broken periods 122 113
128. Line funds 123 113-114
129. Rates - army remount stores 124 114
130. Rationing of animals transferred from 125 114-115
army remount depot.
131. Financial irregularities 126 115
132. Control and inspection of accounts 127 115
133. Income tax 128 115
134. Leave and pension contributions 129 115
135. Haircutting and washing services 130 115
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LIST OF ANNEXES
Serials Annex Title Pages
1. A Categories of cases requiring prior reference to the governments. 116
2. B Accounts areas 117-119
3. C Form of registers to be maintained by controlling
authority for watching expenditure against allotment. 120-124
4. D Instruction for the guidance of officers who are required
to make purchases of stores under the provisions of rules
for the supply of articles required for the public service. 125-132
5. E Procedure for purchase of stores by the Directorate
General of Defence Purchase and Directorate of
Procurements. 133-161
6. F Forms for the execution of different security bonds. 162-168
7. G Indemnity bond to be executed by heirs of deceased
contractors for payment of their security deposits. 169
8. H Contracts by whom sanctioned. 170-175
9. J Provision of haircutting and washing services to troops. 176-178
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LIST OF ABBREVIATIONS
Abbreviations In Full
ADEME Assistant Director, Electrical and Mechanical Engineers
ADMF Assistant Director Military Far
AFA Assistant Financial Adviser
AG Adjutant General
AHQ Air Headquarter
ADS&T Assistant Director Supply and Transport
AR (I) Army Regulations (Instructions)
AR (R) Army Regulations (Rules)
Bde Brigade
BPS Basic Pay Scale
CAO Chief Administrative Officer
CAAF Controller of Accounts Air Force
CAS Chief of the Air Staff
CASC Commander Army Service Corps
CE Chief Engineer
CEME Commander, Electrical and Mechanical Engineers
CFA Competent Financial Authority
CFM Controller, Flour Mills
CITD Controller of Inspection and Technical Development
CMA (DP) Controller of Military Account (Defence Purchase)
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Abbreviations In Full
CMES Commander Military Engineer Services
CO Commanding Officer
COD Central. Ordnance Depot
COAS Chief of Army Staff
COFA Controller of Ordnance Factory Accounts
COO Chief Ordnance Officer
CSR Civil Services Regulations
CVSD Central Vehicle Supply Depot
DADMF Deputy Assistant Director Military Farm
DADOS Deputy Assistant Director Ordnance Services
DRV&F Director Remounts Veterinary and Farms
DADIIN&F Deputy Assistant Director Remount, Veterinary and Farms
DADS&T Deputy Assistant Director Supply and Transport
DCE Deputy Chief Engineer
DDMF Deputy Director Military Farm
DDMI Deputy Director of Military Intelligence
DFA Deputy Financial Adviser
DGDP Director General Defence Purchase
DGMS Director General Medical Services
DGS&D Director General Supply and Development
DITD Director Inspection and Technical Development
DMUE Director of Military Training and Education
DML&C Director of Military Lands and Cantonments
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Abbreviations In Full
DOF Director of Ordnance Factory
DSD Director of Staff Duties
DOS Director of Ordnance Services
Dy Deputy
E-in-C Engineer-in-Chief
EME Electrical and Mechanical Engineer
FA Financial Adviser
FCNA Forces Command Northern Areas
FOR Free on Rail
GE Garrison Engineer
GHQ General Headquarters
GS General Staff
GOC General Officer Commanding
HQ Headquarters
ISPR Inter Services Proof Ranges
WO Junior Commissioned Officer
LAO Local Audit Officer
Log Logistics
LPC Last Pay Certificate
MA Dept Military Account Department
MAG Military Accountant General
ME Maintenance Engineer
MEO Military Estates Officer
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Abbreviations In Full
MGD Military Grain Depot
MGO Master General of the Ordnance
MES Military Engineer Services
MT Mechanical Transport
MRO Money Receipt Order
MS Military Secretary
MVH Military Veterinary Hospital
NCO Non Commissioned Officer
OC Officer Commanding
OO Ordnance Officer
OR Other Ranks
PAF Pakistan Air Force
PMAD Pakistan Military Account Department
PMA Pakistan Military Academy
pro Provost
PSO Principal Staff Officer
PTF Pakistan Territorial Force
QMG Quarter Master General
Regs Regulations
Supt Superintendent
S&T Supply and Transport
TA Travelling Allowance
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Abbreviations In Full
TO&E Table of Organization and Equipment
UA Unit Accountant
UK United Kingdom
VCOAS Vice Chief of Army Staff
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In exercise of the powers conferred by section 176A of the Pakistan Army Act, 1952
(XXXIX of 1952), and section 203 of the Pakistan Air Force Act, 1953 (V1 of 1953), the
Fed-6ii--(government is pleased to make the following regulations, namely:-
FINANCIAL REGULATIONS, VOLUME 1, 1986
CHAPTER 1 - GENERAL PROVISIONS
1. Short title and commencement
a. These regulations shall be called the Financial Regulations, Volume 1,
1986.
b. They shall come into force at once.
2. Definitions. In these regulations, unless there is anything repugnant in the subject or
context:-
a. "Accounts area" means the geographical limits of an area wherein military units,
formations or establishments are located and whose accounts are dealt with by
one and the same Controller of Accounts.
b. "Audit Officer" includes an accounts and internal audit officer in whose audit
control a public servant is serving or, for the purpose of verification of his
service has served.
c. "Brigade or Logistics Area Commander" includes Divisional Commander in
case of units and stations directly under Division Headquarters.
d. "Compensatory allowance" means an allowance granted to meet personal
expenditure necessitated by the special circumstances wherein
duty is performed.
e. "Competent financial authority" means the authority within whose power the
amount for issue falls.
f. "Controller of Accounts" includes the Controller of Military Accounts, the
Controller of Military Accounts (Pensions) and the Controller of Accounts, AirForce.
g. "Emoluments" means pay and includes allowances, staff consolidated
pay and all other items of personal remuneration drawn by an indivi
dual other than compensatory allowance.
h. 11Fee'5 means a recurring or non-recurring payments to a Government
servant from a source other than general revenues.
i. "Fresh expenditure" means any expenditure not provided for in the
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budget which requires sanction of higher authorities.
j. "Honorarium" means a recurring or non-recurring payment made to a
Government servant from general revenues as remuneration for special work of
occasional nature.
k. "Local fund" means revenues administered by bodies controlled by theGovernment with regard to proceedings generally or specific matters, manner
of sanctioning of their budgets, creating or filling up of particular posts,
enactment of leave, pension or similar rules and includes revenues of a body
notified as such by the Government.
1. Local stores" ' includes articles of local produce or manufacture other
than
imported stores.
m. "Ministerial appointment" means an appointment held by a person in an office or
establishment whose duties are not of an administrative or executive nature.
n. "Office contingencies" includes charges which are incidental to the management
of an office.
o. "Public fund" means the fund financed entirely from public money whose
unexpended balance is refundable to the Government in the event of its not
being spent on the object of its grant and includes:-
(1) Un-issued pay and allowances.
(2) Office allowance fund.
(3) The estates of deceased men and deserters.
p. "Public claims" means any public debt or disallowance and includes any
over-issue made through an error of fact, a deficiency, or irregular expenditure
of public money or stores of which after due investigation no explanation
satisfactory to the Government is given by the person who is responsible for the
same.
q. "Soldier" includes a Junior Commissioned Officer, a warrant officer, a
non-commissioned officer and a sepoy other than an enrolled non-combatant.
3. Powers of the President
a. In accordance with Article 243 of the Constitution of the Islamic Republic
of Pakistan, the President, in respect of the Armed Forces, shall:-
(1) Raise and maintain the armed forces and the reserves thereof.
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(2) Grant Commission in such Forces.
