ISLAMABAD: Finance Division has urged all ministries/divisions having autonomous/semi-autonomous bodies/ corporations to seek prior vetting of their rules which have financial implications.
Finance Division, in a letter to all Ministries/ Division and Auditor General of Pakistan has stated that Para 12(1) of Rules of Business 1973 states that no Division shall, without the previous consultation with the Finance Division, authorize the issue of any orders, other than orders in pursuance of any general or special delegation made by the Finance Division, which will involve a change in the terms and conditions of service of Government servants, on their statutory rights, privileges which would have financial implications and affect the finances of the federation directly or indirectly.
Alia Zaidi, Section Officer (Regulation-14), in her letter has apprised the Ministries/ Division that, in term of para 12(16) Schedule Il of Rules of Business 1973, Finance Division is responsible for framing of rules on pay and allowances, retirement benefits, leave benefits and other financial terms and conditions.
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Further, under Section 18 of Public Finance Management Act, 2019 it is mandatory for every Ministry/ Division/ Department to consult Finance Division while initiating their legislative proposals having financial implications, relating to framing their rules on pay and allowances, retirement benefits, leave benefits, as well as, other financial terms and conditions of service, she added.
In light of these rules, Regulations Wing of Finance Division vets all the legislative proposals having financial implications, which are referred to it by the concerned autonomous/ semi-autonomous bodies/ corporations through their respective Ministries/ Divisions concerned. But, it has been observed that majority of the autonomous/ semi-autonomous bodies/ corporations have not obtained prior approval of Federal Government/ Finance Division.
Finance Division has pointed out that the Supreme Court of Pakistan in its judgment in Civil Appeals No. 1428 to 1436 of 2016 concluded that “The Rules of Business, 1973 are binding on the Government and a failure to follow them would lead to an order lacking any legal validity”.
Finance Division maintained that it is binding upon all the Ministries/ Divisions having autonomous/ semi-autonomous bodies/ corporations under their administrative control to ensure implementation of Paras 12(1) and 12(16) Schedule II of Rules of Business, 1973.
Finance Division has urged all Ministries/ Divisions to convey these instructions to autonomous/ semi-autonomous bodies/ corporations under their administrative control for taking further necessary action for vetting of rules of those entities whose rule are yet to be vetted by Finance Division.
Copyright Business Recorder, 2023
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