Year Book 2015–2016 Government of Pakistan Finance Division Islamabad
Total Page:16
File Type:pdf, Size:1020Kb
Year Book 2015–2016 Government of Pakistan Finance Division Islamabad www.finance.gov.pk i Mohammad Ishaq Dar Minister for Finance, Revenue, Economic Affairs, Statistics and Privatization ii FOREWORD I appreciate that the Finance Division has prepared a Year Book that elaborated its work performance, achievements and progress made during the Financial Year 2015-16. Pakistan’s economy continues to maintain its growth momentum above 4.0 percent for the 3rd year in a row with real GDP growing at 4.71 percent in FY 2016 which is the highest in eight years. The present government has been able to gain economic fundamentals due to a much focused approach towards resolving structural issues such as energy and gas shortages and improvement in agriculture, industrial and services sectors. In this connection, a number of public sector development programs have been initiated in productive and infrastructure sectors. Inflation has been kept firmly in the single digit. On average, CPI inflation stood at 2.86 percent during FY 2016 against 4.53 percent in FY 2015 and 8.62 percent in FY 2014. The broad-based tax reforms have also been undertaken to improve the tax collection. FBR collection during FY 2016 increased to Rs. 3,112 billion as compared to Rs. 2,589.9 billion during FY 2015, posting a growth of 20.2 percent, On positive note, FBR tax collection exceeded the target of Rs.3,103.7 billion. It is also important to mention that, Pakistan and IMF successfully completed the Extended Fund Facility (EFF) program. The completion of Extended Fund Facility (EFF) program is indicative of government’s commitment in implementing structural reforms in the areas of taxation, energy, monetary and financial sectors as well as public sector enterprises. The most significant and positive development on external account is the continuing increase in remittances inflows. During FY 2016, remittances grew by 6.38 percent and reached to US$19.917 billion against US$18.720 billion in the same period last year. The foreign exchange reserves which were at the lowest level in February, 2014 increased to $23.079 billion as on 30th June, 2016. iii In view of above development, the multilateral donors and international markets have also reposed tremendous confidence on Pakistan’s economic future. I hope that, this Year Book will be helpful to the readers about the accomplishments made by different arms, sections and wings of the Finance Division. This will be a useful source of information for all the stakeholders and serve as an important source material / reference document for the public in general and researchers in particular. SENATOR MOHAMMAD ISHAQ DAR Minister for Finance, Revenue, Economic Affairs, Statistics & Privatization iv Dr. Waqar Masood Khan Finance Secretary Dr. Shujat Ali Special Finance Secretary v vi PREFACE Pursuant to Rule 25 of the Rules of Business 1973, the Year Book 2015-16, delineates activities undertaken by various Wings and Sections of the Finance Division and its constituent organizations during the year under review with reference to the Division’s mission statement. The Year Book elaborates functions, organization structure, area of responsibilities, working setup and chain of command of Finance Division which is reflected in the activities and accomplishments during fiscal year 2015-16. The Year Book highlights the main achievements of Finance Division as a whole and also individually of its attached departments and organizations in their concerned operational and policy areas. All out efforts are made by this Ministry to develop and implement a pragmatic economic policies and promoting sustainable and equitable economic growth through transparent and efficient financial management of public resources. The Year Book presents an overview of the internal and external challenges which confronted the domestic economy during the year. Despite these challenges, Pakistan’s economy has achieved macroeconomic stability and now moving towards higher sustainable inclusive growth. I hope that the Year Book will serve as a useful document to the concerned stakeholders. I appreciate the work done by the staff and the officers of the Finance Division in preparation of this Year Book. I hope that this document will be informative and useful to its readers. Soft version of this Year Book 2015-16 can be downloaded from the website www.finance.gov.pk. We would appreciate suggestions / comments and feedback to improve the quality of this book in future. Waqar Masood Khan Finance Secretary vii viii COMPILATION TEAM Mr. IFTIKHAR AHMAD Joint Secretary (HRM) (Head of Compilation Team) Mr. MIR AFZAL KHAN Deputy Secretary (Services) SYED BUNIAD HAIDER Section Officer (Doc/CSD) MR. IZHAR