(3) Appoint Chairman Joint Chiefs of Staff Committee, the Chief of the
Army Staff, the Chief of the Naval Staff and the Chief of the Air Staff
and determine their salaries and allowances.
b. Delegation -Of by the President. The President may delegate powers tosanction expenditure from Federal revenues upon subjects in relation to
Defence Services subject to such condition, as he may think fit, either to any
officer subordinate to him or to a Provincial or L4)cal Government acting as his
agent. Any sanction given under this rule shall remain valid for the specified
period for which it is given. Orders of delegation passed under this rule may
contain a provision for re-delegation by the authority to which the powers are
delegated.
4. Validity of Joint Service Instructions, Army Instructions and Air Force
Instructions. These instructions shall be assumed to have received the concurrence of the
Ministry of Finance unless Audit Officers are informed otherwise by the Ministry of Finance
(Finance Division Military).
5. Sanctioning of Defence Expenditur e. Defence expenditure may be sanctioned by
the Ministry of Defence and by the authorities subordinate to it on the following conditions,
namely:-
a. . It shall pertain to defence.
b. The exercise of delegated power shall be subject to the observance of any
general or special directions which the authority delegating power may issue at
any time, whether generally or in reference to a particular case.
6. Financial C4nons to be observed. In incurring or sanctioning expenditure following
canons shall be observed by officers exercising financial powers. Audit officers shall also be
responsible for watching that the canons are observed: -
a. Every officer should exercise the same vigilance in respect of expenditure
incurred from Government revenue as a person of ordinary prudence would
exercise in respect of the expenditure of his own money.
b. No authority shall exercise its power of sanctioning expenditure to pass an
order which will, directly or indirectly, be to its own advantage.
c. The amount of allowances, such as travelling allowance, granted to meet
expenditure of a particular type, shall be so regulated that it does not, on the
whole, become a source of profit to the recipient.
d. Government revenues shall not be utilised for the benefit of a particular person
or a section of the community unless: -
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(1) The amount of expenditure involved is insignificant.
(2) A claim for the amount could be enforced in court of law.
(3) The expenditure is in pursuance of a recognised policy or custom.
7. Exercise of Financial Powers. The financial powers, conferred on authoritiessubordinate to the Federal Government, shall be exercised subject to the condition that funds
can be made available from the sanctioned budget provision, either from the provision made for
the purpose, or from the provision made for unforeseen expenditure or by re-appropriation.
8. Objects on which expenditure may be sanctioned. The following expenditure may be
sanctioned under rules 12 and 15 of these regulations for following objects, namely:-
a. Monthly contingent expenditure on account of any workshop, stores- depot,
hospital, military farm or remount depot.
b. Temporary establishments or labour in excess of fixed scales.
c. ufacture or issue of special tools and equipment or other articles for
experimental purposes or for expediting production.
d. Rewards for information leading to the conviction of incendiaries or for the
recovery of stray cattle.
e. Rewards for specially prompt and meritorious action in connection with the
extinguishing of fires and the saving of life and property from damages arising
therefrom.
f. Rewards for information leading to the conviction of personnel accused of
bribery and corruption.
g. Rewards for information leading to the prevention of thefts from supply or
ordnance depots, etc.
h. Expenditure on tests, trials and experiments within the annual approp- riations,
placed at the disposal of the DOS and the DITI), Command ISPR or within the
monetary limit fixed for these purposes, without reference to the financial limitsprescribed in ride 12 provided that the prior concurrence of the financial
Adviser is obtained.
Notes:- 1. Rewards under sub-rule e and f above, not exceeding .500.00 in any
individual case, will be sanctioned by the CFA concerned. Cases
involving payment of rewards exceeding Rs.500.00 but not exceeding
Rs.1,000.00 will be sanctioned by the Service Chiefs and those
involving payment of rewards exceeding Rs.1,000.00 will be
submitted for orders of Government.
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2. Government servants shall also be eligible for the above rewards in respect
of acts other than those performed in their official capacity.
9. Finance Powers of Service Chiefs
a. Within the rupee and foreign exchange allocations made to the Service
Headquarters, the Chief of Staff of the Service will hav ' e full authority tosanction expenditure except in the following cases upto the limits prescribed:-
(1) In the exceptional event of lump sum provisions made for certain
categories of expenditure which could not be finally cleared at the time
of budget discussions visualised in ride 43, these categories of
expenditure will be cleared as soon as possible after the budget
allocations are made.
(2) Categories of cases mentioned in Annexe A to this volume. In the case
of these categories, reference will have to be made to the Government.
Re-delegation of powers by Service Chief may be done, with the
approval of the Ministry of Defence.
b. Creation of posts under the powers of Service Chief may be made even if it
affects posts included in TO&E issued under Government sanction. Such
sanctions will remain valid for one financial year or till the date of issue of
amendment of TO&E by the Government, whichever is earlier. However, in
case the amendment in the TO&E is not issued by the Government during the
financial year of the sanction issued under the authority vested in the Service
Chief, there will he no bar to the issue of such further sanctions under the
powers of the Chief for each subsequent financial year as may be expedient.
c. The Service Chief shall have the authority to make re-appropriation within the
budget grant of his Service in consultation with the Financial Adviser of the
Service except in the following cases which will require the approval of the
Government:-
(1) Re-appropriation from capital. heads to Revenue heads and vice versa.
(2) Re-appropriation from other heads to Pay and Allowances. Such re-
appropriation will be referred to the Ministry of Defence and the MilitaryFinance so that eventually these are incorporated duly in the allocation
letters which are issued by the Ministry of Defence. No re -appropriation
will be admissible between Residential Capital works and non-residential
Capital Works which are budgeted under two separate demands.
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d. Incurring of any expenditure on introductory action upto Rs 5,00,000/- per
item for purchase of stores and equipment for tests and evaluation purposes
from within the existing overall budget allocations subject to total expenditure in
any one year not exceeding Rs.20,00,000/-.
Incurring of any expenditure of R .2,00,000/- on contingency items, temporaryestablishment, employment of labour, rewards, etc.
Incurring of any ordinary expenditure at his discretion upto Rs.10,00,000/-
annually subject to the following conditions, namely:-
(1) That the expenditure relates to a single payment and does not cover any
recurring charge.
(2) That no payment is made to a Government servant of any remuneration or
allowance to which he is not entitled under the ordinary rules.
(3) That the expenditure does not involve an express contravention of any
existing rule or regulation and that no grant is made for Services or
individual projects in which the Government of Pakistan have previously
definitely refused to incur expenditure.
g. The Services Chief concerned shall be responsible for ensuring that
expenditure is incurred in accordance with canons of financial propriety and
relevant rules.
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Governments, subject to the following conditions, namely:-
a. The charges to be recovered from Federal Government departments and
Provincial Government on account of such work shall normally be confined to
the travelling and out-of-pocket expenses of personnel and the cost of material
used, eg, photographic gear, fuel expended, and no charge shall be made onaccount of overhead charges for maintenance of aircraft and personnel, but in
the case of Provincial Governments an additional charge to cover the cost of
overhauling in gle-engined and twin-engined aircraft, as the case may be, shall
be made. This will be notified from time to time in Air Force Instructions.
b. Ikterial will be charged for in accordance with the rules in the Memorandum of
Instructions to the Price Lists of Air Force Equipment.
c. When the work carried out is in the nature of an experiment of a department
of the Federal Government or a Provincial Government the result of which will
also benefit the PAF, half the charges prescribed for the Federal Government
department or provincial Government shall be recovered.
