PAKISTAN RAILWAYS
PAKISTAN RAILWAYS GENERAL CODE
Riaz Ahmad & Company Chartered Accountants
CHAPTERS I TO XX
20 October, 2011
9.1 PAKISTAN RAILWAYS GENERAL CODE
PREFACE
1. The first edition of this code was brought on 5th September 1938 as a provisional issue and then finalized on 5th January 1942 and again reprinted after few modifications in May 1953. Now, an elaborate exercise has been carried out to revise “Pakistan Railways General Code” for upgraded Financial and Management Information System, under supervision and control of Mr. Mubarik Khan, Project Director, Project Management Unit (PMU), Ministry of Railways and expert review of Mr. Muhammad Aurangzeb Khan, General Manager Railways (Retired).
2. This code contains the rules and instructions for the guidance of officers and staff of Pakistan Railways regarding the organization for the control of Pakistan Railways, railway finance, annual budget, revised and budget estimates, appropriation accounts, financial justification of railway expenditure, control over expenditure, allocation of expenditure, incidence of the cost of works for non-railway departments, incidence of pay, allowances, leave salary, pension, etc, contingent charges, cash, cheques and vouchers, advances and arrear claims, bills for pay and allowances, disallowances and objections, losses, frauds and embezzlements, records of service, miscellaneous.
3. The rules and orders embodied in this Code are to be followed with due care and caution and are applicable to Pakistan Railways.
4. In case, Financial Adviser and Chief Accounts Officers or any other concerned Principal Officers desire to make any amendment in the procedure laid down in this Code, they should address to Member Finance through General Manager concerned for such authorization in each case.
5. Contributions made by Messrs Saeed Akhtar, General Manager Operations, Muhammad Ali, Deputy Director, PMU and efforts made by Riaz Ahmad & Company, Chartered Accountants, Consultants, in accomplishing this task are highly appreciated and placed on record.
Islamabad, Arif Azim
00-00-2012 Secretary
Ministry of Railways
Government of Pakistan
PAKISTAN RAILWAYS GENERAL CODE
INTRODUCTORY NOTES
1. Index Letters for Codes
The following index letters are used for distinguishing the several Pakistan Railways Codes from each other.
S for the Stores Department. W Mechanical Department (Workshops). A Accounts Department. T Traffic Department (Commercial). E Engineering Department. G General Code.
2. Paragraph Numbers
For convenience of indexing and of reference, the paragraphs have been numbered according to a 3/4 figure “code”, in which the last two figures give the number of the paragraph and the remaining figures the number of the chapter. Thus paragraph 101 of any code is paragraph 1 of chapter 1 of that code and paragraph 1421, paragraph 21 of chapter XIV.
3. References to Paragraphs
Reference in a code to the paragraphs of any other code is made by putting the paragraph number first, followed by the index letter of the code concerned as the suffix. Thus 1235S means paragraph 35 of Chapter XII of the Pakistan Railways Code for the Stores Department and 25 App. IIIS means paragraph 25 of Appendix III to the Pakistan Railways Code for the Stores Department.
4. References to “Forms”
The “forms” referred to in any of the Pakistan Railways Codes take the number of the paragraph of the code in which they are described, the index letter of the code in question being prefixed to the number of the paragraph in which the form is illustrated. Thus S1350 is the form that is described and illustrated in paragraph 50 of Chapter XIII of the Pakistan Railways Code for the Stores Department.
PAKISTAN RAILWAYS GENERAL CODE
INDEX
DESCRIPTION CHAPTER NO. INTRODUCTORY I
ORGANIZATION FOR THE CONTROL OF RAILWAYS II
RAILWAY FINANCE III
ANNUAL BUDGET IV
REVISED AND BUDGET ESTIMATES V
APPROPRIATION ACCOUNTS VI
FINANCIAL JUSTIFICATION OF RAILWAY EXPENDITURE VII
CONTROL OVER EXPENDITURE VIII
ALLOCATION OF EXPENDITURE IX
ALLOCATION OF EXPENDITURE ON STATE RAILWAYS MANAGED BY X COMPANIES AND ON PRIVATE RAILWAYS WORKED BY THE STATE (Deleted)
INCIDENCE OF THE COST OF WORKS FOR NON-RAILWAY DEPARTMENT XI
INCIDENCE OF PAY, ALLOWANCES, LEAVE SALARY, PENSION, ETC. XII
CONTINGENT CHARGES XIII
CASH, CHEQUES AND VOUCHERS XIV
ADVANCES AND ARREAR CLAIMS XV
BILLS FOR PAY AND ALLOWANCES XVI
DISALLOWANCES AND OBJECTIONS XVII
LOSSES, FRAUDS AND EMBEZZLEMENTS XVIII
RECORDS OF SERVICE XIX
MISCELLANEOUS XX
1 PAKISTAN RAILWAYS GENERAL CODE
LIST OF APPENDICES
DESCRIPTION APPENDIX NO.
CHART OF ACCOUNTS I
SUBSIDIARY CODING SCHEME FOR REVENUE II
FINANCIAL POWERS DELEGATED TO THE MINISTRIES AND THE HEADS OF III THE DEPARTMENT BY FINANCE DIVISION, GOVERNMENT OF PAKISTAN
HOURS OF EMPLOYMENT REGULATIONS IV
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PAKISTAN RAILWAYS
PAKISTAN RAILWAYS GENERAL CODE
Riaz Ahmad & Company Chartered Accountants
CHAPTER I
20 October, 2011
9.1 PAKISTAN RAILWAYS GENERAL CODE
CHAPTER I
INTRODUCTORY
CONTENTS
DESCRIPTION PAGE NO. PARA NO.
GUARANTEED RAILWAYS 1.1 101
SUBSIDIZED RAILWAYS 1.1 102
STATE OWNERSHIP OF RAILWAYS 1.1 103
COMPANY MANAGEMENT OF STATE RAILWAYS 1.1 104
CATEGORIES OF SUB-CONTINENT RAILWAYS 1.1 — 1.3 105 — 111A
EFFECT OF PARTITION 1.3 111B — 111D
FEATURES OF CONTRACTS COMPANIES MANAGING 1.4 — 1.5 112 — 113 STATE-OWNED RAILWAYS
BRANCH LINES 1.5 — 1.6 114
PROVINCIAL GOVERNMENT AND DISTRICT BOARD 1.6 115 — 118 RAILWAYS (117, 119 Deleted)
OWNERSHIP OF RAILWAY PROPERTY 1.6 — 1.7 120
TAXATION OF RAILWAY PROPERTY AND INCOME 1.7 121
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PAKISTAN RAILWAYS GENERAL CODE
CHAPTER I
INTRODUCTORY
101. Guaranteed Railways. – The policy in regard to the construction of railways in sub- continent has undergone considerable and frequent changes. The first railways built in sub-continent were constructed and worked by private companies who were guaranteed by Government a fixed rate of exchange and a specified return on the capital invested by them. The contracts entered into with railway companies from 1849 to 1860 were on this basis.
102. Subsidized Railways. – The guaranteed interest and the guaranteed rate of exchange resulted in considerable losses to Government. An attempt was made, therefore, to secure the construction of railways on terms more favourable to Government, and to induce capitalists to undertake the construction at their own risk and on their own responsibility with a minimum of Government interference, but the attempt was not successful. Besides giving the necessary land free of cost, Government undertook to grant an annual subsidy at a fixed rate for a specified number of years, but these terms failed to attract capital and the few unguaranteed companies, which had begun work, found themselves, after a few years, unable to proceed without further assistance from Government.
103. State Ownership of Railways.– The attempt to secure the development of railway systems by private enterprise having failed, the capital expenditure on railways was chiefly incurred direct by the State, for several years after 1869, and no fresh contracts were made with guaranteed companies except for small extensions. In 1880, the necessity for a rapid extension of the railway system was keenly felt for the protection of the country from famine, but the Government, having decided not to exceed the limit fixed for capital to be borrowed annually, had again to fall back upon private companies.
104. Company Management of State Railways. – In dealing with these companies, it was the policy to use at the earliest possible date the right reserved by the Government of terminating the original contracts and of either securing for Government more favourable terms under fresh contracts, or purchasing the railways by cash payments or by means of annuities terminable after a specified number of years. Some of the purchased lines worked by State Agency, while the management of others was entrusted to Working Companies constituted under contracts, the conditions of which were much more favourable to Government than those made with the earlier Companies.
105. Categories of Sub-Continent Railways. – Thus, the railway systems in Sub-Continent were fallen under one or other of the following categories, viz.– (i) State-owned and State-managed Railways. (ii) State-owned and Company-managed Railways. (iii) Company-owned and Company-managed Railways. (iv) Indian State’ Railways. (v) Branch Line Companies and District Boards’ Railways.
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PAKISTAN RAILWAYS GENERAL CODE
CHAPTER I
INTRODUCTORY
106. The railways included in the first category were–
(i) The Bengal and Assam Railway. (ii) The Bombay, Baroda and Central India Railway. (iii) The East Indian Railway. (iv) The Great Indian Peninsula Railway. (v) The North Western Railway.
107. The second category included the following railways–
(i) The Bengal Nagpur Railway. (ii) The Madras and Southern Mahratta Railway. (iii) The South Indian Railway.
108. The following railways were also the property of the State and were worked by the agencies noted against each–
Railway Working Agency
(i) Lucknow Bareilly Rohilkund and Kumaon Railway. (ii) Tirhoot Bengal and North Western Railway. (iii) Jodhpur Hyderabad Jodhpur Railway
(iv) Bezwada Extension
’ (v) Dronachellam (Dhone) Kurnool British Frontier. } H. E. H. the Nizam s State Railway.
109. Among the lines falling under the third category which received no direct assistance from Government, and the property in which vested in the Companies owning them, subject to transfer to Government, the most important were–
(i) The Bengal and North Western railway. (ii) The Rohikund and Kumaon Railway.
110. Examples of Indian States’ Railways owned and managed by Indian States were–
(i) H. E. H. the Nizam’s State Railway. (ii) The Mysore Railways. (iii) The Jodhpur Railway.
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PAKISTAN RAILWAYS GENERAL CODE
CHAPTER I
INTRODUCTORY
111. The following were examples of Branch Line Companies and District Board Railways.
(a) Branch Line Companies–Guaranteed (See paragraph 114) (i) Chaparmukh Silghat Railway. (ii) Katakhal Lalabazar Railway.
(b) Branch Line Companies–Rebate (See paragraph 114). (i) Sialkot Narowal Railway. (ii) Tapti Valley Railway. (iii) Ahmedabad Parantij Railway.
(c) District Board Railways. (i) Podanur Pollachi Railway. (ii) Bezwada Masulipatam Railway. (iii) Tenali Repalle Railway.
111-A. In 1942, the Assam —Bengal Railway was amalgamated with the Eastern Bengal Railway under the name “Bengal and Assam Railway”.
111-B. Effect of Partition. With the attainment of independence partition of the country on the 14th August, 1947 two of the existing Railways (North Western Railway in the west and the Bengal Assam Railway in the east), which fell into both the territories, had to be divided. Route miles (about 8,127 kilometres and 2,506 Kilometres) of North Western Railways and Bengal-Assam Railways were transferred to Pakistan from British India. The Control of these Railways remained with the Central Government of Pakistan. In 1954, the railway line was extended to Mardan and Charsada, and in 1956 the Jacobabad-Kashmore 2 ft 6 in (762 mm) gauge line was converted into broad gauge. Mirpur Khas — Khokharopar 3 ft 3.375 in gauge line was converted into broad gauge in January 2006.
111-C. In 1961, Eastern Bengal Railway and Pakistani portion of North Western Railways was renamed as Pakistan Railways. Then in the year 1962, the control of Pakistan Railways was transferred from the Central Government to the Provincial Governments and placed under the management of a Railway Board with effect from the financial year 1962-63 by the Presidential Order in 1962. The Kot Adu-Kashmore line was constructed between 1969 and 1973 providing an alternative route from Karachi to northern Pakistan. The work of dualization of track from Lodhran to Khanewal via Multan (121 Kms) was completed & opened for traffic on 16.03.2007. In addition dualization of Khanewal — Chichawatni (77 Kms) was opened as double line on 01.12.2008.
111-D. Now, Pakistan Railways is a two gauge system i.e., Broad-gauge and Metre-gauge with track lengths as on 30 June 2009 of 11,301 Kilometres and 412 kilometres respectively. 1.3
PAKISTAN RAILWAYS GENERAL CODE
CHAPTER I
INTRODUCTORY
Features of Contracts with Companies Managing State-owned Railways
112. The position of Government with respect to the Companies working the railways detailed in paragraph 107 and the broad features of the contracts concluded with them were briefly as follows–
(a) Governments were the owners and lessors of the lines and the Companies were the working agents or lessees.
(b) The greater part of the capital was the property of the Government, either through having been originally supplied by it or through the acquisition by the Government of the greater part of the Companies interest on the termination of old contracts.
(c) The companies had a small share capital in the concern, on which interest at specified rates was guaranteed by the Secretary of State out of the revenues of India.
(d) When funds were required for further capital expenditure, the Government had the option either of providing them or of calling on the Company to provide them. Both the Government and the Company usually received interest at a fixed rate on their capital.
(e) The Companies received a share of the surplus profits earned by the Railway after meeting all payments for interest in the capital at charge, such share being based either on some fixed proportion, or at some fixed amount or on the amount of capital contributed by Government and the Companies respectively. The Company’s share was in most cases only a small proportion of the total amount.
(f) All the contracts were terminable at the option of the Secretary of State, at specified dates; and on termination, the Company’s capital was repayable at par.
(g) The Company was bound to keep the line in good repair, in good working condition, and fully supplied with rolling-stock, plant, and machinery, to keep the rolling-stock in good repair and in good working condition; and to maintain a sufficient staff for the purposes of the line; — all to the satisfaction of the Secretary of State.
(h) The Government required the Company to carry out any alteration or improvement in the line, or in the working, that the Government thought necessary for the safety of the public or for the effectual working of the line.
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PAKISTAN RAILWAYS GENERAL CODE
CHAPTER I
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(i) The Government required the Company to enter into agreements, on reasonable terms and conditions, with the administration of adjoining railways for the exercise of running powers, for the supply to one another of surplus rolling-stock, for the interchange of traffic and rolling-stock and settlement of through rate, and for additions and alterations to, or the redistribution of, existing accommodation in junctions or other stations in view to their convenient mutual use.
(j) The train service was to be such as the Government required.
(k) In order to secure a general control over the rates quoted by Companies, Government had retained the power to settle the classification of goods and to authorize maximum and minimum rates within which the Companies may charge the public for the conveyance of passengers and goods of each class.
(l) The Companies had to keep such accounts as Government required, and these were subject to audit by Government.
(m) In all other matters relating to the line, the Companies were subject to the supervision and control of Government who appointed such persons as they thought proper for the purpose of inspecting the line, auditing the accounts, or otherwise exercising the powers of supervision and control reserved to them. In particular, Government had the right to appoint a Government Director to the Boards of the Companies, with power of veto on all proceedings of the Boards. All the moneys received by the Companies in respect of their undertakings, whether on capital or revenue account, had to be paid over to Government.
(n) All expenditure incurred by the Companies had to be stated and submitted for the sanction of Government.
113. The general administrative control exercised by Government over the Companies owning and working the railways falling under the third category and the control over their expenditure were similar to that which was exercised, as explained above, over guaranteed Companies working State-owned railways.
Policy Regulating Railway Construction
114. Branch Lines. –The policy in regard to the construction and financing of branch lines had undergone a radical change. The terms under which existing branch and feeder lines were constructed provide for a guarantee by Government of minimum return on capital or alternatively, of a payment out of the earnings of the Main line from traffic contributed by the branch, of such a sum, known as rebate, as would make up the total earnings of the branch to a given sum, while the branch in each case shared with the Main line any profits exceeding the guaranteed minimum. The Companies had been provided with land free of charge the cost of such land was not taken into account either in their Capital or in their Revenue Accounts. This method of encouraging the construction of lines originated years ago when the Government were unable to furnish the necessary capital. Besides there being many disadvantages in this arrangement, the financial position of the Government changed and it was therefore decided to abandon this policy and to make an endeavour to reduce by purchasing the number of existing branch line 1.5
PAKISTAN RAILWAYS GENERAL CODE
CHAPTER I
INTRODUCTORY
Companies, Government funding the capital required for the construction or extension of branches to existing main systems.
115. Provincial Government and District Board Railways. – Provincial Governments and District Boards were not, in the absence of special circumstances, encouraged to build branch or feeder railways. In other words, the normal procedure was the construction by the Central Government, or at their cost, by a Company, of a branch line which a District Board or Provincial Government desired to have constructed and was prepared to guarantee. The possibility of permitting a District Board or Provincial Government to construct it from its own funds would only be considered by the Government when the railway programme did not permit the construction of such a line within a reasonable time.
116. In cases in which the Provincial Governments or local bodies desired the Construction of a line which would not be remunerative on the basis of railway earnings and is desired by them for purely local reasons on account of the administrative advantages it is likely to confer for the development of particular area, the Ministry of Railways (Railway Board) will decide whether the line should be built or not.
117. Deleted.
118. Notwithstanding the provisions of paragraphs 114 to 116, the construction of “Pakistan Railways” will be the responsibility of the Ministry of Railways (Railway Board) and on questions of policy will be subject to such instructions as may be given by the Federal Government.
119. Deleted.
120. Ownership of Railway Property.– Under Article 274 of The Constitution of Pakistan, 1973 ‘vesting of property, assets, rights, liabilities and obligations’, (1) All property and assets which, immediately before the commencing day, were vested in the President or the Federal Government shall, as from that day, vest in the Federal Government unless they were used for purposes which, on that day, became purposes of the Government of a Province, in which case they shall, as from that day, vest in the Government of the Province.
(2) All property and assets which, immediately before the commencing day, were vested in the Government of a Province, shall, as from that day, continue to be vested in the Government of that Province, unless they were used for purposes, which on that day, became purposes of the Federal Government in which case they shall, as from that day, vest in the Federal Government.
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PAKISTAN RAILWAYS GENERAL CODE
CHAPTER I
INTRODUCTORY
(3) All rights, liabilities and obligations of the Federal Government or of the Government of a Province, whether arising out of contract or otherwise, shall as from the commencing day, continue to be respectively the rights, liabilities and obligations of the Federal Government or of the Government of the Province, except that, --
(a) All rights, liabilities and obligations relating to any matter which, immediately before that day, was the responsibility of the Federal Government, but which under the Constitution, has become the responsibility of the Government of a Province, shall devolve upon the Government of that Province; and
(b) all rights, liabilities and obligations relating to any matter which, immediately before that day, was the responsibility of the Government of a Province, but which under the Constitution, has become the responsibility of the Federal Government, shall devolve upon the Federal Government.
121. Taxation of Railway Property and Income.– Railway property and income, being a Federal Government department, is exempt from taxation under any Act of Provincial Assembly of any Province, under Article 165 of the Constitution of Pakistan, 1973.
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PAKISTAN RAILWAYS
PAKISTAN RAILWAYS GENERAL CODE
Riaz Ahmad & Company Chartered Accountants
CHAPTER II
20 October, 2011
9.1 PAKISTAN RAILWAYS GENERAL CODE
CHAPTER II
ORGANIZATION FOR THE CONTROL OF RAILWAYS
CONTENTS
DESCRIPTION PAGE NO. PARA NO.
MINISTRY OF RAILWAYS (RAILWAY BOARD) 2.1 201 — 202
TECHNICAL DIRECTORATE 2.1 203
MEMBER FINANCE 2.1 — 2.2 203A — 207 (204 — 206 Deleted)
CONSTITUTION 2.2 208
FUNCTIONS AND POWERS 2.2 209
SAFETY 2.2 210
POLICY 2.2 211
RULES OF BUSINESS 2.2 212
LAND ACQUISITION 2.2 213
CONTRACTS AND AGREEMENTS 2.3 214 — 216 (217 — 218 Deleted)
DIRECTORATES 2.3 219 — 220 (221 — 222 Deleted)
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PAKISTAN RAILWAYS GENERAL CODE
CHAPTER II
ORGANIZATION FOR THE CONTROL OF PAKISTAN RAILWAYS
Ministry of Railways (Railway Board)
201. The existing enactment regulating the construction and operations of railways in Pakistan is the Railway Act, 1890 as amended from time to time. Subject to the provisions of this act, the executive authority in connection with the administration of railways, vests in the Ministry of Railways (Railway Board). By virtue of the delegation made under Section 4 of the Railway Board Ordinance, 1959, all the functions and powers of the Federal Government, under the Railways Act, 1890, are exercised by the Ministry of Railways (Railway Board).
202. The Ministry of Railways (Railway Board) shall consist of the following members namely:
a). The following shall be ex-officio members:- (i) Secretary, Ministry of Railways who shall be the Chairman of the Board; (ii) Secretary, Ministry of Communications; (iii) Secretary, Ministry of Finance; (iv) Secretary, Ministry of Planning and Development (v) General Manager, Railway Operations; (vi) General Manager, Manufacturing and Services; (Vii) Member Finance, Ministry of Railways.
b). Three members from Private Sector to be appointed by the Federal Government.
(2). The Director Administration, Ministry of Railways, shall act as Secretary of the Board and to assist the Board in discharge of its function, there shall be such other officers and servants as the Board may appoint.
203. Technical Directorate.– In order to relieve the Members of the Ministry (Board) from the routine work of the office and enable them to give time for touring and studying the wider problems of railway policy, the Ministry (Board) is assisted by a technical staff of Directors and Deputy Directors (as at headquarters office) who are in direct charge of the work of the various branches of the department and are responsible for the disposal of all but work of the highest importance.
203A. Member Finance.– The Member Finance is the professional agent of the Government of Pakistan in finance and accounts matters. The powers and functions of the Member Finance are described in paragraphs 102-B and 112 of the Pakistan Railways Code for the Accounts Department.
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PAKISTAN RAILWAYS GENERAL CODE
CHAPTER II
ORGANIZATION FOR THE CONTROL OF PAKISTAN RAILWAYS
204. Deleted.
205. Deleted.
206. Deleted.
207. The responsibility for the administration of railway in Pakistan vests in Ministry of Railways (Railway Board) from the time such Ministry (Board) was set up.
208. Constitution.– The Secretary of the Ministry of Railways is appointed by the Federal Government and is the ex-officio Chairman of Pakistan Railways.
209. Functions and Powers.– The executive authority of the Federation in respect of the regulation and the construction, maintenance and operation of railways will be exercised by the Ministry of Railways (Railway Board).
210. Safety.– Such of the functions for securing the safety, both of members of the public and of persons operating the railways, including the holding of inquiries into accidents, as in the opinion of the Federal Government should be performed by persons independent of the Ministry (Board) and will be performed by the Federal Government Inspector of Railways appointed by the Federal Government. Federal Government Inspector of Railways should always be BS-21 Engineer of Civil Engineering Department of Pakistan Railways.
211. Policy.– The Ministry (Board) will act on business principles, due regard being paid to the interests of agriculture, industry, commerce and the general public, and on questions of policy will be guided by such instructions as may be given to it by the Federal Government.
212. Rules of Business.– The rules for the transaction of business of the Ministry (Board), in their relation with the Federal Government, will be made by the President of Pakistan exercising his individual judgment, but after consultation with the Ministry (Board). It will be obligatory for the Ministry (Board) to transmit to the Federal Government all such information in regard to their business as may be specified in the rules or as the Federal Government may otherwise require to be transmitted. It will also be obligatory for the Ministry (Board) to bring to the notice of the Federal Government all matters involving his special responsibility under the Constitution of Pakistan, 1973.
213. Land Acquisition.– The Ministry (Board) will have no power to acquire or dispose of any land, except in cases in which they may be specifically permitted by regulations made by the Federal Government.
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PAKISTAN RAILWAYS GENERAL CODE
CHAPTER II
ORGANIZATION FOR THE CONTROL OF PAKISTAN RAILWAYS
214. Contracts and Agreements.– The Ministry (Board) will be competent to execute deeds or contracts for the purpose of their functions. Such deeds or contracts will be in the name of Ministry (Board) and not that of Federal Government. They will be enforceable against the Ministry (Board) and not against the Federal Government, or at the option of the person by whom the proceedings are brought, against the Federal Government. If, under such a contract, any dispute arises between party and either the Ministry (Board) or the Federal Government in regard to a matter for which the contract makes a provision for reference to arbitration, the dispute will be deemed to be between the party and the Federal Government and any award made in arbitration and any settlement reached by the Federal Government will be binding on the Federal Government and the Ministry (Board).
215. A contract which by its terms is declared to be supplemental to a contract made before the establishment of the Ministry (Board), will however be enforceable, in the same manner in which the principal contract is.
216. The Ministry (Board) will sue and be sued in the same manner and in the like cases as a company operating a railway may sue and be sued.
217. Deleted.
218. Deleted.
219. Directorates.– The executive staff of the Ministry (Board), will consist of a Chairman of Railways, a Member Finance and such additional Directorates as the Ministry (Board) on the recommendation of the Chairman may appoint.
220. The Chairman and the Member Finance will have the right to attend any meetings of the Ministry (Board) and the Member Finance will have the right to require any matters involving financial implications to be referred to the Ministry (Board).
221. Deleted.
222. Deleted.
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PAKISTAN RAILWAYS
PAKISTAN RAILWAYS GENERAL CODE
Riaz Ahmad & Company Chartered Accountants
CHAPTER III
20 October, 2011
9.1 PAKISTAN RAILWAYS GENERAL CODE
CHAPTER III
RAILWAY FINANCE
CONTENTS
DESCRIPTION PAGE NO. PARA NO.
‘SEPARATION” CONVENTION 3.1 301
ANNUAL RAILWAY CONTRIBUTION 3.1 302
AMOUNT OF RAILWAY CONTRIBUTION TO GENERAL 3.1 303 REVENUES LOSS DUE TO STRATEGIC RAILWAYS 3.1 304
RAILWAY RESERVE FUND 3.1 305
OBJECT OF RESERVE FUND 3.1 306
TEMPORARY BORROWING 3.2 307 (308 Deleted) RAILWAY DEPRECIATION FUND 3.2 309
DEMANDS FOR GRANTS 3.2 310
FORM OF BUDGET 3.2 311
REVISION OF CONVENTION 3.2 312
PRINCIPLES UNDERLYING CONVENTION 3.2 313 (314 Deleted) FUNDS FOR CAPITAL OUTLAY 3.3 315
SPECIFIC DEBT 3.3 316
NON-SPECIFIC DEBT 3.4 317 (318 Deleted) INTEREST ON SPECIFIC DEBT 3.4 319
INTEREST IN RESPECT OF TERMINABLE ANNUITIES 3.4 320
INTEREST ON NON-SPECIFIC DEBT 3.4 — 3.5 321 — 323
5 PAKISTAN RAILWAYS GENERAL CODE
CHAPTER III
RAILWAY FINANCE
CONTENTS
DESCRIPTION PAGE NO. PARA NO.
INTEREST ON COMPANY AND STATE CAPITAL 3.5 324 — 325E
CAPITAL EXPENDITURE 3.6 326
REVENUE EXPENDITURE 3.6 — 3.7 327
WORKING EXPENSES 3.7 328
CLASSIFICATION OF REVENUE EXPENDITURE 3.7 329
REVENUE RECEIPTS 3.7 330
DEPRECIATION RESERVE FUND 3.7 331
APPROPRIATIONS TO THE FUND 3.8 332
APPROPRIATION FROM THE FUND–STATE RAILWAY 3.8 333
COMPANY-MANAGED RAILWAYS 3.8 334
INTEREST ON DEPRECIATION RESERVE FUND 3.8 335 BALANCES TEMPORARY ADVANCES FROM DEPRECIATION 3.8 336 RESERVE FUND
RAILWAY RESERVE FUND 3.8 — 3.12 337 — 338E
RAILWAY DEBT 3.12 339
RETURN ON INVESTMENT BY GOVERNMENT 3.12 339-A
INTEREST AND AMORTISATION PAYMENTS OF 3.12 340 FOREIGN LOANS / CREDITS FUNDS BALANCES 3.12 341 (342 — 343 Deleted)
6 PAKISTAN RAILWAYS GENERAL CODE
CHAPTER III
RAILWAY FINANCE
CONTENTS
DESCRIPTION PAGE NO. PARA NO.
APPLICATION OF RAILWAY RECEIPTS 3.13 344
APPLICATION OF SURPLUSES 3.13 345
LIABILITIES OTHER THAN RAILWAY DEBT 3.13 346 (347 Deleted) BANKING 3.13 348
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PAKISTAN RAILWAYS GENERAL CODE
CHAPTER III
RAILWAY FINANCE
The “Separation” Convention
301. In order to relieve the general budget of the Government from the violent fluctuations caused by the incorporation therein of the railway estimates and to enable railways to carry out a continuous policy based on the necessity of making a definite return to general revenues, on the money expended by the State on railways, a convention commonly known as the “Separation Convention” was adopted by a resolution of the Legislative Assembly on the 20th September 1924, which was approved by the Secretary of State. The main features of the convention which had been operative from 1st April 1924 are detailed in paragraphs 302 to 312.
302. Annual Railway Contribution.– The railway finances were separated from the general finances of the country and the general revenues received a definite annual contribution from railways which was a first charge on the net receipts of railways.
303. Amount of Railway Contribution to General Revenues.– The Contribution was based on the capital at charge and the working results of commercial lines, and was a sum equal to one per cent on the capital at charge of commercial lines (excluding capital contributed by Companies and Indian States) at the end of the penultimate financial year plus one-fifth of any surplus profits remaining after payments of this fixed return, subject to the condition that if in any year railway revenues were insufficient to provide the percentage of one per cent on the capital at charge, surplus profits in the next or subsequent years were not deemed to have accrued for purposes of division until such deficiency had been made good.
304. Loss due to Strategic Railways.– The interest on the capital at charge of, and the loss in working, strategic lines was borne by general revenues and was consequently deducted from the contribution so calculated in order to arrive at the net amount payable by railway to general revenues each year.
305. Railway Reserve Fund.– Any surplus, remaining after this payment to general revenues, was transferred to a railway reserve; provided that if the amount available for transfer to the railway reserve exceeded in any year three crores of rupees, only two- third of the excess over three crores was transferred to the railway reserve and the remaining one-third accrued to general revenues.
306. Object of Reserve Fund.– The railway reserve could be used to secure the payment of the annual contribution to general revenues; to provide, if necessary, for arrears deprecation and for writing down and writing off capital and to strengthen the financial position of railways in order that the services rendered to the public might be improved and rates might be reduced.
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307. Temporary Borrowing.– The Railway Board were authorized, subject to such conditions as may be prescribed by the Government to borrow temporarily from capital or from the reserve for the purpose of meeting expenditure for which there was no provision or insufficient provision in the revenue budget, subject to the obligation to make repayment of such borrowings out of the revenue budgets of subsequent years. (But, see paragraph 336 to 338 also.)
308. Deleted.
309. Railway Depreciation Fund.– The expenditure chargeable till 31st March 1924 to ‘program revenue’ was shown from 1st April 1924, under a depreciation fund created to meet the cost of replacements and renewals.
310. Demands for Grants.– The railway budget was presented to the Legislative Assembly in advance of the general budget separate days being allotted for its discussion, the Member in charge of Communication and Railways making a general statement on railway accounts and working. The expenditure proposed in the railway budget, including expenditure from the depreciation fund and the railway reserve was placed before the Legislative Assembly in the form of “demands for grants’.
311. Form of Budget.– The form of the budget, the detail it would give and the number of demands for grants into which the total vote would be divided were considered by the Railway Board in consultation with the Standing Finance Committee for Railways.
312. Revision of Convention.– These arrangements, though subject to periodic revision after the first period of three years, were not so revised. A moratorium was, however, declared to the effect that railway revenues were not liable before the 1st April 1943, to repay to the Depreciation Reserve Fund, the balance outstanding on the 1st April 1937 of loans taken from the fund to meet railway deficits (vide paragraph 336) to pay to general revenues any contribution or deficiency in contribution due in respect of the period beginning on the 1st April 1931 and ending on the 31st March 1939.
313. Principles Underlying Convention.– The most notable features of the ‘Separation Convention’ were, firstly, the fixation of a definite annual contribution from Railways to general revenues calculated with reference to the Capital at Charge of the railway system and the profits earned by it and secondly, the establishment of a Reserve Fund and a Depreciation Fund for railways. These arrangements were supported in the main by the following reasons:–
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(i) As the State had raised the moneys for the construction of railways on its credit, it was reasonable that the return given by the railways should be chiefly based on the moneys thus raised;
(ii) Such a return was best calculated on the moneys expended on lines expected eventually to yield a return, and not on lines built for quite different reasons; and
(iii) While it was only fair that, in prosperous years, the tax payer should share in the prosperity of the railways which he had financed it was to his advantage to be certain of a gradually increasing income in the long run as the invested capital increases. With this end in view, it was desirable that only a comparatively small proportion of the contribution should depend on railway surpluses, and that the major part should represent a definite and secured profit on the moneys supplied by the State for the construction of commercial lines.
314. Deleted. Funds for Capital Outlay
315. The money expended by the State on railways had been financed:
(a) by loans raised specifically for railway purposes by Government (specific debt);
(b) by the utilization of revenue surpluses and other resources at the disposal of the Government (non-specific debt); and
(c) by loans raised through the medium of Railway Companies and States (Company and State Capital).
316. Specific debt.– This consisted of
(a) Liabilities incurred by Government on purchase of railways and not discharged either by cash payment or the issue or appropriation of stock, and which were either– i. In course of discharge by the operation of annuities and sinking funds, or ii. Remained to be liquidated at the option of Government or otherwise on dates to be determined by law or contract.
(b) Stock, etc., specially created in discharge of liabilities incurred in connection with the purchase of railways (a portion of this stock is under redemption by sinking funds).
(c) Rupee debt specifically incurred for railways.
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317. Non-specific Debt.– This represented the expenditure on railways not covered by the above or by capital raised through Companies or States.
318. Deleted.
Interest on Railway Debt
319. Interest on Specific Debt.– The interest charged to railway revenues on specific debt was the interest actually paid on that account during the year, except that with regard to the interest due on the liabilities of the original railway companies in course of discharge by the operation of annuities, a different arrangement had been in existence since 1923-4.
320. Interest in respect of Terminable Annuities.– Under the original arrangements, a sum of £ 3,390,362 was charged to railway revenues annually, as the total of annuities created on the purchase of railways and terminating at different dates between 1948 and 1958. The original amount to be liquidated by these annuities was £ 81,844,165 and by the end of 1923-4 this had been reduced to £ 60,095,487. It was decided that from 1924-5 the liability for the payment of the annuity should fall on general revenues, railway revenues being charged perpetually with interest on the capital outstanding. This charge was equivalent to the interest portion (£ 2,142,097) of the total annuity payable during the year 1924-5. The capital portion of the annuities was met by general revenues from the provision for reduction or avoidance of debt.
Note.– The adjustment of the interest on annuities was made every year in the month of March at the official rate of exchange.
321. Interest on Non-specific Debt.– For purposes of calculation of interest, the Non- specific Debt, that was, the balance of the capital expenditure on railways which was not covered by loans specifically raised by the Government or by Capital raised through Companies and States for railway purposes, was treated as money advanced by the Government to railways; and interest was paid from railway revenues on an equivalent amount of public debt at rates intended to represent the cost of borrowing to Government. The exact method of calculation was:–
On the amount representing capital expenditure to the end of 1916-7–Rs. 2,57,74,70,897, interest was charged at the fixed rate of 3.3252 per cent per annum.
On capital expenditure since 1916-7, the rate was the ‘average rate of interest’ paid by Government on loans raised since that year. This rate was determined by dividing the actual charges on account of interest, including discount on money paid and charged to the revenues of the year on account of loans issued after 1916-7, by the mean of such loans outstanding at the beginning and the end of the year. The actual
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amount of interest payable was calculated by applying this rate to the capital expenditure after 1916-7 and up to the end of the preceding year plus half the expenditure during the year.
322. Some of the loans issued since 1916-7 had been issued free of income tax and the above method which took into account only the interest actually paid did not represent the true cost of borrowing to Government, and consequently in 1928-9 it was decided to bring this into the calculation by adding the income tax that would have been recovered if the loans had not been tax-free. The commission and brokerage paid in connection with issue of loans were also added to the interest and discount. As a result of this, there was an increase in the rate by about .25 per cent in 1928-9.
323. From 1930-1, the following further changes were made in the method of calculation of the average rate of interest:–
(i) the amount of interest taken into account was the amount due for the year and not the amount paid in the year;
(ii) a suitable addition was made for charges for management of debt and advertisement charges connected with new issue; and
(iii) the mean outstanding debt was calculated with reference to the proportionate amounts of cash received and not with reference to the normal balances.
324. Interest on Company and State Capital.– On capital contributed by Indian States and railway companies, railways were charged with the actual interest paid. The greater part of this capital consisted of debentures and debenture stock issued by railway companies working State Railways.
325. In addition to the capital raised through Companies and Indian States on which interest was paid, there was a small amount of capital contributed by Indian States on which no interest was paid specifically as such. The net earnings of the lines in respect of which this capital was contributed were divided between the Government and the Indian State in question in proportion to the capital contributed by each.
325-A. The Government Railways were classified either as “Commercial” or “Strategic”. Those falling in the latter category were constructed for military reasons and were not always remunerative. The Government Railways were financed either from Central and Provincial funds or from Famine Relief and Insurance Grant or from loans forming part of public debt of India or from share capital, debenture and debenture stock raised by the Working Companies was paid to them on the termination of their contracts.
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325-B. The private Companies were provided financial assistance in one form or other for the construction of Railways. In the beginning even the management of certain Railways constructed by the Government was entrusted to the private companies. By the end of 1944-45, the administration of all the Railways owned by the private companies as well as of the Government owned Railways managed by the private companies was taken over by the Government.
325-C. In the Railway Capital Account, the expenditure from all these sources was treated as Capital Outlay outside the Revenue Account.
325-D. The Railways Finances earlier were a part of the General Finances of the Central Government but were separated w.e.f. 1924-25. As a result of this separation, the Railways undertook to pay a definite annual contribution to the general revenues out of the profits, if any, accrued from the commercial lines. In order to place the Railway finances on sound footing, a “Railway Reserve Fund” and a “Depreciation Reserve Fund” were also established. Railway Accounts were departmentalized with effect from 01 April 1930 by separating if from Railway Audit.
325-E. The ‘Separation Convention’ established in 1924-25 was modified with effect from 01 April 1943 so as to provide for yearly adhoc contribution from Railways surplus to the general revenues.
Capital Expenditure
326. Capital liabilities (i.e., the capital expenditure which had been financed from the sources detailed in paragraph 315) and the capital assets in which the moneys had been invested are shown in a Balance Sheet (vide Paragraph 625. G). The detailed Chart of Accounts, for recording all transactions and maintaining books of account of railways, is given in Appendix I to this code.
Revenue Expenditure
327. The Revenue Expenditure of Pakistan Railways is divided into the following main divisions:
(i) Working Expenses. (ii) Deleted. (iii) Deleted. (iv) Miscellaneous Railway Expenditure. (v) Deleted. (vi) Interest charges.
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All this expenditure is met out of the revenue receipts and non-development grant of railways, hence the term ‘Revenue Expenditure’ applied to it.
328. Working Expenses.– The working expenses of railways include all expenditure incurred in connection with the administration, fuel and power, operation, maintenance and repairs of track, repair and maintenance of rolling stock, employee benefits, etc. of lines open for traffic.
329. Classification of Revenue Expenditure.– The detailed Chart of Accounts for recording all transactions and maintaining books of account of railways, is given in Appendix I to this Code.
Revenue Receipts
330. The revenue of railways is derived almost wholly from the transport of passengers and merchandise. The other sources of revenue are rents and tolls; and catering; sale proceeds of unclaimed goods, advertisement fees; interest and maintenance charges of saloons, level-crossings, and sale of scrap, etc. The detailed Chart of Accounts of revenue subsidiary system is given in Appendix II to this Code.
The Depreciation Reserve Fund
331. The Depreciation reserve Fund was started, with effect from the 1st April 1924, to provide for the cost of renewals and replacements of assets, as and when they become necessary. The Fund, as originally constituted, was designed to provide the amount of the original cost of the work replaced, and its scope was restricted to the replacement of complete units of certain classes of wasting assets.
332. Appropriations to the Fund.– Up to the end of March 1935, the Fund was credited with an annual contribution from Revenue calculated on the ‘straight line method’ as follows. Wasting assets were classified and a normal life was fixed for each class. The total expenditure to the end of the previous financial year on all the units of each class of asset divided by the number of years assumed as the normal life of that class of asset, was taken as the annual contribution to the Fund, no credit being given on account of any unit after the period assumed for its normal life had expired. In order to simplify the calculation involved, an amount equal to one-sixtieth of the total capital at charge as shown in the Finance and Revenue Accounts of the Government at the end of the previous financial year, was set aside annually to cover depreciation with effect from 1935-6, this fraction being the nearest simple fraction calculated to give results approximately equal to the result of the complicated procedure followed previously.
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333. Appropriation from the Fund–State Railway.– The rules of allocation of expenditure between Capital, Depreciation Reserve Fund and Revenue that were formulated for observance by State-managed railways at the time of the creation of the Depreciation Fund were based on the general principle that the ‘original cost’ of an asset replaced, if it was a complete unit of a wasting asset, should be charged to the Depreciation Reserve Fund, and that all expenditure in excess of such original cost was chargeable to Capital. It was subsequently decided however that the original cost or cost of replacement by a like asset, whichever was greater, should be met by the Fund in the case of all classes of assets and that only the excess over such cost was debitable to Capital, a rule of allocation to capital which had been followed till 1924 by all railways and was followed even after that date by Company-managed State Railways.
334. Company-managed Railways.– On State Railways worked by Companies, the allocation of expenditure was determined by the terms of their contracts according to which the expenditure on renewals and replacement was charged to “Program Revenue”. In Government books, however, this expenditure was debited to the Depreciation Reserve Fund, and the contribution to the Depreciation Reserve Fund was calculated, as on State-managed railways, and debited to Revenue.
335. Interest on Depreciation Reserve Fund Balances.– The amount in the Fund remained in deposit with the Central Government and interest thereon was credited to railway revenues (Miscellaneous Railway Receipts).
336. Temporary Advances from Depreciation Reserve Fund– Temporary loans were taken from the balances in the Depreciation Reserve Fund to meet deficits in railway working and the losses on strategic railways, the repayment of these temporary loans being a first charge on railway surpluses. A moratorium was however declared to the effect that railway revenues were not liable to such repayment before the 1st April 1943.
336A. The Depreciation Reserve Fund is abolished with the introduction of new accounting system. With the implementation of new accounting system the replacement of assets is dealt with in accordance with Chapter IX of Pakistan Railways General Code.
The Railway Reserve Fund
337. This Fund was started, in pursuance of the ‘Separation Convention’ with effect from the 1st April 1924. The receipts in the Fund consisted of the surplus which would remain out of the net receipts of railways after the payment to general revenues of the contribution fixed under the Convention. If the amount of such surplus exceeded in any year three crores of rupees, two-thirds only of the excess over three crores was transferred to the Railway Reserve and the remaining one-third accrued to general
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revenues of the Government. The purposes for which the Reserve could be utilized are stated in paragraphs 306 and 307.
338. A part of the amount standing at the credit of the Fund was invested in securities of Branch Line Companies and the balance was held in deposit with the Central Government. Interest accruing on the amount held with the Central Government and on the securities was credited to railway revenues (Miscellaneous Receipts).
Railway Finances after Independence
338-A. The partition Council which was set up to conduct and co-ordinate detailed investigation at expert level of various problems arising for the partition of the Indo- Pakistan Sub-Continent laid down principles for determining the debt liability of Government of Pakistan. It was also decided certain principles on which the liability of Pakistan on account of Railways was to be determined. However, the assets of the undivided N. W. Railway were divided between Pakistan and India in terms of agreement reached in the Indo-Pakistan conference held at the New Delhi in December 1959, where by the value of the assets taken over by Pakistan Railways on 14 August 1947 was fixed at Rupees 880 million. The decision was conveyed by the Railway Board vide their letter No. FD/A-APPA/61-62/71 dated 30 June 1962. The figures of Rupees 880 million were taken over without financial adjustment in the books of Pakistan Railways in the Accounts for the year 1961-62 as the Capital at charge of Pakistan Railways on 14 August 1947.
338-B. At the time of independence, it was decided that, although, the Pakistan Railways was to continue to work on commercial lines, the Separation Convention of 1924 need not continue. The Railway’s Finances were thus merged with the General Finances of the country. With this arrangement, the necessity to distinguish between strategic and commercial lines disappeared. Nor was it necessary to continue the Railway Reserve Fund. The Railway Depreciation Reserve Fund was, however, retained and started with a nil balance as on 14 August 1947. Nevertheless, the necessity of separating the Railway Finances from the General Revenues continued to be felt and ultimately in the year 1961-62, the Railway Finances were separated from General Finances of the Central Government in accordance with the following convention.
i. The Railways were to pay to the General Revenues a fixed return of 6.25% for Government Investment in Railways (including investment on strategic lines) at the close of preceding financial year. The balance of the Railways surplus was credited to such funds and reserves as considered necessary.
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ii. The interest free loan advanced to the Railway towards meeting deficit in the Depreciation Reserve Fund was written off by adding a sum of Rupees 217.8 million to the Capital at charge of the Railways.
iii. The Railways were to pay actual interest charges on all foreign loans obtained for them. They were also responsible for repayment of the foreign loans required for rehabilitation and replacement of the assets. The General Revenues were responsible for the repayment of foreign loans raised for Capital addition and Development of the Railways. As and when an instalment of a loan was paid by the General Revenues, the Railways ceased to pay interest on the loan to that extent and the amount of the instalment was added to the Government Investment in Railways which qualified for return in accordance with clause i above.
338-C. Such arrangements had worked merely for a year when the Railways were transferred to the provinces with effect from 9th of June, 1962 under President’s Order No. 33 of 1962. Clause 8 of the aforesaid Order provided for the following financial arrangements.
i. The provisions of the Separation Convention established in 1961-62 were until modified by Provincial Governments, to apply mutatis mutandis to regulate the separation of the Railway Finances from the General Finance of the provinces. ii. The Provincial Governments were to pay the Central Government every year in respect of the Railway transferred to them a return, at the rate of 6.25% per annum on the Central Government’s Investment made upto the 30 June 1962. iii. Investment in clause (ii) included:
a. The book value of the Railway assets taken over from the Government of India as it stood on the 14 August 1947 and b. Such expenditure of the Central Government as may have been actually incurred by it upto 30 June, 1962 but may not have been included as investment in the Central Government Accounts upto that date.
iv. The Provincial Governments were as and when due to pay the Central Government, the actual interest charges on all foreign loans, including foreign loans which existed at the time of promulgation of President’s Order, obtained by the Central Government for the Railways.
v. The Central Government was liable for the repayment of the principal of such foreign loans or parts of foreign loans as were raised by them on or before 30
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June 1962, or in respect of which negotiations were finalized upto that date for capital additions to and development of the Railways.
vi. As and when an instalment towards repayment of a loan was to be paid by the Central Government, the provincial government ceased to pay interest on the loan to that extent.
vii. The amount of the instalment paid under clause (vi) by the Central Government, from the date of such payment was to form part of the Central Government investment in the Railways and the Provincial Governments had to pay to the Central Government, a return @ 6.25% per annum on the amount so forming part of the Central Government’s investment.
viii. The Provincial Governments were liable for repayment of the principal of such foreign loans as were raised for financing other than Capital investment in the Railways.
ix. The subscription made by the employees to the Defence Saving Provident Fund, the State Railway Provident Fund and General Provident Fund including optional or voluntary subscription continued to remain with the Central Government which is liable to make payment to the employees out of these funds.
x. The Provincial Governments as from the 01 July 1962 had constituted provincial Railways Provident Funds which were subscribed by the Railway employees appointed on or after that date. Such subscriptions were credited to the Provincial Governments and those Governments were liable to make payment to their respective employees out of their funds.
338-D. The Pakistan Western Railway remained under the control of the Defunct Government of West Pakistan upto 30 June 1970. On the dissolution of province of West Pakistan with effect from 01 July 1970, the control of Pakistan Western Railways vested in the President of Pakistan for the purpose of four new provinces. With the promulgation of interim and permanent constitutions of Islamic Republic of Pakistan the Railway became a Federal subject with effect from 01 July 1972, and was renamed as “Pakistan Railways”. A Railway Fund was established with effect from 01 July 1970, vide article 10 of the province of the West Pakistan (Dissolution) order of 1970. This Fund is to be maintained as Account No. 3 distinct form Account No. 1-Non Food, and Account No. 2-Food within the Federal Consolidated Fund in the books of the State Bank of Pakistan. Liability of employees referred to 338C (x) was taken over by the Federal Government.
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338-E. The provisions of separation convention will however, continue to apply mutatis mutandis to regulate the separation of the Railway Finances from the Federal Finances. All moneys held, received or provided whether on Revenue Account or on Capital Account for the purpose of Pakistan Railways are to be held in or paid into the said fund and all expenditure whether on Revenue Account or on Capital Account required for the construction, maintenance and operation of Railway is to be charged to the said fund.
339. The Railway Debt.– Moneys provided by the Federal Government for capital outlay on Pakistan Railways has two components (a) Rupee (Internal) component (b) External component. The Rupee component will be treated as Investment by Federal Government in Pakistan Railways and External component will be treated as Foreign Loans / Credits thus will be added to borrowings / debt of Pakistan Railways.
339-A. Return on Investment by Government. The return payable to the Government on its Investment in Pakistan Railways on the recommendation of the Expert Committee of Railways (Constituted by the Government to rationalize the Railway financial structure), would be charged but only when a net surplus is available after meeting the Appropriation to fund and debt servicing liability.
340. Interest and Amortisation Payments of foreign loans / credits.– Pakistan Railways will be responsible for the payment of interest thereon and the repayment of the principal amounts in accordance with ‘repayment scheme’.
341. Funds Balances.– The amounts standing at the credit of the Railway Reserve Fund, the Depreciation Reserve Fund, and the Provident Funds established for railway servants, unless transferred by the Federal Government to the Pakistan Railways, remain in the custody of, and interest thereon continued to be credited by, the Federal Government. The amount necessary to defray expenditure chargeable to these Funds, however, be transferred by the Federal Government to the Pakistan Railways, as and when required.
342. Deleted.
343. Deleted.
344. Application of Railway Receipts.– The receipts of Pakistan Railways on revenue account in any financial year will be applied in:
(i) defraying working expenses; (ii) meeting payments due under contracts or agreement to railway undertakings; (iii) paying pensions;
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(iv) repaying to the revenues of the Federation the pensions and contributions to provident funds which under the Constitution of Pakistan, 1973, are chargeable to those revenues but are attributable to service on railways in Pakistan; (v) making due provision for maintenance, renewals, improvements and depreciation; (vi) payment of interest on the amount owing to the Federal Government and other local and foreign institutions and Governments; and (vii) defraying other expenses chargeable against revenues in that year.
345. Application of Surpluses.– Any surpluses on revenue account shown in the accounts of Pakistan Railways will be at the disposal of Ministry of Railways (Railway Board) or in accordance with any other scheme which may be prepared by the Federal Government for this purpose.
346. Liabilities other than Railway Debt.– Any amounts defrayed by the Federal Government out of their revenues in respect of any debt or legal proceedings concerning the Pakistan Railways will have to be repaid by the Pakistan Railways to the Federal Government.
347. Deleted.
348. Banking.– Pakistan Railways will entrust all its money, which is not immediately needed, to the State Bank of Pakistan and employ that bank as their agents for all transactions in Pakistan relating to remittances, exchange and banking; and the bank will undertake the custody of such money and such agency transactions on the same terms and conditions as those upon which they undertake the custody of moneys belonging to, or agency transactions for, the Federal Government.
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PAKISTAN RAILWAYS
PAKISTAN RAILWAYS GENERAL CODE
Riaz Ahmad & Company Chartered Accountants
CHAPTER IV
20 October, 2011
9.1 PAKISTAN RAILWAYS GENERAL CODE
CHAPTER IV
ANNUAL BUDGET
CONTENTS
DESCRIPTION PAGE NO. PARA NO.
ANNUAL BUDGET 4.1 401
CHARGED AND OTHER THAN CHARGED EXPENDITURE 4.1 402
CHARGED EXPENDITURE 4.1 — 4.2 403 — 404 (405 — 406 Deleted)
DEMANDS FOR GRANTS 4.2 407
TYPES OF DEMANDS 4.2 408
MAJOR, MINOR AND DETAILED HEADS OF DEMANDS 4.3 409
PREPARATION OF THE ANNUAL BUDGET 4.3 — 4.4 410 — 413
BUDGETARY PROCEDURE 4.4 413A (414 — 416 Deleted)
PRESENTATION TO THE NATIONAL ASSEMBLY 4.6 417
AUTHENTICATION BY PRIME MINISTER 4.6 418
GRANTS AND APPROPRIATIONS 4.6 419
DISTRIBUTION OF FUNDS BY MINISTRY OF RAILWAYS 4.7 420 — 425 (RAILWAY BOARD)
DISTRIBUTION OF FUNDS BY GENERAL MANAGERS TO 4.7 — 4.9 426 — 433 LOWER AUTHORITIES (434 Deleted)
POWERS DELEGATED TO MINISTRY OF RAILWAYS 4.10 — 4.11 438 — 439 (RAILWAY BOARD)
POWERS OF PAKISTAN RAILWAYS ADMINISTRATION 4.11 — 4.12 440 — 447 (441 — 443 Deleted)
REVIEW OF EXPENDITURE 4.12 — 4.13 448 — 449
8 PAKISTAN RAILWAYS GENERAL CODE
CHAPTER IV
ANNUAL BUDGET
CONTENTS
DESCRIPTION PAGE NO. PARA NO.
SUPPLEMENTARY GRANTS 4.13 449A (450 Deleted)
FINAL MODIFICATION STATEMENT 4.14 — 4.15 451 — 458 (454 — 456 Deleted) (457 Cancelled)
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PAKISTAN RAILWAYS GENERAL CODE
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401. A statement of the estimated annual Pakistan Railways receipts and expenditure is prepared by Ministry of Railways (Railway Board) each year. This statement is known as the ‘Budget’ and is required to be laid before National Assembly as a part of Federal Budget. The Annual Budget Statement shall show separately:
(a) the sums required to meet expenditure described by the Constitution as expenditure charged upon the Federal Consolidated Fund; and
(b) the sums required to meet other expenditure proposed to be made from the Federal Consolidated Fund; and shall distinguish expenditure on revenue account from other expenditure.
Note: Statement of estimated receipts and expenditure of Federal Government is known as ‘Annual Budget Statement’.
402. Charged and Other than Charged Expenditure.– The proposed expenditure included in the budget may be either:
(i) Charged, or (ii) Other than Charged.
So much of the Annual Budget Statement as relates to expenditure charged upon the Federal Consolidated Fund may be discussed in, but shall not be submitted to the vote of, the National Assembly. So much of the Annual Budget Statement as relates to ‘Other than Charged’ expenditure shall be submitted to the National Assembly in the form of demands for grants, and the National Assembly shall have power to assent to, or to refuse to assent to, any demand, or to assent to any demand subject to a reduction of the amount specified therein.
403. Charged Expenditure.– This class includes only the following items as per the constitution of Pakistan:
(i) all debt charges for which the Federal Government is liable, including interest, sinking fund charges, the repayment or amortisation of capital, and other expenditure in connection with the raising of loans, and the service and redemption of debt on the security of the Federal Consolidated Fund;
(ii) any sums required to satisfy any judgment, decree or award against Pakistan by any court or tribunal; and
(iii) any other sums declared by the Constitution or by Act of National Assembly (Parliament) to be so charged.
The Prime Minister shall authenticate by his signature a schedule specifying-
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THE ANNUAL BUDGET
(a) the grants made or deemed to have been made by the National Assembly under Article 82 of the Constitution of Pakistan, 1973, and
(b) the several sums required to meet the expenditure charged upon the Federal Consolidated Fund but not exceeding, in the case of any sum, the sum shown in the statement previously laid before the National Assembly.
The schedule so authenticated shall be laid before the National Assembly, but shall not be open to discussion or vote thereon.