KHAN Assistant (Doc) Mr. SAJJAD ANWAR Stenotypist (Doc) Vetted by: MR. ZAILA HUSNAIN Deputy Economic Adviser Dr. Syed Nayyar Shah Budget Publication Officer Composed by: Mr. MAQSOOD AHMAD KHAN Composer Mr. SHOAIB HAMID MALIK Composer ix x CONTENTS Page No. Title Page i Foreword iii Preface vi Compilation Team vii Vision Statement 1 Mission Statement 2 General 3 Future Goals of Finance Division 5 Organizational Chart of the Finance Division 6 Human Resource Management (HRM) Wing 7 Financial Analyst 23 Budget Wing 25 Functions of Various Section of Budget Wing 26 Medium Term Budgetary Framework(MTBF) 30 Type of Budget 32 Central Directorate of National Savings (CDNS) 36 Corporate Finance Wing 41 Economic Adviser’s Wing 47 Expenditure Wing 51 External Finance Budget Wing 59 External Finance Policy Wing 61 Implementation and Economic Reforms Unit (IERU) Wing 65 Finance Division (Military) 71 Development Wing 75 Internal Finance Wing 77 Zarai Taraqiati Bank Ltd. (ZTBL) 74 Pakistan Mint 77 House Building Finance Corporation 78 National Bank of Pakistan 79 First Women Bank Limited 82 Financial Monitoring Unit (FMU) 84 xi Investment Wing 91 Securities and Exchange Commission of Pakistan 86 Infrastructure Project Development Facility 121 Competition Commission of Pakistan 128 National Investment Trust Limited (NITL) 130 Nit Equity Market Opportunity Fund (NIT-EMOF) 132 Income Funds 133 Provincial Finance 139 Regulations Wing 147 Litigation Wing 153 Attached Departments/Subordinate Offices 159 Auditor General of Pakistan 159 Controller General of Accounts (CGA) 163 Federal Treasury Islamabad 167 Debt Policy Coordination Office (DPCO) 169 xii VISION STATEMENT OF THE FINANCE DIVISION To manage the national economy in the most efficient and effective manner both at the Macro and Micro levels. MISSION STATEMENT OF THE FINANCE DIVISION To pursue sound and equitable economic policies that put Pakistan on the path of sustained economic development and macroeconomic stability with a view to continuously and significantly improving the quality of life of all citizens through prudent and transparent public financial management carried out by dedicated professionals. 2 GENERAL Functions of the Finance Division The following functions are allocated to the Finance Division under the Rules of Business, 1973: 1. Finances of the Federal government and financial matters affecting the country as a whole. 2. The Annual Budget Statement and the Supplementary and Excess Budget Statements to be laid before the National Assembly; the schedules of authorized expenditure. 3. Accounts and Audit. 4. Allocation of share of each Provincial government in the proceeds of divisible Federal Taxes; National Finance Commission. 5. Public debt of the Federation both internal and external; borrowing money on the security of the Federal Consolidated Fund. 6. Loans and advances by the Federal Government. 7. Sanctions of internal and external expenditure requiring concurrence of the Finance Division. 8. Advice on economic and financial policies; promotion of economic research. 9. Proper utilization of the country’s foreign exchange resources. 10. Currency, coinage and legal tender, Pakistan Security Printing Corporation and Pakistan Mint. 11. Banking, investment, financial and other corporations, that is to say: (i) Central Banking; State Bank of Pakistan; (ii) Other banking (not including co-operative banking) and investment and financial corporations with objects and business not confined to one Province; and (iii) Incorporation, regulation and winding up of corporations including banking insurance and financial corporation’s not confined to or controlled by or carrying on business in one Province. 12. Company Law: Accountancy, Matters relating to the Partnership Act, 1932. 13. Investment policies; Capital issues (Continuance of Control) Act, 1947; statistics and research work pertaining to investment and capital. 14. Stock exchanges and future markets with objects and business not confined to one Province; Securities Regulations. 3 15. Financial settlement between Pakistan and India and division of assets and liabilities of the pre-independence Government of India. 16. Framing of rules on pay and allowances, retirement benefits, leave benefits and other financial terms and conditions of service. 17. Cost Accountancy. 18. International Monetary Fund. 19. State lotteries. 20. Monopoly Control and Anti-Cartel Laws. 21. Deregulation policies. 22. Administration of Economic Reforms Order, 1978. 23. Negotiations with international organizations and other countries and implementation of agreements thereof. 4 FUTURE GOALS OF FINANCE DIVISION Preparation of Annual Budget/Financial Planning & Budgeting. Publishing Pakistan Economic Survey Statistical Supplement of Pakistan Economic Survey and Year Book annually. Proper