12. F inancial Powers of Other Authoriti es. The following officers are empowered to
sanction expenditure on any of the objects enumerated in rule 8 upto the limits shown against
each: -
a. AG, QMG, MGO, IGT&E and PS0s concerned Rs. 50,000.00
in AHQ.
b. Corps Commander. Rs. 40,000.00
c. Divisional Commander, Force Commander, Rs. 25,000.00
Northern Area or Independent Brigade
Commander.
d. Logistic Area Commander or Brigade Rs. 15,000.00
Commander.
e. Surgeon General, DS&T, DOS, DEME, Rs. 5,000.00
DITD & DRV&F.
f. Commandants appointment holders (Col & Rs. 5,000.00
above) of following establishment
(1) Command and Staff College.
(2) Training Institutions or Establishments.
(3) Ordnance Depots.
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(4) Central and Combined Workshops.
(5) Military Hospitals.
(6) Military Farms and Remount Depots.
(7) Chief Inspectors of Inspectorates.
(8) District Remount Officers.
(9) DADOS at PMA and OTS.
g. Commanding Officers appointment holders Rs. 3,000.00
(Lt. Col.).
(1) Training Institutions or Establishments.
(2) Supply Depots.
(3) Ordnance Depots.
(4) Central, Combined, Medium/Area and Station Workshops.
(5) Military Hospitals.
(6) Medical Stores Depots.
(7) Military Farms and Remount Depots.
(8) Chief Inspectors of Inspectorates.
(9) ADST, Logistic Area and C0s, S&T Bns.
(10) ADOS Corps /Division /Force Commander, Northern
Area/Logistic Area.
(11) CEME, CO EME Bn and ADEME Logistic Area,
(12) District Remount Officers.
h. Officers Commanding appointment holders Rs. 1,500.00
(Major and below)
(1) Training Institutions/Estabbshments.
(2) Supply Depots.
(3) Ordnance Depots.
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2. District Remount Officer, Horse/Mule Breeding Area may,
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within the limits of his financial powers, transport his office
records by other than the cheapest method when this is
necessary in the interests of the Service.
3. Officers Commanding remount depots may sanction theentertainment of casual workmen andfarm labourers on lowest
daily rates of pay to the extent necessary to carry out duly
authorised workmen in the depots under their charge.
4. An OC supply depot may incur contingent expenditure of an
authorised character upto Rs.1,500.00 a month. ADST may
sanction monthly contingent bills upto Its.3,000/ provided that
no single item exceeds Rs.1,200.00. Expenditure in excess of
these amount required the sanction of the authority within
above powers of sanction the amount at issue lies.
5. In respect of the Embarkation HQs the Embarkation
Commandant, Karachi, may incur contingent expenditure of an
authorised character upto the monthly limit of Rs.15,000.00.
Expenditure in excess of this amount shall require the sanction
of the QMG.
13. Additional Powers of RV& FC Offi cers. Certain special powers exercisable by
officers of the Farms Wing in respect of local purchase of stores, are laid down in the
Financial Regulations, Volume II.
14. Financial Powers of Heads of Pakistan Mission Abroad
a. Heads of Pakistan Missions in foreign countries will exercise, in con-sultation
with their Financial Advisers (if there is any), expenditure the same powers as
are laid down in paragraphs 6 to 8 of appendix 3-A of the General Financial
Rules, Volume II, in respect of contingencies and miscellaneous expenditures
relating to the offices, etc, of the Military Attaches /Advisers and Defence
Stores Procurement Organization attached to them, provided that there are no
specific orders to the contrary and provided further that the expenditure can be
met from within the sanctioned budget allotment under the relevant head of theDefence Services Estimates of the year in which the expenditure is proposed to
be incurred.
b. Any modification in the financial powers laid down in General Financial Rules,
referred to in sub-rule a above, if and when notified by the Government, shall,
subject to other condition specified in the above sub-rule, apply.
15. Powers of Of ficers of the MGO Sertdces. On the condition that the financial officer
certifies that budget provisions exists to cover the expenditure involved;
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Chief Inspector of Armaments, Chief Inspector of Vehicles and Engineering Equipment,
Chief Inspector of Electronics and Instruments, Chief Inspector of Stores and Clothing,
may sanction the employment of the following:- -
a. Temporary Clerical Personnel, etc. Temporary clerical personnel public
servants in Basic Pay Scales 1 and 2, employed in shops and sheds, workmen,including skilled, serni-skilled and unskilled personnel, supervisors, examiners,
planners, etc, in the lowest scale, to the extent necessary to carry out duly
authorised manufacture or inspection work at the minimum of the Basic Pay
Scales for the respective categories.
b. Temporary Supervising Establishment. Temporary supervisors, examiners
and other supervisory staff, eg, estimators, planners and rate fixers who are not
covered by sub-rule a above when necessary in the interest of efficiency or
economy, for periods not exceeding six months in the case of ordnance and one
year in the case of inspection establishments. At the minimum of the prescribed
scales of pay. The Director of Inspection and Technical Development may,
when necessary, sanction the employment of such men in the senior grade and
telephone operators, gate keepers, draughtsmen, tracers, photographers,
laboratory assistants and other similar technical personnel as required by the
exigencies of the service in ordnance and inspection establish ment (including
laboratories), respectively for periods not exceeding one year in each case. At
the minimum of the prescribed scales of pay. All temporary supervising
establishments serving on the 30th June of any year will be regarded as
technically discharged on that date. Their re-engagement as necessary, having
regard to the programme of manufacture and inspection for the ensuing financial
year, shall be arranged for in accordance with these rules.
c. Commandants, Central Ordnance Depots, Chief Ordnance Officers, Officers
Commanding Ordnance Installations, Officers Commanding Electrical and
Mechanical Engineering Workshops may sanction the employment of temporary
establishment as under:-
(1) Workmen, ie, skilled, semi skilled and unskilled labour properly so called
and gate keepers, firemen, leader firemen and telephone operators, etc, to
the extent necessary to carry out duly authorised manufacture, repair
orders or other work in connection with the storage, loading and unloadingof stores, etc, at the minimum of the prescribed scales of pay. The DOS
and DEME may, when necessary, sanction the employment of highly
skilled mistries and other supervisory staff--At the minimum of the
prescribed scales of pay.
(2) Men for work of a clerical nature, when necessary in the interest of
efficiency or economy. upto a period of one year in each case - At the
minimum of the prescribed scales of pay of lower
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division clerks. All such personnel who may be serving on the 30th
June of any year will be regarded as technically discharged on that
date. Their re-engagement, as necessary, should be arranged for in
accordance with these rules.
(3) Public servants in Basic Pay Scale 1 and 2, when necessary in the interest
of efficiency or economy, upto a period of one year. At the minimum of
the prescribed scales of pay. For the purpose of determining what
authority shall be competent to sanction the employment of temporary
establishments under the provisions of this rule, no account shall be taken
of the period during which the temporary establishment technically
discharged on 30th June has already been employed, in case where it is
desired to re-employ such establishment for a further period.
16. Powers in respect of MES Expenditure. The financial powers exercisable in respect
of MES expenditure are laid down in MES Regulations.
17. Pensions. The powers exercisable in respect of the grant of pensions are laid down in
Pension Regulations and in separate orders issued in respect of Air Force.
18. Powers are Personal. The powers authorized by these regulations are personal and
cannot be delegated to any subordinate officer, but see rule 20.
19. Sanction in Instalments. The limit which has been set in each case extends to each
separate sanction. The criterion in any case is the total cost of measure and no measure,
which requires the sanction of superior authority,.shall be sanctioned by a subordinate
authority in instalments.
