General Financial Rules of the Federal Government — Volume II (Revised Third Edition 2018)

General Financial Rules Volume II is the supplementary appendix volume to the General Financial Rules of the Federal Government. The supplied copy is titled the Revised Third Edition 2018. Its Preface to the updated edition is dated 4 February 2019 and explains that the compilation incorporates important orders, clarifications and amendments issued since the previous Volume II prepared in 1984, while deleting orders considered obsolete. The volume brings together delegated authorities, contract execution powers, instructions for dealing with losses, contingent expenditure and stores, audit guidance, provident-fund material, government property matters and prescribed administrative forms.

Authority, Edition and Relationship with General Financial Rules Volume I

The booklet is issued by the Finance Division and is headed General Financial Rules of the Federal Government, Volume II — Revised Third Edition 2018. The preface, signed by the Finance Secretary, is dated 4 February 2019. It states that the earlier Volume II was prepared in 1984 and that later government orders had been issued, amended, updated or replaced, making revision necessary.

Volume II is principally a collection of appendices and forms referred to by the General Financial Rules and related financial instructions. It should be read together with General Financial Rules Volume I, the Book of Financial Powers, Treasury Rules, departmental regulations and any special orders that apply to the relevant department or transaction. It does not replace the main rules or independently establish that a particular officer currently holds a particular financial delegation.

The provisions are framed for the Federal Government framework and for the authorities identified in the relevant appendices. They should not automatically be treated as the financial rules of every Provincial Government, autonomous body, local authority or other public-sector entity. Applicability depends on the governing rules, adoption or extension orders, departmental regulations and later amendments relevant to the institution concerned.

What Volume II Contains

The contents are arranged as numbered appendices. The following table identifies the subjects shown in the supplied volume. Some entries are expressly marked deleted, omitted or not printed; those entries are identified as such rather than treated as operative guidance.

Contracts and Execution of Government Instruments — Appendix 1

Appendix 1 reproduces the classes of contracts and assurances of property that the President has authorized specified subordinate authorities to execute on his behalf. It is based on the notification identified in the appendix as No. F.4(3)/77-Law, dated 25 March 1978, together with amendments and insertions noted in the text.

The appendix is arranged by divisions and departments. It identifies categories of contracts and instruments and the officers authorized to execute them. Examples include contracts for supplies, stores, machinery, construction and repair works, leases, property instruments, services, security bonds and other departmental transactions. It covers a wide range of administrative areas, including aviation, communications, defence, education, establishment, finance, food and agriculture, foreign affairs, health, industries, law, planning, railways and works.

The important distinction is between the subject matter of an instrument and the officer authorized to sign it. The relevant departmental entry, grade or designation, monetary or other conditions, and any applicable departmental regulation must be checked before execution. Appendix 1 should not be read as giving every officer a general power to enter into any contract.

Investigation and Disposal of Losses — Appendix 2

Appendix 2 sets out instructions for dealing with losses involving public money, stores or other government interests. It emphasizes ordinary prudence in the handling of public funds and says that responsibility should be assessed with regard to the officer’s conduct, good faith, care and negligence. It distinguishes honest errors of judgment from dishonest, careless or negligent conduct.

The instructions stress that investigations should not be delayed. Where a loss may involve fraud, negligence or financial irregularity, the administrative authority is expected to investigate promptly, obtain relevant vouchers and documents, and seek specialist or audit assistance where required. Where a reasonable suspicion arises that a criminal offence has been committed, the appendix sets out the reporting route to the Special Police Establishment or the nearest Police Station, with the required copy to the relevant investigative authority.

The appendix also addresses investigation, prosecution, departmental responsibility and the follow-up of losses. It is a procedural reference for handling the case and assessing responsibility; it does not authorize an officer to suppress a loss, dispense with reporting or make an unsupported write-off.

Financial Powers and Delegations — Appendices 3, 3-A and 4

Appendix 3 — Subordinate Authorities

Appendix 3 is titled as the schedule of financial powers of subordinate authorities in relation to expenditure from Federal Government revenues. It is cited in Volume I as a reference for the financial powers of subordinate authorities. Users should read it with the main rule, the relevant Book of Financial Powers and any more specific departmental schedule or later delegation.