Subject to the Constitution, no expenditure from the Federal Consolidated Fund shall be deemed to be duly authorized unless it is specified in the schedule so authenticated and such schedule is laid before the National Assembly as required by clause (2) of Article 82 of the Constitution of Pakistan, 1973.
404. If any question arises as to whether any expenditure does or does not relate to the charged items enumerated in the preceding rule, the decision of the Federal Government will be final.
405. Deleted.
406. Deleted.
Demands for Grants
407. The proposals of the Federal Government in respect of money required for Other than Charged expenditure included in the Budget are submitted to the vote of the National Assembly in the form of ‘Demand for Grants’
408. Types of Demands.– The existing types under which the Pakistan Railways Demands are presented and the authorities responsible for control over expenditure in each demand against budget provision are shown below:
Number Authority responsible for watching S. of Particulars of Demand the progress of expenditure in each No. Demand demand
1 xxx Pakistan Railways (non- Heads of Pakistan Railways development grant) Administration for expenditure against the funds allotted.
2 xxx Capital Outlay on Pakistan Project Director for each Public Railways (development / Sector Development Programme Public Sector Development project / scheme. Programme grant)
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409. Major, Minor and Detailed heads of Demands.– Each demand is divided into major, minor and detailed objects as given in the Chart of Accounts (Appendix I).
410. Preparation of the Annual Budget.– For the preparation of the budget by Ministry of Railways (Railway Board) the railway administrations and other authorities empowered to incur expenditure are required to submit to Ministry of Railways (Railway Board) their revised estimates for the current year and budget estimates for the following year in the detail and on the dates prescribed in Chapter V.
411. The estimates of working expenses submitted by Pakistan Railways are subjected to a critical examination by Ministry of Railways (Railway Board) and, after taking all the relevant factors into consideration, Ministry of Railways (Railway Board) frame their own estimate of the expenditure likely to be incurred during the year.
412. The procedure adopted by Ministry of Railways (Railway Board) in fixing the allotment is as follows. The revised estimate for the current year is first fixed under each demand after taking into account:
(i) actual expenditure for the first 4 months of the current financial year plus actual expenditure for the last 8 months of the previous financial year;
(ii) commitments entered into and expected to be paid in the current financial year;
(iii) 12 months actual expenditure for each of the previous two years;
(iv) adjustments arising from:
(a) re-appropriations within particular grants during the current financial year (b) new items of expenditure approved through Supplementary Budget during the current financial year (c) surrenders made or expected to be made during the current financial year.
(v) any other relevant factors: and
(vi) the impact of development and non-development factors.
Having thus fixed the revised estimate for the current year, the budget estimate for the next year is prepared on consideration of the special circumstances, so far as known, of both years. The amounts provided for Pakistan Railways administration are restricted as
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CHAPTER IV
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nearly as Ministry of Railways (Railway Board) can guess to their actual needs, consistent with the exercise of the most rigid economy.
413. The estimates of development expenditure on rolling-stock, structural and other engineering works (i.e., the rolling —stock programs and the preliminary programs of works) submitted by Pakistan Railways administration, after having been carefully examined by Ministry of Railways (Railway Board) as to the necessity and remunerativeness of the works/scheme/project included therein, are discussed with the Pakistan Railways administration and the works/scheme/project to be undertaken during the budget year decided upon. The programs as finally settled after discussion from the budget estimates of Pakistan Railways for expenditure to be incurred during the following year on new constructions and open line works should be properly classified in line with the Public Sector Development Programme project / scheme wise budget allocation.
413A. Budgetary Procedure–The powers to sanction expenditure within the budget grants have been delegated to Ministry of Railways (Railway Board). Nevertheless, the finalization of the budget proposals continues to be the responsibility of the Finance Division. Budget is, therefore, to be used as the most important instrument of financial control. No proposals for expenditure shall be included in the budget unless these have been concurred by the Finance Division after scrutiny. The scrutiny of budgetary proposals by Ministry of Railways for inclusion in the Federal Budget shall, as far as possible, be undertaken by the Finance Division as a pre-budget exercise. Ministry of Railways (Railway Board) shall carefully scrutinize the proposals before agreeing to budget provision. Once a provision for expenditure has been made in the budget and it has become effective, Ministry of Railways (Railway Board) shall have the authority to sanction expenditure from within their sanctioned budget grants, subject to the powers delegated to them and the fulfilment of the conditions laid down therefor in the “SYSTEM OF FINANCIAL CONTROL AND BUDGETING (September — 2006)” issued by Finance Division, Government of Pakistan. Ministry of Railways (Railway Board), while issuing expenditure sanctions shall ensure that Object Wise details are shown both in Part I (relating to standing and fluctuating charges) and Part II (relating to fresh charges) Budget Estimates. The salient features of the budgetary procedure shall be as follows:
(i) Budget a Continuous Process: Budgeting being a continuous process, the preparation of the budget shall begin well ahead of the year to which it relates.
(ii) Estimates of Expenditure: Approval and Issuance of Budget Order (BO) and New Items Statement (NIS): All the proposals for Employees Related Expenditure and other expenditure shall be cleared with the Member Finance as soon as these are ready. Part- I of the Budget Estimates (relating to
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standing and fluctuating charges) and Part-II Budget Estimates (relating to fresh charges) shall be scrutinized finally by Ministry of Railways (Railway Board) which will approve and forward to the Finance Division (Budget Wing) and the copies of the BOs in respect of Part-I Budget Estimates and verified copies of NISs in respect of Part-II Budget Estimates in accordance with the instructions contained in the Budget Call Circular. The admitted Part-I and Part-II Budget Estimates shall be compiled together into “Demands” by the Finance Division (Budget Wing).
(iii) Estimates of Revenues: The estimates of Revenue and Capital Receipts shall also first be coordinated and scrutinized by Ministry of Railways (Railway Board). The estimates, as approved and verified by Ministry of Railways (Railway Board), shall be furnished to the Finance Division (Budget Wing) in accordance with the instructions contained in the Budget Call Circular.
(iv) Lump Sum Provision in Current Expenditure: Lump-sum provision in the budget shall not be proposed or made except in exceptional circumstances such as lump sum provision for late NIS, late receipt of directives, etc. which shall be recorded. Where such a provision is made in the budget, expenditure sanction shall be given with the concurrence of the Finance Division.
(v) Lump Sum Provision in Public Sector Development Programme (PSDP): No lump-sum allocation shall be made in the Public Sector Development Programme as a general policy, except in exceptional circumstances, which shall invariably be recorded. In respect of such lump-sum provisions, Ministry of Railways (Railway Board) shall invariably furnish a list of approved schemes indicating bifurcation of the lump-sum allocation against each scheme to Planning and Development Division. Releases against this provision shall be made with the prior approval of Finance Division.
(vi) Cash Plan of PSDP and Releases of Funds: During the first quarter of the financial year, releases of the allocations provided in the Public Sector Development Programme for individual schemes, as have already been approved formally by the competent authority or have been given anticipatory approval by the Chairman, Executive Committee of National Economic Council (ECNEC), shall be made by the Secretary of Ministry / PAO without approval of Finance Division in accordance with the Cash Plan of the projects duly approved by the Secretary of Ministry of Railways and Planning and Development Division. All releases during the remaining three-quarters of the financial year shall be made with the prior approval of Finance Division in accordance with the approved Cash Plan. The releases shall be subject to utilization of funds released earlier, after furnishing a certificate by the Principal Accounting Officer regarding satisfactory implementation of
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approved Work Plan for the previous quarter of the financial year. The releases shall not be unduly delayed.
(vii) Foreign Exchange Budget in PSDP: The foreign exchange budget shall be prepared in accordance with the instructions issued by the Finance Division (External Finance Wing) from time to time.
414. Deleted.
415. Deleted.
416. Deleted.
417. Presentation to the National Assembly.– The complete Budget, that is, the demand for grants as approved by Ministry of Railways (Railway Board) and other budget papers, viz., the explanatory memorandum to the budget and the detailed estimates of Pakistan Railways are again placed before Ministry of Railways (Railway Board) for their final approval, a few days before the presentation of the Federal Budget to the National Assembly, which is usually done in the month of June.
418. Authentication by Prime Minister.– The Prime Minister shall authenticate by his signature a schedule specifying-
(a) the grants made or deemed to have been made by the National Assembly under Article 82 of the Constitution of Pakistan, 1973, and
(b) the several sums required to meet the expenditure charged upon the Federal Consolidated Fund but not exceeding, in the case of any sum, the sum shown in the statement previously laid before the National Assembly.
The schedule so authenticated shall be laid before the National Assembly, but shall not be open to discussion or vote thereon.
Subject to the Constitution, no expenditure from the Federal Consolidated Fund shall be deemed to be duly authorized unless it is specified in the schedule so authenticated and such schedule is laid before the National Assembly as required by clause (2) of Article 82 of the Constitution of Pakistan, 1973.
419. Grants and Appropriations.– Demands for grants which as stated above, relate to the ‘Other than Charged’ part of the Budget, when voted and passed by the National Assembly become ’Grants’ available for expenditure within the scope of the Demands. The assignments made by the Prime Minister from the ‘Charged’ portion of the budget to meet specific expenditure on Charged items are called ‘Appropriations’.
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420. Distribution of Funds by Ministry of Railways (Railway Board).– The grants as voted by the National Assembly and the appropriation for ‘Charged’ expenditure as sanctioned by the Prime Minister are distributed by Ministry of Railways (Railway Board) among the railway administration and other authorities subordinate to them, as soon as possible after the Budget is sanctioned. The sums so distributed are called ‘Allotments’ and the order by means of which the allotments are made are called ‘Budget Orders’.
421. In these orders, the allotment made to the railway administration out of each Grant, and the funds intended for Capital Outlay on Pakistan Railways are specified separately. The allotments made out of funds voted by the National Assembly are shown as ‘Other than Charged’ and those fixed by the Prime Minister are shown as ‘Charged’.
422. The Budget Orders are accompanied by the final issues of “Pakistan Railways (Revenue Expenditure)” and “Capital Outlay on Pakistan Railways (Development Expenditure)” containing the detailed distribution of the budget allotment made to the railway administrations for working expenses and development expenditure.
423. In the event of the Budget Orders of Ministry of Railways (Railway Board) not being received before the commencement of the financial year, the railway administrations are empowered to incur expenditure, pending the receipt of the budget order, on works which were in progress at the end of the previous financial year. All expenditure incurred under this rule must be treated as a charge against the allotments eventually made for such works.
424. The budget allotment made to the railway administration is intended to cover all the charges, including the liabilities for past year, to be paid during the year or to be adjusted in the books of account for it. It shall be operative until the close of the financial year. Any unspent balance shall lapse and shall not be available for utilization in the following year.
425. When the budget orders issued by Ministry of Railways (Railway Board) show any reduction in the estimates originally submitted to them, prompt measure should be taken by the railway administrations to limit the expenditure to the amounts allotted and distributed by Ministry of Railways (Railway Board).
426. Distribution of Funds by General Managers to Lower Authorities.– Subject to the other provisions of this chapter, or of any general or specific orders issued by Ministry of Railways (Railway Board), General Manager is expected to take steps immediately to distribute the funds placed at his disposal to authorities subordinate to him in such manner as he may consider most suitable, provided that the total of the sums so allotted
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does not exceed the total of the grant placed at his disposal. In making this initial distribution, he may, at his discretion, keep a sum unallotted as a reserve for emergencies that may arise in future. He may also vary the initial distribution as necessity arises during the course of the year. In regard to “Carry Over” works, the latest information as to the necessity and extent of funds required for such works should be obtained from the authorities concerned and taken into consideration in making the initial distribution.
427. With respect to expenditure on Capital Outlay on Pakistan Railways, the allotment made by the General Manager to lower authorities shall, as far as possible, follow the lines of the Project / Scheme wise allotment of Development / (Public Sector Development Programme) funds issued by the Finance Division and Planning Commission.
428. The authorities to whom funds are distributed by the General Manager may, subject to any general or special instructions issued by him, redistribute the funds placed at their disposal to the authorities under them.
429. No expenditure shall be incurred by an authority without the allotment of necessary funds. In exceptional cases, where expenditure is authorized in anticipation of the allotment of funds, or in excess of the existing provision, the authorization should be followed as soon as possible by a formal allotment of funds to the extent required.
430. The expenditure on each object and work/project/scheme shall be limited to the sum allotted for it. If for exceptional reasons, expenditure in excess of budget allotment has to be incurred and if the authority incurring the expenditure is either not in a position to find fund by re-appropriation or is not empowered to sanction re- appropriation therefor, application for additional funds shall be made to the next higher authority stating how the expenditure is proposed to be met. In doing so, it should invariably be explained why the need for the expenditure was not foreseen in time for inclusion in the budget and why the outlay cannot be postponed to the next financial year.
431. In each case a copy of the order making the allotment or sanctioning a re- appropriation shall be sent to the Accounts Officer concerned by the authority issuing the order or sanctioning the re-appropriation.
432. The authorities to whom the funds are allotted shall be responsible to report at once to the next higher authority the probability of any lapses or excesses over the sums placed at their disposal.
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Responsibility of Ministry of Railways (Railway Board) is to avoid Excess over Grants or Expenditure on a New Project / Scheme.
433. It is the responsibility of Ministry of Railways (Railway Board) to ensure that the total expenditure against a grant voted by the National Assembly or appropriation sanctioned by the Prime Minister does not exceed the amount of grant (including supplementary grants) or of the appropriation. They are also required to watch that the money voted by the National Assembly is spent on the purposes set out in the detailed estimates presented to the National Assembly along with the Demands for Grants, and is not utilized for expenditure on “New Project / Scheme” not contemplated in the budget.
434. Deleted.
Responsibility of Railway Administration in case of Excesses or Lapses
435. The railway administration shall be responsible that no expenditure is incurred in excess of the budget allotments made to it. Should it become apparent at any time that the grant for the year is likely to be exceeded from any cause whatsoever, the General Manager should report the position to Ministry of Railways (Railway Board) and apply for additional funds, Under no circumstances any liability be incurred in one year against anticipated grants of a succeeding year.
436. It shall also be the duty of the administration to see that the allotments made to them are fully expended, in so far as is consistent with economy and the prevention of large expenditure in the last months of the year for the sole purpose of avoiding lapses. They shall be responsible for ensuring that money which is not likely to be needed during the year is promptly surrendered so as to allow of its appropriation for other purposes.
Power of Railway Administration in regard to emergent or inevitable expenditure
436-A. Notwithstanding the provisions of paragraph 435 above, the commencement of works urgently necessary to safeguard life or property or to repair damage to the line caused by flood, accident, earthquake or other unforeseen contingency, so as to restore or maintain through communication may be authorized by the Executive Engineer; but he should at once submit a report through the usual channel to the authority competent to give administrative approval to the work and to allot the required funds.
Expenditure to meet a sudden increase in traffic or due to unexpected or sudden increases in the price of fuel and other material or for ensuring the safe operation of traffic may be incurred with the personal sanction of the General Manager in anticipation of the allotment of necessary funds by Ministry of Railways (Railway Board) provided that the Financial Adviser and Chief Accounts Officer concurs. This power cannot be delegated and can be exercised by the General Manager only where the
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expenditure is within his powers of sanction. In all cases where this requires an allotment of additional funds a report showing the expenditure involved and the additional funds required should be submitted to Ministry of Railways (Railway Board) as soon as possible.
Re-appropriations
437. The transfer of funds, originally assigned for expenditure on a specific object, to supplement the funds sanctioned for another object is called “Re-appropriations”.
438. Powers Delegated to Ministry of Railways (Railway Board).– The powers delegated to Ministry of Railways under ‘System of Financial Control and Budgeting (September 2006)’ issued by Finance Division, Government of Pakistan are below:
(a) Powers delegated to the Principal Accounting Officer in Ministry of Railways and the Head of Departments, respectively are provided in Appendix III to this code. They may exercise these powers without consulting the Finance Division. The Member Finance may, however, be consulted, where considered necessary or advisable. His advice can, however, be overruled by the Principal Accounting Officer who may record reasons for overruling the advice. The powers so delegated shall be subject to the observance of austerity measures taken by the government from time to time and the following conditions:
(1) availability of funds, by valid appropriation or re appropriation where permissible, from within the sanctioned budget grant; and (2) availability of foreign exchange, where required, from within the allocation of foreign exchange sanctioned for Ministry provided:- (i) specific provision exists in the foreign exchange budget; (ii) it does not involve re-appropriation from “imports” to invisible” or vice versa; (iii) it does not involve travel by another carrier on routes where PIA flights operate; and (iv) it does not involve expenditure on entertainment or contingencies.
(b) The Current Expenditure in the first half of the financial year shall be restricted to 40% of the total budget allocation in the financial year. In the second half of the financial year, the Finance Division shall issue separate instructions in respect of the balance 60% of the budgetary allocation.
(c) The financial powers delegated to Ministry under the Financial Rules and Supplementary Rules, General Financial Rules, etc., shall stand enhanced / modified to the extent stated in the ‘System of Financial Control and
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Budgeting (September 2006)’ issued by Finance Division.
(d) Except as specifically provided in Appendix III to this code, further delegation of delegated powers (Appendix III) may, as considered appropriate, be made by the Secretary of Ministry of Railways and Heads of Departments to the officers subordinate to them without consulting the Finance Division.
439. As regards Other than Charged expenditure there are no restrictions on the powers of Ministry of Railways (Railway Board) to sanction re-appropriations as given in paragraph 438 except that no re-appropriation is permissible from Charged heads to Other than Charged heads or vice versa.
440. Powers of Pakistan Railways Administration.– No re-appropriation is permissible between “Charged” and “Other than Charged” allotments or between the allotments made under one grant and another, except that savings under one head of grant may be set off against excesses in another, in the case of non-development grant in accordance with the convention referred to in paragraph 438. In acting under this convention, the principle that a saving under one grant is not by itself a justification for additional expenditure under another, should not be lost sight of.
441. Deleted.
442. Deleted.
443. Deleted.
444. Other re-appropriations may be sanctioned by the railway administration in accordance with the prescribed rules but no re-appropriations are permissible after the close of the financial year.
445. All proposals for re-appropriations of funds which are beyond the General Manager’s powers shall be submitted to Ministry of Railways (Railway Board) sufficiently early to admit of action being taken before the close of the financial year.
446. The re-appropriations by railway administrations should not be made haphazard on the basis of individual items of expenditure where the original provision is exceeded, nor should they be postponed to be made only toward the end of the year. The railway administration should review the position as a whole at intervals and carry out the necessary re-appropriations. When funds have to be provided for new expenditure under one of the detailed objects and the administration is definitely in a position to transfer the grant from another detailed object for this purpose the re- appropriations should be made promptly. The whole object is to ensure that, as far as
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possible, funds which are not required are withdrawn from disbursing officers as soon as it is definitely known that they are not required; and incidentally to provide that any really unavoidable expenditure is met from such savings as far as possible.
447. When orders are issued by Ministry of Railways (Railway Board) authorizing the railway administration to incur expenditure to a certain extent over and above the allotment sanctioned for them, they should be taken as “expenditure orders” as distinct from “budget orders”. No cognizance of these orders should be taken while sanctioning re-appropriations or in distributing the sanctioned allotment over the various detailed objects.
Supplementary Grants
448. Review of Expenditure.– Railway administration should review their expenditure in March, in order to see whether any modifications are necessary in the allotments placed at their disposal. The review should be submitted to Ministry of Railways (Railway Board) in form G. 448, so as to reach them not later than the 15th March, each year.
FORM No. G. 448 ...... RAILWAY/ OFFICE Statement showing modification necessary in the allotments under the Revenue and Capital grants during ...... (In thousands) Latest Estimates Actuals last year Budget Variation. Brief reasons current year Grants. current for large First Full First Full Excess Saving year. variations months. year. months. year. (+) (–) Grant No. Other than Charged
Charged Total Grant No. Other than Charged
Charged Total Note.–Figures under grants Nos. 3 and 5 should be for various detailed heads of the grant.
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449. In March the administrations should review the position in as much detail as possible at the time, and if there is any new expenditure which was definitely not anticipated in the budget and which cannot be postponed without serious detriment to safety or efficiency they should examine whether such expenditure can be met by savings in expenditure provided for in the budget, when such savings can be foreseen or can be achieved without serious damage. The review should show whether such examination discloses the necessity of additional grants or the possibilities of net savings, in order to enable the Ministry of Railways (Railway Board) to set off savings on one account head against excesses on another and to arrive to one estimate of the net additional grant required, if any.
449A. Supplementary Grants: (i) There are three forms of Supplementary Grants: Token, Technical and Regular.
(a) The Token Supplementary Grant is sanctioned to open and operate a new budget head.
(b) The Technical Supplementary Grant is sanctioned to transfer funds from a Grant / Demand as a result of accrual of saving to another Grant / Demand, which needs provision of additional funds.
(c) The Regular Supplementary Grant is sanctioned when saving is not available either through re-appropriation of funds from within the same Grant / Demand or Technical Supplementary Grant from one Grant / Demand to another Grant / Demand.
While the Technical Supplementary Grant does not imply any additionality to the sanctioned budget grant, the Regular Supplementary Grant involves an upward change in the sanctioned budget grant. All Supplementary Grants have to be presented to the Parliament for ex-post authorization. Ministry of Railways (Railway Board) should, therefore, be able to anticipate the requirements well ahead of the financial year to which the budget relates and obtain the concurrence of the Finance Division, thereby eliminating the necessity for Supplementary Grants. Finance Division will look with disfavour upon any request for Supplementary Grants except in extraordinary circumstances. In such circumstances, the Finance Division would expect an explanation of the failure to foresee the additional expenditure at the time of submission of budget proposals. The funds obtained through Supplementary Grants shall be expended for the purposes for which these have been sanctioned. In Current Expenditure, demands for Supplementary Grants/Technical Supplementary Grants shall not be made, except in extraordinary circumstances for which full justifications shall have to be furnished to the Finance Division with reason as to why the additional expenditure could not be foreseen at the time of submission of proposals for budget
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provision. In case of Technical Supplementary Grants in the Current Expenditure, the procedure prescribed for surrender of funds from one Demand / Grant and reallocation to another Demand/Grant shall have to be followed.
(ii) Similarly, in Development Expenditure, while sanctioning the Technical Supplementary Grants, the prescribed procedure for surrender of savings shall have to be completed. Likewise, for reallocation of funds from one development project to another as a result of review of the PSDP, the prescribed procedure for surrender of savings shall have to be completed. For this purpose, Planning and Development Division shall indicate matching savings which shall have to be surrendered before allocation of additional funds to another project. This process shall be completed expeditiously to ensure that the release of funds to development schemes / projects is not unduly delayed. The last date for submission of Schedule of Supplementary Grants / Technical Supplementary Grants to the Finance Division (Budget Wing) shall be 31st May of the financial year. Such proposals for Supplementary Grants/Technical Supplementary Grants shall be submitted in pursuance of the Constitutional provisions and General Financial Rules and on the prescribed proforma.
450. Deleted.
451. Final Modification Statement.– Ministry of Railways (Railway Board) should be furnished, for each grant separately, so as to reach them not later than the 15 May each financial year, with statements showing the additional allotments required (both Charged and Other than Charged) or surrenders to be made, during the current financial year under each account head of appropriation, as prescribed in the budget orders, and requiring the sanction of the Federal Government.
452. The amounts relating to object heads, from and to which re-appropriations are beyond the powers of General Manager, should be given separately when applications are made for final modifications in the allotments.
453. The variations between the existing allotments and the modified allotments required should in all cases be supported by adequate explanations of the reasons for the demand or surrender.
454. Deleted.
455. Deleted.
456. Deleted.
457. Cancelled.
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458. When the amount of a grant in the budget is found to be insufficient for the purpose of the current year, or when a need arises during the course of the year for expenditure upon some new Project / Scheme not contemplated in the budget for the year, for which the vote of the National Assembly is necessary, an estimate for the supplementary grant, or token grant if the expenditure can be met from the existing grant, is submitted by Ministry of Railways (Railway Board) to the vote of National Assembly in the same way as the original Demands for Grants. An estimate for supplementary grant may also be presented in respect of any demand to which the National Assembly has previously refused its assent or the amount of which it has specifically reduced.
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PAKISTAN RAILWAYS
PAKISTAN RAILWAYS GENERAL CODE
Riaz Ahmad & Company Chartered Accountants
CHAPTER V
20 October, 2011
9.1 PAKISTAN RAILWAYS GENERAL CODE
CHAPTER V
REVISED AND BUDGET ESTIMATES
CONTENTS
DESCRIPTION PAGE NO. PARA NO.
PARTICULARS OF ESTIMATES AND THEIR DUE DATES 5.1 501 (502 Deleted) LATEST DUE DATES 5.1 503
SUBSEQUENT ALTERATIONS IN ESTIMATES 5.1 503A
BUDGET FORMS 5.1 504
GLOSSARY OF TERMS USED 5.1 — 5.3 505
FORMAL ALLOTMENT OF FUNDS 5.3 506
RESPONSIBILITY FOR FRAMING THE ESTIMATES 5.3 — 5.4 507 — 515 (510, 516 Deleted)
MISCELLANEOUS RAILWAY RECEIPTS 5.5 517
EXPENDITURE ON LAND 5.5 518
SURVEYS 5.5 519 (520 — 523 Deleted)
GROSS RECEIPTS 5.6 524
COACHING EARNINGS 5.7 525
GOODS EARNINGS 5.7 526
OTHER INCOME / SUNDRY 5.7 527 (528 Deleted)
REFUNDS OF REVENUE 5.7 529
AUTHORITIES WHO SHOULD PREPARE THE 5.7 530 ESTIMATES OF EARNINGS EXPLANATION OF VARIATIONS IN RECEIPTS 5.7 531
10 PAKISTAN RAILWAYS GENERAL CODE
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CONTENTS
DESCRIPTION PAGE NO. PARA NO.
EXPLANATION OF SPECIAL FEATURES 5.8 532
EFFECT OF NEW LINES 5.8 533
REVIEW OF TRAFFIC OUTLOOK 5.8 534
SUMMARY OF REVENUE RECEIPTS AND EXPENDITURE 5.8 535 (536 Deleted)
WORKING EXPENSES 5.8 — 5.9 537 — 539 (538 Deleted)
FIGURES OF ACTUALS 5.9 540
EXPLANATION OF DIFFERENCES 5.9 — 5.10 541 — 542
ESTIMATE OF EMPLOYEE RELATED EXPENSES 5.10 543 — 544 (545 — 548 Deleted)
REPAIRS AND MAINTENANCE EXPENDITURE OF 5.10 549 ROLLING STOCK STATEMENT OF EXPENDITURE ON REPAIRS AND 5.11 550 MAINTENANCE OF LOCOMOTIVES
STATEMENT SHOWING THE QUANTITY AND COST OF 5.12 550A COAL, FUEL AND THE FREIGHT AND HANDLING CHARGES
ESTIMATES OF EXPENDITURE ON REPAIRS & 5.13 551 MAINTENANCE OF COACHING AND GOODS VEHICLES
ESTIMATES OF EXPENDITURE ON REPAIRS & 5.15 552 MAINTENANCE OF ELECTRIC LOCOMOTIVES ESTIMATES OF EXPENDITURE ON REPAIRS & 5.16 553 MAINTENANCE OF ELECTRIC COACHING VEHICLES
LISTS OF CREDITS 5.17 554 — 555
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CONTENTS
DESCRIPTION PAGE NO. PARA NO.
RECOVERIES FOR GOVERNMENT SUPERVISION 5.17 556
SUMMARY OF WORKING EXPENSES 5.17 557
STATEMENT OF POSTS 5.18 558 (559 — 560 Deleted) INTEREST CHARGES 5.19 561 (562 Deleted)
ROLLING-STOCK PROGRAM 5.19 563
WORKS PROGRAM 5.19 564
NEW CONSTRUCTIONS AND OPEN LINE WORKS 5.19 565 (566 — 571 Deleted)
STORES TRANSACTIONS AND MANUFACTURE 5.20 572 OPERATIONS
PAYMENT OF COMMUTED VALUE OF PENSIONS 5.20 573
INTEREST ON ADVANCES BY FEDERAL GOVERNMENT 5.20 574 AND INTEREST ON DEBT
PUBLIC ACCOUNT 5.21 575
LOANS, ADVANCES AND DEPOSITS 5.21 576
REMITTANCE TRANSACTIONS 5.22 577
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501. Particulars of Estimates and their due dates.–For the preparation of the Budget to be presented to the National Assembly, Pakistan Railways administration and other authorities are required to submit to Ministry of Railways (Railway Board) the returns and estimates as required by Budget Call Circular issued by Finance Division, Government of Pakistan. Budget Call Circular usually issued in the month of November each year. The returns and estimates will be submitted to the Ministry of Railways (Railway Board) by the date prescribed by it.
502. Deleted.
503. Latest Due Dates.–The dates for the submission of the estimates prescribed in the Budget Call Circular are those for Ministry of Railways (Railway Board). Ministry of Railways (Railway Board) may prescribe dates from time to time for submission of estimates for Pakistan Railways administration as they think appropriate in the light of dates prescribed in Budget Call Circular. Ministry of Railways (Railway Board) in prescribing the time for Pakistan Railways administrations should leave reasonable time for themselves to consolidate and prepare overall Ministry of Railways estimates and the demands for presentation to the National Assembly through Finance Division (Budget Wing). Pakistan Railways administrations should therefore make an effort, as far as possible, to submit their estimates in advance of the dates fixed, which are positively the latest dates by which the estimates should reach the (Ministry) Board.
503-A. Subsequent alterations in Estimates.–If, after the submission of the estimates of gross receipts and working expenses, the General Manager has any reason to consider that a substantial alteration is necessary in the figures reported to the Ministry of Railways (Railway Board), he should intimate the alterations, with brief reasons, before the date prescribed by Ministry of Railways (Railway Board). Any other alterations considered necessary after that date should be reported semi-officially, not later than the prescribed date, to the Finance Division, who will decide whether the alterations should be carried out in the estimates or not.
504. Budget Forms.–The revised estimates are required in respect of the current year and budget estimates for the following year. The forms in which the estimates should be prepared are furnished by the Finance Division through Ministry of Railways (Railway Board), to the authorities concerned each year. The forms alongwith instructions for the filling in the forms are communicated to the Ministry of Railways (Railway Board) by Finance Division through the issuance of Budget Call Circular each year.
505. Glossary of terms used.–The following is a glossary of the terms which Pakistan Railways administration used in their estimates and other connected documents. The terminology given in the glossary should be followed uniformly by all railway administrations and no departure should be made therefrom in any circumstances.
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Glossary of Terms
A. Revenue Receipts
(i) Passenger Earnings (less refunds) (ii) Other Coaching Earnings (less refunds) (iii) Goods Earnings (less refunds) (iv) Military Traffic Earnings (less refunds) • Passenger • Other Coaching • Goods / Freight • Total
(v) Sundry / Other Income (less refunds) • Marketing Earnings • Land & Property • Commercial Department • Stores • Others • Total
(vi) Miscellaneous Receipts
B. Working Expenses and Other Expenditure i) General Administration ii) Repair & Maintenance iii) Operating Expenses iv) Other Revenue Expenditure v) Improvement & Welfare Expenditure vi) Credit & Recoveries
a) Recoveries from Railway Employees b) Stock Adjustment Account
C. Total Working Expenses & Other Expenditure
D. Operating Surplus / Deficit = (A) - (C)
E. Interest Charges i) Interest on Foreign Loans ( Other than Chinese Loans) ii) Interest on Foreign Loans (Chinese) iii) Interest on Overdraft iv) Interest on G.P.Fund
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F. Repayment of Overdraft (Domestic Debt)
G. Repayment of Foreign Loans i) Replacement Account ii) Capital Account iii)Chinese Loans
H. Total Debt Servicing = E + F + G
I. Total Revenue Expenditure = C + H
J. Net Profit / Loss = A - I
K. Cash Deficit Picked by Federal Government
L. Un-Covered Cash Deficit / Cash Surplus J-K
*Note.–The "Profit or Loss" shown in item (j) differs from the "Gain / (Loss)" given in Financial Statements and Finance Accounts.
506. Formal Allotment of Funds.–The submission of estimates by Pakistan Railways administration does not mean that they can incur expenditure up to the extent of such estimates. It is open to the Ministry of Railways (Railway Board), after taking all the relevant factors into consideration (including budget ceiling communicated by Finance Division), to reduce or enhance the amounts shown in the estimates submitted by the Pakistan Railways administration and they are liable to be further varied by the National Assembly or the Prime Minister. No expenditure proposed by Pakistan Railways administration in its estimates should therefore be incurred unless there is a formal allotment of funds by Ministry of Railways (Railway Board).
507. Responsibility for Framing the Estimates.–The entire responsibility for framing their estimates devolves upon the spending authorities concerned, though the Accounts Officer might be of considerable assistance in the actual work of compilation and drawing the attention of the General Manager to matters of purely financial importance.
508. The estimates should be as accurate as possible and to achieve this object, care should be taken to see that the data on which the forecast is to be based is adequate and reliable and that the conclusions arrived at from the data can be sustained by past experience and future expectations of likely events.
509. No stereotyped method of estimating will be helpful in forecasting accurately, unless the data to be collected to prepare the forecast is selected with due care and all
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the useful knowledge is brought to bear on the conclusions to be derived from the data. The detailed manner in which the data required for the preparation of the estimate should be collected is therefore left to the General Manager(s), but the general principles on the basis of which the various estimates should be framed are described, wherever necessary, in the following paragraphs.
510. Deleted.
511. The sanctioned strength of staff as on 1st July of the current year and as anticipated on 1st July of the next year should be shown separately.
512. In respect of each minor and detailed object, the estimates should give the following information:
(i) Actuals during each of the last two years; (ii) Actuals for the first 4 months of the current financial year plus actuals for the last 8 months of the previous financial year; (iii) Commitments entered into and expected to be paid in the current financial year; (iv) Budget estimates for the current year; (v) Revised estimates for the current year; and (vi) Budget estimates for the following year.
Charged and Other than Charged expenditure should be shown separately and figures given in thousands of rupees.
513. Brief explanations should be given for increased expenditure proposed in the second half of the year as compared with the actual expenditure in the first half.
514. Variations between actual expenditure of the previous year and revised estimate for the current year, as also between the revised estimate for the current year and the budget estimate for the next year should be briefly explained. Brief explanations for the variations between the budget allotment and the revised estimate proposed for the current year should also be furnished. It should be explained how much of the proposed increase in the current and next year is due to ordinary increments to staff. Separate explanations should be given in regard to the variations in the several items of contingencies.
515. The estimates should be supported by a statement showing the details of Allowances and Contingencies included in the revised and budget estimates. In respect of each allowance and class of contingent expenditure, the statement should give the information detailed in paragraph 512.
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516. Deleted. Miscellaneous Railway Receipts
517. Along with the estimates of miscellaneous expenditure, Ministry of Railways (Railway Board) should also be furnished with revised and budget estimates of Miscellaneous Railway Receipts, in duplicate in the form shown below;
FORM No. G. 517
Actuals Revised Budget Budget, Particulars Estimates, Estimates, Remarks 2010-11 2008-09 2009-10 2010-11 2011-12
1 2 3 4 5 6 7
NOTE.–Years have been given for purpose of illustration.
Expenditure on Land
518. The revised and budget estimates of expenditure on land should show, the anticipated cost of land required and the information detailed in paragraph 512, together with a brief explanation of variations. The payments likely to be made in the current and ensuing years should be ascertained from the civil authorities in time and estimates framed accordingly. Any special features in the estimates should be explained on a separate sheet. The estimates should be submitted to Ministry of Railways (Railway Board) in duplicate, the figures being shown in thousands of rupees.
Surveys 519. The revised and budget estimates of expenditure on Surveys should show separately, in respect of each survey:
(i) The particulars of the survey; (ii) The total estimated or sanctioned cost; (iii) Expenditure to the end of the second preceding year; (iv) Actual expenditure for the last two years; (v) Budget estimate for the current year; (vi) Revised estimate for the current year; and (vii) Budget estimate for the next year.
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520. Deleted
521. Deleted.
522. Deleted.
523. Deleted.
Gross Receipts
524. The estimates of gross receipts are required in the following form. The estimates should be prepared in triplicate, the various figures in the estimates being given in thousands of rupees. The figures in column 6 need only be approximate actuals.
FORM No. G. 524
Actuals Estimate Actuals Actuals for for last for last Budget Revised Description Budget for last 3 first four eight eight estimate estimate of earnings estimate years. months months months of for the for the Remarks for the of the the current current next year. last current year. year. Last Current year. year. year year 1 2 3 4 5 6 7 8 9 10 11 12 As given in Note below.
Note: I——Traffic Earnings—— (a) Coaching (i) Passengers (Class wise) (ii) Other Coaching………………………………………………………………. (b) Goods…………………………………………………………………………………… Total Traffic Earnings…………………………………………………………….. II——Sundry Other Earnings…………………………………………………………………………... Gross Earnings………………………………………………………………………………
525. Coaching Earnings.——In framing the estimate of earnings from coaching traffic the earnings from each class of passengers should be estimated on the basis of passenger kilometres and the average fare per passenger kilometre for each class separately. The earnings from parcels traffic should be estimated in the same way as for goods traffic.
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The earnings from coaching traffic, other than passenger traffic and parcel traffic, may be estimated on the basis of a ratio of the earnings from passenger traffic to be determined with reference to previous actuals.
526. Goods Earnings.——In preparing the estimate of earnings from goods traffic, Pakistan Railways administrations should first ascertain the commodities which, from past experience, can be said to yield the most of the railway’s revenue, and the estimate should be based on the ton kilometres to be carried of such commodities and the average rate per ton kilometre for the carriage of each commodity. The earnings from the rest of the commodities should be assessed in a lump sum, based on the trend of events in the immediate past, the experience of the past years and, so far as it is possible to ascertain, the influence of changing conditions in the future.
527. Other Income / Sundry.——The miscellaneous earnings of Pakistan Railways are derived mainly from the following sources: i) Land and Property ii) Commercial Department iii) Marketing iv) Stores v) Others The earnings from these sources should be estimated on the basis of previous actuals and any other circumstances that may be known or foreseen at the time.
528. Deleted.
529. Refunds of Revenue.–The figures of refunds of revenue should be deducted from the estimated receipts under each sub detailed head and the figures for Gross Receipts should be given net (after deduction of Refunds).
530. Authorities who should prepare the Estimates of Earnings.-–The Chief Commercial Manager of Pakistan Railways, being more in touch with the general conditions of trade is relatively in a better position to judge the influence of the events, likely to come, on the earnings of Pakistan Railways. The estimate of earnings should, therefore, with advantage be prepared by him. The responsibility for preparing the estimate of sundry heads of gross receipts should, however, devolve on the Financial Adviser and Chief Accounts Officer, as he is in the best position to estimate the likely outstanding.
531. Explanation of variations in Receipts.–The estimates should be accompanied by a brief narrative explanation of the figures of actual earnings for the first four months of the current year especially if they show any pronounced change from those for the corresponding period of the preceding year. For example, if the earnings from second / economy class traffic have risen or fallen markedly, what in the General Manager's
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opinion is the reason of so large a change in the number of passengers carried or the average distance travelled by them; if goods traffic in certain commodities has been exceptionally brisk or dull, what are the commodities affected and so on. Similar explanations should be given of the figures adopted by the General Manager for the revised estimate for the remaining period of the current year, and for the budget estimate for the ensuing year.
532. Explanation of Special Features.–A brief explanation should also be given of any special features and other exceptional or abnormal adjustments included in the first and second period of the current year. Such special features relating to the previous year and the next should also be brought out clearly. The amount involved in each case should be given.
533. Effect of New Lines.–The approximate amount of increase in earnings due to the opening of new lines, as well as the consequent increase on existing lines, should be stated as far as possible, separately for the information of Ministry of Railways (Railway Board).
534. Review of Traffic Outlook.–These explanations are required not only to enable Ministry of Railways (Railway Board) to judge whether the estimates are reasonable, but also to assist them in explaining them to the National Assembly. What in fact is wanted is a very brief review by the General Manager of the traffic outlook for the current and ensuing years which can be used in the memorandum on the estimates of Pakistan Railways. The actual form that this brief review should take in each year is left entirely to the General Manager; Ministry of Railways (Railway Board) is particularly anxious that it should not be stereotyped.
535. Summary of Revenue Receipts and Expenditure.——In order to represent the financial position of Pakistan Railways correctly, the estimates of its receipts should be correlated with the estimates of expenditure. For this purpose, Ministry of Railways (Railway Board) should be furnished along with the estimates for gross receipts, with a statement summarizing the estimates of receipts and expenditure chargeable to revenue. These should contain the figures for the previous year, the budget and revised estimates of the current year and the budget estimates for the following year.
536. Deleted.
Working Expenses
537. The estimates of working expenses required from Pakistan Railways administration follow structure of the Chart of Accounts (Appendix I to this Code). With a view to facilitate the information relating to each department of Pakistan Railways being obtained from the head of the department concerned, a separate estimate is required in
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respect of each head of revenue expenditure under the major, minor and detailed objects of the Chart of Accounts (Appendix I) in the following form:
FORM No. G. 537
Actuals Description Actuals 2010-11 (Account head First 4 months Last 8 months code and 2008-09 2009-10 Other than Charged Total description) 2010-11 2011-12 2010-11 2011-12 Charged 1 2 3 4 5 6 7 8 9 10
Estimates Budget estimate 2011-12 Revised estimate 2011-12 Budget estimate 2012-13
Other than Other than Other than Remarks Charged Total Charged Total Charged Total Charged Charged Charged
11 12 13 14 15 16 17 18 19 20
Note.—— Years have been given for purpose of illustration.
538. Deleted.
539. The estimates of expenditure in respect of each demand should be dispatched in triplicate, the figures shown therein being given in thousands of rupees.
540. Figures of Actuals.–In preparing their estimates Pakistan Railways administration should take care to see that the figures of actual expenditure for the preceding year shown in the estimate agree with those reported to the Member Finance. The figures of actual expenditure for the current year should represent the latest approximates.
541. Explanation of Differences.–A brief narrative explanation should be given of the causes (with amounts involved in each case) of any substantial differences between the figures adopted for the revised estimate of the current year and (i) the actuals of the previous year and (ii) budget estimates of the current year; and between the figures adopted for the budget estimate of the ensuing year and those adopted for the revised estimate of the current year.
542. The revised estimate for the current year and the budget estimate for the next year should be fixed after taking into account the expenditure of the previous year and comparing the expenditure during the first four months of the current year with the
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corresponding period of the previous year and with reference to the special features of the last three years. A full explanation of special features and any exceptional and abnormal adjustments (with amounts involved) included in each half year of the previous and current years as also in the next year should be given in the explanatory note accompanying the estimates. It should be explained, wherever possible, what items which were not originally included in the budget estimates, have now been provided for in the revised estimate and why they could not be included in the original budget.
543. Estimate of Employee Related Expenses.–In working out the Employee Related Expenses, Pakistan Railways administration should not make any meticulous calculations of the emoluments to which individuals will be entitled if they continue to hold the posts during the year. To avoid any detailed and laborious calculations, and the submission of unnecessary information from subordinate offices the estimates of the Employee Related Expenses should be based on past experience of their actual cost, with due allowance for any changes either in the number or rates of pay of each individual establishment in the year in which, or for which, the estimate is being made.
544. In the explanatory note accompanying the estimate information should be given as to what part of the proposed expenditure represents expenditure on the permanent staff already sanctioned, how much of the proposed increase in the next year is due to ordinary increments, how much is new expenditure and how much for temporary establishments.
545. Deleted.
546. Deleted.
547. Deleted.
548. Deleted.
549. Repairs and Maintenance Expenditure of Rolling stock.–The budget and revised estimates of expenditure on repair and maintenance of rolling-stock (locomotives, carriages, wagons and coaching vehicles) included in Revenue / non-development Demand should be supported by separate statements, showing in detail in the case of locomotives, the estimated total engine kilometres, the number of repairs which will be carried out during the year in mechanical workshops and in running sheds and the average actual cost of repairs per engine kilometre during the previous year ; and, in the case of coaching and goods stock, the average number of vehicles on the line, the number of vehicles which it is proposed to pass through shops during the year and the average actual cost of repair per vehicle on the line during the previous year, in workshops and sick lines respectively. A statement showing the quantity and cost of
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coal, fuel and power and the freight and handling charges thereon, should also be submitted along with the Revised and Budget Estimates for Revenue / non-development Demand.
550. The statement of expenditure on repairs and maintenance of Locomotives should be in the form appended below: FORM No. G. 550 Average Average Equated Average kilometres since number of Total engine engine number of under going last Locomotive Class and Type 'Standard’ kilometres kilometres Locomotives heavy repair locomotives in thousands in on the line (during Previous on the line thousands year) 1 2 3 4 5 6 Revised Estimates, 2010-11 Locomotive type and class
Total
Budget Estimate, 2011-12 Locomotive type and class Total
Average Average actual Number of Number of actual cost per Total cost cost per workshop Standard equated Total cost Total cost (Mechanical equated engine repairs Repairs engine (Mechanical (Transportation and kilometre which will which will kilometre Department) Department) Transportation (Transportation be carried be carried (Mechanical (Col. 6x (CoI.6X Departments) Department) out during out during workshops) Col. 9) Col.10) (Col.11+ Col. during the the year the year during the 12) previous year previous year 7 8 9 10 11 12 13
(Years have been shown in the form for purpose of illustration.)
Notes: 1. Unit of cost in Column 10 in Rupees.
2. Unit of cost in Column 9 in Rupees.
3. Column 3 = Column 2 * average tractive effort/20,000.
4. Column 6 = Column 5 * average tractive effort/20,000.
5. If on the known results of the first six months of the current year, or in anticipation of future results, the average kilometre between heavy repairs and the average actual cost per equated engine kilometre are likely to differ from the figures given in Columns 4, 9 and 10, account
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should be taken of the anticipated differences in calculating the figures in Columns 11, 12 and 13 and a note should be appended stating what figures have been adopted in lieu of those in Columns 4, 9 and 10 for the purpose of calculating (a) the revised and (b) the budget estimates in Columns 11, 12 and 13.
6. An explanatory note should be given in circumstances when the figures in Column 7 differ materially from the quotient of Column 5 + Column 4.
7. For the purpose of budget estimates the anticipated kilometre and cost should be shown in Columns 4, 9 and 10.
550-A. The statement showing the quantity and cost of coal, fuel and the freight and handling charges should be prepared in following form: FORM No. G. 550A (Figures in thousands)
Coal / Fuel Received Freight and Handling charges
2008-09 Revised, 2009-10 Budget, 2010-11 Cost Cost Revised, Budget Cost (exclud- Quantit 2008-09 Quantity (excluding Quantity (excluding 2009-10 2010-11 ing freight) y freight) freight)
Reasons for variations Reasons for variations
Stock of coal / fuel at end of Coal / Fuel consumed (on all services including departmental) year (in tonnes / litres)
2008-09 Revised, 2009-10 Budget, 2010-11 Remarks Revised, Budget, Cost Cost Cost 2008-09 Quan- 2009-10 2010-11 (excluding Quantity (excluding Quantity (excluding tity freight) freight) freight)
Reasons for variations* Reasons for variations (Years have been shown in the form for purpose of illustration.)
*Increase or decrease in average price per tonne / litre may please be given. Explanation should be given with particular reference to the actual consumption of coal / fuel in the first half year as compared with the corresponding in the previous year and with reference to development of traffic.
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Figures of excise duty on coal / fuel included in the cost of coal / fuel should be shown in a foot- note.
Actuals. 2008-9 Train Kilometres ...... Revised, 2009-10 Budget, 2010-11
551. The statements showing estimates of expenditure on repairs and maintenance of coaching and goods vehicles should be prepared separately in the following form:
FORM No. G. 551
Average period (in Number months) of Average vehicles Average actual Average vehicles actual cost of Total cost were in cost of repair Total cost Number it is repair per Total cost (Mechanical service per vehicle on (Mechanical Vehicle Class of proposed vehicle on (Transportation and before line during Department) and Type vehicles to pass line during Department). Transportation undergoing previous year (Col. 2xCol. on the through previous year (Col. 2xCol. 6). Departments). workshop (Transportation 5). line. shops (Mechanical (Col. 7+Col.8) repairs Depots) during Workshops) (during the the year previous year) 1 2 3 4 5 6 7 8 9 Revised Estimate 2008-09
Vehicle class and type
Total Budget Anticipated Anticipated Anticipated Estimate, average average cost average cost 2009-10 period (in per vehicle per vehicle on months) on line. line. vehicles Vehicle class will be in and type service before undergoing repairs.
Total (Years have been shown for purpose of illustration.)
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Notes.——
(a) Vehicles in terms of 4 wheeled units. In the case of coaching stock, information should be given separately for “Passenger Vehicles" and "other Coaching Vehicles" in Columns 2 to 4 by sub-dividing the Columns into 2 (a), 2(b), 3(a), 3(b), 4(a) and 4(b).
(b) Unit of cost of columns 5 and 6 in rupees. Figures in column 7, 8 and 9 in thousands of Rupees.
(c) If, on the known results of the first six months of the current year or in anticipation of future results, the average period between heavy repairs, and the average actual cost of repair per wagon in Mechanical Workshops or Transportation Depots are likely to differ from the figures given in Columns 3, 5 and & 6, account should be taken of the anticipated differences in calculating the figures in Columns 7 and 8 and a note should be appended stating what figures have been adopted in lieu of those in Columns 3, 5 and 6 for the purpose of calculating (a) the revised and (b) the budget estimates in Columns 7 and 8.
(d) An explanatory note should be given in circumstances when the figures Col. 4 differ materially from the quotient of Col. 2 Co. 3 ÷ 12
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552. The form in which the statement showing estimates of expenditure on repairs and maintenance of Electric Locomotives should be prepared is given below:
FORM No. G. 552 g previous year). Locomotive class and type year. year. year. (Col. 8+Col.9). 8+Col.9). (Col. (Traction units on the line). the on (Traction units carried out during the year. year. the during out carried Average No. of Locomotives. of Locomotives. No. Average heavy repair (durin heavy repair Total engine kilometres in thousands. kilometres in engine Total thousands. No. of Workshop repairs which will be will which repairs Workshop No. of Total cost Workshop and running repairs repairs and running cost Workshop Total Average actual cost per engine kilometre kilometre engine per cost actual Average kilometre engine per cost actual Average Average kilometres since undergoing last last undergoing since kilometres Average Total cost Running repairs (Col. 4xCol.7). 4xCol.7). (Col. repairs cost Running Total Total cost Workshop repairs (Col. 4xCol.6). 4xCol.6). (Col. repairs Workshop cost Total (Transportation Department) during previous previous during Department) (Transportation (Mechanical Workshops) during the previous previous the during Workshops) (Mechanical 1 2 3 4 5 6 7 8 9 10
Revised Estimate, 2009-10
(a) Electric locomotives. (Separately for each class and type)
(b) Traction equipment of electronic multiple unit stock.
Total
Notes.–
(a) Unit of cost in Column 7 in Rupees. (b) Unit of cost in Column 6 in Rupees. Figures in Columns 8, 9 and 10 in thousands of rupees. (c) If, on the known results of the first six months of the current year, or in anticipation of future results, the average kilometres between heavy repairs, and the average actual coat per engine kilometre are likely to differ from the figures given in Columns 3, 6 and 7, account should be taken of the anticipated differences in calculating the figures in Columns 8. 9 and 10 and a note should be appended stating what figures have been adopted in lieu of those in Columns 3, 6 and 7 for the purpose of calculating (a) the revised and (h) the budget estimates in Columns 8, 9 and 10. (d) An explanatory note should be given in circumstances when the figures in Column 5 differ materially from the quotient of Column 4:Col. 3.
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553. The statements showing revised and budget estimates of expenditure on repairs and maintenance of Electric Coaching vehicles should be submitted to the Ministry of Railways (Railway Board) in the following form:
FORM No. G. 553 ear. ear. y Vehicle class and type Department). Department). Department). Transportation and Transportation revious revious Total cost (Mechanical Total cost (Mechanical p previous year. Total cost (Transportation (Transportation cost Total Mechanical departments.) departments.) Mechanical Total cost (Mechanical and and (Mechanical cost Total through the year. shops through during
repairs during the previous year. year. previous the during repairs Col. 2 x Col. 2 x Col. 7 + AverageNo. of Vehicles on the line. No. of vehicles it is proposed to pass
in service before undergoing workshop workshop undergoing before in service Col. 5 Col. 6 Col. 8 Average cost of repair of vehicle on the the on vehicle of repair of cost Average line (Mechanical Workshops) during the the during Workshops) (Mechanical line Averagecostrepair actualvehicle per of Average period (in months) vehicles were were vehicles months) (in period Average on line (Transportation Depots) during the the during Depots) (Transportation line on 1 2 3 4 5 6 7 8 9 Revised estimate, 2009-10
Electric multiple unit stock (excluding traction equipment).
Electric multiple unit stock (excluding traction equipment).
Total
Budget estimate, 2010-11 Anticipat Anticip Anticipa ed period ated ted Electric multiple unit stock (in average average (excluding traction months) cost of cost of vehicles Worksh repairs equipment). will be in op per service repair vehicle Electric multiple unit stock before per on line (excluding traction undergoi vehicle (Transpo equipment). ng on line. rtation repairs. Depots). Total
Notes.—— (a) Vehicles in terms of 4—wheelers.
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(b) Unit of cost in columns 5 and 6 in rupees. Figures in Columns 7, 8 and 9 in thousands of rupees.
(c) If, on the known results of the first six months of the current year or in anticipation of the future results, the average period between heavy repairs, and the average actual cost of repair per vehicle on line in Mechanical Workshops or Transportation Depots are likely to differ from the figures given in Columns 3, 5 and 6, account should be taken of the anticipated differences in calculating the figures in Columns 7 and 8 and a note should be appended stating what figures have been adopted in lieu of those in Columns 3, 4 6 for the purpose of calculating (a) the revised and (b) the budget estimates in Columns 7 and 8.
(d) An explanatory note should be given in circumstances when the figures in Column 4 differ materially from the quotient Column 2—Column 3÷12.
554. Lists of Credits.–Ministry of Railways (Railway Board) should be furnished with a list of the credits which are anticipated under each demand at the time when the revised and budget estimates are framed. They should also be furnished, along with the revised estimates, with a list of substantial excesses over the amounts of credits, which were anticipated at the time of preparation of the budget and were provided for as such. Items of credits such as those on account of repairs and maintenance works, which are deducted initially from the expenditure and are not shown separately in the budget as credits, need not be included in the list.
555. A list of credits for which no provision was made in the budget and which are of substantial amount, likely to affect seriously the accounts of the year, should also be furnished to the Ministry of Railways (Railway Board) along with the revised estimates. Such credits should in no circumstances be utilized to cover excess expenditure or to meet fresh items of expenditure.
556. Recoveries for Government Supervision.–The amounts of recoveries for Government supervision charges in respect of lines under construction, included in the estimates of new constructions, should be shown in a foot-note below these estimates.
557. Summary of Working Expenses.– Ministry of Railways (Railway Board) should be furnished with a summary of the working expenses in Form No. G.-557 given below, comparing, under each object head, the actuals during each of the preceding three years, with the budget estimates and revised estimates for the current year and budget estimates for the following year. The figures of actuals should agree with those intimated to the Member Finance and the differences, if any, should be suitably explained in the remarks column.
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FORM No. G. 557
Minor Account Head Actuals, Actuals, Actuals, Budget, Revised, Budget, 2007-08 2008-09 2009-10 2010-11 2010-11 2011-12 Remarks Code Description
Total Grand Total
558. Statement of Posts.–The estimates of working expenses should also be accompanied by a statement showing the particulars of additional posts provided for newly in the budget of the following year, together with the scale of pay sanctioned for each post, in the form given below. The statement should be prepared in two parts, viz:
(i) List of permanent posts; and
(ii) List of temporary posts which are likely to continue in existence in any part of the budget year.
The duration of the existing sanctions should be given in each case. The details of pay, daily allowances, personal rates of pay, etc. should be separately shown in the remarks column. The entries in the statement should be verified by the Accounts Officer concerned before the statement is forwarded to Ministry of Railways (Railway Board). No Budget Order / New Item Statement will be accepted in which Employee Related Expenses have been claimed but not duly supported with the details on the following proforma.
FORM No. G. 558
Fund Code: ______Fund Description: ______Demand No.: ______Demand Description: ______Fund Centre (DDO) Code: ______Fund Centre Description: ______
Post Code BPS Designation Number of Posts Remarks Total Filled in Vacant
Total:
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559. Deleted.