20. Authorization of other officer to for an Officer possessing financial powers
a. In every case the officer possessing financial powers shall be personally and
unreservedly responsible for any orders purporting to be issued in accordance
with the degree of relaxation permitted by this rule whether the communication
conveying the orders is signed by himself or by an officer subordinate to him.
b. On the strict understanding that the sole responsibility rests on him, an officerpossessing financial powers may authorise a subordinate officer to sign
communications and documents of a financial character on his behalf, provided
that the name of the officer, who is authorised to sign, is communicated to the
Audit Officer concerned. In such cases it shall not be necessary for the officer
possessing financial powers himself to sanction each item personally. This
applies also in the case of special powers exercisable by competent authorities.
c. Provided that the above conditions are observed, claims for minor allowances,
which should ordinarily be countersigned by a formation
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commander may be countersigned "for him" by an officer authorised to sign for
him.
d. When an officer possessing financial powers is absent on leave or duty financial
responsibility will rest on the officer performing his duties, who will, for the timebeing exercise the full powers of the absentee.
21. Financial Advisers
a. In each Service Headquarters, there will be a Financial Advisers (FA) of
appropriate status appointed by the Ministry of Finance whose tenure shall be
three years. The Service chief shall be consulted invari ably in the matter of
appointment of persons as Service Financial Advisers. In selecting personnel for
the post of Financial Advisers due care will be taken to appoint people familiar
with the organisation where they are being seconded.
b. The FinanicaI Adviser will be attached to the service chief but his administrative
control will vest in the Ministry of Finance. In respect of professional standards
and procedures he will facilitate functioning of the Service and make full
utilisation of the budget provisions, with due regard, for efficiency as well as
economy.
c. The Financial Advisers to the Services shall:--
(1) Advise the Service Chief on all financial matters.
(2) Examine and tender advice on the budget estimates and reviews
prepared by the Director of Budget before their submission to the
Service Chief.
(3) Assist in the scrutiny of all new measures.
(4) Assist in processing all cases with Government which require
Government approvalvide annex B to this volume.
d. Th e financial advice will be restricted to the financial propriety of the proposals.For reasons to be recorded, the Service Chief may over rule the Financial
Adviser in cases which fall within the authority delegated to Service Chief.
Differences of opinion on whether a case falls within the authority delegated to
Service Chief shall be referred to the Ministry of Defence.
e. Consistent with the principles underlying the system, the following procedure
shall be adopted in obtaining financial advice and associating Finance Officers in
cases which fall within the delegated authority of the Service Chief:-
(1) Committees. Full use of the Finance Officers should be made
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by nominating them as members of policy and priority Committees, at
the discretion of the Service Chief.
(2) Establishments. Finance Officers will be associated in the review or
reorganisation of military units and formations involving changes in
manpower or equipment.
(3) I ndents. All indents, not exceeding Rs.25 million in value, may be
finalised by Service Headquarters in accordance with the prescribed
procedure but those exceeding Rs. 25 million may continue to be
referred for financial advice.
(4) Works. Finance Officers wil] be associated with works proposals at the
stage of scrutiny of projects and contract agreements as provided for in
the relevant orders.
(5) Capital Works Programme
(a) The Capital Works Programme of a Service for next financial
year shall be drawn up in consultation with the Service Financial
Adviser by the 31st May of the outgoing financial year on the
basis of the Budget Estimate for the ensuing year. The new
works may be arranged in the order of priority ie priority, I, II
and 111. Within one week of receipt of the sanction allocation
for the new financial year, adjustments may be made in it on the
basis of the actual budget allocation for this purpose and it shall
then be submitted for the approval of the Secretary General
Defence. Ministry of Defence will finalise it in consultation with
the ASMF within one week of receipt of the programme.
(b) The Services may issue or take up for issue, administrative
sanctions for works included in the last years' approved Capital
portion there of in the normal way. Such works should be duly
accounted for in the overall approved ceiling of the new works
for the current financial year.
(c) Foreign Training Programme. The foreign training pro-
gramme of officers and personnel shall be prepared by theServices and got cleared from the Financial Adviser of the
Service w61 in advance of the next financial year ie by the 31st
May. Immediately, on receipt of the sanctioned allocation for
the new financial year, the programme shall be tailored
according to the allocation for this purpose and submitted for
Government approval. Individual case sanctions included in the
programme so approved may be issued by the Service
Headquarters. Any change in the approved programme would
require Government approval.
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(d) FA's Advice Certificate. FA should tender advice on works
programme, training programme and other new measures for
their inclusion in the next years' budget without insisting on the
funds availability certificate.
(e) Endorsement of Sanctions. To avoid audit objections at a
later stage sanctions issued by Service Headquarters, requiredto be issued with the concurrence of the Service FA and on
which such concurrence has been obtained, shall be endorsed
by the Finance Officers, to the Controllers of Accounts, within
24 hours of their receipt. Sanctions which are issued by the
Service authorities in exercise of powers delegated to them
under the Regulations or Government orders, need not be
endorsed by the Service FA. Even in the case in which the
advice of the Service FA has been over-ruled in accordance
with these orders the sanction letter will be duly endorsed by
the AFA, as stated above.
(f) References to FA's. It will be made in the following manner,
namely:-
(i) All observations or queries raised by Finance Division
on a proposal should be, made once and not in
piecemeal. Thereafter the case should be deemed to be
completed.
(ii) The observations made by Finance Division be sent to
the Service Headquarters.
(iii) Not more than three references should be made to the
Service FA's Office. The cases should be submitted
complete in all respects at the normal AFA or DFA
level first, the second reference should be made at DFA
or FA level and the final, if still necessary, at FA level.
The advice rendered at this stage should be taken to be
the final advice of the FA. If the Service Chief considers
at this stage that the advice should be over ruled for
good and sufficient reason, action should be taken inthis behalf as provided in sub rule d above.
(iv) Visit to Service Units or Formation. Finance Officers
will be encouraged to visit field units to familiarise
themselves with the working of the Armed Forces.
(v) Meetings with FA Service. To clear backlog of out-
standing cases, if any, periodical meetings may be
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held between the Director Budget accompanied by the
Director concerned with the subject and the FA. The
minutes of the meeting should be forwarded to PSO
concerned at the Service Headquarters and the ASMF
inter alia. Later on, such meetings may be held with the
Deputy Financial Advisers also where feasible.
22. Controller of Army and Air Force Accounts as Financial Adviser. Controllers of Army
and Air Force Accounts are invested with the duty of affording financial advice to
commanders and their staff. Fullest use shall be made of the assistance of the
Controllers in investigating all branches of expenditure with a view to restricting
expenditure as far as possible, consistent with efficiency.
23. Communication of Sanction to Controller of Accounts. All sanctions by WA shall be
communicated to the controller of Accounts concerned.
24. Lapsing of Sanction. A sanction for any fresh expenditure, not acted on for a year, shall
lapse unless it is specifically renewed, except in the case of:-
a. An allowance sanctioned for an appointment or a class of officers, not drawn by
a particular incumbent of the appointment or by a particular set of officers.
b. Additions made gradually from year to year to a permanent establishment under
a general scheme.
c. An approved MES work. Fresh sanction is necessary if work is not
commenced within five years of the date of sanction.
25. Sanctioning of Expenditure Not Covered by Rule. A formation Commander,
Commander Arty, the Chief of the Air Staff and OC No 1 Group may sanction, upto
the limit of powers conferred on him by rule 12, non-recurring expenditure not falling
within categories enumerated in rule 8 and not provided for in these regulations, or not
precisely or adequately covered by existing regulations, subject to the condition that the
expenditure must be a reasonable charge against Defence Services funds which, in his
opinion, is likely to receive the sanction of the Government, if referred to them.
26. Claims of Petty Nature. Competent authorities, as defined in Passage Regulations,1980, may sanction, in consultation with their Financial Advisers, travelling daims
including use of warrants and conveyance of stores and credit notes for amounts not
exceeding one thousand rupees in any case, which in their opinion would ordinarily be
sanctioned by the Government, except in the following cases:-
a. Over-issue of travelling allowance and erroneous issue of warrants and credit
notes due to culpable negligence which fall to be dealt with under the rules in
Chapter 2.