Appendix 3-A — Heads of Pakistan Missions Abroad

Appendix 3-A records specific financial powers assigned to Heads of Pakistan Missions abroad. The provisions address matters such as their status for specified financial and service rules, limited temporary post arrangements, re-appropriation subject to prior Finance Division approval, expenditure on works subject to financial approval and release of funds, treatment of surplus or unserviceable stores, and purchases or repairs of furniture and fixtures within the stated conditions.

The appendix also reproduces particular delegations and limits for certain types of expenditure. Those amounts and conditions are edition-specific and must be checked against subsequent orders before a Mission relies on them.

Appendix 4 — Heads of Departments

Appendix 4 presents powers of Heads of Departments in tabular form, linking the relevant rule or paragraph to the power and the extent of the delegation. The entries relate to subjects under the Fundamental Rules, Supplementary Rules, Treasury Rules and other financial provisions. Examples in the table include specified service and appointment matters, pay fixation powers subject to conditions, expenditure and store-related powers, and other administrative functions.

The note to the appendix makes clear that these powers are exercised subject to general or special orders issued by the competent authority in a particular case. A Head of Department should therefore confirm the current delegation and any qualification before exercising a power listed in the table.

Functions of Heads of Pakistan Missions — Appendix 5

Appendix 5 lists functions performed by Heads of Pakistan Missions in foreign countries. These include matters relating to government officers on leave or deputation abroad, certain payments subject to Government sanction or approval, arrangements for probationers and training, assistance and liaison, official publications, recruitment-related business, educational facilities, stores ordered by Federal Government departments, budget estimates and appropriation accounts for the Mission, and other administrative functions described in the appendix.

The list is framed around the responsibilities of overseas Missions and the conditions stated for particular functions. It should not be interpreted as a blanket authority to make payments or incur expenditure without the required Government approval, budget provision or other sanction.

Audit Officers and Irregular Expenditure — Appendix 6

Appendix 6 reproduces extracts from the Audit Code concerning powers of Audit Officers to waive objections to, or forego recovery of, certain irregular expenditure in individual cases. It deals with limited situations involving small or non-recurring items, insufficiency of sanction, incomplete proof of payment and amounts that have become irrecoverable. The appendix places conditions on the exercise of these powers and restricts delegation of certain decisions.

The text emphasizes that a decision not to recover a particular amount does not necessarily make the underlying expenditure regular. Where an irregularity is likely to recur, the responsible Government servant should be informed of the irregularity even if recovery is not pursued. The appendix also describes recording and review requirements for cases in which recovery is waived.

The monetary limits reproduced in this historical compilation are not safe to use as current thresholds without checking later instructions. The relevant Audit Code, current Finance Division directions and the authority of the particular Audit Officer must be verified.

Contingent Expenditure and Purchase of Stores — Appendix 8

Appendix 8 is one of the principal operational appendices. It covers powers to sanction contingent expenditure, including expenditure on the purchase of stores. Its introductory note explains that Annexures A and B contain financial and administrative instructions for specified items and supplement special departmental orders, manuals and other restrictions.

The appendix contains a general table of monetary limits for certain authorities where no more specific restriction, scale or limit applies. It then lists specific categories of expenditure and the powers or conditions attached to them. The general table in the supplied edition differentiates recurring and non-recurring expenditure and lists authorities such as Ministries and Divisions, Heads of Departments and other disbursing officers. The figures are reproduced as part of the 2018 compilation; they should not be treated as current spending limits without checking subsequent delegations and amendments.

Annexures A and B deal with a range of contingent items and store purchases. The appendix is therefore important when determining whether an expenditure item is covered by a specific rule, whether a general monetary limit applies, and which authority may sanction it. A user should check the exact entry and the related conditions rather than relying only on the general table.

Procurement and Supply of Articles — Appendices 9 and 10

Appendix 9 — Articles Required for Public Service

Appendix 9 sets out rules for the supply of articles required for public service, other than stationery and printing stores dealt with separately. Its preamble describes a purchasing policy that gives preference, where quality is adequate and the purchase remains economical and efficient, to articles produced or manufactured in Pakistan. The listed preference sequence moves from locally produced raw materials or locally manufactured articles using local materials, to goods manufactured partly from imported materials, to suitable foreign-manufactured articles already held in Pakistan, and finally to articles that must be specially imported.

The appendix includes rules on where delivery and payment should take place, invitation and opening of tenders, preferences in purchasing and arrangements for supply through the designated procurement agency. The text contains specific exceptions and conditions; the relevant rule and later procurement instructions must be checked for each purchase.

