The federal government has amended the Financial Management and Powers of Principal Accounting Officers Regulations, 2021, transferring an important oversight role from the Auditor General of Pakistan (AGP) to the Ministry of Finance. This move is being viewed as an expansion of the Finance Ministry’s control over financial management procedures across various ministries and divisions.
According to a notification (S.R.O (1)/2025) issued by the Finance Division under Section 27 of the Public Finance Management Act, 2019, the phrase “after consultation with the Auditor General of Pakistan” in Regulation No. 31(c) has been replaced with “on the recommendation of the Ministry of Finance.”
As a result of this amendment, the Ministry of Finance now holds the authority to make recommendations under this regulation—effectively centralizing financial decision-making within the ministry responsible for budget control and fiscal policies.
Officials state that this amendment is part of the ongoing reforms under the Public Finance Management Reform (PFMR) framework, aimed at organizing the financial powers of Principal Accounting Officers and ensuring a unified system of financial accountability. However, sources suggest that this change may limit the consultative role of the Auditor General in administrative financial decisions.