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b. Travel by a class higher than that allowed by the rules.
c. Conveyance of baggage in excess of tonnage authorised (as distinct
from conveyance of the authorised quantity of a passenger train instead of by a
goods train).
d. Grant of daily allowance in excess of daily rates authorised.
Note: The monetary limits prescribed in this rule should not be taken as applying to the
total amount of TA Claims in question, but to such portion of the claims as
would otherwise have been submitted to the Government for sanction had
delegation of powers not been made.
27. Issue of Store in Exceptional Cases. A Formation Commander and the Chief of the
Air Staff, may, upto Rs. 500.00 sanction the issue of stores or regularise previous issues
of stores in cases where issues are either not provided for at aft in the regulations or
where, in the opinion of the sanctioning authority, insufficient provision is made in
existing scales or rules, having regard to the special circumstances, attaching to each.
The exercise of the powers is subject only to the conditions laid down in rule 25 and to
the further conditions that:-
a. The case is one that is unlikely to recur frequently.
b. That the Financial Adviser concerned records his concurrence in
the action proposed.
Note:- Under this rule, issues made in error and over-issue from whatever
cause, may also be regularized by the above authorities subject to the
financial limits mentioned.
28. Petty Items of Recurring Expenditure. A Formation Commander and the Chief of the
Air Staff may, in accordance with the general provisions of these rules, sanction petty
items of recurring expenditure upto an aggregate annual limit of Rs. 2,000.00 and in any
individual case upto a limit of Rs. 200.00 per annum subject to the further condition that
expenditure is sanctioned on subjects covered by these rules (see rule 29).
29. Expenditure that may not be sanctioned
a. No sanction may be given by an officer possessing financial powers which will
involve expenditure from the budget grant of any future year, except asseparately provided for in the Regulations for the MES and in respect of
temporary establishments or labour in excess of fixed scales, workmen and
temporary establishments or labour referred to in rule 11.
b. Nothing in these rules shall be held to authorise as officer possessing financial
powers to sanction the employment of temporary establishments.
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or labour in excess of fixed scale:-
(1) To sanction a temporary increase to the clerical establishment of his
own office or that of any member of his staff. Such temporary increases
shall require the sanction of the next higher competent financialauthority.
(2) To sanction temporary establishment, required for more than six months
(except as provided for in the Regulations for the MES and in ride 15).
This requires the sanction of the next higher CFA but the employment of
temporary establishment for a period of more than two years of the
creation of a temporary post, on more than the Basic Pay Scales 1 and
% requires the sane government.
Note:- The provision of sub-rule (2), clause b ibid shall not be applicable to the
sanctions issued under Rule 9 b..
c. Further, nothing in these rules shall be held to a~t~o?n-e an officer to:- -
(1) Sanction expenditure in excess of fixed annual allotments.
(2) Sanction expenditure which is liable to establish a new ride or practice
involving further expenditure in the future, eg, admit unauthorised
persons to treatment in a military hospital, transfar an office from the
plains to hills.
(3) Sanction a pension in excess of the amount admissible under rule.
(4) Sanction an advance or loan not authorised by rules.
(5) Authorise the payment to Government servants of any remunera- tion or
allowance to which they are not entitled under ordinary
rules.
(6) Sanction the provision of new kinds and patterns of furniture.
30. Abandonment of Revenue and Expenditure. No order involving abandonment of
revenue for which credit has been taken in the budget shall be issued and noexpenditure which has not been provided for in the budget or, if provided in the budget
has not been duly sanctioned, shall be authorised without the concurrence of the
Financial Adviser concerned.
31. Expenditure Against Allotment
a. The authorities to whom allotments are made shall watch progress of
expenditure and ensure that it does not exceed allotment. To achieve this object
the primary controlling authorities shall maintain a complete record of
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disbursement & and commitments against allotments in the form prescribed in
Annex C. MAG shall render monthly statements in respect of static units only.
showing the amount compiled in accounts against allotments. When actual
disclose any tendency to excessive
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expenditure primary controlling authorities win take steps to regulate
expenditure so as to keep it within the grant. Where it may not be possible to
restrict expenditure within allotment a report asking for supplementary allotment
will be submitted, with full reasons, to the next higher authority. The latter
authority will sanction the additional grant asked for from the reserve held by
him or from surrenders reported to him. Where no reserve or no surrendersreceived he will refer the case to the central controlling authority who will take
all further action for making additional allotment and procurement of funds in
consultation with his Financial Adviser. On the other hand, if savings are
anticipated the primary controlling authority will report the fact to the next higher
authority, giving reasons for surrender and stating the amount surrendered. The
surround of excess allotments at the earliest possible date is ttant ste it will
enable the excess to be diverted to meet shortages in the grants under other
heads.
b. Appropriate entries will be made in the budget allotments register (Annex C).
c. The intermediate controlling authority shall keep a constant watch on the
progress of expenditure as shown in the monthly statement received from the
Accounts Office and shall:-
(1) Draw the attention of the primary controlling authority concerned to any
indication derived from his scrutiny or from his knowledge of future,
developments, of either a danger of overspending a particular allotment
or excessive allotment under any head.
(2) Review the position of his allotments every month with the object of
deciding whether any sums can be surrendered from his reserves, and
notify all surrenders to central controlling authorities.
d. If on the other hand his reserve under any particular control heads is exhausted
and he has not been able to meet demands for supplement ary allotments under
that head to the extent accepted by him he may either re-appropriate funds from
his reserve under another control head or failing that, submit an application
giving full particulars and reasons for the necessary supplementary allotment. All
surrenders and supplementary allotments, whether resulting from
re-appropriation or otherwise, will be duly entered in his budget allotmentsregister. Re-appropriations will be reported monthly to the Service
Headquarters controlling authority conceived. The central controlling authority
shall review the position every month on the basis of actual expenditure
reported by MAG, intermediate controlling authority and such other factors as
might be known to them. Where additional allotment is asked for they will do so
either from the reserve held by them or from
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the surrenders reported to them. If these sources are exhausted additional
allotments will be made by Service Headquarters after obtainingproper
sanction.
32. Estimates of Operational Expenditure,
a. When operation or important special services involving the expenditure or large
sums take place, the Ministry of Defence shall at once report the fact to the
Additional Secretary, Military Finance (ASMF), together with an assessment of
the probable duration of the operations; and shall supply that authority as
promptly as possible, with a scheme giving in detail the composition and
strength of the force; the conditions of service and concessions applicable to
troops 1~ non-combatants (enrolled and civilians) to be employed and such
other particulars as may be necessary.
b. Copies of this scheme as soon as it has received the sanction of Government
shall be furnished by the Ministry of Defence to the ASMF for communication
to all controllers of accounts and it will form the recognised basis of estimate
and audit by the Ministry of Finance and its officers. All subsequent changes
which may materially affect expenditure shall promptly be communicated to the
ASMF and the controllers and others concerned. The ASMF shall provide
ways and means and shall see that the sanctioned appropriations are not
exceeded. It is to be clearly understood, in questions of this nature, that the
primary responsibility for expenditure on field operations and similar services
rests with military and air force authorities. It is for them to see that in
the at most economy is observed in expenditure in the field, as the case
may be, at the base and in the supplies necessary for the requirements of the
forces concerned. Subject to the above considerations, the general rules in
these regulations as to the exercise of financial powers during peace shall apply
equally during war or when special operations are undertaken.