Appendix 10 — Stationery and Printing Stores

Appendix 10 deals separately with purchase of stationery and printing stores for public service. It addresses the procurement policy, purchase in Pakistan, tender procedures, preferences for local products and the categories of stationery, office machinery, appliances and printing materials covered by the rules. The appendix also contains provisions and conditions for local purchases in specified circumstances.

These appendices should be read with the procurement law and rules, departmental purchasing regulations and later instructions in force at the time of procurement. The 2018 text is a source compilation, not confirmation that every older threshold, named procurement agency or purchasing procedure remains unchanged.

Audit of Stores and Stock Accounts — Appendix 11

Appendix 11 explains the purpose and scope of audit of stores and stock accounts. Audit is directed towards checking whether departmental rules for purchase, receipt, issue, custody, condemnation, sale and stocktaking are suitably designed and properly followed. It also seeks to identify significant shortages or weaknesses in the system of control.

The regulations identify several matters for audit attention:

• Whether store purchases are properly sanctioned, economical and compliant with applicable rules, including competitive tendering where required.
• Whether the rates paid agree with the relevant contract or agreement.
• Whether quantity and quality certificates are furnished by the responsible officers before payment, subject to any permitted exception.
• Whether purchase orders have been split to avoid a higher sanction requirement.
• Whether receipt, issue and balance accounts are correctly maintained and prescribed issue scales are observed.
• Whether stock balances are reasonable and whether surplus, obsolete or unserviceable stores are considered for disposal.
• Whether physical verification is periodically certified, discrepancies are investigated and priced stock records reconcile with the relevant accounts.

The appendix distinguishes Audit’s review from the Executive’s responsibility for physical custody and verification. It describes circumstances in which Audit may investigate stock balances or, where loss, fraud or misappropriation is suspected, undertake physical verification jointly with the departmental officer.

Government Provident Fund Memorandum — Appendix 12

Appendix 12 contains a memorandum explaining Government Provident Fund Rules in relation to the law on the subject. Its Preface describes the memorandum as practical assistance for officers administering provident fund rules and says that it is not exhaustive. It specifically states that it does not cover the Railway Provident Fund Rules, except to the extent that similar civil-side provisions may apply.

The memorandum discusses the legal issues that arise in administering provident funds, including protection of deposits, the power to dispose of deposits, repayment on the death of a subscriber or depositor, and life-insurance policies and their assignment or reassignment. The text also refers to the historical statutory framework under which the various provident fund rules were continued and treated as rules under the relevant legislation.

This appendix is explanatory and historical in character. It should be read alongside the current Provident Fund Rules, the applicable provident-fund statute and subsequent instructions. It does not replace the operative rules for a subscriber’s account or determine a current claim by itself.

Government Land, Trusts and Records — Appendices 15, 16 and 17

Appendix 15 — Transfer of Lands and Buildings

Appendix 15 deals with transfers of lands and buildings between the Federal and Provincial Governments and with specified land belonging to Pakistan Railways. It sets out principles for land required by the Federal Government, land no longer required by the Federal Government and the option for a Provincial Government to assume possession in specified circumstances. It also explains how market value is to be assessed for relevant transfers and how the value is to be credited or debited between the Governments concerned.

Appendix 16 — Charitable Endowments and Other Trusts

Appendix 16 describes the responsibilities connected with charitable endowments and other trusts. It refers to the Charitable Endowments Act, 1890 and the rules made under it, and identifies the Accountant General, Pakistan Revenues, as ex-officio Treasurer of Charitable Endowments for Pakistan for the purposes described in the appendix. It sets out procedures for vesting orders, title deeds and securities, transfer of charge, and related trust administration and accounts.

Appendix 17 — Destruction and Preservation of Account Records

Appendix 17 sets out rules for destruction of records, including correspondence connected with accounts, together with any consistent subsidiary rules made with the concurrence of the Auditor General. It identifies records that must not be destroyed, including records connected with expenditure still within the legal limitation period, unfinished projects or works, service and personal claims, and permanent orders or sanctions until revised.

It also provides minimum preservation periods for specified records, including contingent expenditure registers, detailed budget estimates, travelling allowance bills, service books, leave accounts and pension cases. The periods and qualifications in the appendix should be checked alongside the current record-retention schedule, applicable law, departmental instructions and any audit or inquiry hold. A record should not be destroyed merely because a period in an older compilation appears to have elapsed.