560. Deleted.
Interest Charges
561. The estimates of interest charges are framed in the Ministry of Railways (Railway Board), under the respective object heads detailed in the Chart of Accounts (Appendix I to this Code).
562. Deleted.
New Constructions and Open Line Works
563. Rolling-stock Program.——The detailed instructions for the preparation and submission of rolling-stock program are contained in Chapter XV of the Pakistan Railways Code for the Mechanical Department (Workshops).
564. Works Program.–The works program should be prepared in accordance with the instructions embodied in Chapter XXI of the Pakistan Railways Code for the Engineering Department.
565. New Constructions and Open Line Works.–The revised estimates for the current year of expenditure on new construction and open line works should be prepared and submitted to Ministry of Railways (Railway Board) in accordance with the detailed instructions contained in Chapter XXI of the Pakistan Railways Code for the Engineering Department and Chapter XV of the Pakistan Railways Code for the Mechanical Department (Workshops).
566. Deleted.
567. Deleted.
568. Deleted.
569. Deleted.
570. Deleted.
571. Deleted.
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572. Stores Transactions and Manufacture Operations.–The revised and budget estimates of Stores Transactions and Manufacture Operations should be prepared in accordance with the instructions contained in Chapter XXXI of the Pakistan Railways Code for the Stores Department and Chapter XV of the Pakistan Railways Code for the Mechanical Department (Workshops), respectively.
Payment of Commuted Value of Pensions
573. The revised and budget estimates of payments on account of commuted value of pensions should be submitted to the Ministry of Railways (Railway Board) in same form as other revenue expenditure as per instructions given in Budget Call Circular.
INTEREST ON ADVANCES BY FEDERAL GOVERNMENT AND INTEREST ON DEBT
574. The estimates of interest should be submitted in the form shown below, the figures being shown in thousands of rupees:
FORM No. G. 574 (Rupees in Thousand)
Budget Estimates next Revised Estimates current year year
Total Actuals As accepted Heads of Account Last Last Remarks First As accepted by Ministry Year eight As four by Ministry of Railways months As- proposed months of Railways (Railway proposed (Railway Board) Board)
(1)
(v) Loss or gain by exchange. (vi) Deduct— Refunds.
(2) Interest—— (i) On advances to Govt. servants
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Public Account
575. These estimates are required by Ministry of Railways (Railway Board) in the following form: FORM NO. G.575 (Figures in thousands of rupees) Budget Actuals Revised Estimates current year Estimates last year next year First 4 Last 8 Total months Months Heads of Account Remarks Receipts Receipts Withdrawals Withdrawals Withdrawals Withdrawals Receipts Receipts Receipts Receipts Withdrawals Withdrawals Withdrawals (iii) General Provident Fund. (v) Staff Benefit Fund.
(vi) Other Deposits (vii) Trust Accounts Loans, Advances and Deposits
576. The revised and budget estimates of advances should be submitted to Ministry of Railways (Railway Board) in the following form: FORM NO. G.576 (Figures in thousands of rupees) Budget Actuals Revised Estimates current year Estimates last year next year First 4 Last 8 Total Head of Account months Months Remarks Payments Payments Payments Payments Recoveries Recoveries Recoveries Recoveries Payments Payments Payments Payments Recoveries Recoveries Recoveries Recoveries
Loans and Advances to Government Servants—
(i) for House Building (ii) for Motor Cars (iii) for other Conveyances (iv) for Passages
Total
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Remittance Transactions
577. The estimates of remittance transactions should be submitted to Ministry of Railways (Railway Board) in the detail shown in the following form. The estimates should be framed, as far as possible, in conformity with those of the other party to the transaction, and wherever there are any important differences which it is not possible to reconcile, the differences should be specifically mentioned in the explanatory notes to the estimates. The figures in the estimates should be shown in thousands of rupees.
FORM No. G. 577
Actuals Budget Estimates Revised Estimates current year last year next year.
Heads of First 4 months Last 8 Months Total Account Remarks
Debits Debits Debits Credits Credits Credits Debits Debits Debits Credits Credits Credits
State Bank Deposits—
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PAKISTAN RAILWAYS
PAKISTAN RAILWAYS GENERAL CODE
Riaz Ahmad & Company Chartered Accountants
CHAPTER VI
20 October, 2011
9.1 PAKISTAN RAILWAYS GENERAL CODE
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APPROPRIATION ACCOUNTS
CONTENTS
DESCRIPTION PAGE NO. PARA NO.
INTRODUCTORY 6.1 601
APPROPRIATION ACCOUNTS OF PAKISTAN RAILWAYS — 6.1 602 — 606 FORM OF ACCOUNTS AND DATE OF SUBMISSION (603 — 604 Deleted)
FIGURES TO BE EXHIBITED IN THE ACCOUNTS 6.2 — 6.3 607
EXPLANATION OF VARIATIONS 6.3 608 — 613
RE-APPROPRIATION 6.4 614
SAVINGS DUE TO POSTPONEMENT OF EXPENDITURE OR 6.4 615 ABANDONMENT OF SCHEMES
UNANTICIPATED CREDITS 6.5 616
UNADJUSTED ASSETS AND LIABILITIES OF SPECIAL 6.5 617 SCHEMES OR PROJECTS OFFICES CLOSED OR TRANSFERRED TO ANOTHER 6.5 618 DEPARTMENT OR GOVERNMENT
PURCHASE OR DISPOSAL OF IMMOVABLE PROPERTY 6.5 619
STORES AND WORK-IN-PROCESS 6.5 619A
CONSULTATION WITH THE EXECUTIVE 6.5 620
LOSSES 6.6 621 — 622
BALANCE SHEET AND PROFIT AND LOSS ACCOUNT OF 6.6 623 — 626 PAKISTAN RAILWAYS (624, 627 — 635 Deleted)
STATEMENT OF IRREGULAR RE-APPROPRIATIONS 6.7 636
13 PAKISTAN RAILWAYS GENERAL CODE
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CONTENTS
DESCRIPTION PAGE NO. PARA NO.
LIST OF UNANTICIPATED CREDITS 6.7 637
STATEMENT OF UNDERCHARGES 6.7 638
STATEMENT OF REMISSIONS AND ABANDONMENT OF 6.8 639 CLAIMS TO REVENUE STATEMENT OF MISCLASSIFICATIONS 6.8 640 (641 Deleted)
STATEMENT OF EXPENDITURE ON STRATEGIC LINES 6.8 642
PERCENTAGE OF WORKING EXPENSES TO EARNINGS 6.9 642-A (643 Deleted)
STATEMENT OF OPEN LINE WORKS 6.9 644
REVIEW OF WORKS PROGRAM 6.10 645
STATEMENT OF EXPENDITURE ON WORKS MET OUT OF 6.10 646 PROVISION FOR EMERGENCIES
STATEMENT OF CREDITS TO CAPITAL FOR RETIRED 6.10 647 ASSETS
STORES ACCOUNT 6.11 648
STATEMENT OF STORES TRANSACTIONS 6.11 649
STOCK VERIFICATION 6.13 650
SUMMARY OF ACCOUNTS 6.13 651
CERTIFICATE OF SANCTIONED EXPENDITURE AND 6.13 — 6.16 652 — 654 STATEMENT OF UNSANCTIONED EXPENDITURE
EXPENDITURE OF PREVIOUS YEARS UNDER OBJECTION 6.16 655 — 657
14 PAKISTAN RAILWAYS GENERAL CODE
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CONTENTS
DESCRIPTION PAGE NO. PARA NO.
EXPENDITURE OF CURRENT YEAR UNDER OBJECTION 6.16 — 6.17 658 — 659
ESTIMATES PROVISIONALLY ACCEPTED BY STATUTORY 6.17 — 6.18 660 — 672 AUDIT (662 — 670 Deleted)
MAIN CONTENTS 6.18 673
SUPPLEMENTARY STATEMENTS 6.20 674
RECONCILIATION WITH THE FINANCE ACCOUNTS AND 6.20 675 FINANCIAL STATEMENTS
SUBMISSION TO AUDIT 6.20 676 — 677 (678 — 679 Deleted)
REVIEW OF APPROPRIATION ACCOUNTS 6.21 680
EXAMINATION BY PUBLIC ACCOUNTS COMMITTEE 6.22 681 — 682
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Introductory
601. The statements which are prepared for presentation to the Public Accounts Committee, comparing the amount of actual expenditure with the amount of grants voted by the National Assembly and appropriations sanctioned by Prime Minister, are called “Appropriation Accounts”. The Financial Adviser and Chief Accounts Officer is responsible for preparation of Appropriation Accounts as prescribed by the Auditor General of Pakistan, on behalf of the Controller General of Accounts, under section 7 of the Controller General of Accounts (Appointment, Functions and Powers) Ordinance, 2001. The Appropriation Accounts of Pakistan Railways are signed by the Secretary / Chairman, Ministry of Railways (Railway Board) and Member Finance, Ministry of Railways (Railway Board) and transmitted to the Director General Audit, Railways who has been entrusted by the Auditor General of Pakistan, with the duty of reporting thereon.
Note 1. Deleted.
Note 2 . Deleted.
Appropriation Accounts of Pakistan Railways
602. Form of Accounts and date of submission.–By the prescribed date the Controller General of Accounts with the assistance of Financial Adviser and Chief Accounts Officer will send the Appropriation Accounts to the Auditor General of Pakistan on the format approved by Auditor General of Pakistan. The format of Appropriation Accounts of Pakistan Railways as approved by the Auditor General of Pakistan is given in Annexure A to this code. Steps should be taken to ensure that the dates for the submission of the advance and audited copies of the Appropriation Accounts and of the other statements are scrupulously observed. Any information required by Audit in connection with the accounts should be promptly furnished to the audit officers so that there may be no delay on their part in returning the accounts duly audited and certified by the due dates. It should also be borne in mind that the references made by the Member Finance in respect of corrections and obscure or unintelligible explanations should be promptly replied to and in no case should the replies thereto be delayed beyond a fortnight of the receipt of the references. In order that there may not be any delay in the receipt of audited copies of the changes that are made in the Appropriation Accounts as a result of the comments made by the Member Finance, the statements of such changes should be simultaneously furnished to the Statutory Audit Office in the consequence of the Director General Audit, Railways observations on the Appropriation Accounts should at the same time, be reported to the Member Finance. Amendments to the Appropriation Accounts and corrections in the annexures should be advised as soon as they are known but not later than the date prescribed by the competent authority.
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603. Deleted.
604. Deleted.
605. The head ‘surrenders or withdrawals within grant’ is an adjusting head and is intended for voted grants only. It has been provided to record the amounts withdrawn or surrendered within the grant. The entry against this head neutralizes the effect of reductions made under other heads due to withdrawal or surrender of authorized provision; and the total “final column” represents the provision sanctioned by the National Assembly under the grant concerned.
606. The appropriation account of each grant should be prepared in the detail shown in the prescribed Form. The expenditure charged to Capital / Development and Revenue / non-development should be shown separately. Other than Charged and Charged figures should also be given separately under each detailed head. The amount of reserve kept by the General Manager or other sanctioning authority should be shown against the head ‘surrenders or withdrawal within the grant’.
607. Figures to be Exhibited in the Accounts.– (1) The figures of original grant or appropriation to be exhibited in the appropriation accounts should be those shown against the railway in the Public Sector Development Programme (PSDP) for Grants as voted by the National Assembly in the case of Other than Charged grants and sanctioned by the Prime Minister in the case of Charged appropriations. In those cases where no specific amounts appear against the railway in Public Sector Development Programme Grant, the figures communicated by Ministry of Railways (Railway Board) through Budget Orders should be shown. The figures of final grant or appropriation should be those as finally sanctioned by Ministry of Railways (Railway Board) before the close of the financial year. The figures of actual expenditure appearing in the appropriation accounts should agree with those shown in the annual accounts of the railway. In exhibiting actual expenditure in the appropriation accounts, it should be borne in mind that the expenditure as actually recorded in the accounts should be shown against the appropriate detailed head of the grant, irrespective of the detailed head of the grant under which provision for such expenditure was made in the budget. In the appropriation accounts of development / Public Sector Development Programme Grant, separate figures of expenditure should be shown under the various development / Public Sector Development Program projects / schemes.
(2) The figures of Supplementary Grants in the case of Other than Charged expenditure to be shown in column 4 of the Appropriation Accounts should be those which are voted by the National Assembly for each detailed head of demands for grants. These figures are specifically mentioned in the letters sanctioning modified allotments and should be exhibited as such in the Appropriation Accounts against the
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detailed heads concerned. The subsequent modification of the allotment, if any, are made by re-appropriation and should not affect the figures of Supplementary Grants for exhibition in the Appropriation Accounts.
Notes on the Accounts
608. Explanation of Variations.– Under the detailed heads of the appropriation account of each grant (as given in Paragraph G. 602.), should be given notes explaining the causes of variation between the original grant or appropriation and the final grant or appropriation and also between the final grant or appropriation and the actual expenditure of the year. Separate explanations should be given in the form of notes under each detailed head of variations between the original grant or appropriation and the actual expenditure in cases in which the differences have been left unexplained under the operation of the limits in paragraph 609 G. In the account of development / Public Sector Development Program Grant, the variation under various development / Public Sector Development Program projects / schemes should be explained separately. Amounts relating to several causes should also be mentioned separately.
609. If the variations are not more than 5% of the grant, both in the case of development / non-development expenditure, no explanation is necessary. If, however, the net excess or saving under any detailed head falls within the aforesaid limits, but is made up of plus and minus variations exceeding those limits, the causes of such variations should also be mentioned.
Note.–The relevant rules presently being followed as laid down in the “Appropriation Accounts of Pakistan Railways, 2008-09 on page 1, are as follows:
(a) Explanations for savings: No explanation will be required for savings up to 5% both in respect of development and non-development expenditure.
(b) Explanations for excesses: No explanations will be required for excesses up to Rupees 5,000 in case of non-development expenditure and up to Rupees 10,000 in case of development expenditure, subject to over-riding provision that all excesses in the sum total of a grant are required to be explained without any exception.
610. When an excess or saving is due to expenditure having been booked under a grant or a detailed head of a grant other than that under which provision was sanctioned, suitable explanation should be given under both the grants or both the detailed heads of the grants affected. In other words, the effect of the following the correct classification in Accounts under heads different from those under which provision was made in the budget, should invariably be brought out in the explanation for variations under the grants concerned.
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611. If a number of variations in appropriation accounts are due to the same cause or causes, the total effect of the cause or causes should be stated in a comprehensive note in the one place, reference to which should be given in the explanations under the several grants.
612. Brief explanations of variations under each grant as a whole, showing the principal causes for the excess or the saving with the amount involved under each cause, should be furnished in a separate note at the end of the account.
613. When a variation under a detailed head cannot be explained in a note of reasonable brevity, the explanation should be included in an appendix, a reference to this being made in the note below the detailed head. In all cases, definite reasons for the excess or saving should be given, bringing out clearly why the particular event leading to the variation could not be foreseen at the time of the preparation of the budget and revised estimates and what special circumstances arose subsequently leading to the unexpected variation. In the case of an excess, it should also be mentioned why the expenditure could not be postponed.
614. Re-appropriation.– If there were savings under certain detailed heads of a grant which could be re-appropriated to other detailed heads to cover excess thereunder, and an order of re-appropriation was not passed by the competent authority, reasons for the failure to do so should be explained. Similarly, if any re-appropriation have been unnecessarily made, or have been made under a detailed head under which there is no saving or insufficient saving, the circumstances in which such re-appropriations were made, should be explained.
615. Savings due to Postponement of Expenditure or Abandonment of Schemes.– Any savings due to the postponement of expenditure or of the discharge of a liability should be distinguished from those due to abandonment of schemes, economy in expenditure, retrenchment or other similar causes. If a service or work, for which provision was made in the budget, is deliberately abandoned, in order to make funds available for expenditure, for which no provision was made, the fact should be mentioned.
616. Unanticipated Credits.– Explanations of variations under the detailed heads should bring out clearly the amount of unanticipated credits which have been adjusted in the accounts for the year and included as such in the statement of unanticipated credits required to be appended to the appropriation accounts under paragraph 637.
617. Unadjusted Assets and Liabilities of Special Schemes or Projects.– On the completion of a special scheme or other temporary object of expenditure, which is of appreciable importance, suitable remarks regarding its unadjusted assets and liabilities
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should be made in the note below the relevant detailed heads. If any stores or other property were acquired by charge to the grant for the scheme, the actual or intended disposal of such property should be explained and any deficiencies noted or losses incurred should be mentioned.
618. Offices closed or transferred to another Department or Government.– When an institution or a department has been closed or transferred to another department or Government the effect of the closure or transfer upon the accounts should be indicated.
619. Purchase or Disposal of Immovable Property.– When any important immovable property is purchased, relinquished or exchanged for other property, such details of the transactions as may be known should be incorporated in the note below the relevant detailed heads. Thus, in the case of a sale, particulars of original cost may, if available, be given and compared with the sale proceeds and with any estimates which may have been included in a project estimate.
619-A. Stores and Work-in-Process.– The variations under the heads, “Stores” and “Work-in-Process” on account of the revision of programs, delay in the supply of material, etc. which affect the heads “Railways Rolling-stock” and “Infrastructure and track Work”, etc. should, wherever possible, be reflected in the explanation for variations under the heads concerned. The compensating variations under the heads “Store” and “Work-in-Process” on account of issue of stores from the former to the latter or vice versa, should also be clearly brought out in the explanations.
620. Consultation with the Executive.– All explanations of variations, of inability to make timely re-appropriations, and of wrong and unnecessary re-appropriations should be drafted in close consultation with the controlling authorities and should be precise and informative. Vaguely worded explanations, such as ‘saving is due to over estimation’ or ‘excess is due to under-estimation’ should be avoided. Endeavour should be made to anticipate and meet comments which the reporting officer may be expected to offer.
621. Losses.– All items of losses, which are booked in the accounts as losses, and of writes-off of overpayments, etc. which are treated as losses, should be exhibited in the notes to the Appropriation Accounts of each grant with the amount in units of Rupees. Items costing Rupees 5,000 each or more should be listed individually and those below Rupees 5,000 and above due to flood damages, earthquakes and accident, etc. should be lumped together and shown as such in the foot-note to the grant concerned instead of listing out each item of such losses separately. Losses on account of impairment of stores and stock verification, etc., should generally be shown in the notes. Such items as are not mentioned therein, being below the limit up to which they are required to be mentioned, should, however, be included in the notes to the Appropriation Accounts.
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Note.–The relevant rules presently being followed as laid down in the “Appropriation Accounts of Pakistan Railways, 2008-09” are on page 108.
622. In cases of losses and writes-off and remissions or abandonment of claim to revenue except in case of items of wharfage and demurrage, complete information giving full particulars of all cases amounting to Rupees 10,000 each or more, which are individually listed, and a brief statement of the circumstances which led to loss, etc., should be furnished. Similarly information should also be supplied in respect of items of losses shown in the foot-notes to the Accounts, such as physical losses of stores due to thefts, pilferage, etc., and losses on auction sales, etc., which may not be regarded as due to the normal wastage unavoidable in the working of Pakistan Railways.
Note.–The relevant rules presently being followed as laid down in the “Appropriation Accounts of Pakistan Railways, 2008-09” are on page 18.
Subsidiary Statements and Accounts
623. Balance Sheet and Profit and loss Account of Pakistan Railways.– The appropriation accounts should be supported by a balance sheet and a profit and loss account of the railway.
624. Deleted.
625. The balance sheet should be prepared in the Form prescribed in paragraph 1202- A (Code for the Accounts Department). It should be accompanied by an audit report issued by Auditor General of Pakistan.
626. The profit and loss account should be prepared in the Form as prescribed in paragraph 1202-A (Code for the Accounts Department).
627. Deleted.
628. Deleted.
629. Deleted.
630. Deleted.
631. Deleted.
632. Deleted.
633. Deleted.
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634. Deleted.
635. Deleted.
636. Statement of Irregular Re-appropriations.– A list showing cases of irregular re- appropriations made during the year should be attached to the Appropriation Accounts. The grants affected and the amounts (in thousands of rupees) involved in each case, with brief particulars, should be distinctly shown in that list.
637. List of unanticipated credits.– The Appropriation Accounts should also be supported by a list of unanticipated credits showing the grants affected, brief particulars of the items and the amounts in thousands of rupees. This list should include all items of unanticipated credits actually accounted for during the year with the amount relating to each item, and should be prepared in two parts–one showing items of unanticipated credits which were anticipated and reported to the Ministry of Railways (Railway Board) at the time of revised estimates and the other showing the items which were not at all anticipated. In both the parts, the amount as actually booked in the accounts should be stated.
638. Statement of Undercharges.– A statement showing the undercharges, detected either by the Accounts or the Audit Department and recovered, should also be appended to the Appropriation Accounts in the form given below. Individual items of undercharges amounting to Rupees 400 and below in the case of goods earnings and Rupees 20 and below in the case of coaching earnings which are not debited to stations should, however, be excluded from this statement and the statement of remissions and abandonment of claims to Revenue (paragraph 639) and the fact should be explained in a foot-note in both these statements.
Note.–The minimum fare of 2nd class is Rupees 20 and minimum charges in case of goods are Rupees 400.
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FORM No. G. 638
STATEMENT OF UNDERCHARGES DETECTED BY ACCOUNTS AND AUDIT AND RECOVERED DURING THE YEAR ______(In unit of Rupees) Total Amount of Amount of under Amount of Amount of Total amount of Total Outstandi Charges undercharges under undercharges amount of Percentage Outstanding ng under Pertaining to Charges discovered by earnings of under- undercharges charges previous detected Accounts and audited charges to at the end of up to the years Recovered Written during the Audit excluding during the earnings the year end of the withdrawn during the off during year. those withdrawn year previous during the year the year year year 1 2 3 1+2-3=4 5 6 7 8 9
639. Statement of Remissions and Abandonment of Claims to Revenue.– The Appropriation Accounts should also be supported by a statement showing remissions and abandonment of claims to Revenue during the year. Items of Rupees 10,000 and above should be shown separately from other items with brief particulars, while items below Rupees 10,000 should be lumped together, where several items are lumped together, the number of the items so lumped should also be indicated.
Note.– The relevant rules presently being followed as laid down in the “Appropriation Accounts of Pakistan Railways, 2008-09” are on page 18.
640. Statement of Misclassifications.– Another statement showing items of misclassifications and other important mistakes, either detected by the Accounts Office or by Statutory Audit, should also be appended to the Appropriation Accounts. This statement should include items amounting to Rupees 10,000 each or more and should bring out the information regarding the grants or heads affected, brief particulars of the misclassification and the amounts involved (in thousands of Rupees).
Note.– The relevant rules presently being followed as laid down in the “Appropriation Accounts of Pakistan Railways, 2008-09” are on page 107.
641. Deleted.
642. Statement of Expenditure on Strategic Lines.– In respect of the strategic lines, two statements–one showing working expenses and other revenue charges, and the other showing expenditure on open line works met from Capital–should also be appended to the appropriation account by detailed object wise.
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NOTE.– Other than Charged and Charged figures should be given separately under each head and the amounts shown in thousands of rupees.
642-A. Percentage of Working Expenses to Earnings.– A statement showing percentage of working expenses to earnings in respect of the entire system should also be submitted with the Appropriation Accounts. This statement should contain brief notes explaining the variations in the percentage for the year as compared with that for the previous year.
The percentage should be worked out on the following basis:
Total Revenue Expenditure for the year (cash / accrual basis) Percentage = X 100 Total Revenue for the year (cash / accrual basis)
643. Deleted.
644. Statement of open line works.– (1) The Appropriation Account of Development / Public Sector Development Programme Grant , should be supported by a statement, in the prescribed form in respect of each open line work (Development / Public Sector Development Program project / scheme). It should be prepared in two parts, Part A showing the variations between original and modified appropriation and expenditure during the year, and Part B showing variations between original sanctioned estimate and total expenditure in respect of works (Development / Public Sector Development Program project / scheme) completed during the year. The figures against each work (project / scheme) under the various columns should be the combined figures for Development / Public Sector Development Program expenditure which should be net after including the figures of credits for released materials.
(2) Part A of the statement should include works completed during the year and mentioned in Part B. In the remarks column of Part A of the statement large variations of the outlay to the extent of 5 per cent, or Rupees 100,000, whichever is less, as compared with original appropriations and also with modified appropriations should be explained in brief.
(3) In the remarks column of Part B of the statement, the excess or saving in the original estimate should be explained in detail bringing out inter alia the causes leading to the excess or saving and the reasons for the delay in its regularization, and in the case of original estimate being revised, reference should be made to the date and extent of, and the reasons for, the revision. The year in which the original estimate was sanctioned should also be mentioned.
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645. Review of Works Program.– A narrative report, which should give (i) brief explanations of the variations in the program of works (projects / schemes) originally provided for and (ii) a detailed review of the works included in the statement, should be sent to the Member Finance so as to reach him by the prescribed date. The review should:
(a) examine the extent to which the program of works, for the execution of which the original demand had been sanctioned, was adhered to during the year and the reasons for the departures therefrom, if any, if they are substantial;
(b) show instances, if any, where appropriations were diverted to purposes other than those for which they had been originally sanctioned, and the reasons therefore;
(c) indicate how the original appropriation to works actually carried out compared with the actual expenditure, giving the reasons for the variations; and
(d) compare between the total cost of works contemplated during the year and the original estimated costs with reference to which administrative approval was obtained, explaining the reasons for variations.
646. Statement of Expenditure on works met out of provision for emergencies.– The Appropriation Account of development / Public Sector Development Program grant should also be supported by a statement showing works provision for which has not been made specially in the budget but the expenditure on which was met out of the provision made for emergencies in the budget. The amount relating to various works (projects / schemes) should be shown separately in the statement.
647. Statement of Credits to Capital for Retired Assets.– A statement should also be attached showing the total amount under each project / scheme of development grant which has been credited to Development / Public Sector Development Program project / scheme as a result of writing off the cost of retired assets.
648. Stores Account.– The account of Development / Public Sector Development Program grant should also be supported by a Stores Account comprising the following information:
(i) Statement of stores transactions. (ii) The result of stock verification, if any. (iii) The agency employed for such verification.
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649. Statement of Stores Transactions.– (1) The statement of stores transactions should be prepared in the form appended and should include the entire stores transactions relating to both open line and new constructions, figures relating to commercial and strategic sections being given separately. Under column 10 should be shown items which are generally credited to “Write off of Inventories” by debit to “Stores, Spares and Loose Tools”. In case the amounts relating to impairment, shortage, etc., to be shown under column 13 are over Rupees 100,000 or 1 per cent of the balance, whichever, is less, explanations, in support thereof should be furnished. In a foot-note to the statement, reasons for the variations between the opening and closing balances of stores should be briefly stated.
(2) The figures to be shown under the columns “Receipts” and “Issues” of the Stores Account should represent actual receipts and issues of Stores, which have been adjusted through the detailed head “Stores, spare and Loose Tools”. In other words, the figures under “Receipts” and “Issues” should not include the figures of Stores purchased and issued direct to works.
(3) All items of impairment, shortage, etc., of stores should be shown on the issue side and no figures on this account should be shown on the receipt side under the head “Unaccounted for increases, etc.”. The figures shown under the column “impairment, shortage, etc., on the issue side of the Stores Account, should include all items of losses of stores in stock, whether adjusted or not. Any items of losses on stores purchased and issued direct to works should only be exhibited in the foot-notes to the Appropriation Accounts of the grants concerned. Differences in the rates of articles manufactured for stock purposes should not, however, be treated as losses to be shown under the column “impairment, shortage, etc.”
(4) On the issue side of the Stores Account the column “Other credits” corresponds to that of “Other debits” on the receipt side. This column should show such items of credits as cannot be exhibited under any one of the other columns. It should include credits of miscellaneous nature which can neither be treated as issues nor impairment of stores, etc. such as deficiencies in the rates of manufactured articles. Excesses in the rate of articles manufactured for stock purposes should be exhibited on the receipt side of the Stores Account under the column “Other debits”.
(5) In the regular account the adjustments in clearance of items from the Write off of Inventories Account should be made by debits and credits to the Write off of Inventories Account.
(6) (a) The figures shown under the “Total Debits” and Total Credits” in the Stores Account, should be reconciled with the figures of debits and credits for the year in the
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General Books under the head “Stores”, and the difference arising out of the pro forma inclusion in the Stores Account of the figures of losses due to impairment, shortage, etc., actually adjusted in the books shown on the issue side of the account in accordance with the instructions in sub-paragraph (3) above, should be explained in foot-notes.
(c) Similar foot-notes may be given to reconcile the figures of losses shown under the column “Impairment, shortage, etc.” in the Stores Account with those shown under the column “Impairment” in the Write off of Inventories Account.
FORM No. G 649 STATEMENT OF STORES TRANSACTIONS (Rupees in Million) Opening Balance Receipts Unaccounted Stores for Receipts from Material Ordinary Surplus Imported Local Other for increases, special Total manufacture returned form stores stores Stores Stores debits shortage in works into stores works issues, etc. 1 2 3 4 5 6 7 8 9 10
Receipts Issues Closing Balance
Issue other Issue of Stores for Total Impairment Other Total Ordinary Surplus than Fuel & Fuel and Total special Total debits shortage, etc. credits credits stores stores Rationing Rationing works
11 12(a) 12(b) 12(c) 13 14 15 16 17 18 19
650. Stock Verification.– The statement showing the results of stock verification of stores referred to above should be prepared in the form given on next page.
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FORM No. G. 650
STATEMENT SHOWING RESULTS OF STOCK VERIFICATION OF STORES DURING______Rupees in Million Result of stock verification
Closing Percentage of net Amount balance surplus + or Opening Net surplus + or adjusted (unadjusted deficiency — during Surplus + Deficiency - balance deficiency - during the amount at the the year to total year end of the issues during the year) year 1 2 3 4 5 6 7
Miscellaneous items Amount Opening Net surplus + or Closing Surplus + Deficiency - adjusted during balance deficiency - balance the year 8 9 10 11 12 13
651. Summary of Accounts.– The Appropriation Accounts should be accompanied by a summary in the prescribed form.
652. Certificate of Sanctioned Expenditure and Statement of Unsanctioned Expenditure.– A certificate should be furnished to the Member Finance by the prescribed date to the effect that all expenditure included in the appropriation accounts has been sanctioned by competent authority with the exception of items detailed in the statement of unsanctioned expenditure (Annexure A to the Appropriation Accounts) which should accompany the certificate in the form given on next page:
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FORM No. G. 652
STATEMENT OF UNSANCTIONED EXPENDITURE
The table below shows the distribution of the outstanding unsanctioned expenditure on the 31st July ______classified according to the period to which they relate and compares the total outstanding on the 31st July of the previous year.
Want of Estimate (Rupees in Million) Items of objection Items of objection Items of objection Items of objection amounting to Rupees amounting to Rupees amounting to less amounting to less than S. 0.1 Million each or 0.1 Million each or than Rupees 0.1 Particulars Rupees 0.1 Million each No. more more Million each Previous Year Current Year Number Amount Number Amount Number Amount Number Amount 1 2 3 4 5 6 7 8 9 10 *
*1. Relating to earlier than previous year. 2. Relating to previous year. 3. Relating to the year concerned. 4. Total.
Excess over Estimate
Items of objection Items of objection Items of objection Items of objection amounting to Rupees 0.1 amounting to less than amounting to Rupees 0.1 amounting to less than Million each or more Rupees 0.1 Million each Million each or more Rupees 0.1 Million each
Previous Year Current Year Number Amount Number Amount Number Amount Number Amount 11 12 13 14 15 16 17 18
Miscellaneous Irregularities
Items of objection Items of objection Items of objection Items of objection amounting to Rupees 0.1 amounting to less than amounting to Rupees 0.1 amounting to less than Million each or more Rupees 0.1 Million each Million each or more Rupees 0.1 Million each
Previous Year Current Year Number Amount Number Amount Number Amount Number Amount 19 20 21 22 23 24 25 26
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Statistics of Expenditure under objection. 1. Total amount of Expenditure admitted in internal check during the year under review. Rupees------.
2. Total amount placed under objection during the year under review Rupees ______3. Percentage of objectionable expenditure to expenditure admitted in internal check. 4. Percentage for the preceding year, similar to 3 above.
653. In preparing the statement of unsanctioned expenditure referred to above, the following instructions should be borne in mind, viz.:
(a) An item of objection should be classified as amounting to Rupees 0.1 Million or more and less than Rupees 0.1 Million (vide Form No. G.652) according to the total amount of expenditure placed under objection to the end of the year.
(b) The amount to be exhibited against each of the three divisions, viz.:
(i) relating to earlier than previous year, (ii) relating to the previous year, and (iii) relating to the year concerned, is the amount of the outstanding objectionable expenditure which was incurred during the periods concerned. Thus the expenditure incurred on a work to end of, say 2008- 09, which is still held under objection at the time when the statement for 2010-11 is under compilation, will be shown against line one under the column “current year”, viz. 2010-11. The expenditure incurred and held under objection on the same work during 2009-10, if any, will be shown against line two, and similarly expenditure incurred and held under objection same work during 2010-11 against line three. In such cases, the same work might count as three items, one against each line.
(c) The information to be shown under the column previous year’ should be the same as shown in the column for the ‘year under review’ in the statement issued in the previous year.
(d) In the foot-note showing statistics of expenditure under objection and its percentage to total expenditure admitted in internal check (vide Form No. G.652), the expenditure to be shown against item 2 should be the total expenditure placed under objection during the year under review and still under objection on the 31st July of the year following. This figure should agree with the total figures shown against line three of the statement in the column for the year under review. The amount of total expenditure audited, for the purpose of the percentage given in the foot-note, should be the total expenditure as shown in the summary of the Appropriation Accounts.
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PAKISTAN RAILWAYS GENERAL CODE
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654. The statement of unsanctioned expenditure should be accompanied by the following subsidiary statements, showing detailed information in respect of items remaining unsanctioned up to the 31st July:
(i) Statement showing amount of expenditure held under objection relating to earlier than previous year, and to previous year.
(ii) Statement showing amount of expenditure held under objection relating to the year under review.
(iii) Statement showing the number of items of works, estimates for which have been passed provisionally by Statutory Audit Office.
655. Expenditure of previous years under objection.– The statement of expenditure held under objection relating to earlier than previous year and to previous year should be prepared in the detail shown in the form given below:
FORM NO. G. 655
Month in Amount (Under Objection) which Accounting Department unsanctioned Unit / / Spending Particulars Earlier Remarks expenditure Division Unit than Previous Total was first Previous Year incurred Year 1 2 3 4 5 6 7 8
NOTE.–The details regarding items relating to works —“Excess over Estimate” and “Miscellaneous Irregularities” should also be given in the same manner.
656. In Form No. G. 655, details of those works’ only, which are shown in the statement of unsanctioned expenditure (Form No. G.652) under the column headed ‘current year’, are required to be given. The details shown in this form will support the figures exhibited against lines one and two of Form No. G. 652 under the column headed “current year”. Amounts should be shown in this form in million of rupees.
657. In the remarks column of Form No. G. 655, the delay in regularizing the items with proper sanction should be explained in each case, giving out clearly the reasons why the items could not be cleared.
658. Expenditure of current year under objection.– The detail in which the statement of unsanctioned expenditure relating to the year under review should be prepared is given in the form appended.
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PAKISTAN RAILWAYS GENERAL CODE
CHAPTER VI
APPROPRIATION ACCOUNTS
FORM NO. G. 658
Remarks. (The reasons for Name of Amount delay in regularizing the Railway Particulars placed under expenditure to be explained Division objection clearly) Items relating to works Rupees Items of objection amounting to Rupees 0.1 Million or more.
Items of objection amounting to less than Rupees 0.1 Million each.
659. In Form No. G. 658 also, details of those works only should be given which are shown in the statement of unsanctioned expenditure (Form No. G. 652) under the column headed “Current year” and the details in this form should support the figures exhibited against line three of Form No. G. 652.
660. Estimates Provisionally Accepted by Statutory Audit.– The statement of works the estimates for which have been passed provisionally by Statutory Audit Office, should be prepared in the following form: FORM No. G. 660
Number of Estimates Remarks
Relating to earlier than previous year Relating to previous year Relating to the year concerned
The expenditure on works, the estimates of which have been sanctioned under paragraph 945 of the Pakistan Railways Code for the Engineering Department, remains technically under objection until the allocation is finally settled, and should, therefore, be included in the objectionable items register and in Appropriation Accounts. But such expenditure cannot be regarded as unsanctioned expenditure and would not be required to be exhibited in the Appropriation Accounts.
661. In Form No. G. 660, the number of works the estimates for which have been passed provisionally by Statutory Audit Office, should only be stated, with brief reasons in the remarks column for the delay in passing the estimates finally.
6.17
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APPROPRIATION ACCOUNTS
662. Deleted.
663. Cancelled.
664. Cancelled.
664-A. Cancelled.
665. Deleted.
666. Deleted.
667. Deleted.
668. Deleted.
669. Deleted.
670. Deleted.
671. The appropriation accounts of Pakistan Railways should, after scrutiny by the Financial Adviser and Chief Accounts Officer, be transmitted to the Director General Audit, Railways.
672. The appropriation accounts should be prepared by minor heads under which the demands for grants were presented to the National Assembly and the figures of original grant or appropriation to be exhibited in these accounts should be the same as those entered in the Public Sector Development Programme (PSDP) for Grants.
673. Main Contents.– The appropriation accounts of Pakistan Railways will consist of the following, viz.:
(i) A grand summary of the appropriation accounts by grants and appropriations and recoveries thereunder in the prescribed form.
(ii) An appropriation account for each grant (details by Grant-cum-Function-cum- Object Wise) in Form prescribed in para 602-G, together with brief notes giving under each minor head explanation of variations between the original and final grants or appropriations and between final grants or appropriations and actual expenditure, provided such variations are in excess of 5 per cent or Rupees 100,000 whichever is less; or in the case of development / Public Sector Development Program grant, 10 per cent or Rupees 500,000 whichever is less.
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PAKISTAN RAILWAYS GENERAL CODE
CHAPTER VI
APPROPRIATION ACCOUNTS
If, however, the net excess or saving falls within the aforesaid limits but is made up of plus and minus variations exceeding those limits, the causes of such variations should be mentioned.
(iii) Deleted.
(iv) A Stores account showing the stores transactions and a statement showing the results of stock verification of stores, by railways in Form Nos. G. 649 and G. 650 respectively, and a review of the stores transactions of Pakistan Railways collectively in narrative form.
(v) A statement of unsanctioned expenditure [to form Annexure A, A(i) to the appropriation accounts] in Form Nos. G. 652, G. 655, G. 658.
(vi) A statement of undercharges detected by Accounts or Audit and recovered (to form Annexure B to the appropriation accounts), by Pakistan Railways in Form No. G. 638.
(vii) A statement showing remissions and abandonment of claims to Revenue (to form Annexure C to the appropriation accounts).
(viii) A statement in the prescribed form in respect of each open line capital works the estimated cost of which is not less than rupees 5 million (to form Annexure D to the appropriation accounts).
(ix) Deleted.
(x) General summaries of the appropriation accounts by grants and appropriations by major object wise of Pakistan Railways in the prescribed form.
(xi) A statement showing important items of unexpected credits in respect of the various grants of the appropriation accounts. The information should be shown separately in the detail indicated in paragraph 637 (to form Annexure E to the appropriation accounts).
(xii) A statement showing irregular re-appropriations made by railways in the detail indicated in paragraph 636 (to form Annexure F to the appropriation accounts).
(xiii) A statement of misclassification and other important mistakes detected during the course of the year, as prescribed in paragraph 640. Information should be exhibited separately (to form Annexure G to the appropriation accounts).
6.19
PAKISTAN RAILWAYS GENERAL CODE
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APPROPRIATION ACCOUNTS
(xiv) A balance sheet and a profit and loss account of Pakistan Railways in Forms G. 625 and G. 626 (to form Annexure H to the appropriation accounts).
(xv) Deleted.
(xvi) Deleted.
(xvii) Appropriation accounts by economic function and department / division wise in the form prescribed in paragraph 602 G.
(xviii) Consolidated expenditure statement by detailed object wise in the form prescribed in paragraph 602 G.
(xix) Revenue statement by detailed object wise in the form prescribed in paragraph 602 G. [Annexure-A (7-A)].
(xx) Revenue and expenditure statement by major object wise in the form prescribed in paragraph 602 G.
(xxi) Statement of cash flows in the form prescribed in paragraph 602 G.
(xxii) Public debt profile in the form prescribed in paragraph 602 G.
(xxiii) Public account in the form prescribed in paragraph 602 G.
674. Supplementary Statements.– The appropriation account of revenue / non- development grant should be accompanied by two statements–one bringing out the net gain accruing to the Government and the appropriation to Reserve Fund, as compared with the budget and revised estimates of the year. In the former the figures should be shown in thousands of rupees, while in the latter the figures should be in units of rupees.
675. Reconciliation with the Finance Accounts and Financial Statements.– The figures of actual expenditure shown in the appropriation accounts when finally consolidated, should be agreed with the Finance and Revenue Accounts (financial statements) of Pakistan Railways. The accounts will be titled as ‘Appropriation Accounts of Pakistan Railways.
676. Submission to Audit.– An advance copy of these accounts should be sent to the Director General Audit, Railways by the prescribed date. A certificate in the following form should be recorded by the Secretary / Chairman, Ministry of Railways (Railway
6.20
PAKISTAN RAILWAYS GENERAL CODE
CHAPTER VI
APPROPRIATION ACCOUNTS
Board) and Member Finance, Ministry of Railways (Railway Board) below the Grand Summary of the Appropriation Accounts.
‘Certified to the best of our knowledge and belief that all expenditure included in the Appropriation Accounts of Pakistan Railways (current financial year) for has been sanctioned by competent authority with the exception of the items detailed in the statement of unsanctioned expenditure.’
The statement should give all expenditure, relating to the year, incurred without the sanction of the competent authority and remaining unsanctioned up to 31 July–vide item (v) of paragraph 673 supra.
677. After the Director General Audit, Railways has examined the accounts and certified to their correctness, the Appropriation Accounts should be printed. The printed accounts should reach the Auditor General not later than the prescribed date.
Note.– Two proof copies of the Appropriation Accounts in their final form should, however, reach the Auditor General one month earlier than the prescribed date.
678. Deleted.
679. Deleted.
Review of Appropriation Accounts
680. The ‘Appropriation Accounts of Pakistan Railways– Part II–Detailed Accounts’ will be accompanied by a review by the Member Finance to be titled ‘Appropriation Accounts of Pakistan Railways–Part I–Review’. This review will generally deal with the following topics–
(i) Financial results of the year; (ii) Changes in procedure, form and classification of accounts during the year; (iii) Detailed review of the receipts and expenditure of the year, the figures of the different grants being considered in suitable groups as well as individually; (iv) Results of Appropriation Audit showing excesses over grants, irregular reappropriation, etc., requiring a report to or ratification by the National Assembly; (v) Miscellaneous subjects, such as Balance Sheet, Store Balances, Railway Reserve Fund, Investments, etc.
6.21
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Examination by Public Accounts Committee
681. The examination of the appropriation accounts and of the audit report thereon, on behalf of the National Assembly, is conducted by its Committee on Public Accounts. The Committee will examine the accounts showing the appropriation of sums granted by the Assembly for the expenditure of the Government, the annual finance accounts of the Government, the report of the Auditor General of Pakistan and such other matters as the Minister of Finance may refer to it. In scrutinizing the Appropriation Accounts of the Government and the reports of the Auditor General of Pakistan thereon, it will be the duty of the Committee to satisfy itself:
(a) that the moneys shown in the accounts as having been disbursed were legally available for, and applicable to the service or purpose to which they have been applied or charged;
(b) that the expenditure conforms to the authority which governs it; and
(c) that every re-appropriation has been made in accordance with the provisions made in this behalf under rules framed by the Ministry of Finance.
682. Although the Committee on Public Accounts is inherently a Committee of the National Assembly, which is primarily concerned in ascertaining, through its Committee, whether the money granted by it has been spent according to its determination and with due regularity and propriety, the scope of the control exercised by the Committee has been greatly developed so as to make it a valuable instrument for safeguarding the interest of the tax-payers. The Committee scrutinizes all matters included in the Appropriation Accounts, and in the Audit Officer’s Report and the Auditor General’s comments thereon, whether in regard to Charged or Other than Charged expenditure, or receipts of revenue, or stores, and expresses its opinion, upon the conduct of the administrative department in respect of its accounts and comments upon such instances of improper and wasteful or unwise methods of financial administration as might come to light. But the Committee is not an executive body, and has no power to disallow any item or to issue an order. It can only call attention to an irregularity or to a failure to deal with it adequately, and express its opinion thereon and record its findings and recommendations.If any money has been spent on any service during a financial year in excess of the amount granted by the Assembly for that purpose, the Committee will examine with reference to the facts of each case the circumstances leading to such an excess and make such recommendation as it may deem fit.
6.22
“Annex A”
APPROPRIATION ACCOUNTS AND FINANCIAL STATEMENTS OF PAKISTAN RAILWAYS ON CASH BASIS
INDEX
DESCRIPTION PAGE NO.
GRAND SUMMARY 1A OBJECT WISE REVENUE & CAPITAL SUMMARY 2A APPROPRIATION ACCOUNTS-DETAILS BY GRANT-CUM- FUNCTION-CUM-OBJECT WISE 3A & 4A (REVENUE & DEVELOPMENT) APPROPRIATION ACCOUNTS BY ECONOMIC FUNCTION 5A AND DEPARTMENT/DIVISION WISE CONSOLIDATED EXPENDITURE STATEMENT 6A REVENUE STATEMENT 7A REVENUE & EXPENDITURE STATEMENT 8A CASH FLOW STATEMENT 9A PUBLIC DEBT PROFILE 10A PUBLIC ACCOUNT (OBJECT ELEMENT ‘F’ & ‘G’) 11A
Annex "A"
PAKISTAN RAILWAYS GRAND SUMMARY OF APPROPRIATION ACCOUNTS BY GRANTS AND APPROPRIATION AND THE RECOVERIES THEREUNDER FOR THE YEAR ENDED 30 JUNE 20 XX
Recoveries adjusted in reduction of No. and Name of Grants / Appropriation Grant / Appropriation Expenditure as Compared Actual with the Final Grant / expenditure Expenditure Appropriation Recovery No. Name Original Supplementary Final Excess / (Saving) Estimated Actual More (+)/Less (-) Rupees Rupees Rupees Rupees Rupees Grant No. XXX Pakistan Railways xxx Other than Charged xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx Charged xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx
Grant No. XXX Capital Outlay on Pakistan Railways xxx Other than Charged xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx
Grand Total - Charged xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx
Grand Total - Other than Charged xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx
Page 1A Annex "A"
PAKISTAN RAILWAYS SUMMARY OF APPROPRIATION ACCOUNTS BY GRANTS AND APPROPRIATION FOR THE YEAR ENDED ______
Expenditure as Compared Major and Minor Head of Accounts Grant / Appropriation Actual with Final Grant / Expenditure Appropriation Code Description Original Supplementary Final / Total Excess / (Saving) % Rupees Rupees Rupees Rupees Rupees Grant No. XXX Pakistan Railways
Other than Charged A01 Employee Related Expenses xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx A011 Pay xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx A011-1 Pay of Officers xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx A011-2 Pay of Other Staff xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx A012 Allowances xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx A012-1 Regular Allowances xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx A012-2 Other Allowances (Excluding TA) xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx A03 Operating Expenses xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx A04 Employees Retirement Benefits xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx A05 Grants, Subsidies & Write Off Loans xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx A06 Transfers xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx A08 Loans & Advances xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx A09 Physical Assets xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx A13 Repairs & Maintenance xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx Total (Other than Charged) xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx Charged A07 Interest Payments xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx A10 Principal Repayments xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx Total (Charged) xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx
Total - Pakistan Railways xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx
Grant No. XXX Capital Outlay on Pakistan Railways A03 Operating Expenses xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx A11 Investments xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx Total Capital Outlay on Pakistan Railways xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx
Total Charged xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx Total Other than Charged xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx
Grand Total xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx
Page 2A Annex "A"
PAKISTAN RAILWAYS APPROPRIATION ACCOUNTS FOR THE YEAR ENDED 30 JUNE 20 XX
Grant No. XXX Grant Name (CHARGED / OTHER THAN CHARGED)
Funds Provided Rupees Original Grant xxx xxx Supplementary Grant xxx xxx Total Grant xxx xxx Actual Expenditure xxx xxx Saving / Excess xxx
ECONOMIC FUNCTION Major Function Minor Function Detailed Function Division/Department
Expenditure as Compared Major and Minor Head of Accounts Grant / Appropriation Prior Year with Grant / Appropriation Actual Modification / Residual Final Expenditure Final Actual Excess / Code Description Original Supplementary Final / Total Re-appropriation SurrenderExcess / (Saving) % Grant Expenditure (Saving) Rupees Rupees Rupees Rupees Rupees Rupees
Cost Centre as per pink book xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xx xxx xxx xxx xxx xxx xxx Sub Total
Cost Centre as per pink book xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xx xxx xxx xxx xxx xxx xxx Sub Total
TOTAL xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xx xxx xxx xxx xxx xxx xxx
Add Surrender xxx xxx xxx xxx
FINAL TOTAL xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xx xxx xxx xxx xxx xxx xxx
Note For each function / grant separate page will be used.
Page 3A Annex "A" PAKISTAN RAILWAYS APPROPRIATION ACCOUNTS FOR PSDP GRANT (PROJECT WISE) FOR THE YEAR ENDED 30 JUNE 20_ _
Allocation for 2009-10 Actual Expenditure for 20090-10 xpenditure as Compared with Final Grant / Allocation Excess / (Saving) Internal Internal Foreign Loan Internal Total Sr. Name, Location & Status of the Foreign Loan Local Currency Foreign Exchange Foreign No. Scheme Total Local Foreign Total Local Foreign Residual / Residual / Residual / Loan Amount % % % Amount % Original Supplementary Final Original Supplementary Final Original Supplementary Final Currency Exchange Currency Exchange Modification Modification Modification Rupees Rupees Rupees Rupees Rupees Rupees Rupees Rupees Rupees Rupees Rupees Rupees Rupees Rupees Rupees Rupees Rupees Rupees
Capital
1 Procurement of 1300 High Capacity Wagons 2 Doubling of Track on Lodharan - Khanewal Section Via Loop Section 3 Doubling of Track Khanewal to Raiwind Section 4 Procurement / Manufacture of 1000 High Capacity Wagons 5 Conversion of Mirpur Khas - Khokhrapar Meter Gauge Section into Broad Gauge 6 Provision of Railway Track for Setting up Dry Port at Prem Nagar including Acquisition of Land 7 Procurement of Plant & Machinery for C & W Shop Moghalpura 8 Replacement of Old Signalling Gear from Khanewal - Shahdara Section 9 Pilot Project for Manufacture of 5 (3000 HP) Locos 10 Feasibility Study for Rehabilitation and Improvement of Track Quetta - Kohi - Taftan Section 11 Augmentation of Electrical Power Supply System in Locos Shop and Steel Moghalpura - Lahore 12 Detailed Engineering and Traffic Survey for Rail Link Gwadar 13 Construction of new "D" Class Railway Station at New Multan City (Southern Punjab) 14 Renovation / Improvement of Khudian Khas, Usmanwala and Kanganpur Railways Stations 15 Renovation / Repair of Lansdowne Bridge on Rohri - Jacobabad Section Near Sukkur 16 Feasibility of 10 Damaged Bridges on Sibi - Khost Section 17 Track Renewal in connection with Signalling Project 18 Karachi Circular Railway 19 202 Railway Coaches 20 Establishment of Inland Container Terminal (ICT) Dry Port Near Shershah Railway Station
Total - Capital
Replacement
1 Track Rehabilitation (Rehabilitation Plan) 2 Procurement of 69 Nos. D.E. Locos 3 Procurement / Manufacture of 75 Nos. New D.E. Locos Risalpur 4 Special Repairs to 36 GMU-30 Locos
5 Rehabilitation, Upgradation and Conversion of 400 Coaches 6 Procurement of 300 High Capacity Wagons 7 Strengthening /Rehabilitation of 159 Weak Bridges 8 Damages to Railways Assets during Riots in December 2008
Total - Replacement
Total (Railways)
Page 4A Annex "A"
PAKISTAN RAILWAYS APPROPRIATION ACCOUNTS BY ECONOMIC FUNCTION AND DEPARTMENT/ DIVISION FOR THE YEAR ENDED 30 JUNE ______
CURRENT YEAR PREVIOUS YEAR Economic Function Total Appropriation Actual Exp Excess/ Savings Variance Total Appropriation Actual Exp Excess/ Savings Variance Rupees Rupees Rupees % Rupees Rupees Rupees %
Total
CURRENT YEAR PREVIOUS YEAR Division/ Department Total Appropriation Actual Exp Excess/ Savings Variance Total Appropriation Actual Exp Excess/ Savings Variance Rupees Rupees Rupees % Rupees Rupees Rupees %
Total
Page 5A Annex "A"
PAKISTAN RAILWAYS
Consolidated Fund Payments — Detailed level
Object Description Current Year Previous Year Rupees Rupees
A01101 Basic pay XXXX A01102 Personal pay XXXX ……… ……… ……… ……… ……… TOTAL: XXXX
Page 6A Annex "A"
PAKISTAN RAILWAYS Summary Revenue Statement For the year ended 30 June ____
Object Description Current Year Previous Year Rupees Rupees
C03591 Railway Revenue Receipts ...... ……… ……… ……… ……… ……… TOTAL: XXXX
Page 7A Annex "A" PAKISTAN RAILWAYS REVENUE AND EXPENDITURE STATEMENT FOR THE YEAR ENDED ______
( In Unit of Rupees) CONSOLIDATED FUND CURRENT YEAR PREVIOUS YEAR
RECEIPTS Non Tax Receipts
Borrowings
Capital Receipts
Total Receipts
PAYMENTS
Operations Salaries and Employee Benefits Operating expenses
Transfers Grants, subsidiaries write-off of loans Other transfer payments
Expenditure on Physical Assets Civil Works
Debt and Interest Payments Principal Repayment of Debt Servicing of Debt
Other Payments Loans and Advances Investments
TOTAL PAYMENTS
NET PAYMENT OF CONSOLIDATED FUND
NET RECEIPT / (PAYMENT) OF PUBLIC ACCOUNT
INCREASE / (DECREASE) IN CASH
CASH AND BANKS AT THE BEGINNING OF THE YEAR
CASH AND BANKS AT THE END OF THE YEAR
Page 8A Annex "A"
PAKISTAN RAILWAYS STATEMENT OF CASH FLOWS FOR THE YEAR ENDED ______
Note 20 XX 20 XX ( Rupees in thousand) CASH FLOWS FROM OPERATING ACTIVITIES Non Tax Receipts xxx xxx xxx xxx Operations - Payments xxx xxx xxx xxx Cash generated from (used in) operations xxx xxx xxx xxx Servicing of Debt xxx xxx xxx xxx Transfers xxx xxx xxx xxx Net cash from / (used in) operating activities xxx xxx xxx xxx
CASH FLOWS FROM INVESTING ACTIVITIES Capital expenditure on property, plant and equipment xxx xxx xxx xxx Capital expenditure on intangible assets xxx xxx xxx xxx Proceeds from sale of property, plant and equipment xxx xxx xxx xxx Dividend from subsidiaries xxx xxx xxx xxx Payment of Loans and Advances xxx xxx xxx xxx Net cash used in investing activities xxx xxx xxx xxx
CASH FLOWS FROM FINANCING ACTIVITIES Receipt of Foreign Debt xxx xxx xxx xxx Domestic Floating Debt - Net xxx xxx xxx xxx Principal Repayment of Debt xxx xxx xxx xxx Investment by government of Pakistan xxx xxx xxx xxx Net receipt / (payment) of public accounts xxx xxx xxx xxx Net cash used in financing activities xxx xxx xxx xxx Net decrease in cash and cash equivalents xxx xxx xxx xxx
Cash and cash equivalents at the beginning of the year xxx xxx xxx xxx
Cash and cash equivalents at the end of the year xxx xxx xxx xxx
Page 9A Annex "A"
PAKISTAN RAILWAYS PUBLIC DEBT PROFILE AS ON ______LOAN NO.______LEDGER CODE ______
1 Loan Name
2 Classification (Replacement / Capital Addition)
3 Lender Name & Country
4 Purpose of Loan
5 Principal in Foreign Currency (----)Opening Balance Addition Retired Outstanding
6 Principal in Pak Rupee Opening Balance Addition Retired Outstanding
7 Date of Disbursement Starting Date of Repayment Retirement Date
8 Grace Period
9 Rate of Interest During Grace Period Rate of Interest After Grace Period
10 Interest in Foreign Currency (----) Opening Balance For the Year Paid Closing Balance
11 Interest in Pak Rupee Opening Balance For the Year Paid Closing Balance
12 Exchange Risk Covered by Government of Pakistan
13 Exchange Risk Fee Rate
14 Exchange Risk Fee in Foreign Currency Opening Balance For the Year Paid Closing Balance
15 Exchange Risk Fee in Pak Rupee Opening Balance For the Year Paid Closing Balance
16 Installment Installments Amount & Currency Total Paid Outstanding
Page 10A Annex "A"
PAKISTAN RAILWAYS PUBLIC ACCOUNT (OBJECT ELEMENT 'F' & 'G') AS ON ______Detailed Head of Account During the Period Opening Closing Comments Code Description Balance Payments Receipts Net Movement Balance Rupees Rupees Rupees Rupees Rupees
Total
Page 11A
PAKISTAN RAILWAYS
PAKISTAN RAILWAYS GENERAL CODE
Riaz Ahmad & Company Chartered Accountants
CHAPTER VII
20 October, 2011
9.1 PAKISTAN RAILWAYS GENERAL CODE
CHAPTER VII
FINANCIAL JUSTIFICATION OF RAILWAY EXPENDITURE
CONTENTS
DESCRIPTION PAGE NO. PARA NO.