33. Financial Powers Under Civil Service Regulations. The officers mentioned below
shall exercise the powers or part of the powers of a Local Government under the Civil
Service Regulations to the extent specified in the table below:--
TABLE
Officers Powers
a. Formation Commande Full powers of a Local Government except
under chapter XXXVIII of the Civil Service
b. Director of Personnel, Regulations in respect of individuals under their
Air Force. orders (excluding the personnel of the MES and
those employed at Service Headquarters, who'
are not appointed directly by the Government
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provided that wherein the CSR powers areconferred
on Provincial Government only, such powers shall be
exercised only by the Federal Government.
c. E-in-C. Full powers of a Local Government except
those under Chapter XXXVIII and Article 361A of the
CSR which shall be exercised by the President only, inrespect of individuals under his orders (excluding
regular General Headquarters Staff) who are not
appointed directly by the Government, provided that
wherein the CSR, powers are conferred on Provincial
Government only, such powers shall be exercised by
the Federal Government. As no subordinate authorities
under the administrative control of E-in-C have so far
been recognised as heads of departments under the
CSR, powers under Articles 89, 147, 177, 178 (b),
253, 254, 321, 514 (a), 520 (iii) and 763, Wid, shall
not be re-delegated.
d. CAO. Powers under Chapters V and VI and Articles 459
of the CSR in respect of subordinates placed in basic
pay scales 1 to 16, who are employed in GHQ and Air
HQ.
e. MAG. Powers under Article 459 of the CSR, in respect
of subordinates placed in basic pay scales 1 to 16 and
who are employed in establishment under his control.
34. Whole Time of a Government Servant. Unless, in any case, it is otherwise distinctly
provided, the whole time of a Government servant is at the disposal of the Government
which pays him, and he may be employed in any manner required by competent
authority without having a claim for additional remuneration, whether the services
required of him are such as would ordinarily be remunerated from general revenues or
from a local fund.
35. Fees and Honoraria
a. A Government servant may be permitted by the general or special order of acompetent authority, if it is satisfied that this can be done without detriment to
his official duties or responsibilities, to perform a specified service or series of
services for a private person or body or for a public body administering a local
fund eind to receive as remuneration therefore, if the service is material a
non-recurring or a recur ring fee. No Government servant shall undertake such
work without first obtaining the sanction of the competent authority who will,
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unless the Government servant is on leave, certify that the work can be
undertaken without detriment to his official duties and responsibilities.
b. A Government servant, may be granted an honorarium from general revenues as
remuneration for work performed which is exceptional in character and either
so laborious or of such special merit as to justify a special reward. This test ofexceptional merit shall always strictly be applied. Except when special
reasons, which should be recorded in writing, exist for a departure from this
provision, an honorarium shall not be granted unless the work has been
undertaken with the previous consent of the sanctioning authority and its amount
has been settled in advance.
c. For both fees and honoraria, the sanctioning authorities shall record in writing
that due regard has been paid to the general principle enunciated in rule 38 and
will also record the reasons which in his opinion, justify the grant of the extra
remuneration. The amount of an honorarium or fee shall be fixed with due
regard to the value of the service in return for which it is given.
d. Any Government servant shall be eligible to receive without special permission:-
(1) The premium awarded for an essay or plan in public competition.
(2) Any reward offered for the arrest of a criminal, or for information
or special service in connection with the administration in of
justice.
(3) Any reward payable in accordance with the provisions of any Act
or Regulation or Rules framed thereunder.
(4) Any reward sanctioned for services in connection with the
administration of the customs and excise laws.
(5) 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.
e. A Government servant whose duties involve the carrying out of scientific ortechnical research shall not apply for or obtain, or cause or permit any other
person to apply for or obtain, a patent for an invention made by such
Government servant save with the permission of the Government and then only
on such conditions as he may impose.
f. Unless the Government by special order otherwise directs, one-third of any fee
including a fee received by a Government servant for giving expert evidence
before a court of law, in excess of Rs. 50.00 or, if
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a recurring fee of Rs.50.00 in one financial year, paid to a Government
servant for work undertaken by him for a private or public body or fora
private person shall be credited to general revenues. In other words, if any fee
exceeds Rs. 50.00 non-recurring, or Rs. 50.00 in a financial year recurring,
one-third of the total amount payable will be credited to general revenues,
provided that the amount retained by the Government servant concerned willnot, merely owing to the operation of this rule, be reduced below Rs. 50.00 if
non-recurring, or Rs. 50.00 a year, if recurring. In applying this rule
non-recurring fees shall be dealt with separately from recurring fees.
Note
1. This rule does not apply to fees received by Government servants from
a regimental fund or from a university or other examining body in return
for their services as examiners., to fees of any kind received by medical
and veterinary officers in military employ or to payments for services of
a social nature rendered to a club or similar organization of the
Government servant's fellow employees as distinct from services
rendered on a commercial basis to a private individual or corporation.
2. The authority competent to sanction the acceptance by a govern ment
servant of any fee whether recurring or non-recurring shall report the
matter to the Audit Officer concerned and realize the Government
share, if any.
g. Subject to the provisions of sub rule f above, when a fee is paid for work done
by a Government servant during such time as would otherwise be spent in the
performance of official duties, the fee shall be credited to general revenues
provided that a competent authority, for special reasons which shall be
recorded, may direct that whole or any part of it may be paid to the
Government servant.
h. The MGO shall be the competent authority for the purpose of this rule, in
respect of all civil and military personnel employed in Inspectorates of
Armaments, Vehicles and Engineering Equipment, Electronics and Instruments,
and Stores and Clothing, EME Workshops and Installations and Ordnance
Depots. The MAG is the competent authority in respect of personnel employed
in Military Accounts Department. These officers are authorised to sanction anhonorarium up to a maximum of Rs. 500.00 in each case in respect of personnel
under their orders who are not appointed directly by the Government of
Pakistan and who are not employed in the MGO Branch at General
Headquarters. The Chief of the Army Staff shall be the competent authority in
respect of all civilians except those employed in Military Accounts Department,
and army personnel employed in formations up to a maximum of Rs. 1,0001-
each case. All other cases shall be referred for the orders of the Government.
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36. Cheques. The following general rules, affecting cheques, are prescribed, namely:--
a. Cheques are payable at any time within three months after the month of issue
and to ensure payment after that period, a fresh cheque should be obtained by
surrender of the un-cashed cheque.
b. Cheques drawn in favour of a Government servant must be made payable "to
order" only. Those drawn in payment of personal dues shall, as a general rule,
be crossed but an uncrossed cheque may be issued on written request at the
risk of the payee. In the case of personal claims of civilian gazetted servants the
payment shall be made by crossed cheque. Those drawn in favour of persons
not in Government employ may be made payable to "bearer" when the issue in
these terms is requested. No advice of the issue of a cheque is necessary. The
amount of all military cheques should be expressed in figures and words (in
words for the amount of rupees only).
c. (1) Cheques drawn in favour of Government officers and departments in
settlement of Government dues should always be crossed 'A/C
payee only not negotiable'.
(2) Unless it is inconvenient to the payee, all cheques should be crossed,
crossing being done by adding the words "A/C payee only" instead of
the general crossing "& W.' All cheques in favour of Government
officers will if sent by post, be registered. In the case of cheques in
favour of private individuals, they in should be delivered either in person
or through a Government officer; when it is necessary to sent such
cheques by post, they will be sent by registered post acknowledgement
due, and a declaration should be obtained from the payee in writing
that he accepts the risks involved.
d. In the case of units /formations, cheques for amounts due will be crossed and
marked "A/C payee only" and together with PAF (CMA) 223 sent direct to the
Bank or Treasury by the controller of accounts for credit to unit's or formation's
current accounts. At the same time, a detailed statement will be sent to the unit
or the formation concerned. For this purpose all units and the formations in
question should open a current account with the State Bank of Pakistan or
National Bank of Pakistan where such bank exists, otherwise in a local treasury.
e. The supply of cheque books, for the purpose of operating bank account will be
made by the Bank itself but in respect of personal deposit account with civil
treasuries, cheque books should be obtained from civil Accountant General.
f. In no case should payment be demanded from bankers, and expenses
26
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m . The loss of a cheque book or blank cheque forms should be notified promptly
to the bank/treasury officer with whom the disbursing officer concerned has a
drawing account. Every officer should notify to the bank/treasury upon which he
draws the number of each cheque book as he brings it into use.
n. When an officer sends a cheque or Government draft to a bank/treasury not for
cash payment, but to be credited in the bank/treasury accounts, he must
endorse it as follow:
"Place the amount to credit of Government Military receipt".
o. Cheque drawn on the bank or any of its branches should be addressed to the
bank itself and not to any officer thereof, eg, National Bank of Pakistan,
Karachi.
p. If a Disbursing Officer is informed that a cheque drawn by him has been lost he
will address the bank/treasury officer drawn on and forward the following
certificates for completion and return:-
"Certified that cheque No______________ dated ______________________ for
Rs-________ reported by the______________________to have been drawn by him
on this bank/treasury in favour of _____________________has not been paid, and
will not be paid if presented hereafter".
