Private property rentals for govt: FD chides ministries, divisions for breaching rules

ISLAMABAD: The Finance Division has reprimanded federal ministries and Divisions for repeatedly violating official rules while renting private properties for government offices. It has issued a warning that no ex-post facto approvals will be entertained in future.

In a sharply-worded office memorandum, the Finance Division highlighted that several organizations have been bypassing established procedures and submitting hiring cases only after audit objections, despite clear instructions issued as far back as October 2001.

The Division noted that it had discovered instances where ministries entered into lease agreements with private parties at rental rates exceeding those allowed by the Ministry of Housing & Works — without obtaining the mandatory prior approval from the Finance Division’s Regulation Wing.

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The memorandum stated: “It has been observed that ministries/Divisions/departments/organizations are not adhering to these instructions in letter and spirit. Instances have come to the notice of the Finance Division where certain cases, involving requests for ex-post-facto approval, have been forwarded after audit objections, in clear violation of the Finance Division’s instructions issued in the aforementioned memorandum.”

Ministries, divisions, and departments are, therefore, once again urged to strictly follow the procedures for hiring office accommodation and refrain from entering into any lease agreement with a private party involving rental rates higher than those permissible and issued by the Ministry of Housing & Works. Prior approval from the Finance Division’s Regulation Wing must be obtained. In the future, no ex-post facto approval will be granted by the Finance Division for such lease agreements.

Furthermore, cases involving initial hiring or subsequent rent increases beyond the prescribed limits must be forwarded to the Finance Division’s Regulation Wing with the approval of the Secretary in charge of the concerned Ministry or Division. These cases must also be supported by the prescribed documents and follow the correct procedures.

It should also be noted that, in future incomplete proposals missing any one of the required documents – ie, (i) Consent of owner, (ii) Statement of space entitlement, (iii) Detail of sanctioned strength of officers/officials duly approved by Ministry of Housing & Works, (iv) Hiring particulars on the Standard Format duly signed by Grade-20 officer or equivalent with complete entries, (v) Authentic copy of the map of the premises in question, (vi) Copies of previous lease agreement in cases of enhancement, (vii) Self contained note along with specific recommendations of concerned JS-Exp, will not be entertained and will be returned at initial stage without examination.”

Copyright Business Recorder, 2025