EXPENDITURE OF A CAPITAL NATURE REQUIRING NO 7.1 — 7.2 701 FINANCIAL JUSTIFICATION (702 Cancelled)
SCRUTINY BY ACCOUNTS OFFICER 7.2 703
EXPENDITURE OF A CAPITAL NATURE REQUIRING FINANCIAL 7.2 704 JUSTIFICATION
AVERAGE ANNUAL COST OF SERVICE 7.2 705
USEFUL LIFE OF ASSETS 7.3 — 7.4 706
SINKING FUND TABLE 7.4 — 7.5 707 — 708
EXPENDITURE ON IMPROVEMENTS 7.5 709
ALTERNATIVE SCHEMES 7.5 710
AVERAGE COST PER UNIT OF SERVICE 7.5 — 7.6 711 — 713
PROJECT APPRAISAL 7.6 713-A
VARIOUS ASPECTS OF APPRAISAL 7.6 713-B
TECHNICAL ANALYSIS 7.6 713-C
INSTITUTIONAL/ORGANIZATIONAL/MANAGERIAL ANALYSIS 7.6 713-D
SOCIAL ANALYSIS 7.7 713-E
COMMERCIAL ANALYSIS 7.7 713-F
FINANCIAL ANALYSIS 7.7 713-G
16 PAKISTAN RAILWAYS GENERAL CODE
CHAPTER VII
FINANCIAL JUSTIFICATION OF RAILWAY EXPENDITURE
CONTENTS
DESCRIPTION PAGE NO. PARA NO.
ECONOMIC ANALYSIS 7.7 713-H
PRICING OF PROJECT INPUTS AND OUTPUTS 7.7 713-I
IDENTIFYING PROJECT COSTS AND BENEFITS 7.8 713-J
APPRAISAL METHODS/TECHNIQUES 7.11 713-K
PAY BACK PERIOD 7.11 713-L
VALUE-ADDED 7.11 713-M
CAPITAL-OUTPUT RATIO 7.11 713-N
PROCEEDS PER UNIT OF OUTLAY 7.11 713-O
AVERAGE ANNUAL PROCEEDS PER UNIT OUTLAY 7.12 713-P
DISCOUNTING TECHNIQUES 7.12 713-Q — 713-R
NET PRESENT WORTH (NPW) 7.12 713-S
BENEFIT-COST RATIO (BCR) 7.13 713-T
INTERNAL RATE OF RETURN (IRR) 7.13 713-U
NET BENEFIT-INVESTMENT RATIO (NBIR) = (N/K RATIO) 7.13 713-V
SENSITIVITY ANALYSIS (TREATMENT OF UNCERTAINTY) 7.13 713-W
CHOOSING BETWEEN MUTUALLY EXCLUSIVE ALTERNATIVE 7.14 713-X — 713-Y PROJECTS
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CONTENTS
DESCRIPTION PAGE NO. PARA NO.
REPLACEMENTS AND RENEWALS 7.15 714 — 715
RECONDITIONING 7.16 716
SCRAPPING, CONDEMNING AND ABANDONING ASSETS 7.16 717 — 718
SECOND-HAND VALUE 7.16 — 7.17 719 — 720
REVIEW OF PRODUCTIVITY OF OUTLAY 7.17 721
NEW LINES 7.17 — 7.18 722 — 727
OPEN LINE WORKS 7.19 — 7.20 728 — 731
ANNEXURE I 7.21 — 7.22
ANNEXURE II 7.23 — 7.25
ANNEXURE III 7.26 — 7.29
ANNEXURE IV 7.30 — 7.31
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701. Expenditure of a Capital Nature requiring no Financial Justification.–Expenditure of a capital nature incurred on new assets or on an improvement of existing assets, including expenditure chargeable to new minor works, should be financially justified in accordance with the rules contained in paragraphs 704 to 708, before it is actually incurred. In the following cases, however, no financial justification, as such, need be given, but it should be seen that the scale of expenditure incurred is as economical as possible and that, except under (b), there is urgent necessity for the expenditure.
(a) when the expenditure is incurred on a statutory obligation (examples: level crossings, the fencing of machinery);
(b) when the expenditure is incurred in pursuance of the policy of Government in regard to the provision of amenities whether for railway staff or for the travelling public. Examples of this kind are: the provision of hospitals, schools and institutes, facilities for economy class passenger traffic, etc.;
(c) when the expenditure is unavoidable on considerations of safety, such as the provision of signalling arrangements, etc., but when expenditure on such items forms part of a scheme and is not essential independently of the scheme, the total cost of the scheme including the cost of safety measures should be financially justified.
(d) when expenditure is in respect of items such as those given below and is incurred on considerations which are essentially other than financial (some of these items can be brought under one or other of the foregoing categories also)–
(i) extensions of platforms and sheds; (ii) additional accommodation in offices; (iii) additions to existing water supplies; (iv) provision of loading banks, engine pits, etc.; (v) remodelling station yards; (vi) protection works; (vii) drainage (viii) regarding permanent way and improving curves; (ix) sinking of wells; (x) improving floors of buildings and platforms, etc; (xi) additions to sidings; (x) additional cost incurred in replacing (like by like) the following assets, viz., machinery and buildings.
Note 1.–In the case of savings caused in engine days or Wagon days by avoidance of detentions to stock, etc., the financial justification should be Worked out on the basis of increased locomotive or wagon, etc., utilization and consequent postponement of the purchase of new engines or wagons, etc, if such saving can be definitely secured, and not on the basis of the earning capacity of the stock saved.
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Note 2–Deleted
Note 3–No credit should be given to a proposed scheme for a saving which can be achieved regardless of whether the proposed scheme is or is not embarked upon.
Note 4.–If flag stations are included in the new scheme, the cost of operating them should be taken into account as an item of working expenses in Working out the financial justification of the scheme.
702. Cancelled.
703. Scrutiny by Accounts Officer.–The Accounts Officer in his position as the financial adviser to the administration, should carefully scrutinize the justification for proposed expenditure with reference to the principles enunciated in this chapter and even in cases where the return on the outlay is not the determining factor, it will be incumbent on him to examine and offer his advice on the general merits in the spirit of a prudent individual spending his own money.
704. Expenditure of a Capital Nature Requiring Financial Justification.–Except in the case of residential buildings and rolling-stock to which special rules are applicable, no proposal involving expenditure of a capital nature should ordinarily be considered as having been financially justified unless it can be shown that the earnings, or the savings in working expenses, expected to be realized as a result of the proposed outlay are such that after meeting the average annual cost of service of the asset provided (paragraph 705), they leave a fair margin of profit.
705. Average Annual Cost of Service.–The average annual cost of service of an asset is the sum of–
(a) the average annual expenditure incurred in connection with the operation, maintenance and repairs of the asset:
(b) the annual payment to a sinking fund, if any, which together with the interest thereon at such rate as may be prescribed by the Ministry of Railways (Railway Board), compounded annually, would provide the amount required for the replacement of the asset at the end of its useful life; and
(c) the annual interest charges [(at such rate as may be prescribed by the Ministry of Railways (Railway Board))] on the cost of the asset.
Note 1.-Interest on capital during construction should be added to the capital cost of the projects, the construction of which is likely to last for more than one year.
Note 2.-In the case of construction of bridges, maintenance charges should include besides the maintenance charges of the bridge proper, the maintenance charges of the training works also.
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706. Useful life of Assets.–For the purpose of the annual sinking fund payment if any referred to in paragraph 705 and for calculation of depreciation, the useful lives of the various classes of railway assets should be taken as in the statement below:
USEFUL MAIN CLASS SUB CLASS DETAILED CLASS LIFE (Years)
Land Land - Freehold Agriculture Indefinite Commercial Operational Residential
Land - Leasehold Lease Period
Buildings Buildings on Freehold Land Residential 50
Buildings on Leasehold Land Service 50
Track work and Track Track K.M. 40 Infrastructure Loops and Sidings 40
Points 40 Sleepers Sleepers Wood 12 Sleepers and fastenings Cast 40 Iron Sleepers and fastenings Steel 35 trough Concrete Sleepers 50 — 60
Bridges Steel Bridges 60 Masonry Bridges 100
Tunnels Indefinite
Plant and Equipment Electrical Equipment 20
Mechanical Equipment 20
Electrical and Mechanical 20 Accessories
Electric fans Ceiling 20 Electric fans carriage 10 Batteries train lighting-Lead 6 Acid Batteries Alkaline 14
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USEFUL MAIN CLASS SUB CLASS DETAILED CLASS LIFE (Years) Electric Transmission 50 Equipment-Catenary Equipment Copper Telecommunication 25 Equipment
Furniture and Fixture 5
Signalling System 25
Rolling Stock Locomotives Steam Locomotives About 40 Electric Traction Locomotives Over 40 Diesel Electric Locomotives Engine life 20 years, other parts 40 years Locomotive Boilers 35
Passenger Carriage 30
Goods Wagons 40
Motor Vehicles Service Vehicles Transport Vehicles 4 Production Vehicles
IT Equipment Computer Hardware Computer Peripherals IT Accessories 4 Networking Equipment Servers
707. Sinking Fund Table.-The duration of the sinking fund payment being first determined by the useful life of the asset, the amount of the annual sinking fund payment is ascertained by referring to the table reproduced as Annexure I to this Chapter, which shows, for different rates of interest ranging from 2 to 8 per cent, the annual amount payable (over periods extending from one to 100 years).
708. The following example illustrates the principle set out in paragraph 704 regarding justification, as applied to cases in which a reduction in working expenses furnishes the raison d'etre for the expenditure, rather than an increase in earnings. The figures used in the illustration are hypothetical.
Taking a masonry building at a proposed cost of Rupees 100,000 to accommodate an office that is now accommodated in a building rented at Rupees 15,000 per annum it would first be necessary to ascertain the average annual cost of maintenance and repairs of the proposed building and its scrap value at the end of its useful life. If these
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are taken to be (say) Rupees 5,000 and Rupees 10,000 respectively, and the rate of interest is 4 per cent, the average annual cost of service would be the sum of (a) Rupees 5,000 (the average annual cost of maintenance and repairs), (b) Rupees 594, being the annual sinking fund payment (at 4 per cent for 50 years which is equal to .0066 multiplied by Rupees 100,000 minus Rupees 10,000), and (c) Rupees 4,000, being the annual interest charges at 4 per cent on Rupees 100,000. The total annual cost is thus Rupees 9,594 which would yield a saving of Rupees 5,406 Rupees 15,000 minus Rupees 9,594) in the annual rental charges that are being paid.
709. Expenditure on Improvements.–When expenditure chargeable to Capital or New Minor Works is proposed to be incurred in the shape of improvements to existing assets, the proposal will not be financially justified unless the extra earnings or the extra savings in working expenses expected to be realized as a result of the proposed outlay are such that after meeting the extra average annual cost of service, they leave a fair margin of profit.
710. Alternative Schemes.–In choosing as between alternative schemes, each of which is capable of rendering the required service, the scheme that would cost the least in the long run should ordinarily be preferred. For this purpose, the cost of the asset should be measured in terms either of the average annual cost of service, as defined in paragraph 705 or, if circumstances render it more appropriate, of the average cost per unit of service, as explained below.
711. Average Cost per Unit of Service.–The average cost per unit of service is obtained by dividing the average annual cost of service by the total number of units of service rendered by the asset in a year, In comparing two assets on this basis, care must be taken to see that the number of units of service taken into account in both cases represents the actual number utilized or consumed. Units of service rendered by either of the assets in excess of the actual requirements should be ignored in computing the cost per unit of the asset.
712. It may sometimes be necessary to reject a more economical alternative, because of considerations on which it is difficult to put a precise money value. If on the strength of any such factor a proposal is adopted that is less economical than its alternatives the reasons determining such a choice should be recorded in the report or the estimate containing such proposals. In those cases in which the reasons as recorded are not accepted by the Accounts Officer, the latter should offer his remarks on his certificate of verification of the estimate concerned so that these remarks may be taken into consideration by the authority sanctioning the proposal.
713. Examples are given in Annexure II to this Chapter illustrating the principles set out in paragraphs 710 et seq. The data assumed are hypothetical and the conclusions
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arrived at in these examples are purely illustrative. The methods adopted are not to be regarded as exhaustive or as precluding the use of alternative methods that may be found to be more appropriate.
Project Appraisal
713-A. Appraisal is an important phase of project cycle. If a project is well formulated and thoroughly appraised, a good follow-through on the subsequent stages of the project cycle will see to its goals being achieved. Appraisal involves a careful checking of the basic data, assumptions and methodology used in project preparation, an in- depth review of the work plan, cost estimates and proposed financing, an assessment of the project's organizational and management aspects, and finally the validity of the financial, economic and social benefits expected from the project. On the basis of such an assessment, a judgment is reached as to whether the project is technically sound, financially justified and viable from the point of view of the economy as a whole.
713-B. Various Aspects of Appraisal.—— Appraisal can be referred to as ex-ante, on- going and ex-post. In the Planning and Development Division, projects are examined from the technical, institutional/organizational/ managerial, social, commercial, financial and economic points of view. These aspects are briefly discussed in the following paragraphs:
713-C. Technical Analysis.—— The analysis for determining the technical viability of the development project is based on the technical data and information given in the PC-I form as well as the earlier experience of carrying out similar projects. The technical tests and yard-sticks to be used to determine the technical viability differ from project to project and from sector to sector. In cases where high level technology is involved and the Pakistan Railways has little or no experience, consultants may be employed to prepare the feasibility studies. The technical analysis concerns the project's input (supplies) and output (production) of real goods and services.
713-D. Institutional/Organizational/Managerial Analysis.—— A whole range of issues in project preparation revolves around the overlapping institutional, organizational and managerial aspects of the project, which clearly have an important effect on project implementation. The proposal should be examined to see that the project is manageable and a relationship has been developed amongst the project, region and the country. The proposal may contain the replies of the probable questions: (a) are the authority and responsibility properly linked? (b) does the organizational set-up encourage delegation of authority? (c) does the proposed organization take proper account of the customs and organizational procedures common in the country or, alternatively, does it introduce enough change in organizational structure to break the traditional organization forms? (d) What about training arrangements? etc.
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713-E. Social Analysis.—— Social analysis is undertaken to examine the aspects like employment opportunities and income distribution. The project analyst would also examine the effects of a project on particular groups/regions.
713-F. Commercial Analysis.—— The commercial aspects of a project include the arrangements for marketing the output produced by the project and the arrangement for the supply of inputs needed to build and operate the project. On the output side, careful analysis of the proposed market for the project's production is essential to ensure that there will be an effective demand at a remunerative price. It needs to be ensured that adequate input supplies are available for the efficient operation of the project.
713-G. Financial Analysis.—— Financial analysis involves assessment of financial impact, judgment of efficient resource use, assessment of incentives, provision of a sound financing plan, co-ordination of financial contribution and assessment of financial management competence. The main objective of financial analysis is to determine the requirements of funds/timing and the expected returns on investment from the points of view of the various parties involved in the financing of the project. Under this analysis, judgment is framed about the project's financial efficiency, incentives, credit-worthiness and liquidity. In financial analysis, cost and benefits are calculated using current market prices. Interest payments on borrowed capital and repayment of loans are not included. Taxes in the form of excise duties, customs duties, sales taxes are considered cost, while subsidies and loan receipts are considered benefits and are fully accounted for in the analysis.
713-H. Economic Analysis.—— Analysis from the economic aspect assesses the desirability of an investment proposal in terms of its effect on the Pakistan Railways. The question to be addressed here is whether the investment proposal contributes to the developmental objective of Pakistan Railways and whether this contribution is likely to be large enough to justify the use of scarce resources such as capital, skilled labour, managerial talents, etc. that would be needed to implement and operate the project. The two main steps in economic analysis are: (a) the "pricing of project inputs and outputs" and (b) the "identification of project costs and benefits". These steps are discussed below:
713-I. Pricing of Project Inputs and Outputs.—— In economic analysis, the valuation of inputs and outputs can be made keeping in view the following three rules: i) Most of the inputs in economic analysis are valued at opportunity cost or on the principle of willingness to pay. Actually it is assumed that all inputs to the project are diverted away from alternative uses. Each input has generally value in alternative use.
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But this use may be sacrificed so that the input can be used by the project. This sacrifice is a cost to Pakistan Railways; it is an opportunity foregone because of the project. Every input to the project is valued at this opportunity cost-the value of the input in its best alternative use; ii) For some final goods and services, usually non-traded ones, the concept of opportunity cost is not applicable because it is consumption value that sets the economic value. This criterion is called "willingness to pay" or "value in use". iii) The third rule of pricing inputs and outputs is that the analysis is done at present, i.e. constant prices. This is because current price analysis entails the prediction of inflation rate which is difficult and unreliable.
713-J. Identifying Project Costs and Benefits.—— Proper identification of project costs and benefits is an important step. An improper identification of costs and benefits would lead to under-estimation of costs or over-estimation of benefits or vice versa. The identification of secondary costs and benefits is a difficult task. An important technique which is followed for correct quantification of costs and benefits is "with and without project" comparison of costs and benefits. Project analysis tries to identify and value costs and benefits that arise with the proposed project and to compare them with the situation as it would be without the project. The difference is the incremental net benefits arising from the project investment. This approach is not the same as comparing the situation "before" and "after" the project. The "before" and "after" comparison fails to account for changes in production over the life of the project that would occur without the project and thus leads to an erroneous statement of benefits attributable to the project investment. A change in output can also occur without the project if production would actually fall in the absence of new investment. In some cases, an investment to avoid a loss might also lead to an increase in production so that the total benefits would arise partly from the loss avoided and partly from increased production. Here are some special items which must carefully be handled while identifying and quantifying costs and benefits for financial and economic analyses:
(i) Direct Transfer Payments
Some entries in financial accounts really represent shifts in claims of goods and services from one entity in the society to another and do not reflect changes in the national income. The following four kinds of transfer payments are important which are not included in economic analysis:
(a) Taxes (Direct and Indirect) (b) Subsidies (c) Credit Transactions
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(d) Interest
Project appraisal attempts to measure the profitability of all resources devoted to the project; it is not concerned with the way in which these resources are financed. Interest is the cost of time (waiting) and discount rate is also supposed to be a measure of the cost of waiting for future benefits. So interest is automatically allowed for in the discounting procedure. Since the principal of a loan is used to purchase building and equipment whose costs are already part of the cash flow, repayment of that principal would add a cost that had already been charged to the project. It may however be noted that interest on capital is to be shown in the overall cost of a project. ii) Depreciation
Depreciation is an accounting concept necessary when accounts are to be prepared for one year at a time (not prepared as a projection over the life of the project) and must include an allowance for the capital use during each year. It is neither a cost nor a cash outflow. In fact, to include it as a cost would be double-counting. So in determining the gross cost-stream for calculating out discounted measures of project worth we do not include depreciation as a cost or, expressing it in an other way, in computing the incremental net benefits, we do not deduct from the gross benefits any allowance for depreciation because the incremental net benefit-stream already allows for the return of capital (depreciation) over the life of the project. When we discuss cash flow, it is an undifferentiated combination of:
(a) depreciation or amortization - return of capital
(b) returns paid for the use of capital, such as, dividends, profits, and the like- returns of capital. iii) Sunk Cost
It is a cost incurred in the past that cannot be retrieved as a residual value from an earlier investment. A sunk cost is not an opportunity cost and thus is not included in the costs in the project analysis. The purpose of economic and financial analysis is to help determine which among the alternatives open to us provides the best use of resources. Our decision starts from today; what is past is past and cannot be changed. The argument that much has already been spent on a project and, therefore, the project must be continued is not a valid decision criterion. In a case where a project is midway toward completion and a decision regarding the fate of the project has to be taken, we have two options, ie (i) simply stop the project and (ii) draw it to an early conclusion and then to use the available future resource expenditures freed from the project for higher-yielding alternatives.
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iv) Contingency Allowance
While preparing projects, it is assumed that there will be no exceptional conditions, say floods. It is also assumed that there will be no relative changes in domestic or international prices and no inflation during the investment period. It would clearly be unrealistic to base project cost estimates only on these assumptions of perfect knowledge and complete price stability. Sound project planning requires that provisions be made in advance for possible adverse changes in physical conditions or prices that would add to the baseline costs. Contingency allowance may be divided into physical and price contingency. Contingency allowance for physical and relative price changes is included in the financial and economic analysis but contingency allowance for inflation is not included in economic analysis. v) Inflation
Project analysis is undertaken in constant prices. It is assumed that the current price level will continue to apply and that inflation will affect most prices to the same extent so that prices retain their same general relations. vi) Changes in Relative Prices
A change in a relative price means a change in the market price structure that the producer pays either for inputs or for outputs. A change in relative price, then, is reflected directly in the project's financial accounts. vii) Working Capital
Confusion sometimes arises about how to treat capital used for short-term purposes and revolving within a single year. Such capital is sometimes overlooked because it may not show up as a net expenditure in a year-by-year build-up of project costs and benefits. It is not, however, available for other purposes and is properly considered a project cost. It should be entered as a cost in the cash flow build-up under the first year. It then becomes a part of salvage value at the end of the project. viii) Replacement Costs
Many projects require investments which have different economic lives. In preparing the analysis, allowance must be made for the replacement costs of the assets during the life of the project. It can be shown in the year of occurrence.
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ix) Residual/Salvage Value
Often at the end of a project, some residual (or salvage/terminal) value may reasonably be expected. It should not be confused with scrap value. It is the value of that part of a capital asset that has not been used up in the course of the project period. We would treat this value as a project benefit during the last year of the project life. This value is entered as a negative cost in the cost-stream against the year it will accrue.
713-K. Appraisal Methods/Techniques.—— When costs and benefits have been identified, priced, and valued, the analyst is ready to determine which among various projects one is to accept and which to reject. There is no one best technique for estimating project worth (although some are better than others, and some are especially deficient). The techniques of project appraisal can be discussed under two heads viz (i) Undiscounted and (ii) Discounted. Undiscounted techniques include (a) Pay back period, (b) Value-added, (c) Capital-Output Ratio, (d) Proceeds per unit of outlay, and (e) Average annual proceeds per unit of outlay. These techniques are discussed in the following paragraphs.
713-L. Pay Back Period.—— The pay back period refers to the length of time required to recover the capital cost of the project. According to this criterion, the shorter the period for recovery the more profitable is the project. This criterion has two important weaknesses viz (a) it fails to consider earnings after the pay back period and (b) it does not adequately take into consideration the timing of proceeds.
713-M. Value-Added.—— It is the amount of economic value generated by the activity carried out within each production unit in the economy. In any production unit, value- added is measured by the difference between the value of the output of the firm and the value of all inputs purchased from outside the firm. The capital and labour attached to each firm are considered internal inputs. Thus, value-added is the value that has been added by the labour and capital of the enterprise to the economy. Gross value-added includes payment for taxes, interest, rent, profits, and reserves for depreciation. Deducting depreciation gives the net value-added. The sum of all the net value-added is referred to as net domestic product. So the more the value added by the project, the more it will be justified economically.
713-N. Capital-Output Ratio.—— The capital-output ratio is defined as the average value- added produced per unit of capital expenditure. Projects with low capital-output ratio are favoured
713-O. Proceeds Per Unit of Outlay.—— It is calculated by dividing total net value of incremental production by the total amount of investment. So the higher the proceeds per unit of the outlay, the higher the economic viability of the project. This criterion does not take into consideration the time value of money.
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713-P. Average Annual Proceeds Per Unit Outlay.—— To calculate this measure, the total of the net value of incremental production is first divided by the number of years during which it will be realised and then this average of annual proceeds is divided by the total capital cost. So if average annual proceeds per unit of outlay are high, the project will be economically justified for implementation.
713-Q. Discounting Techniques.—— Discounting techniques take into account the time- value of money. Discounting is essentially a technique by which one can "reduce" the future benefit and cost streams to their present worth. The technique of discounting permits us to determine whether to accept or reject the projects for implementation that have obviously shaped time-stream that is, patterns of when costs and benefits fall during the life of the project, when they differ from one another and are of different durations. The most common means of doing this is to subtract year by year the costs from the benefits to arrive at the incremental net benefit-stream, the so-called cash flow and then to discount that. Then we may consider the differences between these present worth and determine what discount rate would be necessary to make the net present worth equal to zero (IRR), derive a ratio of present worth of benefit and cost streams (BCR) and Internal Rate of Return. The calculation of different internal rate of return (IRR), NPW and BCR required for the financial and economic appraisal of project are given in Annexure III to this Chapter. This process of finding the present worth of a future value is called discounting.
713-R. For financial analysis, the discount or cut-off rate is usually the marginal cost of money to the firm for which the analysis is being done. This often will be the rate at which the enterprise is able to borrow money. This is the rate that will result in utilization of all capital in the economy if all possible investments are undertaken that yield that much or more return. It would be the return on the last or marginal investment made that uses up the last of the available capital. A second discount rate that might be chosen for economic analysis is the borrowing rate Pakistan Railways must pay to finance the project. But, in this way, selection of projects will be influenced by the financial terms available and will not be based solely on the relative contribution of projects to income. It is best to break the link between choosing projects and financing them.
713-S. Net Present Worth (NPW).—— It is simply the present worth of the incremental net benefit or incremental cash flow. It is the difference between discounted benefits and discounted costs of a project. NPW criterion suggests to us to accept all independent projects with a zero or greater net present worth when discounted at opportunity cost. No ranking of acceptable, alternative independent project is possible with the present worth criterion because it is an absolute and not relative measure.
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713-T. Benefit-Cost Ratio (BCR).—— This ratio is obtained when the present worth of the benefit-stream is divided by the present worth of the cost-stream. Note that the absolute value of BCR will vary depending on the interest rate chosen. The higher the interest rate, the smaller the resultant benefit-cost ratio and, if a higher enough rate is chosen, the benefit-cost ratio will be driven down to less than 1. The BCR criterion suggests to us to accept all independent projects with a benefit-cost ratio of 1 or greater, when the cost and benefit streams are discounted at the opportunity cost of capital. The benefit- cost ratio discriminates against projects with relatively high gross returns and operating costs, even though these may be shown to have a greater wealth-generating capacity than that of alternatives with a higher benefit-cost ratio.
713-U. Internal Rate of Return (IRR).—— It is the discount rate that makes the NPW of the incremental net benefit-stream or incremental cash flow equal to zero. It is the maximum interest that a project could pay for the resources used if the project is to recover its investment and operating costs and still break even. It is the rate of return on capital outstanding per period while it is invested in the project. IRR criterion suggests to us to accept all independent projects having an internal rate of return equal to or greater than the opportunity cost of capital.
713-V. Net Benefit-Investment Ratio (NBIR) = (N/K Ratio).—— NBIR is simply the present worth of net benefits divided by the present worth of investment. To calculate this measure, simply divide the sum of the present worth after the incremental net benefits- stream has turned positive by the sum of the present worth of the negative incremental net benefits in the early years of the project. The reason for calculating the net benefit- investment ratio in this manner is that we are interested in an investment measure that selects projects on the basis of return to investment during the initial phases of a project. If the net benefit-investment ratio is 1 or greater, when we are discounting at the opportunity cost of capital, choose the project beginning with the largest ratio value.
713-W. Sensitivity Analysis (Treatment of Uncertainty).—— Several times when the project is under execution, certain things go wrong with the project with the result that the desired benefits cannot be achieved within the stipulated time frame. For example, the actual execution of the project is delayed or the cost exceeds the original estimated cost (cost over-run). In such cases, the results get fairly changed. Many times, the IRR and NPW thus get reduced or the BCR becomes negative from positive. In order to take care of this problem, while the projects are under preparation or under examination, certain assumptions are applied for testing the viability of the project. For example, it is at times assumed that there will be a cost over-run by, say, 25% or a reduction in revenues, say, by 10% or a delay in getting the benefits, say, by three years and so on. Keeping one or two or all such assumptions in view, the streams of costs and benefits are re-drawn and the figures of costs and benefits are discounted and the NPW, BCR and IRR are re-worked out. This gives a fairly good picture as to what will be the fate of
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the projects if such mishaps occur. For the sensitivity analysis, it is very essential to carry out such an exercise in projects where high financial stakes are involved.
713-X. Choosing Between Mutually Exclusive Alternative Projects.—— The preferred discount measure of project worth for choosing between mutually exclusive projects is the net present worth. Direct comparison of IRR, BCR, NBIR can lead to an incorrect investment decision. This is so because undertaking a small, high - paying project may preclude generating more wealth through a moderately remunerative but larger alternative. Sometimes what may at first is posed as a pair of mutually exclusive projects can, instead, be seen as successive phases of development. Although NPW is the preferred criterion for choosing between mutually exclusive alternatives, it is possible to manipulate the IRR to use it to choose between the mutually exclusive alternatives. The net benefit-investment ratio can be used to rank mutually exclusive projects only when the ratios of all the projects in the investment programme are known. Therefore it is not a practical measure to use for this purpose. To use IRR for mutually exclusive project selection, the cash flow of the smaller alternative is subtracted year by year from the cash flow of the larger alternative. This stream of differences is then discounted to determine the internal rate of return of the stream. This is the financial or economic rate of return to the additional resources necessary to implement the larger alternative as opposed to the smaller one. This method is only applicable for a single pair of mutually exclusive projects.
713-Y. Various concepts used in project appraisal have been discussed earlier in this chapter. A set of practical discounted measures of project worth are as follows:
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Financial Analysis Economic Analysis (a) Discounted measures (a) Adjustment in prices i) Present Worth of Cost (PWC), Present Worth of i) Transformation of Financial Capital Cost Benefit (PWB), Net Present Value. into Economic Cost (NPV), Benefit-Cost Ratio (BCR) at given discount rate.
Transformation of Financial and ii) Internal Financial Rate of Return (IFRR) ii) Operation & Maintenance (O&M) costs into Economic Cost. iii) Return on Equity after taxes. iii) Benefits Valued at Border prices. iv) Return on Equity before taxes. (b) Sensitivity Analysis (b) Discounted Measures i) PWC, NPV, BCR & IFRR with cost over-run, i) PWC, PWB, NPV & BCR at reduction in benefits and delay in realization of given discount rate. benefits. ii) Internal Economic Rate of Return (IERR)
Domestic resource cost to earn one unit iii) of foreign exchange.
(c) Undiscounted Measures (c) Undiscounted Measures i) Break-even analysis i) Nominal and Effective rate of protection ii) Pay back period
*Sensitivity analysis is undertaken under both financial and economic analysis.
Replacements and Renewals
714. All proposals for replacements of existing assets (whether involving additional expenditure of a capital nature or otherwise) should be examined critically with a view to seeing whether it would not be possible to avoid, or, at least, postpone such replacements by adopting methods of repairing or reconditioning them at a cost that could be justified financially. In all cases in which it is considered necessary to replace an asset, instead of reconditioning it, it should be examined whether the estimated average annual cost of service (as defined in paragraph 705) or the estimated average cost per unit of service (vide paragraph 711) of the new asset is likely to be less than that of the old asset after reconditioning.
715. Where a replacement is proposed on grounds of economy in operation and maintenance costs, the estimate therefore should justify the outlay on the proposed replacement by showing that the average annual cost of service or the average cost per
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unit of service, which will be rendered by the new asset, is less than that of the existing asset.
Note. The above two paragraphs will not apply to cases of casual or program renewals, not involving any charge of a capital nature.
Reconditioning
716. When an asset is repaired at a comparatively high cost in preference to its being replaced, it is referred to as being 'reconditioned'. The cost of such reconditioning is charged to the relevant head of the chart of accounts, for which detailed estimates are ordinarily necessary.
717. Scrapping, condemning and abandoning assets. – An asset may be scrapped, condemned or abandoned without replacement, when the service rendered by it is no longer required. If the service rendered by it is still necessary and if it is proposed to make other arrangements for such service, it should be definitely established that it is more economical to scrap, condemn or abandon the existing asset and obtain the required service from the new arrangement than to continue to obtain the required service from the existing asset. Here also the relative economy of the two proposals should be assessed on the basis of the average annual cost of service or the average cost per unit of service, as the case may be.
718. Examples are given in Annexure III to this Chapter illustrating the method of financial justification to be adopted in the case of replacement, reconditioning or abandonment of existing assets. The data used in the illustrations are hypothetical and the methods adopted are not to be regarded as exhaustive or as precluding the use of the other methods that may be found to be more appropriate.
719. Second-hand Value.–The second-hand value of an asset which is its 'present worth' has often to be distinguished from scrap value. For purposes of financial justification of transfer, purchase or sales, the second-hand value of assets may, except in cases (e.g., rails, locomotives, etc.) where separate rules have been prescribed for the determination of the second-hand value, be determined as provided below–
(i) The first cost of an asset (based on which its second hand value has to be computed) should be taken as the value of a similar asset at present day prices and not the value actually paid for the asset when it was originally purchased.
(ii) The second-hand value or the present worth of a depreciating asset should be so appraised that the average annual cost of service or the average cost per unit of service, as the case may be, of the second-hand asset is equal to that of the same or similar asset while new.
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720. Examples illustrating the application of the principles enunciated in the preceding paragraph are given in Annexure IV to this Chapter.
Review of Productivity of Outlay
721. In the case of works which are sanctioned, because it is anticipated that the proposed expenditure would be productive or remunerative (paragraph 704), it is important that the earnings, or savings in working expenses, eventually realized, after the new capital has fructified, should be carefully compared with those anticipated when the proposals were embarked upon.
722. New lines.-–In respect of each new line opened for traffic, the railway administration should submit to the Ministry of Railways (Railway Board) a statement, showing the financial results of its working, in Form G. 722 shown below. The statement should reach Ministry of Railways (Railway Board) not later than the prescribed date, and should be accompanied by a covering memorandum in which brief explanations should be given of important variations between the actual realization and the estimated earnings, together with a note by the General Manager regarding the probable traffic prospects of the line in the sixth year of opening.
FORM No. G. 722.
STATEMENT SHOWING FINANCIAL RESULTS OF WORKING OF NEW LINES
PAKISTAN RAILWAYS
Name of line...... Length in Kilometers...... Gauge...... Opened on......
Earnings of line Expenses of line Capital cost on 30 June plus Guarantee Share of Actual Year calculated payable by Total other Line expenditure of Total interest during Local (Col. expenditure proper line (Col 6+7) construction Government, 3+4) pertaining to
etc., it any. the line 1 2 3 4 5 6 7 8 I. As estimated before construction. II. Actual after opening 1st year 2nd „ 3rd „ 4th „ 5th „ and after
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Main line
Net Additional expenses calculated Return on. capital Additional earnings at 50 per cent of the normal Total net -Col earnings minus of line operating ratio (including Additional net earnings 13x100 ÷ Col. 2 Remarks any loss due to proper depreciation) obtaining on the earnings (Col. 9+12) short circuiting (Col. 5–8) existing system of additional (Col 10-11) or diversion of earnings traffic after deducting loss (Col. 10)
9 10 11 12 13 14 15
Foot-notes to Form No. G. 722
I. Special steps taken in the course of the year
(a) To develop the traffic earnings (b) To reduce the expenses– (i) (i) (ii) (ii) (iii) (iii) (iv) (iv)
II. Probable future development of traffic and possibility of the line paying its way (short note).
Head of Traffic Department. Head of Accounts Department.
723. The statement should be submitted only in respect of such lines as were opened for traffic during the six years preceding that to which the statement relates, e.g., the statement for the year 2010-11, should be prepared for only those lines which were opened for traffic on 1st April 2004 or after.
724. The results of working of those lines, which have been partly opened for traffic and the completion of which has been postponed indefinitely, should also be intimated.
725. The financial results of only those lines which have been opened for one complete financial year need be submitted.
726. No statement need be submitted in respect of lines financed by private bodies (i.e., in which Government have no financial interest) and strategic lines.
727. The following instructions should be followed in preparing the statement–
(i) The statement should, as far as possible, indicate figures under all columns (2 to 14) against the item “As estimated before construction”. Under the head “Actual after opening”, figures for the year to which the statement refers as well as for the preceding four years should be given. For instance, in the statement for the year 2010-11, the results for each of the financial years 2006-7 to 2010-11 should be shown.
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(ii) Column 3 should indicate the earnings of the line from all traffic originating therein, and all traffic received from the main line.
(iii) Column 6 should include expenditure on account of station staff, running staff and engineering staff and such other items as are directly charged against the line.
(iv) Column 7 should also include a portion of the administrative charges of the railway, care being taken to fix the sum with reference to the traffic moving on the line. In the case of lines which are not more than 50 Kilometers in length no administrative charge should be taken into account. All expenditure which would have been incurred even if the line were not built should be ignored for the purpose of this column.
(v) The additional or new traffic interchanged to be shown in column 10 should include only that portion of the traffic received by the main line from the new line and of the traffic from the main line to the line, which arises solely from the construction of the new line. In the absence of actual figures of additional traffic interchanged with the existing lines, a reasonably approximate figure may be adopted. In the case of a chord line short-circuiting a previously existing route, figures relating to cross traffic which would have been carried by the previously existing route, if the chord line had not been constructed, may be omitted from this statement and a proportionate reduction in the working expenses on the line made.
(vi) The normal operating ratio to be adopted for the purpose of column 11 (which should include depreciation) should represent the average for the last ten years obtaining on the entire railway system.
728. Open Line Works.–For the purpose of applying the productivity tests, open line works should be classified as follows:–
(i) Works undertaken with the definite object of increasing earnings or reducing expenditure and to which such tests can be applied within three to five years of their completion.
(ii) Works, the justification of which is dependent on factors that cannot be realized within five years and to which productivity tests cannot be applied during that period. Included under this category will be works providing a heavier standard or increased capacity, intended to meet an increase of traffic during the periods of their lives, i.e., during the next 20, 30 or even 60 years.
(iii) Works incapable of financial justification and to which productivity test cannot be applied. Under this category will come such works as are detailed in paragraph 701.
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Note. 1.–When the justification for a Work is submitted, it should show under which of the three categories the work falls; and in the case of comprehensive schemes including works falling under more than one of these categories, the estimated expenditure under each should be shown separately.
Note 2.–Justification for works, or part of scheme, falling under category (i), should also show the probable period that will elapse between the completion of the work and the time when the productivity tests can be applied.
729. A few works belonging to category (i) should be selected at the time of sanction, for the application of productivity tests. The selection will be at the discretion of the General Manager, in consultation with his Financial Adviser and Chief Accounts Officer, in regard to works sanctioned by him, and of the Ministry of Railways (Railway Board) in other cases. The fact that productivity tests are to be applied to a particular work should be intimated to the authorities entrusted with its execution as also to the Accounts and Audit Officer. In respect of all such selected works, the Financial Adviser and Chief Accounts Officer should keep such statistics as would be necessary for the application of the tests, in addition to those usually available.
730. In order to ensure that a work selected either by the Ministry of Railways (Railway Board) or by the General Manager for the application of productivity test is not lost sight of, Railway Administrations and Accounts Officers should maintain a list showing the following particulars–
(i) Reference to sanction of the estimate.
(ii) Brief particulars of work selected for the application of productivity test.
(iii) Total estimated expenditure.
(iv) Nature and extent of “productivity” claimed in the estimate.
(v) When the test is to be applied.
(vi) Brief remarks about the results of the test.
This list should be reviewed half-yearly and timely action taken to apply the test to all works due for examination during each half year.
731. When, in due course, the tests are actually applied, the Financial Adviser and Chief Accounts Officer should submit a report embodying the results of the tests to the General Manager. In the case of works selected by the Ministry of Railways (Railway Board), the General Manager will submit the Financial Adviser and Chief Accounts Officer's reports to the Ministry of Railways (Railway Board) with his own comments. The object of these reports is not only to furnish information as to the results actually achieved to the authority that sanctioned the expenditure but also to serve as a lesson for the future.
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ANNEXURE I [See Paragraph.707] SINKING FUND PAYMENT TABLE U=Useful life of assets in years
U. 2% 2 1/2% 3% 3 1/2% 4% 4 1/2% 5% 6% 7% 8%
1 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 2 0.4950 0.4938 0.4926 0.4914 0.4902 0.4890 0.4878 0.4854 0.4831 0.4808 3 0.3268 0.3251 0.3235 0.3219 0.3203 0.3188 0.3172 0.3141 0.3111 0.3080 4 0.2426 0.2408 0.2390 0.2373 0.2355 0.2337 0.2320 0.2286 0.2252 0.2219 3 0.1922 0.1902 0.1884 0.1865 0.1846 0.1828 0.1810 0.1774 0.1739 0.1705 6 0.1585 0.1565 0.1546 0.1527 0.1508 0.1489 0.1470 0.1434 0.1398 0.1363 7 0.1345 0.1325 0.1305 0.1285 0.1266 0.1247 0.1228 0.1191 0.1156 0.1121 3 0.1165 0.1145 0.1125 0.1105 0.1085 0.1066 0.1047 0.1010 0.0975 0.0940 9 0.1025 0.1005 0.0984 0.0964 0.0945 0.0926 0.0907 0.0870 0.0835 0.0801 10 0.0913 0.0893 0.0872 0.0852 0.0833 0.0814 0.0795 0.0759 0.0724 0.0690 11 0.0822 0.0801 0.0781 0.0761 0.0741 0.0722 0.0704 0.0668 0.0634 0.0601 12 0.0746 0.0725 0.0705 0.0685 0.0666 0.0647 6.0628 0.0593 0.0559 0.0527 13 0.0681 0.0660 0.0640 0.0621 0.0601 0.0583 0.0565 0.0530 0.0497 0.0465 14 0.0626 0.0605 0.0585 0.0566 0.0547 0.0528 0.0510 0.0476 0.0443 0.0413 15 0.0578 0.0558 0.0538 0.0518 0.0499 0.0481 0.0463 0.0430 0.0398 0.0368 16 0.0537 0.0516 0.0496 0.0477 0.0458 0.0410 0.0423 0.0390 0.0359 0.0330 17 0.0500 0.0479 0.0460 0.0440 0.0422 0.0404 0.0387 0.0354 0.0324 0.0296 18 0.0467 0.0447 0.0427 0.0408 0.0390 0.0372 0.0355 0.0324 0.0294 0.0267 19 0.0438 0.0418 0.0398 0.0379 0.0361 0.0344 0.0327 0.0296 0.0268 0.0241 20 0.0412 0.0391 0.0372 0.0354 0.0336 0.0319 0.0302 0.0272 0.0244 0.0219 21 0.0388 0.0368 0.0349 0.0330 0.0313 0.0296 0.0280 0.0250 0.0223 0.0198 22 0.0366 0.0346 0.0327 0.0309 0.0292 0.0275 0.0260 0.0230 0.0204 0.0180 23 0.0347 0.0327 0.0308 0.0290 0.0273 0.0257 0.0241 0.0213 0.0187 0.0164 24 0.0329 0.0309 0.0290 0.0273 0.0256 0.0240 0.0225 0.0197 0.0172 0.0150 25 0.0312 0.0293 0.0274 0.0257 0.0240 0.0224 0.0210 0.0182 0.0158 0.0137 26 0.0297 0.0278 0.0259 0.0242 0.0226 0.0210 0.0196 0.0169 0.0146 0.0125 27 0.0283 0.0264 0.0246 0.0229 0.0212 0.0197 0.0183 0.0157 0.0134 0.0114 28 0.0270 0.0251 0.0233 0.0216 0.0200 0.0185 0.0171 0.0146 0.0124 0.0105 29 0.0258 0.0239 0.0221 0.0204 0.0189 0.0174 0.0160 0.0136 0.0114 0.0096 30 0.0246 0.0228 0.0210 0.0194 0.0178 0.0164 0.0151 0.012 0.0106 0.0008 31 0.0236 0.0217 0.0200 0.0184 0.0169 0.0154 0.0141 0.0118 0.0098 0.008 32 0.0226 0.0208 0.0190 0.0174 0.0159 0.0146 0.0133 0.0110 0.0091 0.0075 33 0.0217 0.0199 0.0182 0.0166 0.0151 0.0137 0.0125 0.0103 0.0084 0.0069 34 0.0208 0.0190 0.0173 0.0158 0.0143 0.0130 0.0118 0.0096 0.0078 0.0063 .35 0.0200 0.0182 0.0165 0.0150 0.0136 0.0123 0.0111 0.0090 0.0072 0.0058 36 0.0192 0.0175 0.0158 0.0143 0.0129 0.0116 0.0104 0.0084 0.0067 0.0053 37 0.0185 0.0167 0.0151 0.0136 0.0122 0.0110 0.0098 0.0079 0.0062 0.0049
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U. 2% 2 1/2% 3% 3 1/2% 4% 4 1/2% 5% 6% 7% 8%
33 0.0178 0.0161 0.0145 0.0130 0.0116 0.0104 0.0093 0.0074 0.0058 0.0045 39 0.0172 0.0154 0.0138 0.0124 0.0111 0.0099 0.0088 0.0069 0.0054 0.0042 40 0.0166 0.0148 0.0133 0.0118 0.0105 0.0093 0.0083 0.0065 0.0050 0.0039 41 0.0160 0.0143 0.0127 0.0113 0.0100 0.0089 0.0078 0.0061 0.0047 0.0036 42 0.0154 0.0137 0.0122 0.0108 0.0095 0.0084 0.0074 0.0057 0.0043 0.0033 43 0.0149 0.0132 0.0117 0.0103 0.0091 0.0080 0.0070 0.0053 0.0040 0.0030 44 0.0144 0.0127 0.0112 0.0099 0.0087 0.0076 0.0066 0.0050 0.0038 0.0028 45 0.0139 0.0123 0.0108 0.0095 0.0083 0.0072 0.0063 0.0047 0.0035 0.0026 46 0.0135 0.0118 0.0104 0.0091 0.0079 0.0068 0.0059 0.0044 0.0033 0.0024 47 0.0130 0.0114 0.0100 0.0087 0.0075 0.0065 0.0056 0.0041 0.0030 0.0022 48 0.0126 0.0110 0.0096 0.0083 0.0072 0.0062 0.0053 0.0039 0.0028 0.0020 49 0.0122 0.0106 0.0092 0.0080 0.0069 0.0059 0.0050 0.0037 0.0026 0.0019 50 0.0118 0.0103 0.0089 0.0076 0.0066 0.0056 0.0048 0.0034 0.0025 0.0017 55 0.0101 0.0087 0.0073 0.0062 0.0052 0.0044 0.0037 0.0025 0.0017 0.0012 60 0.0088 0.0074 0.0061 0.0051 0.0042 0.0035 0.0028 0.0019 0.0012 0.0008 65 0.0076 0.0063 0.0051 0.0042 0.0034 0.0027 0.0022 0.0014 0.0009 0.0005 70 0.0067 0.0054 0.0043 0.0035 0.0027 0.0022 0.0017 0.0010 0.0006 0.0004 75 0.0059 0.0047 0.0037 0.0029 0.0022 0.0017 0.0013 0.0008 0.0004 0.0002 80 0.0052 0.0040 0.0031 0.0024 0.0018 0.0014 0.0010 0.0006 0.0003 0.0002 85 0.0046 0.0035 9.0026 0.0020 0.0015 0.0011 0.0008 0.0004 0.0002 0.0001 90 0.0040 0.0030 0.0023 0.0017 0.0012 0.0009 0.0006 0.0003 0.0002 0.0001 95 0.0036 0.0026 0.0019 0.0014 0.0010 0.0007 0.0005 0.0002 0.001 0.0000 100 0.0032 0.0023 0.0016 0.0012 0.0008 0.0006 0.0004 0.0002 0.0001 0.0000
The use of the Table.–What sum must be paid at the end of each year to the Sinking Fund so that the annual payments together with interest thereon at 4 per cent. compounded annually, will, at the end of 18 years, amount to 2,000?
Opposite 18 under 4 per cent we find 0.0390 which is the annual payment required for Rupees 1, so for Rupees 2,000, the annual payment is 2,000x0.0390, i.e., Rupees 78.
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ANNEXURE II [See paragraph 713]
The examples given below are intended to illustrate the principles set out in paragraph 710 et seq. The data assumed are hypothetical and the conclusion arrived at in these examples are purely illustrative. The methods adopted are not to be regarded as exhaustive or as precluding the use of alternative methods which may be found to be more appropriate.
1. Choice of Sleepers.–(i) Given the following data, the problem is to decide whether wooden sleepers, concrete sleepers or steel sleepers should be used in a particular length of track.
Wooden Steel Particulars. Concrete Sleepers Sleepers Sleepers Rupees Rupees Cost per sleeper 4 7 Cost of fittings 1 1
Useful life 12 years 35 years Number required per kilometer 2,200 2,200 Scrap value of sleepers 0.25 1.25 Second-hand value of fittings 0.75 1.25 Yearly cost of maintenance and upkeep, etc., per 333 333 kilometer. Cost of transportation of sleepers to site, per kilometer 700 1,000 Cost of laying per kilometer length of track 1,300 1,650 Rate of interest 6% p. a. 6% p. a.
(ii) The average annual cost of service of wooden sleepers is Rupees 1,851, being the sum of–
(a) Rupees 333, the cost of maintenance and upkeep, etc. (b) Rupees 780, the interest on the capital cost, viz., Rupees 13,000, as worked out below- Rupees Cost of 2,200 sleepers and fittings at Rupees (4+1) each 11,000 Cost of laying 1,300 Cost of transportation 700 Total 13,000
(c) Rupees 738, the sinking fund payment at 6 per cent for 12 years on Rupees 12,450 (i.e., Rupees 13,000 less Rupees 550 scrap value).
(iii) The average annual cost of steel sleepers is Rupees 1,706, being the sum of–
(a) Rupees 333, the cost of maintenance and upkeep; (b) Rupees 1,215, the interest on the capital cost, viz., Rupees 20,250.
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Rupees Cost of 2,200 sleepers and fittings at Rupees (7+1) each 17,600 Cost of laying 1,650 Cost of transportation 1,000 Total 20,250
(c) Rupees 158, the sinking fund payment at 6 per cent, for 35 years on Rupees 17,500 (i.e., Rupees 20,250 minus Rupees 2,750 scrap value).
From a comparison of the average annual costs of wooden sleepers computed on the basis of the above data, it will appear that steel sleepers are cheaper by Rupees 47 per Kilometer than the wooden sleepers. Ordinarily, therefore, the choice should be in favour of the former.
2. Selection of Nature of Motive Power to be employed,–(i) Given the following data, to decide between the purchase of a steam engine and of an oil engine for pumping water at a small Watering station. Steam Particulars Oil Engine Engine Rupees Rupees First cost of engine 2,000 2,500 First cost of boiler 1,000 .. Useful life 40 years 20 years Scrap value Nil. Nil.
Operation cost Fuel per year 1,000 (Oil) 500 Driver's Wages 360 480 Repairs 100 180 Other miscellaneous expenses 140 140 (ii) The average annual cost of service of the two engines compares as follows :–
Particulars. Steam. Oil Rupees Rupees Operation, upkeep, etc. 1,600 1,300 Interest at 6 per cent. on capital cost 180 150 Sinking fund payment 20 68
Total average annual cost 1,800 1,518 (iii) As the average annual cost of service of the oil is less, it should ordinarily be preferred.
3. Selection of Quality. (i) To decide between two qualities of electrical bulbs offered for sale at different prices, given the following data.
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Bulbs Bulbs manufactured Particulars. manufactured by firm ‘A’ by firm ‘B’ Cost per 1,000 bulbs of 30 candle power Rupees 1,000 Rupees 200 Life 1,000 hours 500 hours Power consumption per candle power hour 1/2 watt. 1 watt. Number of hours each lamp is burnt per day Approximate 2.74 Approximate hours. 2.74 hours. Cost of electric power Rupees 0.25 per unit. Rupees 0.25 per unit.
(ii) The average annual cost of service of the 1,000 bulbs offered by firm ‘A’ is Rupees 4,810, being the sum of– (a) Rupees 1,000, the cost of 1,000 bulbs; (b) Rupees 60, the interest at 6 per cent; and (c) Rupees 3,750, the cost of power consumed, see below–
(Each bulb lasts 1,000 hours or 1,000/2.74 days, i.e., 365 days, or one year.
The power consumed per bulb, per hour is equal to 30x1/2 Watts or 15 Watts.
The power consumed in 1000 hours of burning will, therefore, be 15 units, the cost of which will be Rupees 3.75 per bulb.
The cost of power consumed by 1,000 bulbs will be Rupees 3,750).
The cost per unit of service, i.e., cost per bulb per every hour it is lit will, therefore, be equal to 4,810/1,000x 1,000 or Rupees 0.004810.
(iii) In computing the average cost per unit of service of bulbs offered by firm ‘B’ it should be borne in mind that the total life of each bulb is 500/2.74 or 183 days, or 1/2 year, so, there will be two replacements of bulbs each year.
The average annual cost of service of the 1,000 bulbs offered by firm ‘B’ will be Rupees 7,918, being the sum of–
(a) Rupees 400, the cost of bulbs, renewed twice in a year; (b) Rupees 18, the interest at 6 per cent on Rupees 200 for 1 year and on Rupees 200 for 6 months; and (c) Rupees 7,500, the cost of power consumed, i.e., 1,000*2*500*30/1,000 or 30,000 units at Rupees 0.25 unit.
The cost, per unit of service, i.e., cost per bulb per hour it is lit will, therefore, be 7,918/2,000x500 or Rupees 0.007918.
(iv) As the bulbs of firm ‘A' are more economical than those of firm ‘B’ the former should be chosen.
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ANNEXURE III [See paragraph 718] The examples given below are intended to illustrate the principles set out in paragraph 714 et seq. The data assumed are hypothetical and the conclusions arrived at in these examples are purely illustrative. The methods adopted are not to be regarded as exhaustive or as precluding the use of alternative methods which may be found to be more appropriate.
1. Renewal of a Locomotive.–(i) whether to recondition or to renew a locomotive, given the following data. New Particulars Old Locomotive Locomotive Rupees Rupees Cost of the locomotive 10,000 (second 150,000 hand cost) (new cost) 25,000 Cost of reconditioning .. Rate of Interest 6 per cent 6 per cent Life 6 years 35 years Scrap value 6,000 10,000 Maintenance, Operation and Repair Charges 10,000 8,000 a year a year
(ii) The average annual cost of the existing locomotive after reconditioning would be Rupees 16,259, made up of the following:
Rupees (a) Cost of maintenance, operation, repairs, etc. 10,000 (b) Interest at 6 per cent on Rupees 35,000 (Rupees 10,000 plus Rupees 2,100 25,000). (c) Sinking fund payment [(25,000 + 10,000) — 6,000] x 0.1434 4,159 (29,000 x 0.1434) i.e. Cost of reconditioning + Maintenance, operation cost — Scrap value x Value from sinking fund table Total 16,259
(iii) The average annual cost of the new locomotive would be Rupees 18,500 made up of the following:
Rupees (a) Cost of maintenance, operation, repairs, etc. 8,000 (b) Interest at 6 per cent on Rupees 154,000 (i.e., new cost Rupees 9,240 150,000 + the second-hand cost of the old locomotive, Rupees 10,000– the scrap value of the old locomotive, Rupees 6,000). (c) Sinking fund payment (140,000x .009) 1,260 Total 18,500
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(iv) It follows from the above figures that, with the data assumed, it is cheaper to recondition the old locomotive than to replace it by a new one.
