Pakistan Financial regulations_Vol 1

8/10/2019 Pakistan Financial regulations_Vol 1

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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corresponding rules in the superseded edition.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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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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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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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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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 appropriations,

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.


(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.



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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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14

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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15

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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17

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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18

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 remuneration 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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21

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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23

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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24

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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27

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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31

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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33

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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34

@ 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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35

(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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36

(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


57/343

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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38

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.

Documents

Pakistan Financial regulations_Vol 1