Bank/Treasury,_______________________ Bank/Treasury Officer.
The ________ 19".
Note: If the cheque has not been cashed, the bank/treasury officer will sign and return
the certificate, and the Disbursing Officer will then cancel the original cheque
and a fresh cheque may be issued.
q. Alterations in cheques should be attested by the full signature of the Drawing
Officer and not by initials only.
r. If a cheque is issued by Government in payment of any sum due by
Government, and that cheque is honoured on presentation to Govern merit'sbankers, payment shall be deemed to he made if:-
(1) The cheque is handed over to the payee or his authorised messenger,
on the date it is so handed over.
(2) It is posted to the payee on the date when the cover containing it is put
into the post.
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Note: Cheques marked as NOT payable before a certain date should
NOT be charged to the account until the date on which they
become payable.
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CHAPTER 2 - LOSSES, WASTAGE AND DAMAGE TO PUBLIC
PROPERTY - PROCEDURE AND POWERS TO WRITE OFF
37. General Rules for Observance
a. All losses, whether of public money or of stores, shall be subjected to a
preliminary investigation by the officer in whose charge they were, to ascertainthe cause of the loss and the amount involved. For the purpose of the procedure
to be followed thereafter losses are classified as under: -
(1) Losses of stores.
(2) Losses of public money.
b. When an investigation into a case of loss due to theft, fraud or neglect discloses
a defect of system and when irrecoverable debts of units are attributable to that
cause, a report shall be made to the Government through the usual channels and
the Controller of Accounts concerned together with a recommendation for
rectifying the defect. Petty defalcations or petty thefts need not be reported.
c. The monetary limits of sanction specified refer to each separate case of loss and
it shall not be permissible to sub-divide a case of loss with the object of bringing
the amount within the financial powers of the authority dealing with it (see also
rule 19).
d. In regard to courts of inquiry, see AR Instruction 334. If an Audit Officer is not
satisfied with the composition of a Court of Inquiry, the matter will be brought
to the notice of the formation Commander.
e. The value of such losses shall be checked by the audit authorities before action
is taken for their regularization.
38. Losses of Stores
a. These are classified as under,: -
(1) In base and station supply depots.
(2) In all other cases.
b. Losses of stores in. base and Station Supply Depots.
(1) Procedure. When stores are lost, destroyed, found to be deficient
through wastage or otherwise, or damaged by fire or otherwise, the
storekeeper concerned shall personally be responsible that an
immediate report is made to the officer commanding. The latter
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shall investigate the cause of the loss, the amount involved; and the
circumstances of the case. He shall also report the occurrence to the
officer commanding the station. The officer commanding the station shall
himself carry out an investigation or assemble a board of officers for the
purpose if he considers it necessary. The results of this investigation
shall be communicated to the CFA through the usual channels for
further action as laid down in sub-rule (a) and (b) below:-
(a) If the investigation shows that the loss is not due to theft, fraud
or neglect, it shall be written off by, the CRA in consultation
with his financial adviser.
(b) If it is decided that the loss is due to theft, fraud or neglect, the
CRA shall in consultation with his Financial Adviser, according
to the circumstance of the case take action as under:-
i. If the persons responsible are not Governments servants,
the CFA may write off the entire loss for reasons to be
recorded in writing. He may allow, but shall7Mornpel
the individual or individuals concerned to make good
the loss in whole or in part. If the loss is made good in
part, he may sanction the write off of the balance for
reasons to be Recorded in writing. He may, with the
sanction of the com petent authority, institute legal
proceedings against g, the persons responsible in a
Court of low in accordance with the procedure laid
down in respective service regulations.
ii. If the persons responsible are civilian Government
servants, the WA may write off the entire loss for
reasons to be recorded in writing. He may allow, but
shall not compel, the individual or Individuals concerned
to make good the loss in whole or in part. If the loss is
made good in part, he may sanction the write off the
balance for reasons to be recorded in writing. He may
take departmental action against the individuals
responsible or in cases where such action requires the
orders of a higher authority, submit the case for orders
together with his recommendation. He may 'llwesanction of the competent authority, institute legal
proceedings against the persons responsible in court of
law in accordance with the procedure laid down in the
respective regulations.
iii If the persons responsible are subject to military law,
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the CFA may write off the entire loss for reasons to be
recorded in writing. He may allow, but cannot compel,
the individual or individuals concerned to make good
the loss in whole or in part. If the loss is made good in
part, he may sanction the write off the balance for
reasons to be recorded in writing. He may initiateappropriate action to effect recovery in whole or in part
from the pay of the individual or individuals responsible,
as penal deductions under the Pakistan Army Act,
1952 (XXXIX of 1952), or, as the case may be
stoppages under the Pakistan Air Force Act, 1953 (V1
of 1953). He may take or initiate disciplinary action
against the individual or individuals responsible. Any
one or more of the above courses of action may, at the
discretion of the competent authority, be taken against
the persons responsible.
(2) Write off Power. The financial powers of officer In respect of
losses referred in this rule shall be as specified below:
S/No Officers Losses Not Due
to Theft, Fraud
Neclects
Losses Due to
Theft, Fraud or
Neglects
(a) Service Chief Rs.500,000/- Rs 100,000/-
(b) QMG Above Rs.
25,000/- 5,000/-
up to Rs.1,00,000/-
(in consultation
with FA(Army)
(c) Corps
Commander Rs.25,000.00 Rs. 5,000.00
(d) Divisional
Commander/ Rs. 10,000.00 Rs.2,000.00
Force Commander
Northern Area[
Independent
Brigade Com-
mander
(e) Brigade/Log Area Rs. 5,000.00 Rs. 500.00
Commander
(f) ADS&TICO S&T Rs.2,000.00 Rs Nil
Battalion
(Lt Col)
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ii. @ CO Unit 2,000.00 Nil
(Lt Col equivalent)
iii. Station Commanders/ 5,000.00 500.00Commandants Training
Institution Establishments
(Col and above).
iv. Brigade Commander/ 7,000.00 1,000.00
PAIPBase Commander.
v Logistic Area 10,000.00 2,000.00
Commander.
vi. Divisional Commander/ 15,000.00 3,000.00
Force Commander
Northern Area
Independent Brigade
Commander.
vii. Corps Commander 25,000.00 5,000.00
viii. PSO concerned at Above
GHQ1DCACS(A) 25,000.00 5,000.00
(In consultation with upto
FA of the Service 1,00,000.00
concerned).
(b) MES
i. CMES 200.00 Nil
ii. OC Engr Stores. 200.00 Nil
iii. Addl CE (Col/ 2,000.00 500.00
equivalent).
iv. Addl CE (Brig/ 5,000.00 1'000
equivalent) W&CE.
v. Corps Commander 25,000.00 5,000.00
Above
vi. QMGIMGO/DCAS(A)/ 25,000.00 5,000.00
E-In-C* upto
(In consultation with 1,00,000.00
FA of the Service
concerned).