2. Renewal of a Bridge.–(i) whether to recondition or to renew a bridge, given the following data.
Particulars Old girders New girders
Rupees Rupees Cost 10,000 40,000 Scrap Value 2,000 4,000 Scrap Value (after reconditioning 4,000 •• Interest 5 per cent 5 percent Life 30 years 60 years Reconditioning Cost 10,000 ••
NOTE–Maintenance cost is the same for both the reconditioned and new bridge.
(ii) The annual cost of service of the reconditioned unit will be Rupees 1,241.6, vide details given below–
Rupees Interest on Rupees 20,000 (i.e., Rupees 10,000+ Rupees 10,000) 1,000 Sinking fund payment at 5 per cent, on Rupees 16,000 241.6 Total 1,241.6
(iii) The annual cost of service of the new girders will be Rupees 2,500.8, vide details below
Rupees Interest on Rupees 48,000, i.e., on cost of new girders plus 2nd-hand 2,400 value of old girders minus scrap value of old girders Rupees 40,000+ Rupees 10,000-Rupees 2,000). Sinking fund payment —(0.0028x36,000) 100.8 Total 2,500.8
(iv) It follows that reconditioning is the cheaper method.
3. Renewal of Permanent Way.–(i) To determine whether a line of 85 lb. B H. rails should be fitted with 2 additional sleepers, one Duplex joint sleeper and new fish-plates and bolts, or replaced with 90 lb. F. F. rails, given the following data.
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For providing additional fittings Fitting new 90 lb. rails Rupees Rupees Cost of two additional sleepers 10 Cost of 2 new 90 lb. rails including 100 including fittings. carriage and laying. Cost of Duplex joint sleepers including 20 Life 60 years. fittings. Cost of fish-bolts and plates 4 Scrap value 42 Cost of fitting these in each 2 Rate of interest 6 per cent Life of 85 lb. rails 30 years Scrap value of rails 36 ft. long 40 Scrap value of fittings 2 Second-hand cost of two 85 lb. rails, 36 60 ft. long. Rate of interest 6-per cent
Note.–(1) Maintenance and repair costs are considered to be the same in both cases. (2) Steel scrap has a very high price in the market and we can get new rails rather cheap from Tatas under our old contract. (3) The old rails cannot be used elsewhere.
(ii) The average annual cost of service of the existing 85 lb. track after the additional fittings are made will be Rupees 6.32, vide calculations below–
(a) Interest on the– Rupees cost of 2 sleepers 10 cost of Duplex joint sleepers, new 20 cost of fish-plates and bolts 4 cost of fitting 2 =5.64 second-hand value of old rail 60 96 Less scrap value of fish-plates and bolts 2 94
(b) Sinking fund payment on Rupees (10+20+4+2+60) - (40+2) or .68 Rupees 54= (.0126x54). Total 6.32
(iii) The average annual cost of service of new rails will be Rupees 7.19, vide calculations below–
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(a) Interest on– Rupees cost of new rails and fittings, etc. 100 plus second-hand cost of old rails 60 160 =7.03 Less scrap value of old rails and fittings 42 118 Sinking fund payment of Rupees (100-42)= (58x .0019) .11 Total 7.19
(iv) With the data assumed it is cheaper to provide 2 extra sleepers, 1 Duplex joint sleeper and new fish-plates and bolts to the existing track than to replace it With 90 lb. F. F. rails. If, however, it were possible to use the B. H. rails elsewhere on the line it would be cheaper to provide new rails than to provide these additional fittings.
4. Realignment of line.–(i) To determine whether the realignment of a track by abandoning the arc and following the chord, is justifiable, given the following data-
Length of arc 24 Kilometres Length of chord 16 Kilometers Cost of chord Rupees 500,000 Scrap value of items recoverable from the arc Rupees 50,000 Scrap value of items recoverable from the chord Rupees 40,000 Second-hand value of all assets of the arc Rupees 300,000 Savings in operation and maintenance costs Rupees 70,000 Loss on tickets owing to reduction of mileage Rupees 10,000 Extra traffic expected Rupees 15,000 Rate of interest 5 per cent
NOTE.–There is keen bus competition on the section running along the arc and the chord will cut this competition as the road runs along the arc and not the chord, and it is very unlikely another road will be built along the chord.
(ii) The net saving due to realignment is Rupees (70,000-10,000+15,000) or Rupees 75,000.
(iii) The average annual cost, excluding the cost of operation and maintenance, of the realigned track will be Rupees 42,606, vide calculations below–
Rupees (a) Interest on Rupees 750,000 (i.e., Rupees 500,000+ Rupees 300,000– 37,500 Rupees 50,000) at 5 per cent. (b) Sinking fund payment required to provide Rupees 460,000 (i.e., 5,106 Rupees 500,000-Rupees 40,000) at the end of 35 years= (.0111x460,000).
N.B.–There are many assets on the track having varying normal lives. For the purpose of this calculation, a life of 35 years has been taken as a fair average for all the assets involved.
Rupees Total annual cost excluding operation, maintenance, etc. 42,606
(iv) Hence it may be seem that realignment is financially justified.
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ANNEXURE IV {See paragraph 720}
The examples given below are intended to illustrate the principle set out in paragraph 719. The data assumed are hypothetical and the results arrived at in these examples are purely illustrative.
1. If, in the case of an asset where the average annual cost of service is the basis on which the second-hand value has to be fixed, the normal fife is N years the first cost is Rupees C. the scrap value is Rupees S. Life as second-hand asset is n years. the annual cost of operation and maintenance, repairs, etc., Rupees O of the asset while new is. the annual cost of operation and maintenance, repairs, etc., Rupees O in the second-hand condition is; r is the annual rate of interest; dN is the sinking fund payment required to he paid annually so that at the end of N years, the sinking fund provides Re. I. dN is the sinking fund payment required to be paid annually so that at the end of n years the sinking fund provides Re. I. then, X, the second-hand value of the asset is such that Xr+(X–S) dn
O1=Cr+(C-S) dN +O. Simplifying the equation, we have–
Xr+Xdn-Sd +O)=Cr.+(C-S)dN+O 4 :. X (r+dn) =Cr+(C-S) dN+O+Sdn-O1
Cr+(C-S) dN+O+Sdn-O1 :. X= r+dn
Illustration.
If Rupees 10,000 be the first cost of an asset with 60 years of useful life and a scrap value of Rupees 2,500; the rate of interest is 6 per cent or 06 per rupee and the average maintenance and repair cost for the first 20 years is Rupees 250 and for the next 40 year Rupees 350; then applying the above formula, the second hand value at the end of 20 years will be– 10,000 x 0.06 + (10,000 - 2,500) 0.0019* + 250 + 2,500 x -0.0065*-350 Rupees 0.06 + 0.0065
530.5 or i.e., Rupees 7,977 0.0665
*These are obtained from the Table in Annexure I.
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2. In the case of an asset the second-hand value of which is to be determined on the basis of ‘the average cost per unit of service’, if the same notation as in Example (1) were used; and If u is the average number of annual units of service rendered by the asset while new, and u1 the average number of units of service rendered by the asset while second hand, then, X, the second-hand value of the asset is such that
Xr+(X-S) dn+O1 Cr+(C-S) dN+O = u1 u
u1/u [Cr+(C-S) dn +O] - O1+ Sdn :. X= R+ dn
Illustration.
If Rupees 100,000 be the cost of an asset with a useful life of 35 years and a scrap value of Rupees 10,000 ; if the rate of interest is assumed to be 6 per cent or .06, the average operation, maintenance and repairs costs while new, Rupees 120,000 per annum and the average operation, maintenance and repairs costs in the second hand condition Rupees 103,000 per annum ; and if the average serviceability of the asset while new be 120,000 units per annum and 100,000 units in the second-hand condition, then applying the formula above, the second- hand value of the asset at the end of 20 years will be –
100,000 100,000x.06+(100,000-10,000).009+120,000] -103,000+10,000x .0430 Rupees .06+.0430
3105 or i.e., Rupees 30,146 nearly. .103
7.31
PAKISTAN RAILWAYS
PAKISTAN RAILWAYS GENERAL CODE
Riaz Ahmad & Company Chartered Accountants
CHAPTER VIII
20 October, 2011
9.1 PAKISTAN RAILWAYS GENERAL CODE
CHAPTER VIII
CONTROL OVER EXPENDITURE
CONTENTS
DESCRIPTION PAGE NO. PARA NO.
DIFFERENT KINDS OF RAILWAY EXPENDITURE 8.1 801 (802 Deleted)
LIMITATIONS ON POWERS OF MINISTRY OF RAILWAYS 8.1 803 (RAILWAY BOARD)
DELEGATION OF FINANCIAL POWERS TO LOWER 8.1 804 AUTHORITIES
RESPONSIBILITY FOR CONTROL OVER EXPENDITURE 8.1 — 8.2 805 — 806
STANDARDS Of FINANCIAL PROPRIETY 8.2 807
BUDGETARY CONTROL AND CONTROL AGAINST DETAILED 8.2 808 ESTIMATES
AUTHORIZATION ROLLS 8.3 — 8.4 809 — 812 (810 Deleted)
REVENUE ALLOCATION REGISTERS 8.4 813
“PROPORTIONATE” BUDGET ESTIMATE 8.4 — 8.5 814 — 816
MONTHLY FINANCIAL REVIEW 8.5 — 8.6 817 — 820
REAPPROPRIATIONS 8.6 821 — 822
DISTRIBUTION OF THE GRANT FOR THE YEAR 8.7 823
WATCH OVER PROGRESS OF EXPENDITURE 8.7 824 — 827
REVIEW OF EXPENDITURE 8.8 828 — 830
REVIEW OF NEW CONSTRUCTIONS 8.9 831
REVIEW OF OPEN LINE WORKS 8.9 — 8.10 832 — 838 (837, 839 — 846 Deleted)
19 PAKISTAN RAILWAYS GENERAL CODE
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CONTENTS
DESCRIPTION PAGE NO. PARA NO.
FINANCIAL ADVISER AND CHIEF ACCOUNTS OFFICER’S 8.11 847 REVIEW OF MONTHLY RECEIPTS AND EXPENDITURE
UNREMUNERATIVE LINES 8.11 848 — 851
MONTHLY STATEMENT OF APPROXIMATE RECEIPTS AND 8.12 852 — 853 EXPENDITURE
WATCH OVER EXPENDITURE AND EARNINGS OF THE LAST 8.12 854 QUARTER OF THE YEAR
ANNUAL REVIEW OF EXPENDITURE 8.12 855
CONTROL AGAINST OVER-ALLOTMENTS 8.13 856
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801. Different kinds of Railway Expenditure. The expenditure of Pakistan Railways may be either on revenue or on capital account. The detailed Chart of Accounts for recording of all expenditure is given in Appendix XVI to the Pakistan Railways Code for the Accounts Department. The rules and principles governing the allocation of expenditure between revenue and capital are set out in Chapter IX.
802. Deleted.
803. Limitations on powers of Ministry of Railways (Railway Board). No expenditure can, however, be authorized by the Ministry of Railways (Railway Board) unless:
(i) if it is Other than Charged, it is covered by a vote of the National Assembly, and
(ii) if it is Charged, the appropriation has been sanctioned by Prime Minister.
The budget grants as voted by the National Assembly, are the limits within which expenditure may be incurred by the Ministry of Railways (Railway Board) during a financial year, on the specific purposes / objects for which the grants have been made.
804. Delegation of Financial Powers to lower authorities. For the speedy disposal of public business, the Federal Government have delegated most of their powers in financial matters to authorities subordinate to them, with a provision for redelegation to lower authorities (vide Appendix III to this code). In order to provide such authorities with funds to meet the expenditure during a financial year, specific sums (or budget allotments) are placed at their disposal at the beginning of each financial year, out of the grants voted by the National Assembly.
805. Responsibility for control over expenditure. The authorities responsible for the control of expenditure against each grant are detailed in paragraph 408. While it is the duty of the Ministry of Railways (Railway Board), as the controlling authority in respect of the total amount of each grant voted by the National Assembly, to watch the progress of expenditure and to keep the aggregate charges within the amount of the grant or appropriation placed at their disposal, it is the responsibility of the Pakistan Railways administration to exercise a similar control over the allotments placed at their disposal. When several officers are authorized to incur expenditure relating to a detailed object, against a lump-sum allotment placed at the disposal of a single higher authority, it devolves upon this authority to watch the progress of expenditure in all offices and to keep the aggregate charges within the allotment fixed under that detailed object.
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806. The grants voted by the National Assembly, in response to the Demands for Grants presented to them, may be spent only on the objects and for the purpose specified in the detailed statements (Public Sector Development Programme) which accompany the Demands. No expenditure may be incurred by any authority on a ‘new project’ not contemplated in the original demand, without obtaining a supplementary grant from the National Assembly.
Moral obligation
807. Standards of Financial Propriety. In the exercise of their financial powers, the sanctioning authorities must pay due regard to the following principles:
Identification with the interests of the administration.
(1) Every public officer should exercise the same vigilance in respect of expenditure incurred from Government revenues as a person of ordinary prudence would exercise in respect of the expenditure of his own money.
(2) No authority should exercise its powers of sanctioning expenditure to pass an order which will be directly or indirectly to its own advantage,
(3) Government revenues should not be utilized for the benefit of a particular person or section of the community unless:
(i) the amount of expenditure involved is insignificant, or
(ii) a claim for the amount could be enforced in a court of law, or in case of compensation, etc.,
(iii) the expenditure is in pursuance of a recognized policy or custom.
(4) The amount of allowances, such as travelling allowances, granted to meet expenditure of a particular type, should be so regulated that the allowances are not on the whole sources of profit to the recipients.
808. Budgetary Control and Control against Detailed Estimates. Separate allotments are placed at the disposal of Pakistan Railways administration under each object / grant for working expenses and for expenditure on capital works (Public Sector Development Programme project / scheme). These allotments are made detailed object wise for revenue expenditure and development expenditure on capital works, are set out in the ‘Public Sector Development Program’ which is furnished to Pakistan Railways along 8.2
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with the budget orders sanctioning the allotments. The revenue expenditure is distributed over the various detailed object wise by the Ministry of Railways (Railway Board) while project / scheme wise allotment of development expenditure (Public Sector Development Programme) is made by the competent authority. Thus the control of expenditure on Pakistan Railways is exercised through:
(1) the preparation, in advance, of estimates of the expenditure to be incurred;
(2) the allotment of funds through budget grants for the year, on the basis of these estimates; and
(3) the continuous and concurrent review of the expenditure as incurred against the details of the estimates, and against the sanctioned grants, so that revisions of estimates or reappropriation of funds are arranged for at the earliest possible point of time.
The procedure to be followed in controlling expenditure against estimates is detailed in Chapters IX and XII of the Pakistan Railways Codes for the Engineering and Mechanical Departments respectively. Paragraphs 809 to 851 of this Chapter deal with the procedure for reviewing the expenditure, after it is abstracted in suitable form in the initial books of account.
Control over Working Expenses
809. Authorization Rolls. The revised and budget estimates of working expenses submitted by the General Manager to the Ministry of Railways (Railway Board) (paragraph 537) are based on detailed estimates of revenue expenditure obtained by him from the various heads of departments of Pakistan Railways. On receipt of the allotment from the Ministry of Railways (Railway Board), these detailed estimates, are modified as may be necessitated by the allotment sanctioned by the Ministry of Railways (Railway Board) as may be deemed necessary by the General Manager. These constitute the detailed estimates of revenue expenditure sanctioned by the General Manager.
810. Deleted.
811. Within the amounts of the allotments fixed by the General Manager under paragraphs 426 and 809 for the various spending authorities in charge of divisions and departments, such authorities have full power to sanction expenditure on revenue account during the year, subject to the condition that the specific sanction of the competent authority must be obtained separately to all items of expenditure on establishment where under rules such sanction is necessary; and in cases in which the General Manager has prescribed that detailed estimates should be prepared and
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administrative approval and technical sanction obtained before the incurrence of expenditure, the procedure laid down by the General Manager must be followed.
812. Estimates are prepared for New Minor Works costing over Rupees 25,000 which are chargeable to “working expense”. In special cases, detailed estimates are also prepared in respect of other works chargeable to revenue, e.g., estimates for reconditioning stock. In both these cases, the expenditure is recorded in Works Registers (Form E. 1764), as it is incurred, and watched against the detailed provisions in these estimates. The expenditure recorded in these registers is finally transferred to the Revenue Allocation Registers through the aid of which the expenditure is controlled against the Sanctioned Budget allotment as explained below.
813. Revenue Allocation Registers. All revenue expenditure is recorded in the Revenue Allocation Registers by the various heads of accounts prescribed in the Chart of Accounts given in the Appendix I to this Code. The object of these registers is to keep the heads of districts, divisions and departments informed of the progress of expenditure against the allotments sanctioned by the General Manager, which should be entered in red ink in the appropriate columns provided for in these registers so as to form a ready means of comparison and check with the outlay.
814. “Proportionate” Budget Estimate. In addition to the detailed control of expenditure against estimates, a monthly comparison is made of the expenditure of the month (and up-to-date) with the budget grant. For doing this, it is necessary to distribute the sanctioned grant for the year amongst the various months constituting it, after taking all known factors of disturbance into account. While the responsibility for the control of expenditure against the budget allotment devolves upon the authority at whose disposal the allotment has been placed, it is the duty of the Accounts Officer, in his capacity as the Financial Adviser to the administration, to render all possible assistance to the controlling authorities in the exercise of such control. Accordingly, he works out, at the beginning of each financial year, in consultation with the officers responsible for the control of expenditure, the estimated expenditure of the year under each detailed object of a grant under the following details:
(i) Throw forward from the previous year.
(ii) All expenditure whether in cash or by transfer, the liability for which already exists, but which is not likely to be distributed evenly during the year, whether because it is of a periodical nature, or because it is contingent on the receipt of the supplies, or for any other reason.
(iii) Expenditure which is practically fixed and evenly distributed throughout the year.
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(iv) Other expenditure which is likely to be incurred during the year but liabilities for which have yet to be incurred.
(v) The balance left as a reserve for meeting fresh expenditure.
815. In respect of detailed object for which such detailed analysis is not practicable or necessary, because the expenditure does not fluctuate from month to month, e.g., employee related expenses, past actuals are worked out for a number of years.
816. From the details thus worked out the “proportionate budget estimate” for each month, is worked out for each detailed object of the grant, and the progress of expenditure under each detailed object is then watched from month to month through monthly Financial Reviews, in order to see that it is not proceeding at a more rapid pace than the budget provides for, and is not likely to lead to an excess at the end of the year.
817. Monthly Financial Review. The monthly financial review shows the actual expenditure to the end of the previous month, against the allotments placed at the disposal of the controlling authorities under each detailed object of the grant for which they are responsible. The review should be prepared in form G. 817 and submitted to the controlling authorities every month, by such date as may be fixed in consultation with them. FORM No. G. 817
REVIEW OF REVENUE EXPENSES of…...... Division, up to (______2012). Revised Budget Allotment for the Year Proportionate Revised Budget to end of Detailed Heads of Grant 2011-2012 2012_____ Account Description Cash Stores Total Cash Stores Total Code 1 2 3
Actual Revenue Expenditure to end Actuals Revenue Expenditure to end of Variation in Expenditure up to ___2012 of ______2012 _____2011 (Previous Year) Excess (+) Saving (-) Cash Stores Total Cash Stores Total Cash Stores Total 4 5 6
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818. The “proportionate” budget estimate to the end of the month (column 3) is worked out by the Accounts Officer in accordance with the instructions contained in paragraphs 814-816 above. The figures of actual expenditure to the end of the month and for the corresponding period of the last year being available from the Allocation Registers and the compiled accounts, the Accounts Officer should complete the other columns of the review provided above and submit it to the controlling authority, along with the comments of the executive officers responsible for the expenditure and with such remarks of his own as may be useful.
819. In exercising his check the Accounts Officer should see whether;
(a) the non-fluctuating expenditure is according to the monthly appropriation as worked out on the basis of actuals in past years,
(b) the periodical expenditure is in accordance with the estimates,
(c) the correlation assumed between receipts and expenditure in the preparation of the budget is maintained. For the purposes of this comparison, items pertaining to the period, but remaining unadjusted for any reason, should not be lost sight of.
820. The Monthly Financial Reviews should be prepared by the Divisional Accounts Officers concerned for each division, and the Financial Adviser and Chief Accounts Officer should arrange for the consolidation of these divisional reviews into the Monthly Financial Review for the Pakistan Railways, the details of procedure and the due dates being prescribed in consultation with Pakistan Railways administration.
821. Reappropriations. No liability, for which a provision does not exist or the provision for which is inadequate in allotment sanctioned by the General Manager should be incurred unless the necessary funds can be obtained either by reappropriation or fresh allotment. Such liabilities may, however, be liquidated provisionally on the spending authority undertaking to find the requisite funds. All such expenditure should, however, be held by the Accounts Officer under objection “for want of appropriation” or as “excess over appropriation”.
822. The Accounts Officer should advise the spending authorities of reappropriations wherever needed, and how they are to be made. He should see that reappropriations are not allowed to wait, but that whenever a saving under some head is reasonably certain, steps are taken at once to withdraw funds from the detailed object, and whenever it is clear that the progress of expenditure is such as to require an additional appropriation, steps are taken to arrange for it by re appropriation or otherwise.
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Control Over Development Expenditure
823. Distribution of the grant for the year. The allotments placed at the disposal of General Manager by the Ministry of Railways (Railway Board), under Public Sector Development Programme, are distributed among the authorities subordinate to the General Manager and redistributed to lower authorities in the manner described in paragraphs 426 to 428.
824. Watch over Progress of Expenditure. From the moment, expenditure or liability is incurred on works, a check at regular and frequent intervals should be made on its progress, both against estimates and against funds. The check should originate in the lowest executive unit, viz., a division / accounting unit.
825. The Works Registers (Form E. 1764) maintained in each division / accounting unit enable a running comparison to be made between;
(a) the expenditure incurred on each work and the detailed provision made in the estimate for the work, and
(b) the budget allotment for the work and the actual expenditure to the end of the month.
The executive officer should examine the works registers monthly or at more frequent intervals, and watch the progress of expenditure on each work, so that any tendency towards excess over sanctioned estimates may be investigated and curbed, or fresh administrative and technical sanctions obtained in time to cover the anticipated excess.
826. The Accounts Officer should also watch the progress of expenditure on works, on the lines laid down in paragraphs 814 to 816 and advise executive officers as to the necessity of re appropriation, whenever such necessity arises (vide paragraph 822).
827. In watching the progress of expenditure on works, the Accounts Officer should see whether;
(a) the expenditure up to any date is not in excess of the estimate for the quantity executed,
(b) the anticipated credits have actually been realized,
(c) all adjustments are made in time, and
(d) expenditure on any new work is met by merely postponing or retarding the progress of work.
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828. Review of Expenditure. The Accounts Officer should prepare two reviews one by detailed heads of the grant and the other by individual works of Public Sector Development Programme projects/schemes, and present them to the authorities concerned by such dates as may be fixed in consultation with them. The progress of expenditure may be reviewed every month.
829. The review of capital expenditure (Public Sector Development Programme project/ scheme) by detailed heads of the grant should be prepared by the Accounts Officer in Form G. 829.
FORM NO. G. 829
REVIEW SHOWING PROGRESS OF EXPENDITURE CHARGEABLE TO CAPITAL TO END OF (…….20…….)
Total of Proportion of Actual Brief remarks as Detailed Budget estimates expenditure expenditure to the rate of heads of allotment sanctioned to allotment to end of progress of grant for the year during the (Col.4/Col.2) (…..20..…) expenditure year per cent. 1 2 3 4 5 6
830. The review of capital expenditure (Public Sector Development Programme) by works/projects/schemes should be prepared in Form G.830, separately for New Constructions and Open Line works.
FORM NO. G. 830
REVIEW SHOWING PROGRESS OF PUBLIC SECTOR DEVELOPMENT PROGRAMME EXPENDITURE CHARGEABLE TO CAPITAL TO END OF (……...20…….)
Budget allotment for the year Expenditure for …../….. PSDP Internal Total Internal Total Project/ Total Total CD External Internal CD External Internal Schemes Cash Store Internal Cash Store Internal /ST External /ST External 1 2 3 4 5 6 7 8 9 10 11 12 13
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Expenditure to end of …../…..year (Cumulative) Brief remarks as to the Internal Total Grand Total rate of progress of External Cash Store CD/ST Internal Internal External expenditure 14 15 16 17 18 19 20
831. Review of New Constructions. The review of expenditure on new constructions should show the information in regard to each individual construction as shown in project wise Public Sector Development Programme Budget for the current year or for which, though not so shown, there is a ‘throw-forward’.
832. Review of Open Line Works. In the review of expenditure on open line works chargeable to Capital, information should be further classified under each detailed-head of the grant, viz:
(i) Buildings; (ii) Bridges; (iii) Track; (iv) Tunnels; (v) Plant and Equipment; (vi) Rolling stock; (vii) Signalling System; (viii) IT Equipment; (ix) Motor Vehicles.
833. In the case of works, Public Sector Development Programme projects / schemes, other than track renewals and Rolling stock, the review should be made in respect of;
(i) each individual work estimated to cost over Rupees 200,000 shown in the Project wise development budget for the current year, or for which, though not so shown, there is a ‘throw-forward’;
(ii) all works, Public Sector Development Programme projects / schemes costing not more than Rupees 200,000 each, whether in progress or new, not as individual works, Public Sector Development Programme projects / schemes but as one item for the total of such works, including the 'throw-forwards'. If the General Manager so directs, the review should show in detail each item of work for which an estimate has been sanctioned. 8.9
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834. In regard to track renewals, the review should show each item of work for which a separate estimate has been sanctioned by the competent authority.
835. As regards Rolling-stock, each individual item shown in the Project wise development budget for the current year or which, though not so shown, there is a ‘throw-forward’ from the previous year, should be included in the review under the following detailed heads;
(i) Locomotives; (ii) Carriages; and (iii) Wagons.
836. With a view to complete the review, the information in regard to (a) the actual expenditure for the month, (b) commitments which have neither been paid for nor included in the approximates for the month and (c) the amount of probable further outlay to complete the work should be obtained by the Accounts Officer from the controlling authorities concerned.
837. Deleted.
838. The figures of 'actuals' required for the review will be furnished to the authorities mentioned in the preceding paragraph by the Financial Adviser and Chief Accounts Officer immediately after such figures are available. The reviews should be completed by them in accordance with the instructions contained in the paragraphs 829 to 835 and submitted to the Financial Adviser and Chief Accounts Officer, so as to reach him by the middle of the month following that to which they relate.
839. Deleted.
840. Deleted.
841. Deleted.
842. Deleted.
843. Deleted.
844. Deleted.
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845. Deleted.
846. Deleted.
Financial Adviser and Chief Accounts Officer's Review of monthly Receipts and Expenditure
847. The reviews in respect of Revenue and Capital Expenditure, as well as similar reviews of the Earnings of Pakistan Railways, should be consolidated by the Financial Adviser and Chief Accounts Officer in suitable form, and presented to the General Manager monthly in the shape of a “Financial Review” for the whole railway, for the period of the year concluding with the last day of the month previous to that in which such a review is presented. The explanations given for the variations between the expenditure of the year and the actuals for the corresponding period of the previous year should be as full and illuminating as possible and the Financial Adviser and Chief Accounts Officer should indicate what in his opinion are the conclusions to be drawn from the accounts figures.
848. Unremunerative Branch Lines. The case of each branch or section of the line, the earnings of which are less than the working expenses, should be specially brought to the notice of the General Manager with a view to its being represented to the Ministry of Railways (Railway Board) for consideration of the question of closing the line, partially or totally.
849. The Financial Adviser and Chief Accounts Officer's review should indicate not only the savings in working expenses that can be expected by the various departments on the closing of the branch line and also on account of fall in traffic on the main line, but also the losses involved in closing the branch.
850. For this purpose, the annual repair and maintenance in respect of the branch line, or such lower figure as the conditions of traffic working on the branch line may warrant, should be taken as an item of saving resulting from closing the branch provided that when a figure less than the annual repair and maintenance is taken, full justification for the figure adopted should be given. Similarly, interest on the estimated value of material to be released from the branch may be taken as an item of saving. Loss due to interest on the capital cost of the branch may be ignored as it remains constant whether the branch is closed or not.
851. In assessing the losses involved in closing a branch, account should be taken not only of the gross earnings of the branch proper but also of the probable loss of earnings 8.11
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on the main line, which should be estimated carefully with reference to the circumstances of each branch. In this connection it should be borne in mind that all the interchanged traffic is not lost to the main line when a branch is closed, although it may be anticipated that some traffic, having to take to roads to reach the main line rail head, will be diverted to destination by road transport.
Monthly Statement of Approximate Receipts and Expenditure
852. A statement of approximate receipts and expenditure under such heads as may be prescribed should be sent to the Member Finance so as to reach him not later than the date prescribed.
853. The FA&CAO should submit to the Ministry of Railways (Railway Board), a statement of approximate receipts and expenditure for Pakistan Railways to the end of the preceding month.
Watch over Expenditure and Earnings of the last quarter of the year
854. Special watch over the progress of expenditure and earnings should be kept by the Financial Adviser and Chief Accounts Officer in the last quarter of the financial year, and the attention of the controlling authorities should be drawn to the necessity of all reappropriations, withdrawals or additional allotments, as the case may be, and the manner in which such reappropriations should be made. It should be particularly seen what expenditure is likely to be thrown forward to the next year’s grant, so that the General Manager may inform the Ministry of Railways (Railway Board) of the necessity of making any provision in the budget of the following year. Orders of the General Manager should also be obtained as to whether savings in the current year's grant, represented by the carry forward to the subsequent year should be permitted to be utilized for meeting any other expenditure, recurring or non-recurring, during the year. If any such savings, or any other savings of a non-recurring character, are sought to be utilized by any authority to meet fresh recurring expenditure, it should be brought to the notice of the General Manager and, in important cases, to the notice of the Member Finance, as well, through the proper channel.
Annual Review of Expenditure
855. The total expenditure for the year, as actually booked in the accounts of Pakistan Railways, against the various grants and appropriations, is reviewed through the ‘Appropriation Accounts’ described in Chapter VI.
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Control against Over-allotments
856. If in respect of any grant, the Ministry of Railways (Railway Board) make over allotments against a prospect of undefined savings, the Member Finance should keep a record of such over-allotment and should bring to the notice of the Ministry of Railways (Railway Board) any failure in the savings to be realized.
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PAKISTAN RAILWAYS
PAKISTAN RAILWAYS GENERAL CODE
Riaz Ahmad & Company Chartered Accountants
CHAPTER IX
20 October, 2011
9.1 PAKISTAN RAILWAYS GENERAL CODE
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ALLOCATION OF EXPENDITURE
CONTENTS
DESCRIPTION PAGE NO. PARA NO.
GENERAL PRINCIPLES OF ALLOCATION 9.1 — 9.2 901 — 909 (906 — 907 Deleted)
LAND 9.2 — 9.3 910 — 916 (911 Deleted) SURVEYS 9.3 917 — 918
NEW LINES 9.3 — 9.4 919 — 926
LINES PARTIALLY OPENED FOR TRAFFIC 9.4 927
NEW MINOR WORKS 9.5 928 — 930 (931 Deleted)
REVENUE SIDINGS 9.5 932
ADDITIONS OF BALLAST 9.5 933
TEMPORARY AND EXPERIMENTAL WORKS 9.6 934
MAINTENANCE OF QUARTERS FOR CONSTRUCTION 9.6 935 STAFF ROLLING-STOCK 9.6 — 9.7 936 — 941 (938 Deleted)
STAND-BYS 9.7 942
SPARES 9.8 943 (944 — 946 Omitted)
REPLACEMENTS AND RENEWALS 9.8 — 9.9 947 — 951 (949 Deleted)
21 PAKISTAN RAILWAYS GENERAL CODE
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CONTENTS
DESCRIPTION PAGE NO. PARA NO.
RENEWALS OF RAILS, CRANES, WEIGHING MACHINES 9.9 — 9.10 952 — 954 AND WEIGHBRIDGES
RENEWALS OF GIRDERS 9.10 955
RENEWALS OF LOCOMOTIVES 9.11 956 — 958
RENEWALS OF TENDERS 9.12 959 — 960
RENEWAL OF BOILERS 9.12 961 — 963
RENEWALS OF CARRIAGES AND BRAKE-VANS 9.12 — 9.13 964 — 967
RENEWALS OF STEAM COACHES 9.13 968
RENEWALS OF WAGONS 9.13 969
RENEWALS OF ROLLING-STOCK PARTS 9.14 970 — 973 (971, 974-977A Deleted)
TRANSFERS OF ASSETS FROM ‘OPEN LINE’ TO 9.14 978 ‘CONSTRUCTION’ REPLACED STOCK 9.14 — 9.15 979 — 981
SECOND-HAND RAILS 9.15 982 INCIDENTAL WORKS 9.15 983 — 984
INCIDENTAL CHARGES 9.16 985
EXPENDITURE ON CEREMONIAL OCCASIONS 9.16 986
COST OF TOOLS AND PLANT AND SPECIAL POSTS 9.16 987
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General Principles of Allocation
901. Railway expenditure may be incurred either on Capital Account or on Revenue Account. The detailed Chart of Accounts for recording of all transactions whether, capital or revenue has been given in Appendix I to this Code. The general principles on which railway expenditure should be allocated between these two heads of accounts are laid down in paragraphs 902 to 908 below.
902. Capital bears–
(1) the cost of land, (2) the first cost of construction and equipment of the line, (3) the cost of maintaining a section of the line not opened for working, (4) the cost of any addition to the line or equipment of the line when estimated to cost more than the New Minor Works limit as defined in paragraph 928, (5) the cost of any tools and plant specifically purchased, and of any posts specially created, for the supervision or construction of a work, in accordance with the provisions of paragraph 987.
903. Capital is credited with–
1) the cost at debit of capital of an asset (other than land) which is abandoned or disposed of without being replaced,
NOTE.–When such an asset is subsequently replaced the adjustment made under this rule is reversed and the expenditure is allocated according to para. 948 et seq.
2) the sale proceeds of any land acquired at the cost of Capital, when it is sold or surrendered,
3) the difference between the cost at debit of Capital of a replaced asset and the cost of its replacement when the cost of replacement is less than the cost at debit of Capital,
904. Revenue bears–
1) all charges for maintenance and repairs after the opening of a line for traffic, other than charges of the nature detailed in paragraph 921, including the current expenses of conducting the business of Pakistan Railways, e.g., pay, allowances, etc., of establishment employed on the open line,
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2) the cost of such replacements and renewals as are not chargeable to Capital under paragraph 950,
3) the cost of such works or additions as fall within the category of New Minor Works as defined in paragraph 928,
4) the cost of labour originally incurred in laying the assets or parts thereof, when such items are subsequently transferred for use on a new work,
905. Revenue is credited with–
(1) the value of materials released from works charged to Revenue (ordinary repairs and maintenance),
(2) the amount realized from the disposal of an asset the original cost of which is Rupees 20,000 or less.
906. Deleted.
907. Deleted.
908. Credits realized from the disposal of an asset the original cost (cost at debit of Capital) of which is more than Rupees 20,000 and credits for materials released from a work are taken in reduction of respective Capital head after deducting the incidental charges, e.g., the cost of dismantling, handling and shifting, including freight to stores depot.
909. The following detailed rules regulate the allocation of expenditure in particular cases and are intended to be illustrative of the application of the basic principles in practice.
Land
910. Land taken up permanently, whether for Capital or Revenue purposes of the railway, is charged irrespective of cost, to Capital. All charges incidental to acquisition of land are included in the cost of land.
911. Deleted.
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912. The cost of land required for the acquisition of materials by quarrying, mining, boring or other operation; and payments for royalty, mining rights, etc., connected with the same, is dealt with as part of the cost of the manufacturing operations or charged off finally to the work concerned.
913. Rent or other miscellaneous charges in connection with the hire of land (e.g., the compensation payable for land acquired temporarily under Section 35 of the Land Acquisition Act of 1894) are charged to the work concerned.
914. The cost of filling up borrow pits as a conservancy measure is chargeable to Revenue. When the filling up borrow pits is necessitated by the construction of a new work, the cost of filling up should be allocated to the work concerned.
915. When land, originally acquired at the cost of Capital, is sold or surrendered, the sale proceeds are in all cases credited to Capital.
916. When land is lost through erosion, its cost is written back from Capital to Revenue. If the land so washed away subsequently re-forms and is used by the railway the adjustment originally made is reversed.
Surveys
917. The expenditure incurred on a survey project is in the first instance charged to the capital work in progress account of the project and when the construction of the project is completed, it is transferred to the debit of Capital irrespective of the year in which the expenditure was originally incurred.
918. The cost of surveys which Pakistan Railways undertakes at the request of a Provincial Government in connection with a project regarding which that Government expresses its willingness to guarantee is charged to the relevant head of Chart of accounts. If the construction of a line surveyed under this agreement is not proceeded with owing to the unwillingness of the Government to meet the guarantee required, that Government will pay to the railway the cost of the survey.
New Lines
919. The allocation of expenditure on new lines after the date of opening but before the closing of the completion estimate is regulated by the rules in paragraphs 920 to 926.
920. The cost of completing works which were incomplete on the date of opening and of works which, though commenced after that date, may properly be considered as forming essential parts of first equipment, is charged to Capital.
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921. During the period for which such works remain incomplete, the cost of their maintenance, replacement or renewal is also charged to Capital, provided the maintenance, replacement or renewal becomes necessary directly out of their incomplete state.
922. The cost of maintenance of works which were complete on the date of opening is charged to Revenue. The cost of their replacement or renewal is allocated to capital according to the provisions of paragraph 948 et seq. For the purposes of this rule a work is considered to be “complete” only when for the first time, it conforms in all respects to its accepted specification.
923. A few instances are given below to elucidate further the principles enunciated in paragraphs 920 to 922.
924. Cess repairs and earthwork for banks undertaken immediately after the opening of a line, while the construction estimate is still open, may be regarded as works necessary to complete the bank, chargeable to the construction estimate and debitable to Capital.
925. Ballast and permanent way are regarded as “complete” when they are laid to the accepted specification, and any subsequent packing or other work that becomes necessary after opening of the line should be charged to Revenue.
926. Repairs to bridge bed blocks, kilometerstones, engine sheds, water columns and quarters, which have been completed to specification and are capable of being put to the use for which they were intended are chargeable to Revenue irrespective of whether they were actually so used or not. If works were not complete as defined above, the cost of the repair is chargeable to Capital.
927. Lines Partially Opened for Traffic.–Subject to the provisions of Rule 921 in regard to the maintenance of incomplete works, the maintenance charges of a line, or a portion of a line, which has been opened for traffic but the maintenance of which continues to be supervised by Construction Staff, should be allocated as follows. Such of the charges as can be identified as directly allocable to the line or portion of the line opened for traffic, should be debited to Revenue. The cost of supervising and miscellaneous staff and other miscellaneous expenditure, which is not so identifiable, should be distributed between Capital and Revenue in the ratio which the total Capital Expenditure, both on opened and unopened portions of the line, bears to Revenue Expenditure on the portion open to traffic plus the Revenue Earnings of that portion. So far as the maintenance of permanent way is concerned, the debit to Revenue, in respect of expenditure not so identifiable, may be arrived at on an estimated basis having regard to the expenditure on the maintenance of lines similarly located.
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NOTE.–The term “Capital Expenditure” in this paragraph means “Gross Capital Expenditure” ignoring any credits for released materials
New Minor Works
928. New works or additions to existing works, estimated to cost not more than Rupees 25,000 are treated as “Minor Works”, and charged to revenue. A work of replacement, in which the amount chargeable to Capital is not more than Rupees 25,000 is also treated as a “Minor Works” and the portion chargeable to Capital is debited to Revenue——New Minor Works (cf. paragraph 948).
929. Works, estimated to cost not more than Rupees 25,000 each but more than Rupees 25,000 in the aggregate, may be charged to Capital, if each work cannot be carried out by itself and independently of others, or is ineffective for the purpose for which it is intended unless all the works are undertaken together and completed at or about the same time. The physical purpose for which a work is intended is the determining factor in such cases. Rolling-stock of any one class forming part of the program of a year will, however, be grouped together without reference to the conditions laid down in this paragraph.
930. When new minor works cannot be grouped together, under the provisions of the preceding paragraph, but they are such that as a matter of policy, they have to be completed within a short period and the expenditure involved on them taken together exceeds Rupees 600,000, their cost may be charged to Capital, with the previous sanction of the Ministry of Railways (Railway Board) provided the works are undertaken about the same time as part of a general scheme, which it has been decided should be carried out within a limited time, not exceeding three years.
931.Deleted.
Revenue Sidings
932. The cost of sidings required purely for revenue purposes e.g., ballast and fuel sidings, are charged to Capital.
Additions of Ballast
933. (1) Ballast added after three years of the opening of a line is ordinarily not treated as an addition chargeable to Capital but when existing ballast is replaced by a different type of ballast, a charge to Capital is permissible. Similarly, the cost of positive and definite increase in depth of ballast which gives an improved standard and which is quite unconnected with any change in the type of sleepers, may be debited to Capital, if such a debit is otherwise admissible under the rules.
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(2) Ballast and permanent way should be treated separately, except in cases where the former is necessitated and forms an integral part of the relaying, e.g., when additional ballast has to be provided in connection with the replacement of timber sleepers by concrete sleepers, steel sleepers, due to the fact that the latter require more ballast per linear foot of standard ballast section than the former do. In such cases the supply of additional ballast should form an integral part of the operation of replacing one kind of sleeper by another kind and should be combined with the ‘Permanent way’ portion of the estimate for the purpose of allocation.
Temporary and Experimental Works
934. The cost of a temporary or experimental works is chargeable to Revenue. When, however, it ceases to be temporary or experimental and becomes permanent, or is replaced by a permanent work, the actual cost of the work should be charged to Capital, provided it is more than Rupees 25,000.
Maintenance of Quarters for Construction Staff
935. When quarters are built as part of important open line works in progress and not handed over to be managed by the open line, are occupied by the open line staff, the rent realized shall be credited and the cost of repairs and maintenance charged to revenue. But when such quarters are occupied by construction staff, the rent will be credited to and the cost of repairs and maintenance of such quarters as are vacant should also be charged to the project.
Rolling-stock
936. All first equipment of rolling-stock for a line of railway is chargeable to Capital. Whether an item of rolling-stock provided otherwise than as first equipment is to be accounted for as an addition or as a replacement or renewal shall be decided according to the following principles.
937. Renewals must always take precedence of “Additions”.
938. Deleted.
939. The following are the broad classes into which rolling-stock is divided for the purposes of the preceding paragraph, but if there is any doubt whether a particular item belongs to one class or another, the decision of the Ministry of Railways (Railway Board) should be obtained—
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Class Particulars 1. Locomotives, steam, internal combustion and battery. 2. Locomotives, electric. 3. Locomotives, diesel electric. 4. Coaching Stock (Suburban, Motor Units). 5. Coaching Stock, self-propelled. 6. Saloons. 7. Tourist Cars and Restaurant Cars. 8. Coaching Stock, upper classes, including all vehicles in which first class (sleeper) or second class accommodation is provided. 9. Coaching Stock including brake, luggage and Postal in which first class (sleeper) or economy class accommodation is provided. 10. Other coaching vehicles including brake, luggage, Postal, motor, fruit, fish, poultry, duck vans and horse-boxes. 11. Officers' carriages. 12. Service coaching vehicles, including stores vans, tool vans, break-down vans and subordinate inspection carriages. 13. General service goods wagons, including open, covered, low-sided rail and timber trucks. 14. Explosive vans, oil and petrol tank wagons. 15. Other goods vehicles, including cattle wagon. 16. Well wagons. 17. Goods brake vans. 18. Service wagons, including ballast, hopper, crane support, crane and weigh bridge testing wagons, and water tank wagons.
940. The classification given in the preceding paragraph is intended to cover ordinary cases where new stock of a particular class is obtained, but when new stock of a particular class supersedes actually old stock of another class, the case should be referred to the Ministry of Railways (Railway Board) for orders on its individual merits.
941. Pakistan Railways shall maintain in the necessary detail, statistics of rolling-stock showing the figures separately for each class of rolling-stock, the numbers of the gross authorized stock, the reduction therein made from time to time and the net authorized stock.
Stand-bys
942. For the purpose of this rule a “stand-by” is a complete unit of machinery, plant or equipment which is kept in order to perform the functions of the main unit of machinery, plant or equipment to which it is a “stand-by” and with which it may be identifiable, when such unit is put out of action temporarily on account of accident or periodical repairs, or is required to assist when the main unit has to meet an overload.
The cost of such “stand-by” is chargeable to capital provided the machinery, plant or equipment to which it is a “stand-by” is borne against capital.
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Spares
943. Other spare items of machinery, plant or equipment, whether complete units or parts, which do not fulfill the conditions of the preceding paragraph, such as boiler tubes, superheater element, armatures, valves, coils, etc., will be called “spares” for the purpose of this rule.
The cost of such “spares” should, in all cases, be brought on to the relevant Stores head and charged to revenue when handed over to the using department. Exceptional cases where a charge to capital is considered justifiable should be referred to the Ministry of Railways (Railway Board) for orders. The following items have been admitted by the Ministry of Railways (Railway Board) as justifying a charge to capital–
(a) spare boilers for each type of locomotive in use, up to 7 per cent of their total authorized stock of locomotives, intended to accelerate engine repairs,
(b) spare bogies built with wheels and axles provided to facilitate and expedite the outturn of rolling-stock from the repair shops,
(c) spare boilers for watering arrangements at stations and power-operated spare pumping sets.
(d) Spare assemblies of locomotives in use, up to 7 per cent, of their authorized stock, to facilitate and expedite the outturn from sheds and shops such as, Diesel Engine, Air compressor, Turbo supercharger, Traction motors, Wheel and Axle Assembly, Radiators, Intercoolers, After cooler. Fuel Pump Motors, Fuel Injection Pumps, Cylinder Head with valves, Cylinder Liners, Starter Motor with pinion, Blower Motors, Engine Governor, Speedometers and Gear cases.
944——946. Omitted.
Replacements and Renewals
947. After the date of opening of a line for traffic the cost of replacement or renewal of works or articles of equipment which were complete on that date, is allocated in accordance with the rules in paragraphs 948 to 973.
948. The cost of the replacement of an asset is chargeable to respective capital head.
949. Deleted.
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950. For the purpose of paragraph 948, a replacement or renewal to admit of a debit to relevant capital head must fall under one of the following categories——
(1) renewals, including casual renewals of rails, sleepers and fastenings such as fish-plates, fish bolts, spikes, points and crossings, tongue rails;
(2) wholesale renewals or strengthening of bridges and girders;
(3) renewals of assets detailed in paragraphs 952 to 962 and 964 to 970;
(4) renewals costing more than Rupees 25,000, of all other kinds of assets.
When a renewal or replacement does not fall under any of the categories detailed in this rule, the cost of replacement will be borne by Revenue Ordinary Repairs and Maintenance.
NOTE.——The cost of repairing flood damages and protective works including the cost of repairing damages to track caused by accidents, is chargeable to “Ordinary Revenue, Maintenance and Repairs”, unless the repairs are associated with an element of betterment necessitating a charge to Capital in which case their cost should be charged to the respective capital head.
951. In the case of the assets referred to in paragraphs 952 to 970 the estimated “cost of replacement, at current prices, of an asset by a like asset” may in no circumstances be less than the cost of replacement calculated in the manner laid down in those paragraphs.
Renewals of Rails, Cranes, Weighing machines and Weighbridges
952. When– R is the cost of replacement by a like asset; N is the cost of the new rail or crane or weighing machine or weighbridge; W1 is the weight of the old rail, or the lifting capacity of the old crane, or the maximum weight capacity of the old weighing machine or weighbridge; W2 is the weight of the new rail, or the lifting capacity of the new crane, or the maximum weight capacity of the new weighing machine or weighbridge; the cost of replacement by like asset——
N x W1 R will be W2 NOTE (1).–The above formula will apply to cranes, weighing machines and weigh-bridges only when the replacing crane, weighing machine or weigh-bridge is in the same category as the replaced one. NOTE (2).—— “N” in the formula in this paragraph represents the cost of material only and does not include the labour charges, freight and handling charges including ballast and material train charges, newly incurred which are separately chargeable to the replacement account. The original cost of such charges will remain at the debit of capital. 9.9
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953. Where renewal of track is proposed by a different weight of rail and different type of sleeper, the amount chargeable to the capital will be the actual cost of the material in the track.
954. (1) When rails, which were second-hand when originally put in the line, are replaced by new ones, Capital should be charged in addition to the amount chargeable under paragraph 948, with the difference between the first-hand and second-hand price of the replaced rails at the time they were originally put in the line, provided that the sum of these two debits shall not exceed the excess of the cost of the replacing rails over the original cost or the present cost of the replaced rails whichever is greater.
Renewals of girders
955. (1) The cost of replacement of girder will be determined by the formula R=W–K (1– S) W where–
R is the cost of replacement by a like asset; W is the cost of a girder of the same span having H. M. standard strength; S is the strength of the existing girder expressed as a fraction of H. M. standard; and K has the value given in the following table–
Broad-gauge. Metre-gauge.
Through type spans up to 48.768 meters •48 •38
All other spans up to 73.152 meters •60 •50
All spans over 73.152 meters •64 •56
NOTE–When the strength of the new girder is not H.M. standard, the value of W may be determined by the following formula–
W = W'
1- K (1- S')
Where—— W’= the cost of the new girder, and S’ = the strength of the new girder expressed as a fraction of H. M. standard.
(2) When girders are duplicated or strengthened by adding materials, instead of
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replacing them by new ones of the necessary strength, the charge to Capital shall not exceed what would have been made, according to the above formula, if the girders had been replaced by new ones of the necessary strength.
(3) The cost of additional earthwork carried out in raising the road bed in the approaches of railway bridges on account of replacement of girders by others of greater depth may be charged to Capital, provided the deeper girders give stronger bridges.
Renewals of Locomotives
956. When locomotives are replaced, the cost of replacement is obtained by applying N x T1 the formula R = R = T2
where R is the cost of replacement by a like asset ; N is the cost of the new locomotive; T1 is the tractive force of the old locomotive; T2 is the tractive force of the new locomotive.
957. The tractive force of two-cylinder simple locomotives should be worked out by DxPxL applying the formula T = W
where D is the diameter of cylinder in inches; P is the mean steam pressure in cylinders in lbs. per square inch taken at 85 per cent. of the maximum boiler pressure for superheated engines and at 75 per cent of the maximum boiler pressure for saturated engines; L is the length or stroke in inches; W is the diameter of driving wheel in inches; T is the tractive force at rails in lbs.
958. In the case of four-cylinder simple locomotives, the tractive force, for the purpose of the formula prescribed in paragraph 956, shall be taken to be equal to twice the tractive force calculated according to paragraph 957.
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Renewals of Tenders
959. The cost of replacement of tenders should be obtained by using the formula–
NxC1 R = C 2 where R is the cost of replacement by a like asset; N is the cost of new tender; C1 is the capacity of old tender; C2 is the capacity of new tender.
The capacity of a tender is equal to its maximum fuel capacity in lbs. plus its maximum water capacity in lbs. calculated at 10 lbs. a gallon.
960. Whenever the cost of the tender is not known separately from the cost of engine, or whenever a tender engine and tender are substituted for a tank engine or vice versa the engine and tender may be treated as a whole, the formula for locomotives being applied to the combined engine and tender.
Renewal of Boilers
961. When spare boilers are replaced by boilers of increased capacity their cost of replacement at current prices should be estimated on the basis of tractive effort of the most powerful class of engines to which the boilers (both replacing or replaced) could be fitted.
962. When a saturated boiler is replaced by a new superheater boiler without involving any increase in tractive effort, the allocation must follow the rule in paragraph 948, subject to the charge to Capital being not more than 10 per cent. of the cost of the new superheater boiler. When a saturated boiler is replaced by a new superheater boiler of higher capacity, the allocation must follow the rule in paragraph 961.
963. When an existing boiler is converted to superheat by the use of additional fittings, the cost of the additional fittings, i.e., superheater, header flues and elements should be charged to Capital and the cost of the tube plates and branch steam pipes, etc., which have to be renewed, should be charged to Ordinary Revenue.
Renewals of Carriages and Brake-vans
964. In the case of the replacement of carriages, one bogie should be taken as replacing two four-wheelers and the following formula should be used——
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A1xN R = A2
where R is the cost of replacement by a like asset; N is the cost of the new carriage excluding the cost of improved appliances which did not exist in the stock replaced and constitute a substantial improvement; A1 is the floor area of the old carriage; and
A2 is the floor area of the new carriage.
965. In calculating the floor area of a carriage the effective width of the carriage, i.e., its width from waist upwards should be taken and not the width at the floor level.
966. Only gas and electric lighting, electric fans, air-conditioning equipment, vacuum brakes and inter-communication apparatus are admitted as improved appliances.
967. When new stock is built on old underframes, only the depreciated value of the underframes should be included in the cost of the new stock in applying the formula prescribed in paragraph 964.
Renewals of Steam Coaches
968. When steam coaches are replaced by engines, the allocation of the cost of replacement of the locomotive portion of the coaches is made on the basis of tractive effort and of the carriage portion on the waist area of carriage other than that occupied by the engine compartment, the carriage portion being counted as one four-wheeled carriage.
Renewals of Wagons
969. The formula that should be used for ascertaining the cost of replacement of wagons, one bogie wagon being taken as equivalent to two four-wheelers, is as follows–
C1xN R = C 2 where R is the cost of replacement by a like asset; N is the cost of new wagon excluding the cost of improved appliances;
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C1 is the carrying capacity of the old wagon; C2 is the carrying capacity of the new wagon.
Renewals of Rolling-stock Parts
970. The cost of renewals of complete wheels and axles of carriages and wagons should be allocated on the weight basis according to the formula prescribed for rails.
971. Deleted.
972. When the motions, or in some cases the engine frames of locomotives, are altered, the total cost is charged to Revenue (Ordinary Repairs and Maintenance).
973. When small fittings are provided for locomotives or boilers incidental to conversions, the total cost is charged to Revenue (Ordinary Repairs and Maintenance).
974. Deleted.
975. Deleted.
976. Deleted.
977. Deleted.
977-A. Deleted.
Transfers of assets from ‘Open line’ to ‘Construction’
978. When an asset borne at the debit of Capital is transferred from open line to construction, the original cost of the asset should be written back from Capital and the depreciated value of the asset debited to the construction estimate by credit to the capital.
Replaced Stock
979. Credits for rolling-stock, replaced but kept running on the line, should be charged to capital only when the stock is actually broken up, or returned to the Stores depot or otherwise disposed of.
980. When parts of an engine or vehicle which is borne on the “replaced stock” list, are to be used in the construction of new stock the carrying amount of the material so used shall be included as part of the cost of the new stock, the capital head receiving credit to that extent.
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981. The cost of all additions and alterations which may be required to be made in the replaced stock to render it suitable for the purpose for which its retention was intended, should be charged to Revenue. Vehicles converted into those of a different class do not come under this rule and incidence of the cost of conversion follows the ordinary rules.
Second-hand Rails
982. When second-hand rails, released from existing lines, are supplied to new projects, their price is determined according to the formula prescribed below–
N Price per ton = R(R − S) L
where : R is the present day price of new rails of the section in question (exclusive of freight charges); N is the age of the rail; L is the estimated useful life of the rail; and S is the scrap value of the rail.
Normally, L should be taken as 45 years but is subject to variation in cases where the Chief Engineer considers that it is not a fair estimate of the useful life; and S should be taken at 30 per cent. of the present day price of new rail unless there are special reasons to hold that, at the time of transfer of the rails, the value so arrived at diverges considerably from the current market rates for such scrap when the value may be fixed on the basis of rates obtained for large quantities at recent sales.