Furniture, Municipal Taxes and Government Residences — Appendices 18, 19 and 21

Appendix 18 — Furniture in Residences of High Officials

Appendix 18 reproduces rules relating to the supply of furniture and furniture allowances in specified high-official residences. It refers to historical orders and provides for inventory, checking, annual verification and audit of furniture supplied or maintained under the relevant arrangements. The appendix includes a model verification certificate and provisions for independent inspection in specified years.

Appendix 19 — Municipal Rates and Taxes on Buildings

Appendix 19 allocates responsibility for municipal rates and taxes on buildings occupied by Federal Government departments or Government servants. It distinguishes buildings occupied by one or several departments from residential buildings. It also addresses taxes ordinarily leviable from tenants, the portion recoverable from occupants, method of payment, and certificates to accompany payments. Where an assessment appears excessive, the appendix describes pursuing redress under the applicable municipal law.

Appendix 21 — Occupation of Government Residences

Appendix 21 contains subsidiary instructions on the terms of occupation of Government residences. It addresses the letting of residences not immediately required for Government use, the authority for leases, safeguards where the building may later be required by Government, restrictions on alterations, rent recovery for private occupants and related matters. It also explains the treatment of specified fittings and fixtures for the purposes of the relevant accommodation rules.

Deleted, Omitted and Not-Printed Appendices

The table of contents and the body of the supplied volume expressly identify Appendix 7 as deleted, Appendix 13 as omitted, Appendix 14 as not printed, and Appendix 20 as deleted. These entries are retained here only to explain the sequence in the source volume. No operative guidance should be inferred from an appendix that the compilation identifies as deleted, omitted or not printed.

Administrative Forms Included in Volume II

After the appendices, the booklet contains a list of 34 numbered forms. They support the administrative and accounting procedures discussed in the General Financial Rules. Examples include:

• Statements of provision for pay of officers and establishment, new major works and expenditure control.
• Slips accompanying claims for money by disbursing officers, registers for expenses by heads of account and receipt of accounts from disbursing officers.
• Compilation sheets, consolidation accounts, applications for additional appropriation and statements of new demands.
• Cash payment and adjustment statements, establishment revision proposals and leave application forms.
• Store-account forms and statements of loans and advances sanctioned by the Federal Government.
• Agreements, mortgage bonds, insurance-company intimations, surety bonds and other forms relating to motor-vehicle, house-building and house-purchase advances.

The list includes forms for motor-vehicle advances and several forms for house-building advances, including mortgage and re-conveyance instruments. The prescribed form should be selected according to the transaction and the current departmental procedure; a form appearing in the 2018 compilation should not be assumed to remain the latest approved version.

Practical Use for Finance, Accounts, Procurement and Departmental Officers

Volume II is most useful when an officer needs to locate a supporting delegation, prescribed procedure, audit instruction or administrative form referred to in the main financial rules. Before relying on an appendix, the officer should:

• Identify the related rule in Volume I: check the paragraph that cites the appendix and understand the main rule before applying the supplementary material.
• Confirm the competent authority: check the officer, department, transaction type, conditions and limits stated in the relevant delegation.
• Check subsequent instructions: verify later Finance Division notifications, procurement rules, audit directions and departmental orders, especially where the appendix contains monetary limits or older procedures.
• Keep evidence and records: preserve sanctions, contracts, tenders, receipts, stock entries, certificates, audit correspondence and supporting documents in the prescribed form.
• Use the correct form: check whether the required form remains current and whether the department has issued a revised format.
• Apply the correct record-retention rules: check current retention schedules and legal or audit holds before destroying any accounts or service record.

Important Note on the Revised Third Edition 2018

This article describes the Revised Third Edition 2018 supplied for this resource. The Preface to the updated edition is dated 4 February 2019. The compilation incorporates orders and amendments issued since the 1984 edition, but this does not establish that no later amendment, delegation, procurement rule, audit instruction or departmental order has been issued after the date of the compilation.

Several appendices reproduce old monetary limits, designations, departmental names and procedures. Those details are reported as part of the source edition and must be checked against later official instructions before being used for a current sanction, procurement, write-off, payment or other financial decision. The record-destruction, provident-fund, property and residence provisions should likewise be applied only after checking the law and current instructions relevant to the case.

For the original source, consult the complete General Financial Rules Volume II PDF. For the main body of the rules, see General Financial Rules Volume I. Related EmployeesDesk references include the DDO Code Handbook and the General Provident Fund Rules.