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@ For GHQ and AHQ Chief Administrative Officer and
his equivalent will exercise these powers
*In respect of MES establishment directly under his
control.
(c) ITD Installations
Rs. Rs.
i Chief Inspector of 2,000.00 Nil
inspectorate 1C0 inspection
Depot (Lt Col).
ii. Chief Inspectors of 5,000.00 1,000.00
Inspectorate/CO
Inspection Depots
(Col & above).
iii. DITD at Service 15,000.00 3,000.00
Headquarters.
iv. MGO/PSO concerned Above
at AHQ 25,000.00 5,000.00
(in consultation with to 1,00,000.00
FA of the Service
concerned).
(d) Ordnance Installations
i. OC Ord Depots/PAF 500.00 Nil
Supply/Equipment
Depots (Maj & below
equivalent).
ii. Chief Ordnance Officer 2,500.00 Nil
Ordnance Depots/PAF
Supply /EquipmentDepots (Lt Col/
equivalent).
iii. Commandant Ord Depot 5,000.00 1,000.00
PAF Supply /Equipment
Depots(Col and
above /equivalent).
iv. DOS. 15,000.00 3,000.00
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(e) EME installations Rs. Rs.
i. OC Station/MES 500.00 Nil
Equipment Workshop
(Major and below).
ii. OC Station/Medium 2,500.00 NilArea/Combined/
Central Workshop
(Lt Col).
iii. Commandants 5,000.00 1,000.00
Combined and
Central Workshop
(Col and above).
iv DEME. 15,000.00 3,000.00
v. MGO Above
(in consultation 25,000.00 5,000.00
with FA (Army). upto
1,00.000.00
(f) Farms and Remount
i. OC MVH, CVSD 500.00 Nil
Remount/ Depot/
Farms, DRO
(Maj and below).
ii. OC MVII, CVSD 2,500.00 Nil
Remount/Farms Depot,
DRO (Lt Col).
iii. OC Remount/Farms 5,000.00 1,000.00
Depot (Col & above).
iv. ADRV&F, Formation 2,000.00 200.00HQ, ADJIV&F in HQ
Military Farms Group
(Lt Col).
V. DR&VF 15,000.00 3,000.00
Above
vi. QMG 25,000.00 5,000.00
(in consultation upto
with FA (Army). 1,00,000.00
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(g) ASC Units/Installations Rs' Rs.
Administered by GHQ
i. OC Unit 500.00 Nil
(Maj and below).
ii. OC Unit (Lt Col). 2,500.00 Nil
iii. DS&T. 15,000.00 3,000.00
Above
iv. QMG. 25,000.00 5,000.00
(in consultation upto
with FA (Army). 1,00,000.00
(h) Units/Hospitals/Medical Installations
i. OC Armed Forces 250.00 Nil
Medical Stores/
Inspectorates/
Laboratories (Major & below).
ii OC Armed Forces 2000.00 Nil
Stores /Institute of
transfusion (Lt Col & Above).
iii. CO Medical Unit/
Establishment/
Hospital.
(aa) Lt Col equivalent. 2,500.00 Nil
(bb) Col & above/ 5,000.00 1,000.00
equivalent.
iv. ADMS (Col & above) 5,000.00 1,000.00DD1IS(Air).
v. Brigade Commander/ 7,000.00 1,000.00
Base Commander PAR
vi. Logistic Area 10,000.00 2,000.00
Commander.
vii. Div Commander/ 15,000.00 3,000.00
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Independent
Brigade Commander.
viii. Surgeon General. 15,000.00 3,000.00
37
Rs. Rs.ix. Corps Commander. 25,000.00 5,000.00
Above
x. PS0s concerned 25,000.00 5,000.00
GHQ and AHQ upto
(in consultation 1,00,000.00
with FA of the service
concerned).
(j) Service Chief. 2,50,000.00 50,000.00
d. Losses of immovable property. Losses of, or damage to, military buildings or
other immovable property e.g. Bridges by fire or any other cause shall be dealt
with under the above rules. For this purpose the value of the loss or damage shall
be the total amount irrespective of any amount received from the insurance
company in the case of an insured building.
e. Subsidiary Rules Relating to the. Treatment of Losses of Stores. The
following subsidiary rules shall be observed in cases where applicable in
addition to those laid down in rules 37 and 38c above :-
(1) Means will be devised to ensure that every Government servant realises
fully and clearly that he will be held personally responsible for any loss
sustained by Government through fraud or negligence on his part and
that he will also be held personally responsible for any loss arising from
fraud or negligence on the part of any other Government servant to the
extent to which it may be shown that he contributed to the loss by his
own action or negligence. The cardinal principle governing the
assessment of responsibility in such cases is that every public officer
should exert the same vigilance in respect of public expenditure and
public funds generally as a person of ordinary prudence would exercise
in respect of the expenditure and the custody of his own money. Anofficer's honest errors of judgement involving financial loss may be
condoned, provided that he can show that he has done his best up to
the limits of his ability and experience. Any dishonesty, carelessness, or
negligence in the performance of the duties entrusted to him will be
penalised.
(2) When stores are lost in transit the necessary investigation and action to
have the loss written off shall be taken by the consignee (consignor in
the case of ordnance stores supplied to foreign Governments). Trivial
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discrepancies in quantities conditions or description, the value of which
does not exceed Rs 150.00 and w6ich are not Atributable to theft,
fraud, neglect or a fault of the carrier, c, covered on receipt of stores in
depots/units, will he adjusted without raising a discrepancy report
against the consignor. A dear receipt will be given to the consignor but
only the actual quantity received will be brought on charge. An
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explanation of the discrepancy will be endorsed on the consignee's
receipt voucher which will be amended accordingly. When it is
considered advisable to inform the consignor of the discrepancy, e.g.,
error in designation, a discrepancy report will be prepared, enfaced
"Dealt with under Rule W' and the duplicate only sent to the consignor
with his copy of the voucher which will not be amended. The
amendment to the consignee's copy of the receipt voucher will bevouchered for by the Groups Officer/ OC Unit concerned and the
discrepancy report will also be signed by Wm. If the value of such
losses is recoverable from the carrier company or Port Trust authorities
in Pakistan the consignees shall send to the Controller concerned a
memo giving full particulars of the loss together with a copy of the
communication in which the carrying company does or does not
acknowledge liability. Action to effect recovery shall be taken by the
Controller concerned. No claim shall be preferred against the carrier
Company or Port Trust authorities in Pakistan when the amount
involved is less than Rs 100.00. Claim in respect of insured con-
signments will be preferred irrespective of the amount involved.
(3) The amount to be shown on loss statements shall be the value of the
stores lost or, in the case of stores damaged or in the case of stores
which on exan-dnation are found to differ in condition from that under
which they were held on charge, the estimated, actual where known,
cost of repairs except in cases where recovery from an individual is
involved whenrule 58 shall be followed. In the case of loss of air force
stores action shall be taken in accordance with A.P. 830 (Pakistan).
(4) When any Government property is damaged but not actually deficient it
shall be surveyed and condemned if necessary, and the loss resulting
shall be written off by the CFA. The cost of making good any loss or
damage other than that due to reasonable wear and tear to public
property shall be assessed in accordance with the rule 58 and it shall
rest with the CFA to decide the degree of liability attaching to the
individual concerned.
(5) In the case of a vehicle sent to an EME workshop for overhaul after an
accident, the cost of making good the damage caused by the accident
assessed (on the value of material and labour) by the workshop officershall be written off by the CFA independently of any liability for the loss
attaching to the unit or the individual concerned.
(6) When, on taking stock, stores are found surplus or deficient, the
surpluses shall at once be credited to Government on a proper voucher
and the deficiencies shall be dealt with in accordance with the foregoing
rules under the orders of the CFA in cases where other specific
instructions exist.
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