Incidental Works
983. The allocation of temporary works and diversions, which are incidental to a main work, follows that of the main work in connection with which they are required, and where the main works are chargeable partly to Capital and partly to Revenue, their cost is allocated in ratable proportions.
984. The cost of incidental works which are not essential for the execution of work of the main work, but are required merely to maintain the earnings of the railway at their normal level is chargeable entirely to Revenue.
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Incidental Charges
985. The cost of a work includes all charges directly connected with the work. Accordingly, the freight on materials to the site of work and the charges for loading and unloading, dismantlement, shifting and relaying form part of the cost of a new work, and are not separately chargeable to Revenue.
Expenditure on Ceremonial Occasions
986. The expenditure incurred on ceremonial occasions in connection with the opening of new lines or open line work shall be charged to Revenue.
Cost of Tools and Plant and Special Posts
987. No portion of the pay or allowances of permanent open line staff shall be charged to Capital, when such staff is employed on special works and the vacancies thus caused in the open line cadre remain unfilled. The cost (less return value) of tools and plant specially purchased and the cost of any posts specially created for the supervision or construction of a work is charged to Capital. Where the cost of work is chargeable partly to Capital and partly to Revenue, the cost of such posts and tools and plant should be allocated to Capital and Revenue in the same proportion in which the estimate for the work, excluding the estimated cost of tools and plants and special posts, is chargeable. For working out the proportion, the gross amount of the estimate (ignoring the provision for credits on accounts of released materials) should be taken into account. The cost of a post, for the purpose of this rule, includes the leave-salary and contributions towards passes, pensions, provident fund bonus and gratuity, which the holder of the post may be entitled to.
NOTE.—— The provision for credits on account of released material to be ignored in working out the proportion of cost to tools and plant and special posts, should be the net credit in terms of paragraph 908-G.
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PAKISTAN RAILWAYS
PAKISTAN RAILWAYS GENERAL CODE
Riaz Ahmad & Company Chartered Accountants
CHAPTER X
20 October, 2011
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CHAPTER X
ALLOCATION OF EXPENDITURE ON STATE RAILWAYS MANAGED BY COMPANIES AND ON PRIVATE RAILWAYS WORKED BY THE STATE
DELETED
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PAKISTAN RAILWAYS
PAKISTAN RAILWAYS GENERAL CODE
Riaz Ahmad & Company Chartered Accountants
CHAPTER XI
20 October, 2011
9.1 PAKISTAN RAILWAYS GENERAL CODE
CHAPTER XI
INCIDENCE OF THE COST OF WORKS FOR NON-RAILWAY DEPARTMENTS
CONTENTS
DESCRIPTION PAGE NO. PARA NO.
WORKS REQUIRED FOR DEFENCE PURPOSES 11.1 1101
STRATEGIC LINES 11.1 — 11.2 1102 — 1105
COMMERCIAL LINES 11.2 — 11.3 1106 — 1107
DEFENCE WORKS 11.3 1108 — 1110
ROADWAYS OVER RAILWAY BRIDGES 11.3 1111 — 1112
COST OF CONSTRUCTION AND RENEWAL 11.4 1113
MAINTENANCE 11.4 — 11.5 1114 — 1115
FOOTWAYS OVER RAILWAY BRIDGES 11.5 1116
WORKS FOR CIVIL DEPARTMENTS — LEVEL-CROSSINGS, ROAD 11.5 1117 — 1122 OVERBRIDGES AND UNDERBRIDGES
SURVEYS UNDERTAKEN FOR PROVINCIAL GOVERNMENTS 11.6 1123
POSTAL VANS 11.7 — 11.9 1124 — 1129
SALOON CARRIAGES 11.9 — 11.11 1130 — 1140
ASSISTED SIDINGS 11.11 1141
BUILDINGS CONSTRUCTED FOR OTHER DEPARTMENTS AND 11.11 1142 GOVERNMENTS (1143 Deleted)
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Works Required for Defence Purposes
1101. The cost of works constructed to meet the special requirements of the Defence Department is divided between the Railway estimates and the Defence estimates in accordance with the principles stated in paragraphs 1102 to 1110.
1102. Strategic Lines.–- The Railway estimates bear–
(i) the cost of all land and works necessary for the handling and transport by Pakistan Railways, in its capacity as a carrying agent, of all military personnel, animals, and stores. Such items would include (within the existing or to be extended railway station or yard limits), all buildings, quarters, sidings, platforms and ancillary works necessary for, or incidental to, the working of the railway as a transport agency;
(ii) all expenditure, including the cost of land, in connection with sidings which are not required for the use of the military authorities in peace but are immediately essential on mobilization;
(iii) the cost of maintenance of (i) and (ii) ; and
(iv) the cost of all permanent way, girders and signals in connection with sidings required for use by the military authorities in peace connecting the actual railway station yards or running lines with military store yards or running lines.
1103. The Defence estimates bear–
(i) the cost of sidings, including platforms alongside them, required for use by the military authorities in peace, connecting the actual station yards or running lines with military store yards or depots, except the cost of permanent way, girders or signals;
(ii) the cost of all land required for works included in clause (i);
(iii) interest and maintenance charges calculated on the cost of permanent way, girders and signals charged to railway funds under clause (iv) of paragraph 1102 above ; and also the cost of maintenance and repairs of works included in clause (i) of this paragraph;
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(iv) the cost of all other works including the cost of land for such works; these works will consist of buildings, sidings, tracks, platforms, etc., required by the military authorities for their own administrative purposes to save transport by road and to provide facilities for unloading and loading of military personnel, animals or stores at the site of any magazine, store yard or depot; and
(v) the cost of maintenance of (iv).
1104. With regard to water supply arrangements, the cost of wells, head-works, etc., necessary for the actual supply, will be borne in full by either the railway or the military authorities as may be more convenient. If, for example, wells are sunk by the railway to provide water for railway purposes and the military authorities require a supply of water for purposes unconnected with the working of the railway as a transport agency, military funds will bear the cost of distribution from the railway main or mains, plus a charge made by the railway for the actual water supplied. Military funds will not be called upon to bear any proportion of the cost of the original installation. The same will apply mutatis mutandis in cases where the railway derives its water from a military installation.
1105. All works carried out by the railway authorities, the cost of which is chargeable to Defence estimates, will be executed by the railway as agents of the military authorities who will be liable to pay in addition to the actual cost of construction, the usual charges for supervision.
1106. Commercial Lines.——Pakistan Railways estimates bear——
(i) the cost of all recoverable material such as permanent way, girders, signals and other moveable things, which are unlikely to be required for military purposes, used in the construction of troop sidings and platforms, etc.; and
(ii) the cost of land acquired for troop sidings and platforms, etc., if the railway administration chooses to acquire it for its own purpose.
1107. The Defence estimates bear–
(i) the cost of construction of troop sidings and platforms, etc., including the signalling arrangements required in the event of the siding or platform taking off from the main line beyond the limits of a station yard, except the cost of recoverable material defined in clause (i) of paragraph 1106 above;
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(ii) the cost of land acquired for troop sidings and platforms, etc., if the railway administration does not choose to acquire it for its own purpose;
(iii) the interest and maintenance charges at the rate of 12.5 per cent in respect of items (i) and (ii) of paragraph 1106 and the maintenance charges at the rate of 8.5 per cent in respect of item (i) above and the cost of the working of signals required for platforms and sidings taking off the main line; and
(iv) the cost of taking up and returning to stores the materials defined in clause (i) of paragraph 1106 in the event of the sidings being abandoned.
1108. Defence Works.——The cost of building and maintaining works for the defence of railway bridges, stations and tunnels, which are designed for occupation by regular troops, or which may in certain circumstances be garrisoned by them is chargeable to the Defence estimates. But the railway estimates bear the cost of maintaining buildings, which are required to be garrisoned by regular troops only in certain circumstances and which the railway administration concerned retains the right to occupy free of rent when not required by the military authorities and which are suitable for occupation by railway servants.
1109. Similarly, where the railway administration changes the site of bridges, necessitating the provision of new defences thereon, the cost of provision of such defence works, when they are considered necessary from a military point of view, will be a charge against Defence estimates.
1110. The cost of staff, whether railway, police or military, employed on protecting railway bridges (in the latter two cases if employed at the request of the railway), will be borne by the railway, but when the service is taken over, on general grounds of state policy, by the police, military or other public service department as part of its regular duties, the charges will be borne by the police, military or public service department.
Works required to meet the joint requirements of the Civil and Defence Departments
1111. Roadways over Railway Bridges.——The following rules regulate the incidence of the cost of roadways over Railway bridges.
1112. The necessity for a roadway for other than railway traffic on a Railway bridge, will be decided on its merits, the Provincial Government being afforded an opportunity in each case of offering to share in the cost of the combined structure, but the final decision in an individual case will rest with the Federal Government.
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1113. Cost of Construction and Renewal.–Should the provision of a roadway be decided upon, the division of cost will be on the following basis. It must, however, be understood that payment for a roadway will only secure the provision of a road during the life of a structure for railway purposes and that if it has to be reconstructed for any reason, the division of cost will have to be made afresh.
(a) New Bridges.–(i) In the case of broad-gauge (i.e., 1676 mm) bridges the total cost of the combined structure inclusive of piers, abutments, protection and training works will be divided in the proportion of 67 per cent to the Railway and 33 per cent to the road.
(ii) For metre-gauge bridges, the division of cost will be in the proportion of 67 per cent to the railway and 33 per cent to the road.
(b) Bridges regirdered.-–The division of cost when a roadway is provided on a bridge which is regirdered will be as follows, i.e., the actual cost of the regirdering including the provision of the roadway, will be divided as in a (ii), but no contribution will be required of the road authority as a share of the cost previously incurred on the piers, protection works, etc.
(c) Existing roadways on Bridges.–(i.e., Those in existence on 15th May 1942). No division of the cost on the revised basis will be attempted in these cases, until the bridges come to be rebuilt or regirdered when they will be dealt with in accordance with the foregoing principles.
1114. Maintenance.–This should be considered under two heads, viz.–
(I) The general upkeep of the bridge structure, excluding the Permanent Way and ballast but including painting of girders, repairs to piers, protection and training works, etc., which are essential both for the railway and the road, and (II) the upkeep of the road surface as well as the annual charges for gatemen, lighting, signalling, etc., in cases, where these have to be provided.
(a) In the case of new roadways, i.e., whether on new or regirdered bridges, item (I) will be carried out by the Railway Administration but the annual cost will be divided between the railway and the road in the same proportion as the division of the capital cost.
The annual charges under item (II) will, however, be borne entirely by the road authority, which may, however, if it so desires, undertake the actual work of maintenance, but on the express condition that no material change in the road surface, as for example in the quality or weight of the road metal, is made without the consent of the Railway Administration.
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(b) Existing Roadways (i.e., those in existence on 15th May 1942) No division of the maintenance cost shown under item (I) will be made in the case of roadways already existing and these will continue to be borne by the Railway Administration. The charges shown under item (II) above will, however, with effect from 15th May 1942, be borne by the road authority except where it can be shown that a Railway Administration had been compensated in any manner for the maintenance charges incurred by it.
Note.–The provisions in this paragraph are not intended to disturb existing agreements for the maintenance of roadways during the terms of such agreements but when the agreements terminate in the normal course, they should not be renewed.
1115. The provisions of paragraph 1111 to 1114 will apply mutatis mutandis also where provision is made for roadway facilities for purely military traffic over railway bridges.
1116. Footways over Railway Bridges.–These rules do not apply to footways over railway bridges. Footways will be considered on their merits as each case arises under the general principle that the requiring Department shall meet the first cost and the maintenance charges thereof.
Works for Civil Departments
1117. Level-crossings, road overbridges and underbridges.–The cost of level- crossings, road overbridges and underbridges constructed at the time of construction of a railway line or at any time thereafter in order to meet a railway's statutory liability under the Railways Act, 1890, is chargeable to the railway.
1118. If the construction of a bridge is found necessary otherwise than in pursuance of Pakistan Railways liability under the Railways Act, its cost will be borne by Pakistan Railways if its necessity has arisen from railway requirements, and by the road authority if its necessity has arisen from the growth of road traffic or other requirements of the road authority, provided that in either case any extra cost due to additional width or length or other facilities required on account of probable future developments will be borne by the authority requiring such facilities.
1119. If a level-crossing is required to be replaced by a road overbridge or underbridge by reason of the growth of both railway and road traffic–
(i) the railway will bear the cost of the bridge structure (excluding the approaches) and the cost of diversion of all sewers, cables, gas and water mains within railway limits; and
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(ii) the road authority will bear the cost of the approaches, within or without railway limits, the cost of diverting all sewers, cables, gas and water mains outside railway limits, and the cost of land for approaches outside the railway limits.
1120. If a road overbridge or underbridge is required to be extended or widened or rebuilt on a new site, the cost will be borne by the authority requiring the extension or relocation, provided that any extra cost due to additional width or length or other facilities required by any authority shall be borne by that authority.
1121. The maintenance and lighting of the roadway of the bridge and its approaches after its opening to public traffic is a charge against the road authority, while the maintenance of the bridge structure generally (excluding the roadway) is a charge against the railway.
1122. If the construction of a new level-crossing or an improvement or alterations in an existing one, whether necessitated by local conditions or any other cause, is asked for by a Provincial Government or local authority the capital cost of the works asked for will be borne by such Government or authority, except in cases where the liability is that of a Railway under the Railways Act. In regard to the incidence of maintenance costs in such cases no hard and fast rules can be laid down but ordinarily maintenance costs should be borne by the party requiring the facility, and agreement to this effect should be reached before the work is commenced. In a case where the party asking for the facility agrees to pay only the initial cost but declines to bear maintenance the case should be referred to the Ministry of Railways (Railway Board) for orders before any commitment to provide the work is entered into.
1123. Surveys undertaken for Provincial Governments.–The cost of a survey, which the Ministry of Railways (Railway Board) agree to undertake at the request of a Provincial Government in connection with a project which the Provincial Government expresses its willingness to guarantee, will be charged to the relevant object head of chart of accounts. If the construction of a line surveyed under this agreement is not proceeded with, owing to the unwillingness of the Provincial Government to meet the guarantee required, the Provincial Government will pay the Ministry of Railways (Railway Board) the cost of the survey.
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Postal Vans
1124. The following rules govern the incidence of the cost of vehicles or parts of vehicles provided by the Railway for the Pakistan Post.
1125. The capital cost of newly built complete vehicles, expressly constructed for the exclusive use of the Pakistan Post on their requisition for complete vehicles, shall be paid by that department. Should the railway find it necessary to construct new vehicles to meet the requisition of the Pakistan Post for parts of vehicles, no portion of the capital cost shall be charged to that department which shall only pay interest on the capital cost of such vehicles.
1125-A. When a postal vehicle built at the cost of Pakistan Railways is replaced entirely, the cost of the new vehicle should be treated as a fresh capital expenditure for the purpose of recovery of interest charges.
1125-B. In the case of mail vans rebuilt with old reconditioned underframes, etc., the interest charges on the second-hand underframes and bogie trucks should be calculated at the rate of interest which was in force at the time the underframes were constructed and the interest on the cost of new bodies should be charged at the current rate of interest.
1125-C. (1)The following should be the minimum standards for equipment in the Postal portion of the coaching stock–
(i) The battery and dynamo should be designed for service in the vehicle only and not to augment the units in the Block Rake.
(ii) All Postal vehicles having a connected load greater than 10 amps. should be fitted with dynamo and battery.
(2) The following standards for lights and fans should be adopted as minimum requirements–
Lighting.–(i) 6/10 ft. candles over Sorting Ledge and Registration and Parcel Ledges.
(ii) 4/6 ft. candles over other places.
Fans.–(iii) Fans 2–16" standard carriage fan per 100 square feet of floor area.
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(3) The capital cost of electric battery, dynamos, switchgear and wiring should be divided between the Pakistan Post and Pakistan Railways in the proportion that the connected load in the Postal portion bears to the total connected load of the vehicle.
(4) The above procedure should be given effect to subject to the following reservations–
Paragraph 1 (i) and (ii) is obligatory, when in future new vehicles with Postal accommodation are constructed or rebuilt.
Paragraph 2 is accepted as desirable on all existing stock and obligatory on all future stock, the existing stock being brought at least up to this standard as and when Postal vehicles pass through shops for periodical overhaul.
Paragraph 3 should be accepted for future construction and adopted for existing stock which is equipped with generator and batteries and is not wired for use in block rakes. For vehicles which are wired for use in block rakes the ruling applies on the specific understanding that the charges to the Pakistan Post shall not be increased.
Note.–In the case of partially-fitted Postal vehicles where the dynamo and battery equipment are specially provided for the exclusive use of the Postal portion of the vehicle, the remainder of vehicle being wired as part of the block rake and being entirely distinct from the Postal portion, the entire cost of the equipment shall be included in the capital cost of the Postal portion for the purpose of recovery of interest charges from the Pakistan Post.
1126. When existing vehicles which have, on the requisition of the Pakistan Post, to be converted as complete vehicles or parts of vehicles to meet the requirements of that department, they shall pay–
(i) The cost of alteration, together with the cost of transporting such vehicles to workshops for alteration and from workshops to the station at which required after alteration, where the vehicles have to be transported on trucks due to gauge difference ; and
(ii) interest on the capital cost of the complete vehicles or parts of vehicles, so long as they remain in the exclusive use of, and have not been formally surrendered by, the Pakistan Post.
1127. The capital cost of postal vans referred to in the preceding paragraphs will, for the purpose of levying interest, be the all-in-cost as detailed in paragraph 1224 of the Pakistan Railways Code for the Mechanical Department (Workshops). The capital cost of the postal portion of the non-postal vehicles will be worked out in proportion to the
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floor area of the postal portion, the all-in-cost of any special fittings provided in the vehicle for the exclusive use of the Pakistan Post being added to the proportionate cost of the postal portion as thus worked out.
Note.–The postal portion of a non-postal vehicle is that portion of the accommodation in a railway coaching vehicle which is reserved for the conveyance of mails.
1128. When Pakistan Post formally surrenders vehicles or parts of vehicles, the capital cost of which has not been paid by that department, they shall pay to the railway administration the cost of converting such vehicles or parts of vehicles so as to render them serviceable for general traffic purposes, together with the cost of transporting such vehicles to workshops for conversion and from workshops to the station at which required after conversion, where the vehicles have to be transported on trucks due to gauge difference.
1129. When the Pakistan Post formally surrenders complete vehicles or parts of vehicles, of which it has paid the capital cost, the Railway Administration shall refund to the Pakistan Post this sum, less the cost of any special fittings, that would be valueless and also less the cost of converting such vehicles for general traffic purposes.
Saloon Carriages and other vehicles reserved for the exclusive use of Departments of Government of Pakistan and Provincial Governments.
1130. The following rules apply to vehicles reserved for the exclusive use of Provincial Governments or of departments of the Government of Pakistan excluding vehicles reserved for the Ministry of Railways (Railway Board) and the Railway Police.
1131. The vehicles, together with their electrical and movable equipment and furniture, will be provided at the cost of the Ministry of Railways (Railway Board). The capital cost of a vehicle and its equipment will be known as “The capital cost of the vehicle on the books of the railway and will be the all-in-cost as defined in paragraph 1224 of the Pakistan Railways Code for the Mechanical Department (Workshops).
1132. The Department or Provincial Government will be responsible for obtaining the prior sanction of the competent authority to the provision of any reserved vehicle.
1133. Design of all stock must be to the standards laid down by the Railway Department for rolling-stock on Pakistan Railways and must receive the prior approval of the Ministry of Railways (Railway Board).
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1134. The Department or Provincial Government will pay the following charges for each vehicle annually to the Ministry of Railways (Railway Board)–
(i) interest at 12½ per cent per annum on the capital cost of the vehicle on the books of the railway;
(ii) depreciation at the rate of one per cent per annum on the capital cost of the vehicle on the books of the railway. Depreciation will not be charged on any vehicle after it has been in use for 40 years;
(iii) an all-round charge of 4 per cent per annum on the capital cost of the vehicle on the books of the railway to cover charges for maintenance and repairs of the vehicle and its equipment; and
(iv) haulage at the prescribed scheduled rates, which will not include any recurring charge for interest, depreciation or maintenance and repairs.
1135. When any alterations or additions to the body of a vehicle or any alterations or additions to the equipment, fittings or furniture are carried out at the request of the using Department or Provincial Government, the Department or Provincial Government will pay the actual cost of such alteration or addition. Such alteration or addition will only be carried out when previous sanction has been given to an estimate of the actual cost by the competent sanctioning authority, and when the authority at whose cost the alterations or additions are to be carried out, has undertaken to defray its actual cost.
1136. Where vehicles of special design or of special equipment are provided as a temporary measure for the exclusive use of a Department or Provincial Government, the Department or Provincial Government concerned will pay the actual cost of converting the existing stock to the special design and on release the cost of reconverting the stock for ordinary railway purposes.
1137. When it becomes necessary to replace vehicles, or equipment, etc., new stock or equipment, etc., will be provided at the expense of the Railways. Should replacement of a vehicle be required by the using Department or Provincial Government while it is still in good condition and before the expiry of its assumed useful life, namely, 40 years, the using Department or Provincial Government will be required to pay the railway the actual cost of converting the replaced vehicle for use as ordinary stock.
1138. The actual cost of work referred to in the preceding three paragraphs includes the charges detailed in paragraph 1224 of the Pakistan Railways Code for the Mechanical Department (Workshops), less credit for the depreciated value of all material or equipment released.
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1139. When a new vehicle has been built in replacement of an existing one, the interest, depreciation and maintenance and repair charges to be paid annually on the new vehicle will be calculated in accordance with clauses (i) to (iii) of paragraph 1134.
1140. A pro forma Capital and Revenue Account should be kept for all such vehicles to see that the recoveries made from the various Departments and Provincial Governments on account of interest, maintenance and depreciation do not fall short of the actual expenditure incurred by the railway. One account should be kept for all the vehicles, but a separate account for individual vehicles may be considered necessary where there is reasonable doubt that the financial interests of the railway are adversely affected. The Capital Account should show the capital cost of the saloons, the accuracy of which should be checked by the Accounts Officer. The Revenue Account should indicate the expenditure incurred from year to year by the railway, whether in the workshops or on the line, on the maintenance and repairs of the vehicles. The expenditure on empty haulage in connection with periodical overhauls and trial runs incidental to the maintenance of these vehicles should also be included in the Revenue Account.
Assisted Sidings
1141. When a siding is provided to serve a factory, mill or other industrial premises, other than a colliery or any mining area, or for the special benefit of another Government department, the incidence of expenditure will be governed by the terms and conditions of the agreement which may be executed for the construction of such siding in accordance with the general rules contained in Chapter XX of the Pakistan Railways Code for the Engineering Department.
Buildings Constructed for other Departments and Governments
1142. When a building is constructed by the railway administration for the use of another Department of the Federal Government or for a Provincial Government, the incidence of the cost of its construction, maintenance and repairs is governed by the rules contained in Chapter XIX of the Pakistan Railways Code for the Engineering Department.
1143. Deleted.
11.11
PAKISTAN RAILWAYS
PAKISTAN RAILWAYS GENERAL CODE
Riaz Ahmad & Company Chartered Accountants
CHAPTER XII
20 October, 2011
9.1 PAKISTAN RAILWAYS GENERAL CODE
CHAPTER XII
INCIDENCE OF PAY, ALLOWANCES, LEAVE SALARY, PENSIONS, ETC.
CONTENTS
DESCRIPTION PAGE NO. PARA NO.
TRANSFERS WITHIN THE PAKISTAN RAILWAYS 12.1 1201 DEPARTMENTS PERMANENT TRANSFERS TO AND FROM OTHER 12.1 1202 DEPARTMENTS TEMPORARY TRANSFERS TO AND FROM OTHER 12.1 1203 DEPARTMENTS LEAVE AND JOINING TIME COMBINED WITH TRANSFERS 12.1 1204
EMPLOYMENT OF SOLDIERS AND TROOPS 12.1 — 12.2 1205 — 1206 (1207 Deleted)
ARMY IN PAKISTAN RESERVE OF OFFICERS 12.3 1208 — 1214
RESERVISTS OF THE PAKISTAN ARMY 12.3 — 12.4 1215 — 1217 (1218 — 1219 Deleted) STUDY ALLOWANCES 12.4 1220
COMPENSATORY ALLOWANCES DURING LEAVE 12.4 1221
TRANSFER WITHIN THE PAKISTAN RAILWAYS 12.4 1222 DEPARTMENTS PERMANENT TRANSFERS TO AND FROM OTHER 12.4 1223 DEPARTMENTS TEMPORARY TRANSFERS TO AND FROM OTHER 12.4 1224 DEPARTMENTS LEAVE AND JOINING TIME, BEFORE OR AFTER TRANSFER 12.5 1225 ATTENDANCE AT COURTS 12.5 1226 JOURNEY ON BEHALF OF PRIVATE BODIES 12.5 1227
JOURNEY IN CONNECTION WITH INTERVIEW BY 12.5 1227-A ESTABLISHMENT COMMITTEE
24 PAKISTAN RAILWAYS GENERAL CODE
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CONTENTS
DESCRIPTION PAGE NO. PARA NO.
PERSONS EXCLUSIVELY EMPLOYED IN THE PAKISTAN 12.5 1228 RAILWAYS OFFICERS EMPLOYED IN MINISTRY OF RAILWAYS 12.6 1229 (RAILWAY BOARD) (1230 Deleted) OPEN LINE STAFF EMPLOYED ON CONSTRUCTIONS 12.6 1231 AND SURVEYS PERSONS IN FOREIGN SERVICE 12.6 1232 PERSONS WITH SERVICE UNDER DIFFERENT 12.6 1233 — 1237 DEPARTMENTS AND GOVERNMENTS (1235 — 1236 Deleted) SPECIAL ADDITIONAL PENSIONS 12.9 1238
CALCULATION OF LENGTH OF SERVICE 12.9 1239 (1240 Deleted)
PENSION FOR A DEFICIENCY IN SERVICE 12.10 1241
SPECIAL PENSIONARY CONCESSIONS GRANTED BY 12.10 1242 ANOTHER DEPARTMENT OR GOVERNMENT (1243 Deleted) WOUND AND INJURY PENSIONS 12.11 1244
ADJUSTMENT OF PENSIONARY CHARGES 12.11 1245
COMMUTED PENSIONS 12.12 1246
COMMUTATION / GRATUITY AND CONTRIBUTION TO 12.13 — 12.14 1247 — 1249 GENERAL PROVIDENT FUND CONTRIBUTION TO GENERAL PROVIDENT FUND 12.14 1250 (1251 — 1266 Deleted) CONTRIBUTION TOWARDS LEAVE SALARY, 12.15 — 12.16 1267 — 1268 COMMUTATION / GRATUITY, PENSION, ETC. INCIDENCE OF THE COST OF RAILWAY POLICE 12.16 — 12.18 1269 — 1278
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Incidence of Pay and Allowances
1201. Transfers within the Pakistan Railways Departments. The transit pay and allowances of a railway servant proceeding to join an office within the Pakistan Railways departments are charged to the office to which he is proceeding.
1202. Permanent Transfers to and from other Departments. The transit pay and allowances of a person transferred permanently to or from another Department of the Federal Government or Provincial Government are charged to the Department or Government he is proceeding to join.
1203. Temporary Transfers to and from other Departments. A person transferred to foreign service, or temporarily lent to or borrowed from a Provincial Government or another Department of the Federal Government, draws his emoluments from the foreign employer or the borrowing authority from the date on which he relinquishes charge of his duties under the lending authority to the date he resumes charge of duties under the latter authority.
NOTE. The pay and allowances including travelling allowance of a railway servant summoned to give evidence in his official capacity in a criminal court or in a civil court in a case in which Government is a party are, during the period of his absence, debited to the Pakistan Railways.
1204. Leave and Joining Time Combined with Transfers. The provisions of paragraph 1201 to 1203 apply also in cases where the person concerned takes leave either before joining the new office or before rejoining the lending party and hold good even in respect of joining time admissible under Rule 2137 (c) of the Pakistan Railways Establishment Code, Vol. II.
1205. Employment of Soldiers and Troops. The following rules govern the incidence of the cost of troops lent to the Pakistan Railways. The words ‘military’ and ‘troops’ are used to include Pakistan Navy and the Air Force as well as the Army.
(1) When troops are required on duties of a ‘military’ nature [e.g., ceremonial purposes and provision of escorts or guards of honour and flag marches when they fall into the category of cases involving duties of a military nature and when they are not connected with the maintenance of law and order] the extra cost if any, of supplying the services required (e.g., in the way of transport, equipment, etc.), will be met by a contribution from the Pakistan Railways to the Ministry of Defence.
NOTE. The cases in which flag marches come within the scope of this rule will be decided by the Federal Government.
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(2) When troops are employed by civil on duties of a ‘non-military’ nature (e.g., on occasions of public calamities or emergencies such as fires, earthquakes, floods, famines and strikes), the Pakistan Railways will be liable to bear the following charges unless they are waived by the Federal Government for any exceptional reasons:
(a) In strikes, etc., for carrying on essential public services. The complete cost of the force including ordinary pay and allowances, extra cost of transport, equipment (including loss and repair expenses, etc.), and extraordinary charges in the shape of special pay or transport of stores to the personnel engaged at the rates defined under the regulations / notifications issued from time to time.
(b) In fires, floods, famines, earthquakes and other calamities of nature. All extra cost involved in the way of transport, equipment, etc. and all extraordinary expenses in the shape of special pay or the supply of stores to the personnel engaged at the rates defined under the regulations / notifications issued from time to time.
NOTE. In addition when troops are employed on duties falling under either clause (a) or (b) above, Pakistan Railways will be liable for all loss or damage to property (including military) and also for all pensionary awards made in respect of casualties arising directly out of the employment.
(3) The full cost of employing troops in aid of Pakistan Railways Administration for the prevention or suppression of disorder will be met by the Federal Government from Ministry of Defence; but it will be open to the Pakistan Railways to contribute towards the cost, if they wish to do so. The Pakistan Railways will nevertheless be liable for the payment of any compensation that may become payable in respect of any damage done when troops are employed in aid of Pakistan Railways Administration.
1206. When soldiers are sent under Military escort from one station to another to stand trial on a criminal charge they will travel like any other party of soldiers on duty, under a warrant furnished by the Military authorities, the charge being met from the Ministry of Defence. When a soldier is conducted by a Police escort, the charge will be Civil; the warrant issued in such cases should include the accused as he is a soldier proceeding to a certain place under the orders of his Military superior and therefore on duty.
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1207. Deleted.
1208. Army in Pakistan Reserve of Officers. Railway servants, who belong to the Army in Pakistan Reserve of Officers, when called up for training, receive the emoluments stated in paragraphs 1209 to 1214 below.
1209. When proceeding to carry out their training direct from their civil appointments, they draw the pay and allowances, which they would have drawn in their civil appointments but for the training, for the whole period of absence on such training inclusive of the time spent in transit to and from.
1210. When proceeding to carry out their training while on leave in Pakistan, they draw the civil leave pay and allowances which they have drawn but for the training.
1211. When proceeding to carry out their training on the expiry of leave out of Pakistan taken from their civil appointments but before rejoining their civil appointments for duty, they draw joining time civil pay from the date of disembarkation in Pakistan to the date preceding that on which their training commenced and full civil pay for the period of actual training and the period spent in journeying to the place of their Pakistan Railways appointments.
1212. For the period of actual training, they receive the military pay and allowances.
1213. The emoluments drawn under paragraphs 1209 and 1211 are debitable to the Pakistan Railways and those under paragraph 1212 to the Ministry of Defence.
1214. If it is necessary to provide a substitute in the place of such an officer undergoing training, the additional cost will be a charge against Pakistan Railways estimates.
1215. Reservists of the Pakistan Army. Reservists of the Pakistan Army in Pakistan Railways employment when called up for periodical military training will receive military pay and allowances. They will also receive the excess, if any, of their civil pay under the 'next below' rule over their military pay and allowances. Any extra expenditure involved will be charged to the Pakistan Railways and not to the Ministry of Defence.
Note. The intention of the “next below” rule is that a railway servant, out of his regular line, should not suffer by forfeiting acting promotion which he would otherwise have received had he remained in his regular line. The fortuitous acting promotion of some one junior to a railway servant who is out of the regular line will not in itself give rise to a claim under the next below rule. Before such a claim is established, it should be necessary that all the railway servants senior
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to the railway servant who is out of the regular line have been given acting promotion, and also the railway servant next below him, unless in any case the acting promotion is not given because of inefficiency, unsuitability or leave. In the event of one of these three bars being applicable to the railway servant immediately below the railway servant outside his regular line, then some other railway servant, even more junior, should have received acting promotion and the railway servants, if any, in between should have been passed over for one of these reasons.
1216. For the purpose of paragraph 1215, the civil pay in relation to running staff should be held to mean pay proper under the ‘next below’ rule plus a fixed percentage not exceeding 55 per cent representing the normal running allowance drawn by each category of staff under present day conditions.
1217. The orders contained in the preceding paragraph do not apply to cases, if any, in which the civil pay of the reservist is met from the Ministry of Defence.
1218. Deleted.
1219. Deleted.
1220. Study Allowances. The allowances paid to a railway servant during study leave are charged to the Division / Accounting Unit on which he is employed when the study leave is granted.
1221. Compensatory Allowances during Leave. House rent and other compensatory allowances paid during leave are borne by the department to which the officer is attached at the time he proceeds on leave.
Incidence of Travelling Allowances
1222. Transfers within the Pakistan Railways Departments. The travelling allowance of a railway servant proceeding to join an office within the Pakistan Railways Departments should, in the absence or orders to the contrary, be charged to the office to which he is proceeding.
1223. Permanent Transfers to or from other Departments. The travelling allowance of a Government servant permanently transferred to or from another Department of the Federal Government or Provincial Government, is debited to the Department or Government to which he is transferred.
1224. Temporary Transfers to or from other Departments. A person transferred to foreign service or temporarily lent to or borrowed from a Provincial Government or another Department of the Federal Government, draws his travelling allowances from the foreign employer or the borrowing party, both when proceeding to or reverting from service under the foreign employer or the borrowing party.
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1225. Leave and Joining Time before or after transfer. The principles stated in paragraphs 1222 to 1224 apply also in cases where the person concerned takes leave either before joining the new office or before rejoining the lending party, and holds good even in respect of joining time admissible under Rule 2137 (c) of the Pakistan Railways Establishment Code, Vol. II.
1226. Attendance at Courts. The travelling allowance of railway servant called away to give evidence in his official capacity in a criminal court, or in a civil court in a case to which Government is party, is debited to the Division / Accounting Unit which would bear the charge if he were on duty, but any sum paid to him by the court is deducted from his travelling allowance.
1227. Journeys on behalf of private bodies. When a railway servant, permitted to undertake work on behalf of a private individual or body or a public body or Federal / Provincial Government, performs a journey in connection with such work, the travelling expenses for the journey in connection with such work will be a charge against the private individual, body or Federal / Provincial Government. If the railway servant travels on a free pass, the full cost of the pass for such journey should be recovered from him, and credited to Pakistan Railways revenues. Where a journey is made to a station on private business combined with official business, the railway servant should recover from the private party, the cost of a single journey from his headquarters to the place visited on the private employer’s business and credit the same to Pakistan Railways revenues.
NOTE. This paragraph does not apply to journeys undertaken in connection with the business of Pakistan Railways Institutes and Sports Clubs.
1227-A. Journeys in connection with interview by Establishment Committee. The travelling allowance of an officer serving in the Pakistan Railways, who is called for interview by the Establishment Committee for selection, is debited to the Pakistan Railways.
Incidence of Leave-salary
1228. Persons Exclusively Employed in the Pakistan Railways. Except as provided in paragraphs 1229 to 1231 below, the leave-salary of a railway servant, who has served exclusively in Pakistan Railways, will be debited to the Division / Accounting Unit of Pakistan Railways in which he may be serving at the time of proceeding on leave.
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1229. Officers Employed in the office of Ministry of Railways (Railway Board). In the case of an officer proceeding on leave from a post in the office of Ministry of Railways (Railway Board), the gazetted staff of which is usually obtained from Pakistan Railways:
(i) if the officer in question holds a permanent non-tenure post in such an office and is expected to return to that post at the end of the leave, or proceeds preparatory to retirement from such post on leave on full pay only, the whole of the leave-salary should be debited to that office. When the post held is a tenure post, the same orders will apply provided that the leave taken does not extend beyond the period of the tenure;
(ii) if the officer does not hold a permanent post in the office and he proceeds on leave on full pay not exceeding four months and is expected to return to that office at the end of the leave, the leave-salary should be debited to that office; and
(iii) in all other cases, the leave-salary should be debited to the Government Department on the cadre of which he is borne.
1230. Deleted.
1231. Open Line Staff Employed on Constructions and Surveys. An open line railway servant, who proceeds on leave from a construction or survey, will be considered as having reverted to the open line and his leave-salary will be charged accordingly. As an exception to this rule, however, if the leave taken is for a period not exceeding four months and he is posted to the same construction or survey on return there from, his leave salary should be charged to that construction or survey.
1232. Persons in Foreign Service. The leave salary in respect of leave taken by a railway servant while in foreign service is borne by the division / accounting unit which received the contribution for leave salary.
1233. Persons with Service under Different Departments and Governments. If a railway servant has served partly in the Pakistan Railways and partly in Federal Government Departments or under a Provincial Government, the leave-salary should be first debited to the borrowing Departments or Governments in the reverse order to that of employment, and only when the leave earned by service in the borrowing Departments and Governments is exhausted, it should be debited to the Pakistan Railways. The same principle will apply if a Government
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servant belonging to another Department or Provincial Government has served partly in the Pakistan Railways. The Pakistan Railways share of the leave-salary will be charged to the Pakistan Railways office in which he last served.
NOTE (1). A lending Department or Government is that under which a person first obtains permanent employment. If he was previously holding a temporary appointment under another Department or Government, that Department or Government should be regarded as the borrowing Department or Government. If a person in the permanent service of one Department or Government is transferred permanently to another Department or Government, the latter should also be regarded as a lending Department or Government and the leave-salary adjusted between the lending Departments in the reverse order to that of employment by which the leave was earned. An important corollary of this principle is that when an officer of the Pakistan Army under permanent employment of Pakistan Railways is re-transferred temporarily to the Ministry of Defence for war work, etc., the Ministry of Defence should be regarded as a borrowing Government / department.
The decision that the Government to which an officer is transferred is not to be regarded as occupying the position of a lending Government unless and until the officer obtains permanent employment under that Government is not intended to apply to the temporary officiating service of an officer under a Government followed by confirmation for the first time under that Government without interruption of duty. In such a case the temporary or officiating service and the service after confirmation should be treated as forming one spell of continuous service for the purpose of distribution of leave-salary and the Government concerned should be regarded as a “lending Government” for the whole of the continuous service.
NOTE (2). No share of the leave-salary of a railway servant, belonging to the Army in Pakistan Reserve of Officers, in respect of the leave earned during the period he is called out for Military training will be debitable to the Ministry of Defence. Similarly, no portion of the leave-salary of a railway servant in respect of the leave earned during the period he undergoes training with the Pakistan Territorial Force will be debitable to the Ministry of Defence.
NOTE (3). Deleted.
NOTE (4). When the leave salary of a railway servant has to be allocated under this rule between an original lending Department or Government (vide Note 1 above) and a second lending Department or Government, it should be debited first to the second lending Department or Government to the full extent of the leave earned under it and a debit to the first lending Department or Government will be made only when all leave earned under the second lending Department or Government has been exhausted. Similarly, if the leave salary has to be allocated among three lending Departments or Governments, the leave earned under the third or last lending Department or Government will first be exhausted, then the leave earned under the second and finally the leave earned under the first or original lending Department or Government. This principle of debit of leave salary according to the reverse order to that of employment shall also apply when leave salary has to be allocated among two or more borrowing Departments or Governments and in respect of different periods of service rendered by a railway servant under a particular Department or Government. In the latter case, the leave salary in respect of the leave earned in each period of service under the particular Department or Government will be dealt with separately.
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NOTE (5). The whole cost of leave salary of officers of Director General Audit, Railways deputed in the Pakistan Railways for audit, will be borne by the Auditor General of Pakistan.
NOTE (6). When a railway servant is granted an extension of service and the whole of the leave at his credit on the date of compulsory retirement lapses under 2127-R and no leave is carried forward on extension of service, the Government for whose benefit the extension is sanctioned will bear the entire charge for leave-salary in respect of the leave earned by him during the period of extension, any liability of any Government on that date as shown in his subsidiary leave account being automatically cancelled. When, however, such a railway servant carries forward any leave on extension of service, such liability continues, but only in respect of the leave actually carried forward.
1233-A. Deleted.
1233-B. Deleted.
1234. When “leave not due” is granted to Pakistan Railways servant while in the service of Federal Government Department or a Provincial Government, the borrowing Department or Government sanctioning the leave will bear the charge on account of such leave in the first instance in all cases, but if the railway servant on return from such leave is transferred back to the Pakistan Railways before the “leave not due” taken by him is completely wiped out, such readjustment of the charge may be made as may be agreed upon by the Departments or Governments concerned and Pakistan Railways.
1234-A. Leave salary in respect of Special Disability Leave granted to a railway servant will be borne by the Pakistan Railways, provided that where a railway servant has served under Federal Government Departments or Provincial Governments and is granted Special Disability Leave on full pay under Rule 2122 (7) (b) of the Pakistan Railways Establishment Code, Volume II, half of which is debitable to his leave account under Rule 2118(b) of the Pakistan Railways Establishment Code, Volume II, the debit for such leave should be made both in the main and subsidiary leave accounts and the actual amount of leave salary drawn by him for the whole period of such leave will be apportioned among the Federal Government Departments and Governments concerned in the proportion in which that leave is debited to his leave accounts with those Departments and Governments.
1235. Deleted.
1236. Deleted.
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Incidence of Pensions
1237. The share of pensions sanctioned on or after the 3rd September 1929 to persons who have not served exclusively in the Pakistan Railways is charged to A04101 “Pension — Civil” and A04102 “Commuted Value of Pension — Civil” proportionately to the length of service in the Pakistan Railways.
NOTE (1). For the purpose of this paragraph, compassionate allowances [see Rule 2310 of the Pakistan Railways Establishment Code, Volume II] are treated as pensions.
NOTE (2). Deleted.
1238. Special Additional Pensions. A special additional pension is treated as a separate item and the share chargeable to Pakistan Railways is proportionate to the length of service qualifying for additional pension rendered in the Pakistan Railways. The allocation is based on the total period of service in all grades.
1239. Calculation of Length of Service. The expression ‘length of service’ used in the two preceding paragraphs means ‘length of qualifying service’. Except as provided in note (1) below, all periods of leave, other than extraordinary leave, count as service qualifying for pension. The period of suspension followed by reinstatement or superannuation counts towards qualifying service for pension. Foreign service also counts for pension provided the pension contribution was paid as required under the rules. The effective service rendered by a Government servant in an autonomous or semi-autonomous body, in a post appointment to which is, by law, required to be made, and the salary of which is required to be fixed by the Federal Government or a Provincial Government is treated as effective service rendered in a post in Government service. The effect of omitting these periods will be that the pensionary liability in respect thereof will be distributed among the employing Governments in the same proportion as the liability for the rest of the Government servants' service. The service of a pensioner under any department should be calculated to the nearest month, 15 days or more being regarded as a month and less than 15 days being ignored. When the share of pension debitable to a particular Government comes to less than a rupee, it should be neglected.
NOTE (1). In the case of pensions which are earned by total service including leave the pensionary liability should, subject to these rules, be distributed among the employing Governments or Departments in proportion to the periods for which the Government servant concerned has drawn pay or leave-salary from each Government or Department.
NOTE (2). Service under a Government includes periods for which a Government servant drew pay or leave-salary from that Government.
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NOTE (3). Foreign service should be treated as service under the Government which received or remitted, as the case may be, the contributions for pension in respect of such service.
NOTE (4). Deleted.
Note (5). Deleted.
1240. Deleted.
1241. Pension for a Deficiency in Service. When a deficiency is condoned by Pakistan Railways or any other Department or Government, the period of deficiency will continue to be treated as service rendered under the Pakistan Railways or condoning Government or Department, as the case may be.
1242. Special Pensionary Concessions granted by another Department or Government.
(1) When a pension granted by another Department or Government under its own rules is more generous than that admissible under the rules of Pakistan Railways, the Pakistan Railways will bear only the proportionate share which would be admissible under its own less favourable rules. This principle will come into operation when there is a divergence in the pension codes of two Governments, and a pension calculated under the normal working of one set of rules is more liberal than under the other set of rules. It does not take into account any concessions which may be allowed under the discretionary powers contained in the two sets of rules.
(2) When a pensionary concession other than the grant of a compassionate allowance or the condonation of a deficiency in qualifying service is granted by one Department or Government, under its own rules (irrespective of whether or not they are more liberal than the rules of another Department or Government), that Department or Government will bear the resulting increase in pension, unless any portion of the increased liability has been accepted by the other Departments or Governments affected. In the event of another Department or Government agreeing to the grant of a concession, the share of the total pension debitable to each Department or Government will be determined on the basis of the length of service under each.
NOTE (1). Deleted.
NOTE (2). Deleted.
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1243. Deleted.
1244. Wound and Injury Pensions. Extraordinary pension granted for an injury is chargeable to the Department or Government under which the recipient was serving when the injury was received.
1245. Adjustment of Pensionary Charges. (1) When an adjustment has to be made under these rules between Pakistan Railways and other Department of the Federal Government or Provincial Government, it may, be made either by the payment in lump sum or in installments of the commuted value of a pension, or in accordance with any special arrangement which may be concerted between the Pakistan Railways and other Department of the Federal Government or Provincial Government concerned. The system of lump-sum adjustments of pensionary charges by payment of commuted value between the Pakistan Railways and other Department of the Federal Government or Provincial Governments is not, however, to be applied to pensions which are subject to revision after retirement. In such cases the adjustments with the Governments concerned should be made as pensions are paid with reference to the actual amounts paid. In cases where the pensions are divisible between the Pakistan Post and the Pakistan Railways, the adjustment will be made on the basis of actual pensions paid.
NOTE. Deleted.
(2) In adjusting pensionary charges between Pakistan Railways and other Department of the Federal Government or Provincial Government by payment of commuted value, the tables of present values prescribed in Appendix XL to the Pakistan Railways Establishment Code, Volume II, should be employed unless the Pakistan Railways and other Departments or Governments concerned mutually agree to employ any other table.
(3) The Ministry of Defence’s share of a divisible pension should in all cases be extinguished by credit of the commuted value of that share to Pakistan Railways by debit to Ministry of Defence, the adjustment being made as and when each case arises. This procedure will have the effect of converting the Ministry of Defence’s share of the divisible pension into one relating to Pakistan Railways for all purposes and will not in any way affect the arrangement that may be agreed upon for the adjustment of pensions between the Pakistan Railways and Federal or Provincial Governments.
(4) The provisions contained in the preceding sub-paragraph will be applied conversely for the settlement of the civil shares of military
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pensions which are not subject to revision after retirement. That is to say, the civil share of a divisible pension debitable to Pakistan Railways will be extinguished by credit of the commuted value of that share to Ministry of Defence by debit to Pakistan Railways, the adjustment being made as and when each case arises. The Ministry of Defence’s Account Officer will report periodically to the Provincial Accountant General the amount of pensions paid in respect of cases where the arrangement between the Federal and the Provincial Governments concerned for the adjustment of pensions is with reference to actual payments.
(5) Deleted.
1246. Commuted Pensions. When a portion of a pension which is debitable to more than one Government is commuted by payment of the capitalized value of a portion of his pension to the pensioner, the amount commuted may be taken as being in absorption or reduction of the shares debitable to the different Governments in the order in which those shares rise from the least to the largest amount.
Thus, if, out of a pension of Rupees 400 per month which is apportioned as follows:
Rupees Government A ...... 80 Government B ...... 100 Government C ...... 220
Rupees 100 is commuted, the commutation will have the effect of extinguishing the share of Rupees 80 debitable to Government A and reducing from Rupees 100 to Rupees 80 the share debitable to Government B.
The capitalized value of the amount commuted should, in such a case, be debited to Governments A and B in proportion to the amounts by which their monthly shares of the pension have been reduced.
In respect of pensions which are divisible between the Federal Government and a Provincial Government, the Federal Government may authorize the debit to Federal Revenues of the whole commuted value of a portion of the pension not exceeding the commuted value of the share of the pension not exceeding the commuted value of the share of the pension debitable to it, if the Provincial Government concerned cannot find funds to meet the payment of its share of commuted value.
Note. Deleted.
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Incidence of Gratuity and contribution to General Provident Fund
1247. Commutation / Gratuity and contribution to General Provident Fund. The commutation /gratuity of an employee whose service has been exclusively in the Pakistan Railways will be charged to the Division / Accounting Unit where he may be serving at the time of retirement or death.
NOTE. The term “gratuity” used in this and the two succeeding paragraphs includes also contribution to General Provident Fund.
1248. (1) The apportionment of commutation / gratuity of a railway servant who has served partially in Pakistan Railways and partially in other Department of the Federal Government or Provincial Governments, is regulated by the following formula:
Portion to be borne by Department A =
Years of service on Department A Gratuity actually drawn x x Pay last drawn on Department A Total Years of Service Pay last drawn on the department last served
Portion to be borne by Department B =
Years of service on Department A and B Gratuity actually drawn Pay last drawn on Department B x x minus portion to be borne by Total Years of Service Pay last drawn on the department last served Department A
Portion to be borne by Department C =
Years of service on Department A, B & C Gratuity actually drawn Pay last drawn on Department x x minus portion to be borne by Total Years of Service Pay last drawn on the Railway last served Department A & B
and so on. The last Department always to bear the balance.
Illustration. In the case of a gazetted railway servant, say with 10 years service on department A, 10 years on department B, 10 years on department C and 2 years on department D, the pay last drawn on each department being Rupees 600, Rupees 1,200, Rupees 2,000 and Rupees 2,500 respectively, the apportionment of the retiring gratuity of Rupees 25,000 will be as follows:
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= (10/32)x(25,000/2,500) x 600 = Rupees 1,875 to Department A = {(20/32)x(25,000/2,500) x 1,200} — 1,875 = Rupees 5,625 to Department B = {(30/32) x (25,000/2,500) x 2,000} — 7,500 = Rupees 11,250 to Department C and the balance of Rupees 6,250 to Department D.
(2) Deleted.
1249. For the purposes of the preceding paragraph, the service rendered by a railway servant under a foreign employer, a Provincial Government or another Department of the Federal Government or on a Construction or Survey will be deemed to be service rendered on the Pakistan Railways or other Department of the Federal Government or Provincial Government which received the contribution towards commutation / gratuity in respect of such employment.
1249-A. Deleted.
1250. Contribution to General Provident Fund. Subscription to the fund is compulsory for all Pakistan Railways employees having rendered service for more than two years. The subscription is made by deduction from the monthly salary bills at uniform rates based on basic pay scale as notified by Finance Division (Regulation Wing), Government of Pakistan through Office Memorandum No.F.1(5)-Reg.7/87-482 dated 12 August 2008. No contribution is made to the fund by Government of Pakistan. The employees are however paid interest on their subscription to General Provident Fund by Pakistan Railways at the rate circulated by Federal Government every year.
1251. Deleted.
1252. Deleted.
1253. Deleted.
1254. Deleted.
1254-A. Deleted.
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Incidence of the Cost of Passages
1255. Deleted.
1256. Deleted.
1257. Deleted.
1258. Deleted.
1259. Deleted.
1260. Deleted.
1261. Deleted.
1262. Deleted.
1263. Deleted.
1264. Deleted.
1264-A. Deleted.
Incidence of the Cost of Recruitment in England
1265. Deleted.
Incidence of Cost of Training of Special Class Apprentices
1266. Deleted.
Contribution towards leave salary, Commutation / Gratuity, Pension, etc.
1267. (a) Contributions towards leave-salary, pension or commutation / gratuity of railway servants on foreign service and the contribution towards pension and commutation / gratuity of railway servants lent to another Government Department or holding appointments specially created for a construction project, a large open line work or a survey, are credited to C03592 “Other Receipts” in the books of the Pakistan Railways.
(b) Deleted.
(c) Deleted.
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1268. Contributions towards leave salary and pension of military officers in temporary railway employment are watched by the Military Accounts Department and adjusted against Ministry of Defence, while those of military officers in permanent railway employment are watched by the Railway Accounts Officer concerned and credited to the railway estimates in accordance with the provisions of the preceding paragraph.
Incidence of the Cost of Railway Police
1269. Pakistan Railways Police (PRP) under the control of Inspector General of Police, Pakistan Railways will ensure the law and order situation, beef up security and exercise powers against land mafia for encroachments on the land of Pakistan Railways and against crimes on running trains and on Railway Stations to maintain smooth and uninterrupted operations of trains. All costs will be charged against the budget allocated separately for the Pakistan Railways Police at the disposal of Inspector General of Police, Pakistan Railways. In some strategic areas, which fall under the jurisdiction of Pakistan Railways Police, police staff under the control of District Police is employed for specific functions.
1270. The Pakistan Railways will bear:
(i) The cost of police staff solely employed on ‘Order’ duties including:
(a) the cost of leave and casualty reserve;
(b) all kinds of allowances and contingencies, and
(c) Pensionary charges.
(ii) Deleted.
(iii) The full cost of rent of quarters for ‘Order’ staff proper.
(iv) Deleted.
1271. For the purpose of the determination of the amount chargeable to Pakistan Railways estimates, the staff employed in connection with the following objects only will be deemed to be employed on ‘Order’ duties:
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(i) Control of passenger traffic inside the station premises more particularly on the platforms, in the booking offices, waiting halls, at the entrance and exit gates and wherever specially required on emergencies by the station officials.
(ii) The control of vehicular and other traffic in the station compound.
(iii) The maintenance of order in standing passenger trains, prevention of overcrowding, etc.
(iv) Watching loaded passenger trains when standing in stations.
(v) The arrest of those found committing nuisances and keeping the station premises clear of idlers and beggars.
(vi) The examination of all empty carriages on arrival at terminal stations for property left behind by passengers and to see that carriage fittings have not been tampered with.
(vii) The removal of bodies of persons dying in the train and on station premises and conveyance to hospital of sick passengers.
1272. The staff solely employed on Order’ duties proper, chargeable to Pakistan Railways estimates, will consist ordinarily of the rank and file of head constables and constables, but in some provinces may include certain subordinate ranks of supervising officials. Where no clear classification of the rank and file can be made, a proportionate calculation must be arrived at, according to the time spent on either duty, but no attempt should ordinarily be made to extend this principle to the supervising staff.
1273. The supervising staff will include all officers up to and including Superintendents of Pakistan Railways Police, but ordinarily not Deputy Ins- pectors-General or Inspectors-General of Police or their Assistants.
1274. When additional police are employed on ‘Order’ duties proper, the charges incurred by the Provincial Government will be billed for separately.
1275. The debits will be based on yearly actual expenditure and the total liabilities for any one year will be payable by the Pakistan Railways during that year.
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1276. For convenience of accounting, however, the recoveries for the first three quarters of a year will be made on the basis of the budget estimate of the province concerned and those for the fourth quarter, which are adjusted in the accounts for June, will be based on the revised estimate of the year of the province concerned and will include any adjustments which might be necessary in respect of the previous three quarters on account of the difference between budget and revised estimate figures, so that the total recovery for the four quarters will be equal to the amount provided in the revised estimate. Any difference between the revised estimate and actuals for the year will be adjusted in the following year.
1277. The debits raised by Provincial Governments shall be supported by statements of actual expenditure which should be checked by the Accounts Officer, as far as possible, before acceptance. The number of staff for which debits are raised should be scrutinized with reference to the number of police actually employed on railway premises on ‘Order’ duties. The other items in respect of which debits are raised should be subjected to whatever checks are possible.
1278. Bills for the cost of ‘Order’ police employed on Pakistan Railways will be sent by Provincial Governments direct to the Pakistan Railways Administration concerned. On Pakistan Railways, the debits raised by the Provincial Governments will, after verification, be brought to account in the books in full, the difference, if any, between the amounts adjusted and the fixed lum-sum contribution which the Pakistan Railways is liable to pay for police under the existing arrangements, being taken into account in calculating surplus profits.
