ISLAMABAD: Ministry of Finance (MoF) has asked Principal Accounting Officers (PAOs) of all the Ministries to ensure allocation of sufficient funds for arrears and current subscriptions to international agencies in the budget estimates of next fiscal year to clear all pending payments, official sources told Business Recorder.

Cogent basis should be used while estimating the budgetary requirements for this purpose, the Ministry added.

Finance Ministry’s External Finance Wing, in its Office Memorandum of March 8, 2024 referred to its Office Memorandum (OM) of January 8, 2024 titled “payment of Pakistan’s mandatory contributions/subscription to International Agencies.”

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According to the OM, while analyzing the information/data received in response to O.M, it has been observed that in many cases sufficient funds were not allocated in budget estimates during previous financial years and consequently, obligatory contributions/subscriptions were not paid within due dates. Resultantly, arrears accumulated and surcharge/late payment fee were charged in some cases.

Finance Ministry maintained that additional funds through Technical Supplementary Grants require approval of the ECC, while supplementary grants for any unbudgeted amount are not permissible under the IMF programme.

Copyright Business Recorder, 2024