ISLAMABAD: Pakistan's Ministry of Finance has tightened procedures governing supplementary grant requests, tying the release of additional funds more closely to available fiscal space, according to new instructions issued by the ministry.
The revised guidelines set stricter conditions for the reallocation of funds and the provision of additional amounts to government departments, the ministry said.
Under the new rules, the May 31 deadline for such requests will be relaxed only in exceptional circumstances. Exemptions may be granted in cases involving unavoidable payments or salary shortfalls in June, the ministry said.
The instructions bar departments from reallocating funds drawn from an unreleased budget. However, authorized officers will still be permitted to reallocate funds within the limits of their delegated financial powers.
In cases where employee-related expenses decrease, departments will be allowed to transfer the 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 that 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, according to the instructions.
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.
The ministry said expenditure exceeding levels approved by Parliament will be discouraged under the supplementary grant process. Grants for additional, non-budgeted expenditure will not be considered except in cases of severe natural disasters, it added.
Technical supplementary grants related to the Public Sector Development Programme will be handled separately through the Ministry of Planning, the instructions state.
The new financial instructions have been enforced for the current and upcoming fiscal years, the Ministry of Finance said.