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PAKISTAN RAILWAYS
PAKISTAN RAILWAYS GENERAL CODE
Riaz Ahmad & Company Chartered Accountants
CHAPTER XIII
20 October, 2011
9.1 PAKISTAN RAILWAYS GENERAL CODE
CHAPTER XIII
CONTINGENT CHARGES
CONTENTS
DESCRIPTION PAGE NO. PARA NO.
NATURE OF CONTINGENT CHARGES 13.1 — 13.2 1301 — 1303
CLASSIFICATION OF CONTINGENT CHARGES 13.2 1304
SPECIAL CONTINGENCIES 13.2 1305
UNIFORMS AND PROTECTIVE CLOTHING (A03906) 13.2 — 13.3 1306 — 1311
HIRE OF VEHICLES — GAZETTED OFFICERS 13.3 1312
UNUSUAL CHARGES 13.3 1313
ORDINARY CONTINGENCIES 13.3 1314
HIRE OF VEHICLES INCLUDING TRAVELLING 13.3 — 13.4 1315 — 1317 ALLOWANCE — NON — GAZETTED STAFF
COMMUNICATION CHARGES 13.4 1318 — 1319 (1320 — 1323 Deleted) STATIONERY (A03901) 13.5 1324 — 1327 (1328 — 1333 Deleted) REPAIR OF COMPUTERS, COMPUTING MACHINES, 13.5 — 13.6 1334 — 1341 ETC. (1335, 1336, 1339, 1340 Deleted)
OTHER STORES 13.6 1342
PRINTING AND PUBLICATIONS (A03902) 13.6 1343 — 1345
OFFICIAL PUBLICATIONS 13.7 1346 — 1350 (1347 — 1349 Deleted)
NEWS PAPERS, PERIODICALS AND BOOKS (A03905) 13.7 1351 — 1353 (1354 Deleted)
PURCHASE OF DRUGS AND MEDICINES (A03927) 13.7 1355
RECURRING CHARGES 13.7 — 13.8 1356 — 1361 (1359 Deleted)
26 PAKISTAN RAILWAYS GENERAL CODE
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CONTENTS
DESCRIPTION PAGE NO. PARA NO.
BILLS FOR CONTINGENT EXPENDITURE 13.8 1362
VOUCHERS OF CONTINGENT EXPENDITURE 13.8 1363
DUTIES OF THE DRAWING OFFICER 13.8 1364
DISBURSEMENT OF CONTINGENT CHARGES 13.9 1365
CONTROL OVER CONTINGENT EXPENDITURE 13.9 — 13.10 1366 — 1367
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Nature of Contingent Charges
1301. Contingent office expenditure comprises following charges of a miscellaneous character which are incidental to the management or upkeep of an office and are charged to the appropriate head of account except where otherwise provided in this and other Codes of Pakistan Railways.
(i) Expenditure on stationery, books, newspapers and periodicals;
(ii) Repair and maintenance of furniture, typewriters and other office appliances;
(iii) Uniforms and Protective Clothing for employees;
(iv) Hire of Vehicles;
(v) Advertisement and publicity charges;
(vi) Postage and Stamps;
(vii) Telephone and Fax charges.
(viii) E — Commerce charges.
1302. Expenditure of Pakistan Railways in respect of occupancy cost, uniform and protective clothing, stationery and other stores required for traffic and running staff, the repairs and maintenance of furniture and office equipment, though of the nature of contingent expenditure, does not qualify as contingencies and is regulated by rules embodied elsewhere in this and other Codes of Pakistan Railways.
1303. No pay, or additions to pay, or compensatory allowances of any kind may be treated as Contingent Expenditure.
Exceptions. The following are examples of charges which may be treated as Contingent Expenditure:
(i) Taxi hire to gazetted officers and conveyance charges, etc. paid to non-gazetted staff for journeys on duty.
(ii) Hot and Cold Weather Charges.
(iii) Coolies, carpenters, etc., employed in connection with the upkeep of an office.
(iv) Office sweepers, whether whole time servants or not, provided they are not entitled to service gratuity.
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(v) Employees in Pay Scale 1 - 4 as office chowkidars, malis and grass cutters, if they are not entitled to service gratuity and are specially permitted by the Ministry of Railways (Railway Board) to be charged to contingencies.
Classification of Contingent Charges
1304. The contingent charges may be broadly divided into two classes, viz., ordinary and special contingencies. Charges coming under each of these classes may be recurring or non-recurring.
Special Contingencies
1305. Special contingencies Include:
(i) Charges regulated by scales, such as uniforms and protective clothing to employees in Pay Scale 1 - 7.
(ii) Charges, the bills for which require the counter-signature of the head of the department, such as charges on account of taxi hire.
(iii) Unusual charges that require the special sanction of a superior authority, such as entertainment expenses on special occasions.
1306. Uniforms and Protective Clothing (A03906). Provision for clothing and other articles for staff in Pay Scale 1 - 7 employed in the office of the Ministry of Railways (Railway Board) and subordinate and attached offices, is regulated by the rules prescribed by the Ministry of Railways (Railway Board) from time to time.
1307. Provision for uniform and protective clothing to subordinates (Employees in Pay Scale 1 - 15) employed on open lines of Pakistan Railways is regulated by the Dress Regulations issued by General Manager.
1308. Employees in Pay Scale 1 - 7 in offices other than those covered by Rules 1306 and 1307 may be supplied uniforms by heads of offices on the scale and subject to the conditions prescribed by the General Manager of Pakistan Railways for similar open line staff located at the place.
1309. Subject to any special orders of the Ministry of Railways (Railway Board) or the General Manager as the case may be, such employees in Pay Scale 1 - 7 who are not entitled to uniforms but whose duties, in the opinion of the head of the department, render the supply of protective clothing necessary, may be provided with such clothing costing Rupees 500 a year or Rupees 1,000 every second year and with a blanket costing Rupees 400 every year.
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1310. The charges must be brought together in the contingent bill in such a manner as to enable the Accounts Officer to see that the total cost is within the limit prescribed, and that the rules have been observed.
1311. Charges for clothing and other articles for supply to employees in Pay Scale 1 - 7 should be supported by a certificate to the effect that the incumbents of the appointments held by the employees in Pay Scale 1 - 7, for whom clothing, etc., are charged, have not been supplied with them during previous months (according to the prescribed life of the clothing, etc., charged for). Full details as to the number of clothing, or other articles, and the rate at which paid for, should also be stated in the bill.
1312. Hire of Vehicles — Gazetted Officers. For journeys on duty performed at headquarters gazetted officers may be granted taxi hire subject to Ministry of Railways (Railway Board) orders regarding taxi hire reproduced under Rule 246 in Appendix XXV to the Pakistan Railways Establishment Code, Volume I.
1313. Unusual Charges should in no circumstances be incurred without the previous sanction of a superior authority, viz., the General Manager of Pakistan Railways or the Ministry of Railways (Railway Board).
Ordinary Contingencies
1314. (a) Unless it is otherwise stated in any rule, expenditure on ordinary contingencies (i.e., on other than special contingencies) may be sanctioned by the head of an office.
(b) The power vested under these rules in the General Manager may also be exercised by the following authorities in respect of their offices and the offices under their control:
(i) The Secretary, Railway Board. (ii) The heads of offices directly subordinate to the Ministry of Railways (Railway Board).
(c) The General Manager and the authorities detailed in clause (b) above may redelegate all or any of their powers to authorities subordinate to them.
1315. Hire of Vehicles including Travelling Allowance — Non—Gazetted Staff. (a) Van or bus hire may be allowed to non-gazetted staff when they are required to attend office on Sundays and other holidays.
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(b) In places where there are no van or bus services, other suitable conveyance hire may be allowed on the conditions stated in clause (ii) of Rule 1317 below, when the persons concerned are called to office from their homes without notice.
1316. For other journeys on duty performed at headquarters non-gazetted Pakistan Railways servants may be granted the actual cost of hiring a conveyance subject to Ministry of Railways (Railway Board) orders regarding conveyance charges reproduced under Rule 246 in Appendix XXV to the Pakistan Railways Establishment Code, Volume II.
1317. When necessary, bona fide charges on account of conveyance hire incurred by non-gazetted staff in the performance of their duty may be paid to them, in addition to any travelling allowance that may be admissible under the rules, subject to the following conditions:
(i) that the concession is limited to subordinate staff when visiting offices at a considerable distance from each other or from the railway station or when attending court as a witness on behalf of Pakistan Railways;
(ii) that the amount does not exceed the charges which would be payable for the ordinary means or conveyance available in the locality suitable to the position of the subordinate concerned; and
(iii) that no mileage allowance is drawn for the journey for which the conveyance is engaged.
1318. Communication Charges. Payment for value payable parcels can be passed as ordinary contingent charges. Payment for postal commissions on remittances by money order should ordinarily be borne by the payee, but unavoidable charges on this account may be recorded against contingencies (postage charges) under the orders of the head of the office. The postage charges will be recorded under the account head “Postage and Stamps (A03201)”. Bills for telephone and fax, etc. will be recorded under the account head “Telephone and Fax (A03202)”.
1319. No charges shall be entered in any contingent bill for any postage labels other than service postage labels, except in the case of postage stamps required for letters or other articles to be sent to foreign countries.
1320. Deleted.
1321. Deleted.
1322. Deleted.
1323. Deleted. 13.4
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1324. Stationery (A03901). Except as provided in Rules 1325 and 1326 all stationery shall be obtained through the Chief Controller of Purchase. Fountain pens and other costly articles of stationery shall not be purchased at public expense.
1325. To meet urgent and unforeseen requirements, the General Managers of Pakistan Railways may purchase locally stationery stores up to Rupees 5,000 in each case, subject to a limit of Rupees 50,000 per annum. In similar circumstances, the General Manager may also purchase an article of printing stores, or any number of similar articles at one time, up to Rupees 10,000 in each case.
1326. When it is inconvenient to obtain stationery stores through the agency of the Chief Controller of Stores, petty local purchases may be made by heads of departments up to Rupees 500 in each ease, subject to a limit of Rupees 5,000 per annum. This power shall not be redelegated to any lower authority without the sanction of the Ministry of Railways (Railway Board).
1327. The authorities empowered to make local purchases shall carefully observe the general rules which have been issued by the Ministry of Railways (Railway Board) laying down the policy to be followed in making purchases of stationery and printing stores.
1328. Deleted.
1329. Deleted.
1330. Deleted.
1331. Deleted.
1332. Deleted.
1333. Deleted.
1334. Repair of Computers, Computing Machines, etc. The Pakistan Railways may enter into agreements with the leading makers of computers, photocopier and other computing machines, etc. for the maintenance of all machines. Offices will pay from contingencies, at the rates fixed, for the maintenance of above machines. Where such contracts have been made, the repair of computers, photocopier, etc. by any other firm is prohibited. During the continuance of the agreements term and conditions as agreed will be followed.
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1335. Deleted.
1336. Deleted.
1337. The rates shown in the bills submitted by the company for spare parts should be verified with the price lists received from the Main Stationery depot, Moghalpura. It is important that the correct part numbers should be shown by the repairers in their bills.
1338. Where no contract or approved price list for spare parts exists, Divisional Superintendents and Heads of Departments are authorized to make their own arrangements for repairs.
1339. Deleted.
1340. Deleted.
1341. When a sufficient number of condemned machines has accumulated, they should be advertised for sale and disposed of by auction under the orders of the head of the department.
1342. Other Stores. The head of an office, must obtain all stores by an indent on the Chief Controller of Stores, unless he has been permitted to obtain them himself by the General Manager of Pakistan Railway.
1343. Printing and Publications (A03902). Pakistan Railways has its own printing presses, and printing and binding work of all offices of Pakistan Railways should be done there, the character of printing and binding for each class of publication being determined in accordance with rules locally in force. When Pakistan Railways press is unable to undertake work on account of pressure of work or lack of suitable facilities, the order for the execution of the work may be placed with a private press with the sanction of the General Manager, or that of the head of department if power in this respect has been delegated to him by the General Manager.
1344. Printing and binding work of other offices should be done according to the rules for printing and binding issued by the Chief Controller of Stores.
1345. Offices the cost of whose printing and binding work does not ordinarily exceed Rupees 1,000 a year should have such work done locally at private presses, and charge it to their appropriation for contingencies, provided that expenditure on any single item does not exceed Rupees 500, and the total expenditure for the whole year does not exceed Rupees 1,000.
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1346. Official Publications. Official publications issued in Pakistan by the Ministry of Railways (Railway Board) will be supplied free to Pakistan Railways officers in accordance with any general distribution sanctioned by the Ministry of Railways (Railway Board) in respect of such issues. Additional copies of such publications and other official publications may, if required, be obtained by the heads of offices from the District Controller of Stores (Printing), Moghalpura on payment.
1347. Deleted.
1348. Deleted.
1349. Deleted.
1350. For maps supplied by the Survey Department separate rules have been issued by the Chief Engineer (Survey and Construction).
1351. News Papers, Periodicals and Books (A03905). Books and newspapers or other periodical publications whether published in or out of Pakistan shall not be purchased, or subscribed for, at the public expense by any public officer without the previous sanction of the General Manager.
1352. The General Manager and lower authorities to whom he may delegate powers in this behalf, should make their own arrangement direct with the agent or publishers for the supply of such newspapers, periodicals and books as may be required for their use and for the use of officers subordinate to them.
1353. The sanction for the supply should be communicated to the Accounts Officer who will check the charges in the same way as other items of recurring contingent expenditure.
1354. Deleted.
1355. Purchase of Drugs and Medicines (A03927). Charges in connection with purchase of drugs and medicines and other medical treatment including anti-rabic treatment vaccinations, etc. of Pakistan Railways servants will be governed by the rules on the subject contained in the Pakistan Railways Establishment Code.
1356. Recurring Charges. Except as otherwise provided in these rules, no charge which binds Pakistan Railways beyond a single payment may be incurred without the sanction of the General Manager.
Note. A General Manager may authorize Heads of Departments and Divisional Superintendents to sanction the payment of occupancy cost for buildings occupied as offices and the installation of telephones in offices and residences of officers and subordinates under their control. 13.7
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1357. For contingencies of their own offices the Secretary, Railway Board may sanction recurring charges in each case up to a limit of Rupees 5,000 a year.
1358. All other officers authorized to draw contingent bills may incur recurring contingent charges other than those specified in Rules 1359 to 1361, up to Rupees 500 per month and to six months’ duration, subject only to the existence of the necessary allotment and to any restriction which the General Manager may impose.
1359. Deleted.
1360. Heads of offices may make small monthly payments to daftries not exceeding Rupees 1,000 per month for making paste, ink, bindings, etc.
1361. Small charges the amount of which may be determined by the head of the office, may be incurred for the washing of towels, and the purchase of towels, soap and other closet requisites for the use of gazetted officers.
1362. Bills for Contingent Expenditure. Bills should be prepared separately for ordinary and special contingencies. In regard to periodical charges and scale regulated contingencies, it should be stated when the charges were last incurred, to enable the Accounts Officer to see that the expenditure has not been incurred before the expiry of the prescribed period. The sanction of competent authority should be quoted in cases in which superior sanction is necessary for incurring expenditure. All contingent bills containing charges for miscellaneous supplies should bear a certificate that the articles have been received in good condition and entered in the stock account.
1363. Vouchers of Contingent Expenditure. The limit below which bills need not to be forwarded to the Accounts Office in support of the voucher should be fixed in consultation with the General Manager, but all bills which are not submitted to the Accounts Office should be defaced and cancelled in such a way that they cannot be used again in support of claims against Pakistan Railways. All bills for Rupees 500 or more must be submitted to the Accounts Office in support of the payment.
1364. Duties of the Drawing Officer. The drawing officer is expected to exercise the same vigilance over contingent expenditure as a person of ordinary prudence would exercise in spending his own money. He should further see that the bills are in proper form, have been received by the proper person and have been so made out that a second claim against Pakistan Railways for the same charge is impossible, that the expenditure is absolutely necessary for the efficient management of the office or the performance of the service to which it relates, that the rates are not uneconomical, that the sanction of higher authority is not required under the financial restrictions laid down in any rules or orders issued by competent authority and, where necessary, the requisite sanction is obtained and quoted in the bill in support of the charge and that adequate budget provision exists to cover the expenditure involved. 13.8
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1365. Disbursement of Contingent Charges. Contingent charges are disbursed in the following ways:
(i) Payment by the officer incurring the expenditure out of the imprest or permanent advance allowed to him.
(ii) Payment by the Accounts Officer direct to the supplier, on the authority of the officer competent to incur the expenditure and on receipt of proof of supply. In such cases, the firm's bill and receipt should be sent in original to the Accounts Office.
(iii) Payment by the head of the office on receipt of money from the Accounts Office.
No money should be obtained from the Accounts Office unless it is required for immediate disbursement, and adjustment bills supported by necessary invoices of supplier and payees' receipts should be sent to the Accounts Office immediately after disbursement.
(iv) Book adjustment by the Accounts Office when supplies have been made by another department / accounting unit of Pakistan Railways.
In such cases the rules of adjustment prescribed by supplying departments should be followed. If any such rules prescribe cash payment, the procedure will be as in (ii) above. For supplies from the Pakistan Railways Stores or other accounting unit of Pakistan Railways to the other accounting units, the rules on the subject should be followed.
(v) The charges for service postage stamps are drawn on separate contingent bill forms in the usual way, and separate cheques therefor are issued by the Accounts Officer in favour of the officer who supplies the stamps. Cheques so issued are not subject to any special minimum amount.
1366. Control over Contingent Expenditure. A register of contingent expenditure should be kept in each office, analyzing the amount charged to the appropriate head of account as per Charts of Accounts as may be considered necessary for the control of expenditure. The contingencies register should be examined at least once a month by a gazetted officer and if there are signs of extravagance under any detailed account head of contingencies, these should be investigated and steps taken to restrict the expenditure under those detailed account heads. All contingent expenditure should be watched in this way.
Note. Deleted. 13.9
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1367. The control of expenditure against the budget allotment for “office contingencies” should be exercised by the Heads of Departments and Divisional Superintendents with the help of the Allocation Registers maintained in the Accounts Office.
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PAKISTAN RAILWAYS
PAKISTAN RAILWAYS GENERAL CODE
Riaz Ahmad & Company Chartered Accountants
CHAPTER XIV
20 October, 2011
9.1 PAKISTAN RAILWAYS GENERAL CODE
CHAPTER XIV
CASH, CHEQUES AND VOUCHERS
CONTENTS
DESCRIPTION PAGE NO. PARA NO.
GENERAL 14.1 1401
DEPARTMENTAL RECEIPTS 14.1 1402
TRANSMISSION OF DEPARTMENTAL RECEIPTS TO 14.1 — 14.2 1403 STATIONS
REMITTANCE OF STATION EARNINGS 14.3 1404
UTILIZATION OF RECEIPTS FOR DEPARTMENTAL 14.3 1405 EXPENDITURE (1406 Cancelled)
ACCEPTANCE OF LOCAL CHEQUES IN PAYMENT OF 14.3 — 14.4 1407 — 1409 GOVERNMENT / PAKISTAN RAILWAYS DUES
CASH IMPRESTS 14.4 — 14.5 1410 — 1415
HANDLING OF CASH 14.5 1416
CASH BOOK 14.5 1417 — 1419
RECEIPTS 14.5 1420
TRANSPORT OF CASH 14.5 1421
CUSTODY OF CASH 14.5 — 14.6 1422 — 1424
CHEQUES 14.6 1425
CHEQUE BOOKS 14.6 1426
WRITING OF CHEQUES 14.6 — 14.7 1427 — 1428
CROSSING OF CHEQUES 14.7 1429 — 1434 (1431 Deleted)
CANCELLATION OF CHEQUES 14.8 1435 — 1437
28 PAKISTAN RAILWAYS GENERAL CODE
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CASH, CHEQUES AND VOUCHERS
CONTENTS
DESCRIPTION PAGE NO. PARA NO.
DATE OF PAYMENT BY CHEQUE, MONEY ORDER, OR 14.8 1438 POSTAL ORDER, ETC. (1439 — 1450 Deleted)
VOUCHERS — GENERAL 14.10 1451
PRINTED FORMS 14.10 1452
AMOUNTS IN WORDS 14.10 1453
CORRECTIONS 14.10 1454
ALLOCATION 14.10 1455
SIGNATURE 14.10 — 14.11 1456 — 1457
SANCTION 14.11 1458
DATES OF PAYMENT 14.11 1459
DUPLICATES OR COPIES 14.11 1460
ERASURES 14.11 1461
RESPONSIBILITY FOR OVERCHARGES 14.12 1462
VOUCHERS EXEMPT FROM STAMP DUTY 14.12 1463 — 1464
VOUCHERS REQUIRING STAMP DUTY 14.12 1465
ROUNDING OFF RUPEES IN ACCOUNTS 14.12 1466
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1401. General. The term “Bank” / Treasury used in this chapter means the State Bank of Pakistan, and includes any office of the State Bank of Pakistan.
1402. Departmental Receipts. All transactions to which Pakistan Railways servant in his official capacity is a party, must without any reservation, be brought to account, and all moneys received should he paid in full, without undue delay, into the treasury or the bank, or in the case of Pakistan Railways servants employed on open lines, into the Pakistan Railways Cash Office or to the nearest Pakistan Railways station, to be credited to the appropriate head of account.
1403. Transmission of Departmental Receipts to Stations. The amounts forwarded by Departmental Officers to Station Masters for remittance must be accompanied by a Miscellaneous Receipts Transmit Note in Form G. 1403 which consists of a note giving full particulars of the remittance and a receipt in duplicate.
FORM NO. G. 1403
MISCELLANEOUS RECEIPTS TRANSMIT NOTE
Obverse of form
First foil Second foil No………...... No………...... Dated………………………..20___ Dated……………..20___ To To The Station Master, The Station Master, …………………..…..Station. ……………………..Station. Please forward to the Cashier the sum of Please forward to the Cashier the sum of Rupees …………………………………..………... Rupees …………………………………….……... …………………………………………………. sent ……………………….………………………. sent herewith, and return me the annexed receipt duly herewith, and return me the annexed receipt signed, in duplicate. duly signed, in duplicate. Rupees……………………. as per particulars on Rupees…………………. as per particulars on (in figures) (in figures) reverse. reverse. ………………………………………….. Name……………………………………………. ……………………………………… Designation………………………………. Designation. The Station Master will attach this to his Cash Remittance Note (T.2153) when remitting the money to the Cashier.
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Third foil Fourth foil (Original) (Duplicate) No………...... No………...... Dated……………….……..20__ Dated……………….……..20__ ………………….…..Station. ………………….…..Station. Received from the……………………………. Received from the……………………………. ………………………………….…….. the sum of ………………………………….…….. the sum of Rupees……………………………………………. Rupees……………………………………………. ……………………………………………………. on ……………………………………………………. on account of miscellaneous receipts to be remitted to account of miscellaneous receipts to be remitted to the Cashier, as per his Transmit Note the Cashier, as per his Transmit Note No…………………….…………………………… No…………………….…………………………… dated………………..Rupees………………………….. dated………………..Rupees………………………….. (in figures) (in figures) ………………………….. ………………………….. Station Master. Station Master. ……………………………………………………… ……………………………………………………… To be returned to the Transmitting Officer and To be returned to the Transmitting Officer and to be forwarded by him to the Financial Advisor & attached by him to his counterfoil. Chief Accounts Officer.
REVERSE OF FIRST AND SECOND FOILS
Date of realization as Account to be per entry in cash book Particulars of items Amount or cash account credited Rupees
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1404. Remittance of Station Earnings. The procedure for the payment of station earnings into treasuries or the bank and for their remittance to the Pakistan Railways Cash Office is prescribed in the Pakistan Railways Code for the Traffic Department in paragraph 2144 et seq.
1405. Utilization of Receipts for Departmental Expenditure. The appropriation of departmental receipts to departmental expenditure or any other purpose is strictly prohibited, except in the circumstances specified below:
(i) Deleted.
(ii) The Financial Adviser and Chief Accounts Officer, with the prior approval of the Ministry of Railways (Railway Board), is empowered to employ a system under which cash receipts at stations are utilized to a limited extent for the payment of expenditure of Pakistan Railways (e.g., payment of claims for compensation of goods lost or damaged, disbursement of pay and travelling allowances with a view to accelerate payment of such charges, payment of wages in certain specified cases under the Payment of Wages Act).
(iii) In any other case, with the prior approval, general or special, of the Federal Government.
Note. The General Manager of Pakistan Railways, if he considers it absolutely necessary, may, in consultation with his Financial Adviser and Chief Accounts Officer, order the appropriation of departmental receipts for urgent departmental expenditure necessitated by floods, earthquakes and accidents.
1405-A. Deleted.
1406. Cancelled.
1407. Acceptance of local Cheques in payment of Government / Pakistan Railways Dues. Stations must not accept cheques in payment of passenger fares. In the case of goods and parcels traffic, cheques on scheduled banks which have clearing accounts with the Bank may be accepted in payment of Pakistan Railways freight, at the discretion of the General Manager, from well-known firms subject to the condition that the firm concerned deposits with Pakistan Railways, as security, a sum equivalent to an amount not less than a month's freight transactions with Pakistan Railways. The security deposit may be made in Cash, a Bankers Guarantee Bond issued by one of the scheduled Banks. The deposit should be made for each booking or receiving point where a firm desires to pay by cheques. Cheques on scheduled Banks may also be accepted in payment of other dues to Pakistan Railways or in settlement of other transactions, at places where Government treasury business is conducted by the bank.
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1408. Such cheques should, in all cases, be crossed. Until, however, a cheque has been cleared, Pakistan Railways administration cannot admit that payment has been received and consequently final receipts will not be granted when a cheque is tendered. A receipt for the cheque (only) will be given in the first instance, but if the person making payment so desires, a formal payment receipt should be sent by post to his address after the cheque has been cleared.
1409. In the event of such a cheque being dishonoured by the bank concerned on presentation, the fact will be intimated at once to the tenderer, but Pakistan Railways cannot accept any liability for loss or damage which may possibly occur as a result of delay in intimating that the cheque has been dishonoured.
Cash Imprests
1410. An imprest is a standing advance of a fixed sum of money placed at the disposal of an individual to meet petty office expenses and emergent charges which cannot be foreseen. Emergent petty advances may also be made, on the responsibility of the imprest holder, out of imprest money placed at his disposal.
1411. The amount of an imprest must not be larger than is absolutely necessary. It should be reckoned at the lowest possible figure calculated to suffice for meeting charges of the nature referred to in the preceding paragraph and should be fixed in consultation with the Financial Adviser and Chief Accounts Officer who will advise as to the appropriate amount of the imprest.
1412. Subject to the provisions of the previous paragraph, the General Manager will have full power to sanction imprests. He may redelegate his power in this respect to authorities subordinate to him, on such conditions as he may think fit to impose. The Chief Engineer of Pakistan Railways, under construction may similarly sanction cash imprests up to an amount not exceeding Rupees 5,000 in each case. In case of other offices, the grant of an imprest will require the sanction of the Ministry of Railways (Railway Board).
1413. The number of imprests should not be multiplied unnecessarily. An officer’s imprest should meet the needs of every branch of his office. If he has subordinates who require petty sums, he should rather spare a small portion of his own imprest for their use than apply for separate imprests for them, taking acknowledgements from them in the same way as he himself furnishes to the Accounts Officer and retaining them in his office.
1414. The arrangements for the safe custody of the imprest money rest entirely with the imprest holder and he must at all times be ready to produce the total amount of the imprest in vouchers or in cash.
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1415. The imprest account (Form E. 1411) should be kept in duplicate, the counterfoil being kept by the imprest holder and the original, supported by the necessary vouchers, forwarded to the Accounts Officer from time to time as the holder of the imprest may require it to be replenished. The account should be closed ordinarily on the 27th of each month and recouped before the end of the month so as to ensure, as many as possible, of the month’s transactions being included in the accounts.
The Handling of Cash
1416. The following rules should be observed by all Pakistan Railways servants who are required to receive and handle cash.
1417. Cash Book. Each Pakistan Railways servant receiving money on behalf of Pakistan Railways should maintain a Cash Book.
1418. All cash transactions should be entered in the Cash Book as soon as they occur, and attested in token of check.
1419. The Cash Book should be closed regularly and completely checked. At the end of each month, the Officer-in-charge of the Cash Book should personally verify the cash balance in the Cash Book and record a signed and dated certificate to that effect.
1420. Receipts. When money is received by Pakistan Railways servant, a receipt should be granted to the payer in the form prescribed for the purpose. The receipt should be signed only by a responsible officer who should satisfy himself at the time of signing the receipt that the amount has been entered in the Cash Book.
1421. Transport of Cash. The employment of Naib Qasids to fetch or carry money should be discouraged. When it is absolutely necessary to employ class IV staff for this purpose, men of some length of service and proved trustworthiness should only be selected and, in all cases, when the amount to be handled is large, more than one messenger accompanied by a police escort should be employed.
1422. Custody of Cash. Pakistan Railways servant who handles Pakistan Railways money should not, except with the special sanction of the head of the office, be allowed to handle also in his official capacity money which does not belong to Pakistan Railways. Where under any special sanction, Pakistan Railways servant deals with both Pakistan Railways and non-Pakistan Railways money in his official capacity, the Pakistan Railways money should be kept in a cash box separate from the non-Pakistan Railways money and the transactions relating to the latter should be accounted for in a separate set of books and kept entirely out of Pakistan Railways account.
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1423. In the case of payments into treasuries, the disbursing officer should compare the Treasury Officer's receipt on the challan with the entry in the cash book before attesting it, and when such payments are appreciable, he should obtain from the treasury a monthly list of payments which should be compared with the postings in the cash book.
1424. Public money not in the custody of a treasury, should be kept in strong treasure chests and secured by two locks of different patterns. All keys of the same lock should be kept in the same person’s custody and as a general rule, the keys of one lock should be kept apart from the keys of the other lock and in a different person's custody when practicable. When there is a police guard, the officer-in-charge of such guard should be entrusted with the custody of the keys of one lock. The chest should never be opened without both the custodians of the keys being present. The officer-in-charge of the police guard (where such guard is provided) should always be present when the treasure chest is opened and until it is again locked.
Cheques
1425. All funds required for expenditure on Pakistan Railways will be obtained from the Bank by cheques to be issued by Financial Adviser and Chief Accounts Officers or Officers duly authorized by them.
1426. Cheque Books. A separate cheque book should be used for each office of the Bank. Each cheque book must be kept under lock and key in the personal custody of the drawing officer who, when relieved, should take a receipt for the correct number of cheques made over to the relieving officer. The loss of a cheque book or blank cheque form should be notified promptly to the Bank with whom the disbursing Officer concerned has a drawing account.
1427. Writing of Cheques. All cheques should have written across them in words, at right angles to the type, a sum a little in excess of that for which they are granted : thus: “under thirty thousand rupees” will mean that the cheque is for a sum not less than Rupees 29,000, but less than Rupees 30,000; and similarly “under eight hundred thousand rupees” will mean that it is for less than Rupees 800,000, but not less than Rupees 700,000. No abbreviations such as “eleven hundred” for “one thousand one hundred” should be used. The amount should be written in the manner prescribed for vouchers in paragraph 1453. The drawer of a cheque in which these words occur should therefore so write as to make the fraud impossible. The cross entry is not necessary if the amount in words is typed perforated by a special cheque writing machine.
Note. All cheques should be written or typed with black ink.
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1428. No erasure or overwriting should be made in a cheque. If any alteration is necessary, the incorrect entry should be cancelled neatly in red ink and the correct entry inserted. Each such alteration should be attested by the drawer under his dated signature.
1429. Crossing of Cheques. (a) All Cheques drawn in favour of Government officers / officials and departments in settlement of Government dues should always be crossed “A/c payee only”.
(b) Cheques drawn in favour of corporate bodies, firms or private persons should always be crossed. Where the payee is believed to have a banking account further precautions should be adopted where possible by crossing the cheque “specially” (instead of by the “general” crossing “……………………...... & Co.”) by quoting the name of the bank through which the payee will receive payment and by adding the words “A/c payee only”. These instructions regarding the method of crossing of cheques are applicable in all cases where the use of crossed cheques is prescribed.
(c) Deleted.
1430. An advice (Form I) should be sent to the Bank for each cheque which is issued. As a general rule, cheques should not be issued for a sum less than Rupees 100 unless this is permissible under the provisions of any law or rule having the force of law.
1431. Deleted.
1432. Every cheque in favour of any person must be made payable to “order” only.
1433. Ordinarily, a cheque payable to order is not cashed by the Treasury Officer unless it is receipted by the payee himself or other person in whose favour it is regularly endorsed for payment. In special cases, when the head of an office is unable himself to receipt cheques payable to his order, owing to his being absent on tour or for other causes, and when he considers that strict compliance with the ordinary rule would cause inconvenience, he may specially authorize in writing a Gazetted Officer subordinate to him to endorse for him cheques drawn in his favour by his official designation.
1434. When a public officer sends a cheque to a treasury not for cash payment, but for credit of its amount in the treasury accounts, he must, before endorsing the same, add the words “Received payment by transfer credit to —————————————“. Omission to do this facilitates fraudulent appropriation of money.
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1435. Cancellation of Cheques. Cheques shall be payable at any time within three months after the month of issue or 30th June whichever is earlier; thus a Cheque bearing any date in January is payable up to 30th April. Should the currency of a cheque expire owing to its not being presented within three months after the month of its issue, it may be returned to the drawer who will destroy it, and draw a new cheque in lieu thereof. The fact of the destruction and the number and date of the new cheque should be recorded on the counterfoil of the old cheque, and the number and date of the old cheque that is destroyed should be recorded on the counterfoil of the new one. The fact of the new cheque having been issued should be entered on the date of issue in red ink parenthetically in the cash book, but not in the column for payment. A note should also be made against the original entry in the cash book.
1436. When it is necessary to cancel a cheque, the cancelment should be recorded on the counterfoil, and the cheque, if in the drawer's possession, should be destroyed. If not in his possession, he should promptly request the Treasury Officer to stop payment of the cheque and on ascertaining that payment has been stopped, he should write back the entry in his cash book by exhibiting the amount of the cheque on the receipt side in the treasury column as “Cancellation of Cheque”. A counter-reference must be given in the cash book, against the original, to the second entry of the cheque. When the amount is thus adjusted, it will be deducted from the amount credited to the head “Pre-Audit Cheques (Railways)”.
1437. If a Disbursing Officer is informed that a cheque drawn by him has been lost, he may address the Bank or Treasury Officer drawn on, forwarding for signature a certificate in the form below. If, after search through the lists of cheques paid, the Bank or the Treasury Officer finds that the cheque has not been cashed, he will sign and return the certificate. The Disbursing Officer will enter in his account the original cheque as cancelled and may issue another.
Certified that Cheque No…………....dated...... for Rupees……………………… reported by the...... (Disbursing Officer) to have been drawn by him on this treasury/bank in favour of……………has not been paid, and will not be paid if presented hereafter.
………………………….. Dated …………20 . Treasury Officer,
State Bank of Pakistan
1438. Date of Payment by Cheque, Money order, or Postal order, etc. If a payment is made by cheque and the cheque is honoured on presentation, the payment shall be deemed to be made on the date the cheque is handed over to the payee or the person authorized to give a legal quittance on his behalf.
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If the payment is not made in person but by post, the payment shall be deemed to be made on the date of dispatch of cheque, money order or postal order, etc., if payment by post is made at the request of the payee, otherwise on the date the cheque, money order or postal order, etc., is received by the payee.
Provided that where a cheque is marked as not payable before a certain date (post dated Cheque), the payment shall not be deemed to have been made until the date on which it becomes payable.
Note. Demand drafts shall not be distinguished from cheques for the purpose of this rule.
1439. Deleted.
1440. Deleted.
Government Drafts
1441. Deleted.
1442. Deleted.
1443. Deleted.
1444. Deleted.
1445. Deleted.
1446. Deleted.
1447. Deleted.
1448. Deleted.
1449. Deleted.
1450. Deleted.
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Vouchers
1451. General. The following general instructions should be observed in the preparation of bills, pay orders and other vouchers for payments.
1452. Printed forms. Forms of vouchers printed in English should be adopted as far as possible; but when from any circumstances, a vernacular voucher is unavoidably necessary, a bilingual form should be used. When the use of a purely vernacular voucher is unavoidable, a brief abstract should be endorsed in English under the signature of the preferring officer stating the amount, the name of the payee, and the nature of the payment.
1453. Amounts in Words. All vouchers must be filled in and signed in ink. The amount of each voucher should, as far as whole rupees are concerned, be written in words as well as in figures. The word “only” should be inserted after the number of whole rupees as in the following examples and care should be taken to leave no space for interpolation:
“Rupees twenty-six only.”
1454. Corrections. All corrections and alterations in the total of a voucher should be attested by the dated initials of the person signing the receipt as many times as such corrections and alterations are made; any corrections in the orders of payment must be attested in the same way by the officer issuing the order. No document bearing an erasure can be accepted and payment of such vouchers should be refused and a fresh voucher called for. Corrections and alterations in orders of payment drawn by officers on the Bank should be attested by their full signature.
1455. Allocation. The correct head of Chart of Accounts should be recorded on each voucher by the drawing officer. This head of account should also show whether the expenditure is Charged or Other than Charged and should mention the Fund from which payment are being made.
1456. Signature. Unless the Ministry of Railways (Railway Board) have expressly authorized it in the case of any specified office, no payment may be made on a voucher or order signed by a clerk instead of by the head of an office, although in the absence of the latter the clerk be in the habit of signing letters for him. Nor may any moneys be paid on a voucher or order signed with a stamp. When the signature on a voucher is given by a mark or seal or thumb impression, it should be attested by some known person. Vernacular signatures must always be transliterated.
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1457. The head of an office may authorize any gazetted officer serving under him to sign a bill, voucher, or order, for him, communicating the name and the specimen signature of the officer, to the Accounts Officer. This will not, however, relieve the head of the office, in any way of his responsibility for the accuracy of the bill or for the disposal of the money received in payment. Bills requiring previous countersignature will not be paid if presented without such countersignature.
1458. Sanction. When bills are presented on account of charges incurred under any special orders, the orders sanctioning the charges should be quoted. The authority under which deductions are made in a bill should also be quoted.
1459. Dates of payment. Dates of payment should, when possible, be noted by the payees in their acknowledgments in vouchers, acquittance rolls, etc. If, for any reason, such as illiteracy, on the presentation of receipts in anticipation of payment it is not possible for the dates of payment to be noted by the payees, the dates of actual payment should be noted by disbursing officer on the documents under their initials, either separately for each payment or by groups as may be found convenient.
1460. Duplicates or Copies. No Pakistan Railways officer may issue duplicates or copies of receipts granted for money received, or duplicates or copies of bills or other documents for the payment of money which has already been paid, on the allegation that the originals have been lost. If any necessity arises for such a document, a certificate may be given that on a specified day, a certain sum on a certain account, was received from or paid to a certain person. This prohibition extends only to the issue of duplicates on the allegation that the originals have been lost, and does not apply to cases in which, by existing rules, duplicates are prepared and tendered with the originals. In the case of a bill or other payment voucher lost before payment, a duplicate may be issued by the officer who drew the original bill or voucher, on a certificate by the Accounts Officer that payment has not been made on the original and will not be made if found later on. The duplicate bill or voucher should bear distinctly on its face the word “duplicate” written in red ink. The Accounts Officer should keep a proper record of all duplicate bills and vouchers passed for payment, to guard against a double claim being passed on the same account.
1461. Erasures. Erasures and over-writings in any account, register, schedule, voucher or cash book are absolutely forbidden; if any correction be necessary, the incorrect entry should be cancelled neatly in red ink and the correct entry inserted. Each such correction or interpolation deemed necessary should be authenticated by the head of the office setting his dated initials against each.
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1462. Responsibility for overcharges. Officers drawing bills, pay orders, etc., are responsible for the correctness of the amounts charged therein. In the case of bills and pay orders which are not checked by the Accounts Officer before payment, the responsibility for any overpayment which may result from an erroneous charge, also devolves upon the drawing officers.
1463. Vouchers exempt from stamp duty. Receipts for all gross amounts exceeding Rupees 500 must be stamped but the following are exempt:
(a) Deleted.
(b) Receipts on cheques.
(c) Receipts for interest on Government securities.
(d) Receipts for withdrawals from Government Savings Banks.
(e) Receipts on Postal / Money Orders.
(f) Receipts given by Pakistan Railways for payments made to it on account of freight and fares and for incidental charges such as loading, unloading, delivery, cranage, haulage, wharfage, demurrage, etc.
(g) Receipts for payments made by or on behalf of Pakistan Railways.
(h) Receipts given by or on behalf of any society registered under the Co- operative Societies Act or by any officer or member of any such society and relating to the business of the society.
1464. All cheques are exempt from stamp duty. For other documents which are free from stamp duty, the list of exemptions in Schedule I of the Stamp Act should be consulted.
1465. Vouchers requiring stamp duty. Receipts for advances taken by Pakistan Railways servants do not come under any of the exemptions mentioned above, and are, therefore, chargeable with stamp duty under the general rules.
1466. 'Rounding off’ Rupees in Accounts. The transactions of the Pakistan Railways will be taken to the nearest Rupee, fifty paisa and over being treated as one whole Rupee and amounts less than fifty paisa being omitted.
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(i) Deleted.
(ii) Deleted.
(iii) Deleted.
(iv) Deleted.
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PAKISTAN RAILWAYS
PAKISTAN RAILWAYS GENERAL CODE
Riaz Ahmad & Company Chartered Accountants
CHAPTER XV
20 October, 2011
9.1 PAKISTAN RAILWAYS GENERAL CODE
CHAPTER XV
ADVANCES AND ARREAR CLAIMS
CONTENTS
DESCRIPTION PAGE NO. PARA NO.
GENERAL 15.1 1501
PROPRIETY OF AN ADVANCE 15.1 1502
INTEREST ON ADVANCES 15.1 1503
CONDITIONS FOR REPAYMENT 15.1 1504 — 1505
ADVANCES ON FIRST APPOINTMENT 15.1 1506 — 1508 (1507 Deleted)
ADVANCES ON PROCEEDING ON TOUR 15.1 — 15.2 1509 — 1511
ADVANCES ON DEPUTATION OUT OF PAKISTAN, OR 15.2 1512 — 1513 ON RETURN FROM LEAVE (1514 Deleted) ADVANCES ON TRANSFER 15.2 — 15.3 1515 — 1519
ADVANCES UNDER SPECIAL CIRCUMSTANCES 15.3 1519-A
ADVANCES FOR LAW SUITS 15.3 1520
ADVANCES FOR ANTI-RABIC TREATMENT 15.3 1521 (1522 — 1537 Deleted)
ADVANCES FOR PURCHASE OF CONVEYANCES 15.4 — 15.12 1538 — 1540
ARREAR CLAIMS 15.12 — 15.13 1541 — 1549 (1545, 1547, 1548 Deleted) INTER DEPARTMENTAL CLAIMS 15.13 — 15.14 1550 — 1552
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Advances
1501. General. The rules regulating the grant of advances to railway servants are laid down in the following paragraphs. In the case of temporary employees or in cases not covered by these rules, the grant of an advance will require the sanction of the Ministry of Railways (Railway Board).
1502. Propriety of an Advance. It shall not be permissible for any authority to sanction an advance which involves a breach of the standards of financial propriety (vide paragraph 807).
1503. Interest on Advances. The rate of interest in the case of interest bearing advances shall be such as may be prescribed by Government each year for such advances. The interest will be calculated on balances outstanding on the last day of each month. When an advance is drawn in more than one installment, the rate of interest recoverable is determined with reference to the date on which the first installment is drawn.
1504. Conditions for Repayment. All advances are subject to adjustment by the railway servants receiving them in accordance with the rules applicable to each case. When an advance is adjustable by recovery, the amount to be recovered monthly should not be affected by the fact of a railway servant going on leave of any kind with full pay or half pay. It is, however, open to a head of department to order a reduction in any case in which he deems it right to do so.
1505. A personal advance made to a railway servant may be repaid by him either in cash or by reduction in his pay or travelling allowance bill.
1506. Advances on first Appointment. The competent authority may grant a railway servant, on first appointment, an advance up to an amount not exceeding two months’ substantive pay.
1507. Deleted.
1508. The advances will be recoverable by monthly installments of one-third of pay fixed in whole rupees.
1509. Advances on proceeding on tour. A gazetted railway servant, other than an inspecting officer, may be granted by the controlling officer for himself or an Assistant or Deputy, when proceeding on long tour, an advance equal to an amount sufficient to cover for a month his contingent charges, such as those for the hire of conveyances, etc., for the carriage of records or other Government property, subject to adjustment upon the railway servant’s return to headquarters or 30 June, whichever is earlier.
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1510. A non-gazetted railway servant accompanying an officer, proceeding on tour, may be granted by the head of his office an advance equal to an amount sufficient to cover his personal travelling expenses for a month, subject to adjustment on completion of tour or 30 June, whichever is earlier.
1511. The advances mentioned in the preceding two paragraphs should be accounted for as advances recoverable at the time of payment. Final charge to travelling expenses should be made on provision of actual bills by the railway servant to the Accounts Office concerned.
1512. Advances on deputation out of Pakistan, or on return from leave. A railway servant returning from leave, other than leave on full pay not exceeding four months, or deputation out of Pakistan, may be granted by the competent authority an advance not exceeding two months’ substantive pay, provided no advance has been drawn under paragraph 1515.
1513. Such advances should be recovered in monthly installments of one-third of pay fixed in whole rupees. The recovery of an advance made under the Military Leave Rules to a Military officer in civil employment subject to the Military Leave Rules is regulated by those rules.
1514. Deleted.
1515. Advances on transfer. A railway servant under orders of transfer, whether he is on duty or on leave when he received the orders of transfer, may be granted, under the sanction of the head of department, or a lower authority to whom power may be delegated in this behalf by the competent authority, an advance up to an amount not exceeding one month's substantive pay plus the travelling allowance to which he may be entitled under the rules, in consequence of transfer. The advances should be recorded on the last pay certificate of the railway servant concerned.
1516. The advance of pay may be allowed by the competent authority, mentioned in paragraph 1515, to be drawn at the new station / office / division / accounting unit soon after the arrival of the railway servant there, on the production of the last pay certificate showing that no advance had been drawn at the old station / office / division / accounting unit.
1517. The advance of pay should be recovered from the pay of the railway servant in three equal monthly installments beginning with the month in which a full month's pay is drawn after the transfer. The amount of advance to be recovered should be fixed in whole rupees. The advance of travelling allowance should be recovered, in full, on submission of the railway servant’s travelling allowance bill.
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1518. A railway servant may be allowed a second advance to cover the travelling expenses of any member of his family who follows him within six months from the date of transfer and in respect of whom an advance of travelling allowance has not already been drawn.
1519. When a single lump sum is drawn to cover the travelling expenses both of the railway servant himself and of his family, it may be adjusted by the submission of more than one bill if it so happens that the members of the family do not actually make or complete the journey with him. In such a case, the railway servant should certify on each adjustment bill submitted by him that a further bill in respect of the travelling allowance of the members of his family (to be specified) who have not yet completed the journey will be submitted in due course and is expected to include an amount not less than the balance of the advance left unadjusted in that bill.
1519-A. Advances under special circumstances. The General Manager may sanction an advance of one month's pay to non gazetted railway servants under very special circumstances, e.g., if the railway servant’s camp is burnt or, if serious damages are caused to his belongings due to floods, etc. Such an advance must be recovered in 3 equal monthly installments beginning with the month in which a full month’s pay is drawn after drawal of the advance.
1520. Advances for Law Suits. Advances may also be granted for the conduct of law suits to which Government is a party; but no advance should be made to a railway servant the legal proceedings against whom have been taken at the instance of Pakistan Railways administration. The amount of advance should be such as is absolutely necessary for the conduct of the law suit and should be drawn and accounted for under account head F02113 “Account with Government Servants”.
1521. Advances for Anti-rabic Treatment. Advances may be granted for anti- rabic treatment in accordance with the provisions of Appendix IX to the Pakistan Railways Establishment Code, Volume I.
1522. Deleted.
1523. Deleted.
1524. Deleted.
1525. Deleted.
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1526. Deleted.
1527. Deleted.
1528. Deleted.
1529. Deleted.
1530. Deleted.
1531. Deleted.
1532. Deleted.
1533. Deleted.
1534. Deleted.
1535. Deleted.
1536. Deleted.
1537. Deleted.
1538. Advances for purchase of conveyances. A railway servant drawing pay of Rupees 19,365 or above may be granted, by the competent authority, under whom the railway servant is for the time being employed as advance for the purchase of a motor car subject to the following conditions:
(1) An advance will be given only when the railway servant to whom the advance is sanctioned is required under explicit orders of the competent authority to maintain a motor car as a condition of his service or of holding any particular post to which he may be appointed.
(2) The total amount to be advanced to a railway servant for purchase of motor car shall not exceed Rupees 300,000.
Note. Deleted.
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(3) (a) A railway servant who is on leave or about to proceed on leave for whom an advance has been approved by the sanctioning authority will not be allowed to draw the advance earlier than a week before the expiry of the leave.
(b) Delete.
(4) Recovery will be made by deducting monthly installments from the pay bill of the railway servant concerned. It will commence with first issue of pay after the advance is drawn. Recovery will be made in maximum of sixty monthly installments. The authority sanctioning the advance may permit recovery to be made in a smaller number of installments in special circumstances. The amount of interest, calculated in accordance with sub-clause (7) below, will be recovered in one or more installments, each such installment being not appreciably greater than the installments by which the principal was recovered. The recovery of interest will commence from the month following that in which the whole of the principal has been repaid.
Note. Deleted.
(5) Except when a railway servant proceeds on leave other than leave on full pay not exceeding four months, or retires from the service, or is transferred to an appointment, the duties of which do not render the possession of a motor car necessary, the prior sanction of the competent authority, is necessary to the sale by him of the car purchased with the aid of an advance which with interest accrued in accordance with clause (7) has not been fully repaid. If a railway servant wishes to transfer such car to another Officer who performs the duties of a kind that render the possession of a motor car necessary, the sanctioning authority may permit the transfer of the liability attaching to the car to the latter officer, provided that he records a declaration that he is aware that the car transferred to him remains subject to the mortgage bond and that he is bound by its terms and provisions.
(6) In all cases in which a car is sold before the advance received for its purchase with interest accrued in accordance with clause (7), has been fully repaid, the sale proceeds must be applied, so far as may be necessary, towards the repayment of such outstanding balance. Provided that when the car is sold only in order that another car may be purchased the sanctioning authority may permit a railway servant to apply the sale proceeds towards such purchase subject to the following conditions:
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(a) the amount outstanding shall not be permitted to exceed the cost of the new car;
(b) the amount outstanding shall continue to be repaid at the rate previously paid;
(c) the new car must be insured and mortgaged as required by these rules.
Note. Second motor car advance will be allowed with immediate effect subject to the condition that the previous advance plus interest thereon has been repaid.
(7) Simple interest at the rate specifically fixed for the purpose by the Government of Pakistan will be charged on advances granted to railway servants under these rules. The interest will be calculated on balances outstanding on the last day of each month. When an advance is drawn in more than one installment the rate of interest recoverable is to be determined with reference to the date on which the first installment is drawn.
Note (1)..Deleted.
Note (2). A railway servant who draws an advance for the purchase of a motor car is expected to complete his negotiations for the purchase, and to pay finally for the car, within one month from the date on which he draws the advance; failing such completion and payment, the full amount of the advance drawn, with interest thereon for one month, must be refunded to Government. At the time of drawing the advance the railway servant will be required to execute an Agreement in Form G. 1538 (1) and on completing the purchase, he will further be required to execute a Mortgage Bond in Form G. 1538 (2) hypothecating the car to the Ministry of Railways (Railway Board) as security for the advance. The cost price of the car purchased should be entered in the schedule of specifications attached to the Mortgage Bond.
When an advance is drawn, the sanctioning authority will furnish to the accounts officer concerned a certificate that the Agreement in Form G.1538 (1) has been signed by the railway servant drawing the advance and that it has been examined and found to be in order. The sanctioning authority should see that the car is purchased within one month from the date on which the advance is drawn and should submit every Mortgage Bond promptly to the accounts officer concerned for examination before final record.
Note (3). The car must be insured against full loss by fire, theft or accident. It should be a comprehensive insurance policy and not a third party insurance etc. In case of purchase of second hand cars third party insurance is permissible, provided the railway servant furnishes the following undertaking:
(i) he will not seek any abatement, relief or waiver of the outstanding amount of advance in case of damage to or loss of vehicle; and
(ii) in the event of the railway servant demise the balance will be recovered from the gratuity / pension or other dues payable to the heirs.
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Such insurance should be effected within one month from the date of purchase of the car. On receipt of the certificate prescribed in the second sub-paragraph of note 2 above the accounts officer concerned will obtain from the railway servant drawing the advance a letter in Form No. G. 1538(3) to the Insurance Company, with whom the motor car is insured, to notify to them the fact that the Ministry of Railways (Railway Board) is interested in the insurance policy secured. He will himself forward this letter to the Company and obtain their acknowledgment. In the case of insurances effected on annual basis the process prescribed above shall be repeated every year until the advance has been fully repaid. Contravention of these orders will render the railway servant liable to refund the whole of the amount advanced with interest accrued unless good reason is shown to the contrary. The amount for which the car is insured during any period should not be less than the outstanding balance of the advance with interest accrued at the beginning of that period and the insurance should be renewed from time to time until the amount due is completely repaid. If, at any time and for any reason the amount insured under a current policy is less than the outstanding balance of the advance, including interest already accrued, the railway servant should refund the difference. The amount to be refunded must be recovered in not more than three monthly installments.
Note (4). Deleted
Note (5). The “gross” amount of advances granted in any year under this rule should not exceed the amount allotted for the purpose to Pakistan Railways.
Note (6). The grant of an advance under this rule to a railway servant who proceeds on deputation out of Pakistan and desires a motor car for use during his deputation is not admissible.
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FORM No. G. 1538 (1)
Form of agreement to be executed at the time of drawing an advance for the Purchase of a motor car / cycle
An Agreement made ...... day of ...... two thousand and ...... between ...... of ...... (hereinafter called the Borrower, which expression shall include his legal representatives and assignees) of the one part and Ministry of Railways (Railway Board) (hereinafter called the Lender) on the other part.
Whereas the Borrower has on the terms of rule contained in paragraphs 1538/1539 of the Pakistan Railways General Code thereinafter referred to as the said Code which expression shall include any amendments thereof or additions thereto for the time being in force applied to the Lender for a loan of Rupees ...... for the purchase of a motor car / cycle and the Lender has agreed to lend the said amount to the Borrower on the terms and conditions hereinafter contained now it is hereby agreed between the parties hereto that in consideration of the sum of Rupees...... paid by the Lender to the Borrower (the receipt of which the Borrower hereby acknowledges) the Borrower hereby agrees with the Lender (1) to pay the Lender the said amount with interest calculated according to the said Code by monthly deductions from his salary as provided for by the said Code and hereby authorizes the Lender to make such deductions, and (2) within one month from the date of these presents to expend the full amount of the said loan in the purchase of a motor car / cycle or if the actual price paid is less than the loan to repay the difference to the Lender forthwith and (3) to execute a document hypothecating the said motor car / cycle to the Lender as security for the amount lent to the Borrower as aforesaid and interest in the form provided by the said Code and it is hereby lastly agreed and declared that if the motor car / cycle has not been purchased and hypothecated as aforesaid within one month from the date of these presents or if the Borrower within that period becomes insolvent or quits the service of Government or dies, the whole amount of the loan and interest accrued thereon shall immediately become due and payable.
In witness whereof the Borrower has hereunder set his hand the day and year first before written.
Signed by the said (Borrower) in the presence of______
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FORM No. G. 1538 (2)
Form of Mortgage Bond for Motor Car / Cycle advance
This Indenture made this ...... day of ...... two thousand and ...... between ...... (hereinafter called the Borrower) of the one part and Ministry of Railways (Railway Board) (hereinafter called the Lender) of the other part.
