ISLAMABAD: Pakistan’s Ministry of Finance has issued new instructions tightening the procedures governing supplementary grant requests, linking the release of additional funds more closely to available fiscal space.
The revised guidelines, announced by the ministry, set stricter conditions for reallocating funds and providing additional amounts to government departments.
Under the new rules, the May 31 deadline for such requests will be relaxed only in exceptional circumstances, including unavoidable payments or salary shortfalls in June.
Departments are barred from reallocating funds drawn from an unreleased budget, though authorized officers may still reallocate funds within the limits of their delegated financial powers. In cases where employee-related expenses decrease, departments will be allowed to transfer surplus funds from non-employee expenses instead.
The ministry said additional funds have been released for payment of the Ad-hoc Relief Allowance 2026, and any reallocation of allowance-related funds will be carried out solely for that purpose. Following such reallocations, funds must remain within the prescribed limits of quarterly release.
The new procedures also restrict who can request technical supplementary grants, limiting submissions to Principal Accounting Officers. Confirmation of surrendering an equivalent amount has been made mandatory for such requests.
Expenditure exceeding levels approved by Parliament will be discouraged under the supplementary grant process, the ministry said. Grants for additional, non-budgeted expenditure will not be considered except in cases of severe natural disasters.
Technical supplementary grants related to the Public Sector Development Programme will be handled separately through the Ministry of Planning.
The new financial instructions have been enforced for the current and upcoming fiscal years, the ministry said.