Whereas the Borrower has applied / applied for and has been granted an advance of Rupees. . . . . to purchase a motor car / cycle on the terms of rule contained in paragraphs 1538/1539 of the Pakistan Railways General Code (hereinafter referred to as the said Code which expression shall include any amendments thereof or additions thereto for the time being in force) and whereas one of the conditions upon which the said advance has been / was granted to the Borrower is / was that the Borrower will / would hypothecate the said motor car / cycle to the Lender as security for the amount lent to the Borrower and whereas the Borrower has purchased with or partly with the amount so advanced as aforesaid the motor car / cycle particulars whereof are set out in the Schedule hereunder written
Now this indenture witnessed that in pursuance of the said agreement and for the consideration aforesaid the Borrower do hereby covenant to pay to the Lender the sum of Rupees...... aforesaid or the balance thereof remaining unpaid at the date of these presents by equal payments of Rupees...... each every month and will pay interest on the sum for the time being remaining due and owing calculated according to the said Code and the Borrower do agree that such payments may be recovered by monthly deductions from his salary in the manner provided by the said Code, and in further pursuance of the said agreement, the Borrower do hereby assign and transfer to the Lender the motor car / cycle the particulars whereof are set out in the Schedule hereunder written by way, of security for the said advance and the interest thereon as required by the said Code.
And the Borrower do hereby agree and declare that he has paid in full the purchase price of the said motor car / cycle and that the same is his absolute property and that he has not pledged and so long as any money remain payable to the Lender in respect of the said advance will not sell or pledge or part with the property in or possession of the said motor car / cycle provided always and it is hereby agreed and declared that if any of the said instalments of principal or interest shall not be paid or recovered in manner aforesaid within ten days after the same are due or if the Borrower shall die or at any time cease to be in the service of the Lender or if the Borrower shall sell or pledge or part with the property in or possession of the said motor car / cycle or become insolvent or make any composition or arrangement with his creditors or if any person shall take proceedings in execution of any decree or judgment against the Borrower the whole of the said principal sum which shall then be remaining due and unpaid together with interest thereon calculated as aforesaid shall forthwith become
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payable and it is hereby agreed and declared that the Lender may on the happening of any of the events hereinbefore mentioned seize and take possession of the said motor car / cycle and either remain in possession thereof without removing the same or else may remove and sell the said motor car / cycle either by public auction or private contract and may out of the sale moneys retain the balance of the said advance then remaining unpaid and any interest due thereon calculated as aforesaid and all costs, charges, expenses and payments properly incurred or made in maintaining, defending or realizing his rights hereunder and shall pay over the surplus, if any, to the Borrower, his executors, administrators or personal representatives provided further that the aforesaid power of taking possession or selling of the said motor car / cycle shall not prejudice the right of the Lender to sue the Borrower or his personal representatives for the said balance remaining due and interest or in the case of the motor car / cycle being sold the amount by which the net sale proceeds fall short of the amount owing and the Borrower hereby further agrees that so long as any moneys are remaining due and owing to the Lender he, the Borrower will insure and keep insured the said motor car / cycle against loss or damage by fire, theft or accident with an Insurance Company to be approved by the Accounts Officer concerned and will produce evidence to the satisfaction of the Accounts Office that the Insurance Company with whom the said motor car / cycle is insured have received notice that the Lender is interested in the Policy and the Borrower hereby further agrees that he will not permit or suffer the said motor car / cycle to be destroyed or injured or to deteriorate in a greater degree than it would deteriorate by reasonable wear and tear thereof and further that in the event of any damage or accident happening to the said motor car / cycle the Borrower will forthwith have the same repaired and made good.
In witness whereof the said ...... (Borrower) has hereunder set his hand the day and the year first above written.
THE SCHEDULE
Description of Motor Car / Cycle. Maker's Name.______Description.______No. of Cylinders.______Engine Number.______Chassis No.______Cost price.______Signed by the Borrower______In the presence of ______
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FORM No. G. 1538 (3) Letter intimating to the Insurance Company the Ministry of Railways (Railway Board)’s Interest in insurance policies of Motor Cars, etc. From ...... To ...... (Through the Financial Adviser & Chief Accounts Officer, ...... )
Dear Sir, I beg to inform you that the Ministry of Railways (Railway Board) is interested in the motor car / cycle Insurance Policy No...... secured in your Company and to request that you will kindly make a note of the fact in the records of the Company.
Your faithfully
Place ...... Date ......
Forwarded. The receipt of the letter may kindly be acknowledged. It is also requested that the undersigned may kindly be informed whenever any claim is paid under the policy and also if the premium is not paid periodically for renewal.
Place ...... Financial Adviser & Chief Date ...... Accounts Officer ......
1539. A railway servant drawing pay of Rupees 6,968 p.m. and above but not more than Rupees 19,365 p.m. may be granted by the competent authority under whom the railway servant is for the time being employed, an advance for the purchase of a motor cycle subject to the same conditions as are applicable to the grant of an advance for the purchase of a motor car except that clause 3 of rule 1538 will not apply. The advance in this case shall, however, not exceed Rupees 50,000.
1540. The competent authority may sanction an advance to a railway servant, whose pay does not exceed Rupees 6,968 p.m., for the purchase of bicycle, subject to the following conditions:
(1) An advance will be given only when the railway servant is required under explicit orders of the competent authority as the case may be, to maintain a conveyance as a condition of his service or of holding any particular post to which he may be appointed.
(2) The total amount to be advanced to a railway servant shall not exceed Rupees 7,000.
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(3) Recovery will be made, unless the sanctioning authority otherwise specially directs, by deducting monthly installments (upto maximum of forty eight installments) from the pay bill of the railway servant concerned. It will commence with the first issue of pay after the advance is drawn. No interest will be charged on such advance.
NOTE. The amount of the advance to be recovered monthly should be fixed in whole rupees.
(4) The bicycle purchased with the advance will be considered to be the property of Pakistan Railways until the whole advance is repaid.
NOTE. Note 5 under rule 1538 applies to this rule also.
ARREAR CLAIMS
“A” - Claims of outsiders (i.e., private individuals and non-Government bodies) against the Pakistan Railways.
1541. No claim against the Pakistan Railways not preferred within six months of its becoming due, can be paid without the sanction of the Financial Adviser & Chief Accounts Officer concerned. Claims, other than claims for overcharges and compensation (vide Section 77 of the Railways Act), of Rupees 500 and less may, however, be preferred within one year of their becoming due.
1542. A claim against the Pakistan Railways, which is barred by time under any provisions of law relating to limitation, is ordinarily to be refused and no claim on account of such a time-barred item is to be paid without the sanction of the Ministry of Railways (Railway Board). The onus is upon the claiming authority to establish a claim to special treatment for a time barred item, and it is the duty of the authority against whom such a claim is made to refuse the claim until a case for other treatment is made out. All petty time-barred claims are to be rejected forthwith and only important claims of this nature considered.
1543. It is the duty of the executive authority, in the first instance, to consider the question of time bar before submitting a claim to the Financial Adviser & Chief Accounts Officer for sanction under paragraph 1541, and the Accounts Officer should refuse payment of all claims found to be time-barred until the sanction of the Ministry of Railways (Railway Board) has been obtained.
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“B” - Claims of Railway Employees
1544. All petty arrear claims other than those that affect an officer's pension, all claims for whose delayed submission and adequate explanation is not forthcoming, and all claims preferred after the expiry of the period prescribed for the preservation of records required for their verification, should be rejected. The General Manager or the Financial Adviser & Chief Accounts Officer or any other authority to whom the power may be delegated by the Ministry of Railways (Railway Board) may sanction investigation of other claims by persons appointed by him, provided that, if a claim is over three years old and is for an amount exceeding Rupees 50,000, the investigation will require the sanction of the Ministry of Railways (Railway Board).
Subject to the conditions stated in this rule and to any further conditions which he may consider necessary, the General Manager or the Financial Advisor & Chief Accounts Officer may delegate his powers to authorities subordinate to him in respect of claims which are not more than three years old.
Note. This para, does not apply to (i) cases of gratuity provided satisfactory evidence exists that payment of the amount admissible had not been made previously and (ii) claims or the payment of amounts placed under the head “Deposit Unpaid Wages”.
1545. Deleted.
1546. Claims of railway servants, whether gazetted or not, to arrears of pay and allowances or to increments which have been allowed to remain in abeyance for a period exceeding one year, cannot be investigated by an Accounts Officer on his own authority.
1547. Deleted.
1548. Deleted.
1549. Delays in payments are opposed to all rules and are highly objectionable, and when not satisfactorily explained should be brought to the notice of the head of the department concerned by the Accounts Officer.
“C” - Inter-Departmental Claims
1550. A convention has been established between the Federal Government and Provincial Governments and between Departments of the Government of Pakistan (Commercial and non-commercial), on a reciprocal basis, that adjustment of past transactions, within an admitted type of obligation, should not
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be made if more than three years old counting from the date on which a mistake is discovered subject to the proviso that the time limit might be exceeded in exceptional cases. If, however, a claim is of a type not previously made either generally or specifically, it should not be with effect from an earlier date than the commencement of the financial year in which it is first made.
Note (1). The date on which a mistake is discovered means the date on which the mistake is discovered and reported to the Department liable to pay.
Note (2). In order that the submission of belated claims may be avoided, claims should be regularly preferred by Pakistan Railways Administrations against other Departments annually for all amounts due from them.
Note (3). This convention does not apply to claims for overcharges and undercharges which are governed by the rules in paragraphs 1551 and 1552 below.
1551. Claims of Provincial Governments and other Departments of the Federal Government against Pakistan Railways for overcharges and claims of Pakistan Railways against Provincial Governments or other Departments of the Federal Government for undercharges will be recognized and admitted if the claims are preferred within six months;
(i) in the case of cash payment, from the date of payment, and
(ii) in the case of Warrants and Credit Notes, from the date of presentation of bill by the Pakistan Railways Administration.
1552. The terms ‘overcharges’ and ‘undercharges’ used in the preceding paragraph mean overcharges and undercharges of railway freight and fares only. They refer to excesses and shortages in the items included in a bill which has already been rendered, but the omission of an item in a bill is not an ‘undercharge’ nor is the erroneous inclusion of an item an ‘overcharge’.
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PAKISTAN RAILWAYS
PAKISTAN RAILWAYS GENERAL CODE
Riaz Ahmad & Company Chartered Accountants
CHAPTER XVI
20 October, 2011
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CONTENTS
DESCRIPTION PAGE NO. PARA NO.
PAY BILLS — FORM OF PAY BILLS 16.1 1601
PAY BILL UNITS 16.1 1602
FIXATION OF WAGE / SALARY PERIODS 16.1 — 16.2 1603
ASSUMED ATTENDANCE 16.2 1604
DUE DATES 16.2 1605 — 1606
PAY FOR “BROKEN PERIODS” 16.2 — 16.3 1607 — 1608
CLAIMS INCLUDED IN A PAY BILL 16.3 1609 (1610 — 1611 Deleted) PAY FOR THE DAY OF DEATH 16.3 1612
PAY FOR DATE OF RELIEF 16.3 1613 — 1614
STATUTORY RESTRICTIONS 16.3 1615
PERMISSIBLE DEDUCTIONS 16.3 1616
INCOME TAX 16.4 — 16.5 1617
BASIS OF CHARGE AND RESPONSIBILITY FOR RECOVERY 16.5 — 16.6 1618 — 1618-A
FREE MEDICAL FACILITY AND MEDICAL ALLOWANCE 16.7 1618-B — 1618-C (1619 Deleted) MARGINAL TAX RELIEF 16.7 1620
FRACTIONS 16.7 1621
EXCESS OR DEFICIENT DEDUCTIONS 16.8 1622 (1623 — 1624 Deleted) ANNUAL STATEMENT OF DEDUCTION OF INCOME TAX 16.8 1625 FROM SALARY (1626 Deleted)
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CONTENTS
DESCRIPTION PAGE NO. PARA NO.
RENT DEDUCTIONS 16.8 1627 (1628 — 1629 Deleted) ATTACHMENT OF PAY AND ALLOWANCES FOR DEBT 16.9 — 16.11 1630 — 1634 (1635 — 1636 Deleted) SETTLEMENT BILLS 16.11 1637 — 1638
ERASURES AND OVER WRITINGS 16.11 1639
PAYROLL COST CENTRE ACCOUNTING SUMMARY 16.12 1640
ALLOCATION OF PAY AND ALLOWANCES 16.12 1641
SINGING OF PAY BILLS 16.12 1642 — 1643
STATEMENTS TO BE ATTACHED TO PAY BILLS 16.13 1644
MEMORANDUM OF DIFFERENCES 16.14 1645
INCREMENTS, PROMOTIONS, NEW APPOINTMENTS 16.14 1646 (1647 — 1648 Deleted) JOINING REPORT, HEALTH CERTIFICATE, ETC. 16.15 1649
DECLARATION OF TEMPORARY SERVICE 16.16 1650
RE-EMPLOYED PERSONNEL 16.16 1651
ATTENDANCE REPORT 16.16 — 16.18 1652 — 1657 (1653 — 1654 Deleted) RECONCILIATION OF TOTALS OF PAY BILLS 16.18 1658
PAYMENT OF PAY AND ALLOWANCES - DUE DATE OF 16.18 1659 PAYMENT METHOD OF PAYMENT 16.18 — 16.19 1660 — 1661
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CONTENTS
DESCRIPTION PAGE NO. PARA NO. LIFE CERTIFICATE 16.20 1662
PAYMENT OF SALARY THROUGH BANK 16.20 1663 (1664 — 1669 Deleted) PAYMENT IN OFFICES NOT ATTACHED TO OPEN LINES 16.20 1670 (1671 Deleted) PAYMENT OF PAY AND ALLOWANCES OF DECEASED 16.21 1672 RAILWAY SERVANTS LAST PAY CERTIFICATES 16.22 — 16.24 1673 — 1676
TRAVELLING ALLOWANCE BILLS 16.24 — 16.26 1677 — 1683 (1684 — 1685 Deleted) BILLS FOR FEES FOR WORK DONE FOR PRIVATE BODIES 16.25 1686 — 1687
PAY ORDERS FOR MISCELLANEOUS CLAIMS 16.26 1688 WITNESSING OF PAYMENTS 16.28 1689 — 1693
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Pay-Bills
1601. Form of Pay-Bills. Ordinarily, separate pay-bills in Form G. 1601 should be prepared for gazetted officers, non-gazetted (supervising and subordinate) establishment and employees in pay scale 1 — 7 respectively, and submitted to the Accounts Officer monthly to be checked and passed for payment. The pay of all employees in an office or cost centre may be drawn in one bill if, in the opinion of the Accounts Officer, there will be no difficulty in internal check.
In preparing salary bills, the drawing officers should bear in mind the provisions of paragraph 1462.
FORM G. 1601
PAKISTAN RAILWAYS
PAY SLIP FOR PERIOD ENDING
COST CENTRE NO: NAME: ACCOUNTING UNIT:
EMPLOYEE NO: NAME: DESIGNATION:
DEPARTMENT: RATE: POST: STATUS: B-SCALE:
PAY AND ALLOWANCES DEDUCTIONS RECOVERY OF LOANS DAYS/ UPTO DATE CODE DESCRIPTION AMOUNT CODE DESCRIPTION AMOUNT CODE DESCRIPTION AMOUNT BALANCE HOURS BALANCE
NET PAY TOTAL
BANK ACCOUNT NO. BANK NAME AND BRANCH CASH/CHEQUE
1602. Pay-Bill Units. For the convenience of disbursement of pay, large establishments may be divided by the General Manager in consultation with the Financial Adviser & Chief Accounts Officer, into units or sections. In such cases, a pay-bill should be prepared for each such unit or section and submitted to the Accounts Officer.
1603. Fixation of Wage / Salary Periods. In order to facilitate the check of pay- bills by the Accounts Officer and to admit for payment being made with the least possible delay after the expiry of the period for which the pay has been earned, different wage / salary periods (not exceeding one month in any case) should be
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fixed by the railway administration, in consultation with the Financial Adviser & Chief Accounts Officer, for the various classes of establishments employed on Pakistan Railways.
1604. Assumed Attendance. Pay-bills may actually be prepared and signed by the officers authorized to do so, a few days before the end of the wage / salary period, on the basis of assumed attendance for the remaining days of the wage / salary period. The period for which attendance may be assumed should be fixed after consultation with the Financial Adviser & Chief Accounts Officer and in the event of a person absenting himself from duty without leave, dying or quitting service during the days of assumed attendance, the Accounts Officer or the Paymaster should be advised at once to stop payment and a separate bill should be submitted for the amount actually due.
1605. Due Dates. A program should be drawn up, in consultation with the Financial Adviser & Chief Accounts Officer, as to the dates on which the pay- bills for the various establishments or sections of establishments should be submitted to the Accounts Office. With a view to avoid any delay in the disbursement of monthly pay and consequent inconvenience to the staff, the dates fixed for the submission of the bills should be rigidly adhered to. Cases of repeated or inordinate delays in the submission of bills should be specially brought to the notice of the Head of the Department concerned by the Accounts Officer.
1606. In the following cases a separate bill may be prepared for the railway servant concerned and submitted to the Accounts Officer as and when necessary; irrespective of the dates fixed under the preceding paragraph:
(i) when a railway servant proceeds out of Pakistan on deputation or on leave;
(ii) when a person is transferred to foreign service or to the jurisdiction of another accounts officer;
(iii) when a railway servant finally quits service (i.e., when he dies, retires or resigns, or is discharged or dismissed); and
(iv) in the circumstances stated in paragraphs 1604 and 1670.
1607. Pay for “Broken periods”. When a railway servant proceeding on leave out of Pakistan wishes to draw his leave-salary, for the broken period of the month in which he proceeds on leave, in Pakistan a separate bill should not be prepared for him and his pay and leave salary should be drawn in the regular monthly pay-bill.
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1608. In preparing the monthly pay-bill, care should be taken that the names of persons for whom separate bills have already been submitted to the Accounts Officer for broken periods of the month, are not again included in the monthly pay-bills.
1609. Claims Included in a Pay-Bill. With the exception of travelling allowance which should be claimed in separate bills (vide paragraph 1679), all kinds of pay and allowances (e.g., special pay, personal pay, house rent allowance, running allowance, leave salary, conveyance allowance, relief allowances and overtime allowance) due to a railway servant may be drawn in one pay-bill, but no claim other than pay and allowances, chargeable to office contingencies should be included in the pay-bill.
1610. Deleted.
1611. Deleted.
1612. Pay for the day of death. When a person dies in railway service, his pay and allowances may be drawn for the day of his death, the hour at which death takes place having no effect on the claim.
1613. Pay for date of relief. When a railway servant proceeds out of Pakistan on deputation or on leave, is transferred to the jurisdiction of another Accounts Officer, is transferred to foreign service, or finally quits the service, his pay may be drawn on a separate bill, up to and inclusive of the date of his relief if the charge is made over in the afternoon or up to the date preceding the date of relief if the charge is made over in the forenoon.
1614. If a railway servant wishes, under the provisions of Rule 2132 of the Pakistan Railways Establishment Code; Volume II, to draw his leave salary in Pakistan he will not be paid up to the date of relief, but will be allowed to draw his pay and allowances for the broken period of the month at the commencement of the next month along with leave-salary for the rest of the month.
1615. Statutory Restrictions. Under the Payment of Wages Act, 1936 and the Rules made thereunder, only such deductions as are authorized under that Act can be made from the pay of railway servants to whom that Act applies.
1616. Permissible Deductions. Subject to the provisions of the preceding paragraph, the following kinds of deductions may be made from the pay-bill of a railway servant:
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(i) Subscriptions to General Provident Fund.
(ii) Refunds of advances taken from General Provident Fund.
(iii) Income tax.
(iv) House rent and connected charges, e.g., electricity, water, gas, etc.
(v) Station debits, Stores debits and Workshop debits.
(vi) Charges for diet supplied to railway servants in railway dispensaries.
(vii) Fees payable to railway medical officers on “contract” system.
(viii) Contribution to Pakistan Railways Servant Welfare Fund.
(ix) Fines imposed on railway servants.
(x) Pakistan Railways Institutes' fees and subscriptions.
(xi) Amounts due to Railway Co-operative Stores and Cooperative Credit Societies.
(xii) Deleted.
(xiii) Repayments of advances and loans taken from Government.
(xiv) Pakistan Railways school fees.
(xv) Amounts due on Court Attachments.
(xvi) Amount of any overpayment which may have been made in the past.
(xvii) Any other amount due to Government.
1617. Income tax. The sole authority for the recovery of income tax is contained in the Income Tax Ordinance, 2001 as amended from time to time, and the rules and orders issued under it and brought together in the Income Tax Rules, 2002. The instructions given below have no validity except in so far as
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they reproduce the exact wording, or represent correctly the meaning of the Ordinance and the rules thereunder, and no doubtful cases should be decided except by reference to the Ordinance and, if necessary, to the income tax authorities.
1618. Basis of charge and responsibility for recovery. (1) Pakistan Railways paying salary to its employees will, at the time of payment, deduct tax from the amount paid at the employees’ average rate of tax computed at the rates specified in Division I of Part I of the First Schedule of Income Tax Ordinance, 2001 on the estimated income of the employee chargeable under the head “Salary” for the tax year in which the payment is made after making adjustment of tax withheld from employee under other heads and tax credit admissible under section 61, 62, 63 and 64 of Income Tax Ordinance, 2001, or any amendments made in the Ordinance, during the tax year after obtaining documentary evidence, as may be necessary, for:
(i) tax withheld from the employee under the Income Tax Ordinance, 2001 during the tax year;
(ii) any excess deduction or deficiency arising out of any previous deduction; or
(iii) failure to make deduction during the year.
(2) The average rate of tax of an employee for a tax year for the purposes of sub- section (1) will be computed in accordance with the following formula, namely:
A/B where —
A is the tax that would be payable if the amount referred to in component B of the formula was employee’s taxable income for that year; and
B is the employee’s estimated income under the head “Salary” for that year.
1618-A. (1) Any salary received by an employee in a tax year, other than salary that is exempt from tax under the Ordinance, will be chargeable to tax in that year under the head “Salary”.
(2) Salary means any amount received by an employee from any employment, whether of a revenue or capital nature, including:
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(a) any pay, wages or other remuneration provided to an employee, including leave pay, payment in lieu of leave, overtime payment, fees, gratuity or work conditions supplements (such as for unpleasant or dangerous working conditions)
(b) any perquisite convertible to money;
(c) the amount of any allowance provided by Pakistan Railways to an employee including a cost of living, subsistence, rent, utilities, education, entertainment or travel allowance, but will not include any allowance solely expended in the performance of the employee’s duties of employment;
(d) the amount of any profits in lieu of, or in addition to, salary or wages, including any amount received:
(i) as consideration for a person’s agreement to enter into an employment relationship;
(ii) as consideration for an employee’s agreement to any conditions of employment or any changes to the employee’s conditions of employment;
(iii) on termination of employment, whether paid voluntarily or under an agreement, including any compensation for redundancy or loss of employment and golden handshake payments;
(iv) from a provident or other fund, to the extent to which the amount is not a repayment of contributions made by the employee to the fund in respect of which the employee was not entitled to a deduction; and
(v) as consideration for an employee’s agreement to a restrictive covenant in respect of any past, present or prospective employment;
(e) any pension or annuity, or any supplement to a pension or annuity; and
(f) any amount chargeable to tax as “Salary” under section 14 of Income Tax Ordinance, 2001.
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1618-B. Free Medical Facility and Medical Allowance. The benefit represented by free provision to the employee of medical treatment or hospitalization or both by Pakistan Railways or the reimbursement received by the employee of the medical charges or hospital charges or both paid by him, where such provision or reimbursement is in accordance with the terms of employment, will be exempted.
Provided that National Tax Number of the hospital or clinic, as the case may be, will be given and Pakistan Railways will also certify and attest the medical or hospital bills to which this clause applies.
1618-C. Exemption in case of medical allowance received by an employee will be upto maximum of ten percent of the basic salary of the employee if free medical treatment or hospitalization or reimbursement of medical or hospitalization charges is not provided for in the terms of employment.
1619. Deleted.
1620. Marginal Tax Relief. Where the total income of a taxpayer marginally exceeds the maximum limit of the previous slab in the table, the income tax payable will be the tax payable on the maximum limit of that slab plus an amount equal to percentage of the amount that marginally exceeds the maximum limit of the immediately preceding slab.
1620-A. Marginal tax relief will be worked out only to the extent of a marginal increase in salary of the taxpayer falling in the next slab of tax rate. A portion of that marginally increased salary income computed on the progressive percentage rate basis will be added to the tax computed on the upper limit of immediately preceding slab to determine the tax payable on total income from salary. If tax so computed is more than the tax calculated by simply applying tax rate of the relevant income slab then the provisions of marginal relief will not be applicable. In such case tax payable will be calculated by applying particular rate of that particular slab of income.
1621. Fractions. In calculating the amount of tax payable the amount due on a fraction of a rupee of income should be neglected and in determining the amount of tax payable, fractions of a Rupee less than fifty paisas should be disregarded and fractions of a Rupee equal to or exceeding fifty paisas should be regarded as one Rupee.
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1622. Excess or deficient deductions. Any excess or deficiency arising out of any previous deduction of tax from the salary of a particular person can be adjusted at the time of any subsequent deduction of tax with reference to the salary paid to the same person. Such adjustments should not, however, be made from payments on or after 1st July in any year in respect of an excessive or deficient deduction prior to that date.
NOTE. Adjustments in respect of deductions at source should be made at half-yearly intervals only. But while this may be adopted as the normal procedure, it should be understood that there would be nothing to preclude earlier or more frequent adjustments in individual cases at the request of a Government Servant or even at the discretion of the officer responsible for making deductions at source where such a course is considered advisable in consequence of an appreciable change in income.
The months selected for the periodical half-yearly adjustments would normally be December and June, but if it is likely to be difficult in practice to examine the cases of all assessees in a single month, the examination may be spread over two or more months at the discretion of the Financial Adviser & Chief Accounts Officer.
1623. Deleted.
1624. Deleted.
1625. Annual Statement of Deduction of Income Tax from Salary. Each disbursing officer should submit to the income tax officer concerned an annual statement of deduction of income tax from salary in the prescribed form in respect of each taxpayer on or before prescribed date each year. Registers in the prescribed form will be maintained at the discretion of the disbursing officer to facilitate the preparation and to ensure the accuracy of the statements of deduction of income tax from salary.
Note. Deleted.
1626. Deleted.
1627. Rent Deductions. In respect of railway servants occupying railway quarters, deductions on account of rent should be made in accordance with the rent rolls, prepared from the list of buildings for which a department is responsible. Rates notified by the Federal Government from time to time will be used for calculation of monthly deduction of rent.
1628. Deleted.
1629. Deleted.
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1630. Attachment of Pay and Allowances for Debt. The extent to which the emoluments of a Government servant are exempt from attachment for debt is laid down in Section 60(1) of the Code of Civil Procedure, 1908, as amended by the Code of Civil Procedure (Second Amendment) Act, 1937 and further modified by the Government of Pakistan from time to time. The following is an extract of the relevant provisions of the Section:
“60 (1) The following property is liable to attachment ...... in execution of a decree ......
Provided that the following particulars shall not be liable to such attachment . . , namely:
(i) the salary of any public officer ...... to the extent of Rupees 10,000 (Rupees Ten Thousand) and one-half the remainder of such salary;
Provided that, where the whole or any part of the portion of such salary liable to attachment has been under attachment, whether continuously or intermittently for a total period of twenty-four months, such portion shall be exempt from attachment until the expiry of a further period of twelve months and, where such attachment has been made in execution of one and the same decree, shall be finally exempt from attachment in execution of that decree;
(1) any allowance forming part of the emoluments of any public officer. . . . . which the appropriate Government may by notification in the Official Gazette declare to be exempt from attachment, and any subsistence grant or allowance made to any such officer...... while under suspension;
Explanation 2. In clauses……… and (i), “salary” means the total monthly emoluments, excluding any allowance declared exempt from attachment under the provisions of clause (1) derived by a person from his employment whether on duty or on leave.
Explanation 3. In clause (1), “appropriate Government” means:
(i) as respects any public officer in the service of the Federal Government, ...... , the Federal Government;
(ii) Deleted.
(iii) as respects any other public officer . . . . , the “Provincial Government”.
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Note. The Federal Government has declared the following allowances payable to any public officer (including a railway servant) in its service to be exempt from attachment by order of a Court.
(1) All kinds of travelling allowance.
(2) All kinds of conveyance allowances.
(3) All allowances granted for meeting the cost of:
(a) Uniforms ; and
(b) Rations.
(4) All allowances granted as compensation for higher cost of living in localities considered by Government to be expensive localities including hill stations.
(5) All house rent allowances.
(6) All allowances granted to provide relief against the increase in the cost of living caused by war conditions.
1631. The maximum amount attachable by Civil Court is calculated thus:
If the total gross emoluments earned by a Government servant are represented by X, and the allowances declared to be exempt from attachment (vide note to paragraph 1630 above) and, if the Government servant is under suspension, any subsistence grant or allowance made to him, are represented by Y, the net amount attachable, if any, is
{(X—Y)/2} — 50
1632. Deductions including those relating to subscriptions to Funds recognized by Government, taxes on income, and debts due to Government, should be made from the portion of the salary of a railway servant.
Note. Deleted.
1633. Cases may occur in which the judgement debtor does not sign the acquittance roll and intentionally allows his pay to remain undisbursed; or the judgment debtor may refrain from preparing his pay bill and drawing his pay regularly in order to evade payment on account of an attachment order issued
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by a court of law. In such circumstances the head of the office or, in the case of a gazetted officer or of an officer treated in this respect like a gazetted officer, the head of the department concerned may draw the pay of the judgement debtor in satisfaction of the attachment order, subject to the restrictions laid down in paragraph 1630, and have the amount remitted to the court concerned. The amount of the pay drawn should be charged in the accounts, the particulars of the attachment order being cited in the acquittance roll or the pay-bill, as the case may be, as an authority, for the charge and the court's receipts for the amount should be filed with the attachment register.
1634. The cost, if any, of remittance to a court of money realized under its attachment order should be deducted from the amount realized and the net amount remitted to the court.
1635. Deleted.
1636. Deleted.
1637. Settlement Bills. When a railway servant is to be settled up finally, all Government debts and departmental claims against the person should be ascertained from the various departments of the Pakistan Railways and carefully noted for recovery in the settlement bill or communicated to the Accounts Officer by a special letter for recovery. In the case of persons entrusted with the custody of cash or stores, a certificate should be furnished to the Accounts Officer alongwith the settlement bill that they have duly handed back all Government property committed to their charge.
1638. When the services of a person to whom the Payment of Wages Act applies are terminated, it shall be the duty of the authority terminating his services to arrange payment of his pay and allowances before the expiry of the second working day from the day on which his employment is terminated. In such a case, if it is not possible for the Accounts Officer to pre-audit the claim within the stipulated period, the authority mentioned above should make the payment on the basis of the information at its disposal, obtaining the necessary funds from the nearest railway station. In settling the accounts of the employee, the authority making the payment should exercise all possible care to avoid over or underpayment.
1639. Erasures and Overwritings. No erasures or over writings should be made in the pay bills. Any entry which requires correction should be neatly crossed through and the correct entry made above it under the initials of the officer submitting the pay bill.
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1640. Payroll Cost Centre Accounting Summary. Pay, allowances and deductions of all employees in a cost centre should be summarized on Payroll Cost Centre Accounting Summary in form G. 1640.
FORM NO. G. 1640
PAKISTAN RAILWAYS
PAYROLL COST CENTRE ACCOUNTING SUMMARY
COST CENTRE NO. C.C. NAME ACCOUNTING UNIT PERIOD ENDING
EMPLOYEE CATEGORY TOUR DEPARTMENT NO.OF EMPLOYEES
PAY ALLOWANCES DEDUCTIONS
CODE AMOUNT ALLOCATION CODE AMOUNT ALLOCATION CODE AMOUNT ALLOCATION
NET PAY
TOTAL
I CERTIFY THAT THE EMPLOYEES LISTED ON THE PAYROLL AND SUMMARIZED ABOVE WERE PAID AMOUNT OF D.P.M IN MY PRESENCE AND WITNESSED BY ME EXCEPT THOSE NOTED AS UNPAID. AMOUNT OF CHEQUES THROUGH BANKS AMOUNT OF CHEQUES BY NAME DATE : SIGNATURE OF WITNESS AMOUNT OF CHEQUES FOR PARTIES
I CERTIFY THAT THE EMPLOYEES LISTED ON THE PAYROLL AND SUMMARIZED ABOVE WERE PAID TOTAL BY ME EXCEPT THOSE NOTED AS PAID.
DATE : SIGNATURE OF PAYMENT CLERK SIGNATURE OF POST AUDIT CLERK
1641. Allocation of Pay and Allowances. The pay and allowances should be allocated to the appropriate account heads and the proper allocation of the deductions should also be recorded on the Payroll Cost Centre Accounting Summary.
1642. Signing of Pay-Bills. A pay-bill should ordinarily be signed by the head of the office and his signature should be in ink. Signatures in pencil or facsimile of signature by stamp will not be accepted by the Accounts Officer.
1643. The head of an office may authorize any gazetted officer serving under him to sign the pay bills for him, communicating the name and the specimen signature of such officer to the Accounts Officer. This will not, however, relieve the head of the office, in any way, of his responsibility for the accuracy of the bill or for the correct disbursement of pay to the parties concerned where he is responsible to make the disbursement.
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1644. Statements to be attached to Pay-Bills. A pay bill submitted to the Accounts office should be accompanied by the following documents and deduction statements: (i) Memorandum of differences;
(ii) Attendance Register / Time Sheet / Attendance Report / Summary of Time Sheet;
(iii) Rent rolls for quarters occupied by railway servants;
(iv) Bills for cost of electric current and gas supplied by the Pakistan Railways in residential buildings;
(v) Statements showing deductions on account of subscriptions and repayment of advances to General Provident Fund;
(vi) Lists of Workshop debits, Stores debits and Station debits recovered through pay bill;
(vii) Deduction sheets showing recoveries made through pay bills on account of:
(a) Pakistan Railways institutes fees and subscriptions;
(b) Amounts due to Railway Employees Co-operative Credit Stores;
(c) Amounts due to Railway Employees Co-operative Credit Societies;
(d) Loans taken from the General Provident Fund, etc.
(viii) Bills of railway doctors for fees payable under the “Contract” system;
(ix) Deleted.
(x) Deleted.
(xi) Deleted.
(xii) Income tax schedule;
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(xiii) Such other certificates as may be required by rules for the grant of any allowance; and
(xiv) Increment Statement.
Note. In regard to employees in pay scale 1-4, the submission of a “memorandum of differences” may be dispensed with, in consultation with the Accounts Officer, the necessary check being applied by the latter at his local inspections.
1645. Memorandum of Differences. The Memorandum of Differences should be prepared in form G. 1645 shown below and, as its name implies, should briefly explain the causes of differences between the gross amounts of pay charged in the current and last month's pay-bill in respect of each person. No explanation is required regarding differences other than those in the gross amounts of pay.
FORM No. G. 1645 PAKISTAN RAILWAYS
MEMORANDUM OF DIFFERENCE BETWEEN PAY OF PREVIOUS AND CURRENT MONTH
COST CENTRE NO. COST CENTRE NAME
DEPARTMENT ACCOUNTING UNIT
Previous Current Employee Number Employee Name Less Excess Remarks Month Pay Month Pay
1646. Increments, Promotions, New Appointments. A statement showing particulars of the increments granted during a month should be prepared by carbon process in form G. 1646, the carbon copy being furnished to the Accounts Officer along with the bill in which they are drawn. In the case of a promotion, or any new claim, the sanction of the competent authority should be communicated to the Accounts Officer separately and a reference to the number and date of the letter, under which it was sanctioned, should be quoted in form G. 1645. No claim will be admitted by the Accounts Officer for service in a post or for any pay or allowance not duly sanctioned.
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FORM No. G. 1646 Statement of increments granted during the month of ...... 20 . .
Substantive Scale of No. Name. Designation Station or Present pay Pay officiating
1 2 3 4 5 6 7
Periods** Date from Remarks Initials Date of not which and orders Initials of Proposed of last counting increment of sanctioning pay dealing increment* for is to take sanctioning officer clerk increment effect authority
8 9 10 11 12 13 14
*In the case of the first increment in a scale, the date of appointment to the scale should be entered.
**In this column should be noted the periods of suspension, leave without pay, and leave during officiating tenure, delay in fulfillment of any specific departmental condition, e.g., first-aid test, vernacular examination, etc.
1647. Deleted.
1648. Deleted.
1649. Joining Report, Health Certificate, etc. A report of the date and time of entering upon actual duties should accompany the pay bill in respect of each person appointed for the first time, and in the case of first permanent appointments the pay bill should also be accompanied by a report of the date of birth of the employee and a health certificate (except in the cases detailed below) signed by a competent medical officer. A health certificate is not required in the following cases:
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(i) Deleted.
(ii) Deleted.
(iii) Appointments or promotion from class IV to superior establishment.
(iv) Deleted.
1650. Declaration of Temporary Service. In the case of a temporary employee, a note that the declaration of temporary service has been taken and recorded should accompany the bill in which his pay is charged for the first time. The declaration which must be obtained in writing from every person engaged in a temporary capacity, should state that it is clearly understood by him, his appointment is subject to the following conditions:
(i) that his employment is purely temporary and subject to termination as provided in Rule 148 of the Pakistan Railways Establish- ment Code, Volume I;
(ii) that his appointment carries no claim to pension or gratuity, or to any absentee allowances beyond those admissible to temporary employees under the rules in force from time to time;
(iii) that he will not be permitted to subscribe to any Provident Fund;
(iv) that he will conform to all rules and regulations applicable to his appointment; and
(v) that he will be held responsible for the charge and care of Government money, goods and stores and all other property that may be entrusted to him.
Note. The declaration from temporary engineers should be obtained in Form No. II given in Appendix XXIV to the Pakistan Railways Establishment Code, Volume I.
1651. Re-employed Personnel. When a person has been re-employed, information should be furnished to the Accounts Officer of the nature and amount of pension, if any, which he is in receipt of.
1652. Attendance Report. The attendance report will be submitted to the Accounts Officer in form G. 1652 in respect of all employees to whom salary is paid on the basis of number of days worked in a month. Attendance report will be prepared on the basis of Attendance Register maintained at each controlling office.
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FORM NO. G. 1652 ATTENDANCE REPORT PAGE OF
COST CENTRE NO. NAME PERIOD : FROM TO
NUMBER OF DAYS EMPLOYEE WITHOUT ACCOUNT OF PROJECT/ EOTK SR.N ON MEDICAL LEAVE NOT CASUAL MEDICAL RECREATION SPECIAL MATERNITY OPTIONAL LEAVE EX- DISABILITY OTRFRT O. WORKED REST HOLIDAY CERTIFICATE DUE LWP UDPSUSPENSION TOTAL LEAVE CERTIFICATE LEAVE LEAVE LEAVE LEAVE PAKISTAN LEAVE NAME NUMBER LFP LHPLFPLHP LFP LHP NUMBER DESCRIPTION
PREPARED BY TOTAL SUMMARY
ACCOUNTING UNIT A/C NO.DAYS A/C NO. DAYS A/C NO. DAYS A/C NO. DAYS A/C NO. DAYS A/C NO. DAYS A/C NO. DAYS A/C NO. DAYS
NUMBER NAME BAL. FWD BAL. FWD BAL. FWD BAL. FWD BAL. FWD BAL. FWD BAL. FWD BAL. FWD
APPROVED BY
Note. In case of employees to whom monthly salary is paid on the basis of number of hours worked during the salary period, Time Sheet will be prepared in form W.461A and be summarized in form W.464A (Summary of Time Sheets).
1652-A. The attendance report will show the names and numbers of all employees working in a cost centre. For each cost centre separate attendance report will be prepared. Absence, period of suspension and leaves taken during the month will be mentioned in the appropriate column. Project / work order number alongwith brief description, in respect of which services have been rendered, will be mentioned against the name of each employee.
1653. Deleted.
1654. Deleted.
1655. All absences not regularized by the grant of leave, to whatever period they relate, should be carried forward from month to month until they are regularized. Steps should, however, be taken, in order to obviate the necessity of carrying forward such items, for the speedy settlement of all such cases.
1656. When a railway servant is permitted to return to duty more than 14 days before the date of expiry of leave, the fact should be entered in the leave record under the signature of the drawing officer if the leave was sanctioned by him, or a copy of the order granting him the permission should be submitted if the leave was sanctioned by a higher authority.
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1657. With a view to facilitate the check of leave salary of non gazetted railway servants, the drawing officer should submit with the establishment pay-bills, in which leave salary is first drawn, a statement duly attested by him showing the calculations by which the amounts drawn in the bills on account of leave salary have been deducted.
1658. Reconciliation of totals of pay bills. Before submitting the bill to the accounts office, the drawing officer should see that the net money value of the changes as shown in Forms G. 1645 and G. 1652 when added to or subtracted from (as the case may be) the total cost of staff as shown in the bill for the previous month agrees with the total cost of staff as charged in the bill in hand.
Payment of Pay and Allowances
1659. Due date of payment. Except with the prior sanction of the Ministry of Railways (Railway Board), the payment of pay-bills for a wage / salary period will not be made before the first working day of the next wage / salary period. If, however, the first six days of a wage / salary period are public holidays, the Ministry of Railways (Railway Board) may, at its discretion direct the payment of pay-bills of non gazetted staff being made on the last open day before the holidays.
Note. Deleted.
1660. Method of payment. Except as provided in the succeeding paragraphs, the pay, leave-salary and other allowances drawn in a pay bill can be paid only on the personal claim of the railway servant concerned and to his personal receipt, and not otherwise.
1661. (1) Pay and allowances of a railway servant, when he is unable to present himself in person to receive payment, can be paid to any person duly authorized by him to receive the money and give legal quittance, provided that the latter holds a legal valid power of attorney to act in his behalf.
(2) The pay and allowances of a railway servant can also be paid on his behalf to another railway servant on his furnishing the latter with a legal quittance for the money claimed signed by himself (and stamped where necessary), which will have to be surrendered to the disbursing officer, with a letter of authority for the payment to be made. The authority letter must be countersigned in cases where countersignature is necessary under paragraph 974 of Pakistan Railways Code for the Accounts Department, Part I. The railway servant receiving the pay and allowances of the absentee employee on his behalf should also furnish a formal receipt which need not be stamped on the pay sheet as per paragraph
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973 ibid to show that the money has actually been received by him. The personal receipt and the authority for payment given by the absentee employee should be in the form given below.
(3) When the railway servant is on leave, it will also be necessary for his agent to produce a “life certificate” before payment can be made to him.
Note. The provisions of this paragraph apply to payments of all pay and allowances in Pakistan. FORM No. G. 1661 A.B. No...... of ...... Unpaid Statement No...... of ...... Name...... Designation...... Station...... Dated...... 20. . . . RECEIVED from the ...... Railways the sum of Rupees ...... in full payment of ...... due to me for......
Rupees ......
Signature ...... Witness to payment...... Designation of witness...... Paid by...... Please pay the within-mentioned amount to......
Signature of the party entitled......
N.B. (i) Receipt should be signed over Revenue Stamp. Postage stamps are not admissible.
(ii) Vernacular signatures must be transliterated.
(iii) Payees unable to sign must give a thumb impression of the left hand and this should be specified by the witness who should preferably be a Government official.
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1662. Life Certificate. Life certificates should be signed by some person exercising the powers of a Magistrate under the Criminal Procedure Code, or by any Registrar or Sub-Registrar under the Registration Act, or by any pensioned officer who before retirement exercised the powers of a Magistrate, or by any gazetted officer of Government, or by any person holding a Government title, or by a registered medical practitioner who should state his register number as a medical practitioner on the certificate, or by a Police Officer in charge of a Police Station, provided the certificate bears its official seal.
1663. Payment of Salary through Bank. Monthly salary to all employees of B.P.S 5 and above (except Running Staff) posted at Headquarters Office and under all Divisional Offices will be made through bank. The account number of each employee will be recorded in the relevant column of the Pay Slip.
1664. Deleted.
1665. Deleted.
1666. Deleted.
1667. Deleted.
1668. Deleted.
1669. Deleted.
1670. Payment in Offices not attached to Open Lines. The head of an office is personally responsible for every pay drawn on a bill signed by him or on his behalf until he has paid it to the person entitled to receive it, and obtained his receipt duly stamped where necessary, on the office copy of the pay-bill. The head of the office is not at liberty to readjust the pay of a railway servant by giving one more and another less than the sanctioned pay of his post. If the payee does not present himself before the end of the month, the amount drawn for him should ordinarily be repaid into the Bank or Chief Cashier and Treasurer Office, his pay being drawn anew in a separate bill when he presents himself to receive it or in the next month's bill. In cases, however, where this restriction will operate inconveniently, the amount of undisbursed pay may, at the option of the disbursing officer, be retained for any period not exceeding three months. As drawing officers are personally responsible for the sums drawn on establishment bills from the Bank or Chief Cashier and Treasurer Office, the concession should not be availed of in cases where they are not satisfied that proper arrangements can be made for the safe custody of the sums retained.
1671. Deleted.
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1672. Payment of Pay and Allowances of Deceased Railway Servants. Pay and other allowances claimed on behalf of a deceased railway servant can be paid without the production of the usual legal authority in the following cases:
(i) to the extent of Rupees 50,000, under the orders of a Gazetted Officer responsible for the payment after such inquiry into the rights and title of the claimant as the sanctioning authority may deem sufficient;
Note. The limit of Rupees 50,000 prescribed above refers to the ‘net’ and ‘not’ to the ‘gross’ amount.
(ii) for the excess over Rupees 50,000, under the orders of the Ministry of Railways (Railway Board) on the execution of an indemnity bond in Form G. 1672, with such sureties as it may require, if it is satisfied of the right and title of the claimants and consider that undue delay and hardship would be caused by insisting on the production of letters of administration.
The sureties accepted as joining in such bonds should be of proved financial ability to meet the obligations undertaken. In any case of doubt, payment should be made only to the person producing legal authority. FORM No. G. 1672 BOND OF INDEMNITY for drawing arrears of pay and allowances of deceased railway servants
KNOW ALL MEN by these presents that I, (a)______resident of______and, (b)______the widow / the son of and I / We,(c)______sureties on her / his behalf are held and firmly bound to Pakistan Railways in the sum of Rupees ______(in words)______to be paid to Pakistan Railways or his successors or assignees FOR WHICH payment to be well and truly made, each of us severally bind(s) himself and his heirs, executors, administrators and assignees and every two and all of us jointly bind ourselves and our heirs, executor, administrators and assigns firmly by these presents. As witness our hands this______day of 20_ _ WHEREAS (d) ______was at the time of his death in the employment of Pakistan Railways AND WHEREAS the said died on the______day of 20_ _, and there was then due to him the sum of Rupees______(in words)______(for pay and allowances in respect of his said office)
AND WHEREAS the above bounden, (a) ______
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(hereinafter called “the Claimant”) claims to be entitled to the said sum as heir of the said (d)______but has not obtained letters of administration of or a succession certificate to the property and effects of the said (d)______
AND WHEREAS the Claimant has satisfied the______(Officer concerned) that he / she is entitled to the aforesaid sum and that it would cause undue delay and hardship if the Claimant were required to produce letters of administration of or a succession certificate to the property and effects of the said (d)______.
AND WHEREAS Pakistan Railways desire to pay the said sum to the claimant but under rules and orders it is necessary that the claimant should first execute a bond with one surety / two sureties to indemnify Pakistan Railways against all claims to the amount so due as aforesaid to the said (d)______before the said sum can be paid to the Claimant.
NOW THE CONDITION of this bond is such that if after payment has been made to the Claimant, the Claimant or the surety / sureties shall in the event of a claim being made by any other person against Pakistan Railways with respect to the aforesaid sum of Rupees______refund to Pakistan Railways the sum of Rupees______and shall otherwise indemnify and save Pakistan Railways harmless from all liability in respect of the aforesaid sum and all cost incurred in consequence of any claim thereto, THEN the above written bond or obligation shall be void but otherwise the same shall remain in full force and virtue. IN WITNESS to the above written bond and the condition therefore we______and ______and______have hereunto set our hands this______day of 20_ _.
(a) Full name of claimant with place of residence. (b) State relationship to the deceased. (c) Full name or names of sureties. (d) Name of the deceased. (e) Title of the officer responsible for the payment.
Last Pay Certificates
1673. When a railway servant is transferred from the jurisdiction of one Accounts Officer to another, or is retiring on pension, a last pay certificate should be prepared in Form G. 1673 and handed over to the railway servant himself or sent to his new address, a copy thereof being forwarded to the Accounts Officer to whose jurisdiction he has proceeded. In the space provided for outstandings, the certificate should also state the amount, if any, recoverable from the railway servant under an attachment of his pay by a court of law, the
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attachment order being passed on to the Accounts Officer to whose jurisdiction the railway servant is transferred. FORM No. G. 1673 LAST PAY CERTIFICATE
(a) ...... of the (b) ...... proceeding on (c)...... / retiring on pension. Certified that ...... made over charge of his duties on the ...... noon of the ...... 20. .; that he has received his pay and allowance at the following rates up to and for the ...... 20 ; and that the necessary deductions from his pay have been made as follows up to and for the ...... 20. . . .
Pay and allowances other than Deductions traveling allowances Rate Name of fund Rate Rupees Rupees
Pay as . . . . G.P. Fund . . . . House Rent Allowance . . . .
Conveyance Allowance . . . . B. Fund . . . .
2. The following sums are outstanding against him in the books of this office:
3. The following sums are due to the officer:
4. The following sums represent claims preferred by the officer but which have not been passed:
Station ...... Dated ...... 20 ...... (a) Here enter title and surname in full. (b) Here enter the office or service to which he belongs.
1674. In the case of a non-gazetted railway servant, the certificate should be prepared by the officer who is responsible for the preparation of monthly pay- bills, a copy of the certificate being at the same time sent to the Accounts Officer for countersignature and transmission to the Accounts Officer to whose jurisdiction the railway servant is proceeding.
1675. The last pay certificates of gazetted officers should be prepared by the Accounts Officer. For this purpose, the heads of departments concerned should furnish the Accounts Officer (in Form G. 1673) with all the information available with them.
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1676. When a railway servant retires on pension, his last pay certificate should be forwarded to the Accounts Officer concerned, along with the orders conveying the sanction to pension.
Travelling Allowance Bills
1677. On return to headquarters after a journey on tour, the railway servant concerned should prepare a Travel Allowance Bill in Form G. 1677 and submit it to his Controlling Officer for countersignature.
FORM No. G. 1677 TRAVEL ALLOWANCE BILL (White) Original Copy. (Green) First Copy. (Yellow) Office Copy.
EMPLOYEE C O S T C E N T R E PAYMENT NUMBER NAME PAY RATE NUMBER NAME CHECK ON PERIOD ENDING CHEQUE CASH
NUMBER TRAVEL DEPARTURE ARRIVAL OF ALLOWANCE OTHER ALLOWED TOTAL DAYS DUTY NIGHTS, EXPENSES ATTACH AMOUNT DAYS OR RATE Rupees DETAILS PAYABLE STATION TRAIN TIME STATION TRAIN TIME MILES
TOTAL EMPLOYEE HEREBY CERTIFIED THAT THE ABOVE EMPLOYEE WAS ABSENT ON DUTY DEDUCTIONS FROM HIS HEADQUARTER STATION AS RECORDED ABOVE. ADVANCES CONTROLLING OFFICE COST CENTER SUPERVISOR NET PAYABLE
SIGNATURE SIGNATURE SIGNATURE
1678. The object of the journey performed and halts made should invariably be stated in the column provided for this purpose in Form G. 1677 and care should be taken in stating correctly the times of departures and arrivals of trains.
1679. A Summary of Travel Allowance Bills should be prepared in Form G. 1679 shown below, from the travel allowance bills received during a month under the preceding paragraph, and submitted to the accounts office to be scrutinized and passed for payment. No date is fixed for the submission of travel allowance bills to the Accounts Officer but generally such bills should be submitted after the pay-bills for the month. Separate bills should be prepared for gazetted, non-gazetted and class IV staff.
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FORM No. G. 1679 SUMMARY OF TRAVEL ALLOWANCE BILLS Original Copy (White) First Copy (Green) Office Copy (Yellow) COST CENTER NO. PAGE OF NAME PAYMENT BY CASH / CHEQUE (CHECK ONE) PERIOD ENDING
EMPLOYEE OTHER GROSS ACCOUNT DISTRIBUTION CHEQUE TRAVEL DEDUCTION NET AMOUNT SIGNATURE OF AMOUNT ALLOWED AMOUNT NUMBER ALLOWANCE OR ADVANCE PAYABLE EMPLOYEE UNPAID NUMBER NAME EXPENSE PAYABLE DR A/C DR AMT DR A/C DR AMT
TOTALS
PREPARED BY CERTIFIED THAT THE EMPLOYEES LISTED ABOVE WERE PAID BY ME / IN MY PRESENCE EXCEPT ACCOUNT DISTRIBUTION SUMMARY THOSE LISTED UNPAID
DATE PAYMENT CLERK WITNESS
VERIFIED BY SIGNATURE SIGNATURE TOTAL TOTAL
1680. The rates of daily allowance, road mileage, etc., and the rules and conditions under which they may be drawn are stated in Chapters II and III of the Pakistan Railways Establishment Code, Vol. I. The allowances charged in a bill should be in conformity with those rules, and in any case in which the rules require a certificate, such certificate should invariably accompany or be given on the bill.
1681. Subject to the provisions of paragraph 1519, any advance of travelling allowance granted to railway servant should be adjusted in full when submitting the bill to the accounts office.
1682. The travel allowance bills will accompany the summary of travel allowance bills sent to the Accounts Office.
1683. Sanction of the competent authority, where such sanction is necessary under the rules, should also accompany the bill. When a railway servant proceeds beyond his jurisdiction, the authority for travelling beyond jurisdiction should also be forwarded to the Accounts Officer alongwith the bill.
1684. Deleted.
1685. Deleted.
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Bills for Fees for Work done for Private Bodies
1686. In a case in which a railway servant is permitted to retain the whole amount of a fee, he should collect it himself.
1687. Where the amount of fee is divisible between the Government and the railway servant, he should arrange with the private body to remit the whole amount of the fee direct to the Chief Cashier and Treasurer Office of Pakistan Railways or to the State Bank of Pakistan to be credited to Pakistan Railways revenues. A bill for the share due to the railway servant should then be prepared in form G. 1688 and submitted to the Accounts Officer, giving full particulars of the sanction to the acceptance of the fee.
Pay Orders for Miscellaneous Claims
1688. In respect of refunds (other than those of freight made by stations at the time of delivery of consignments) and miscellaneous payments, e.g., refunds of house rent and security deposits, payments from staff benefit fund, contributions to hospitals, chambers of commerce and other institutions, advances, etc., a pay order in form G. 1688 should be prepared by the competent authority and forwarded to the Accounts Officer for check and payment.
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FORM No. G. 1688 PAY ORDER
No. . . . . Dated...... 20. . . No. . . . . Dated...... 20. . . (Counterfoil) To To
......
Pay to ...... Pay to ......
Rupees*...... Rupees*...... on account of...... on account of......
Rupees...... Rupees...... chargeable to ...... chargeable to ......
Signature...... Signature ......
Official Designation ...... Official Designation......
Received the sum of Rupees...... as above in full of all demands.
Dated . . . . .20. . Signature......
Witness ......
Pay clerk’s initials ......
*Amount to be shown in words. *Amount to be shown in words.
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Witnessing of Payments
1689. Officers submitting bills for internal check should mention therein the place of payment and name of the officer or subordinate before whom payment should be made.
1690. If the witnessing officer or subordinate is unable to write English, he should give the required certificate in his own language, which will be translated into English (below the certificate) by the disbursing pay clerk. An illiterate person should not be authorized to witness payments.
1691. When an officer or subordinate named in a bill to witness payment thereof is from some cause or other unable to witness the payment, he should authorize the disbursing pay clerk in writing to pay the bill in the presence of the person (who must be a railway servant) he wishes to depute for the purpose. This authority will be attached by the pay clerk to the bill concerned.
1692. If an officer or subordinate named in a bill to witness its payment is unable to depute a man, the disbursing pay clerk will not pay the bill except on the written authority of the officer signing the bill or one of his assistants, who must be a gazetted officer to whom intimation of the fact should be given by the Sectional Pay Master (SPM).
1693. Witnessing officers and subordinates are responsible for the identity of their men and for the correct payment of the amount entered in their favour in the bill.
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Riaz Ahmad & Company Chartered Accountants
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DISALLOWANCES AND OBJECTIONS
CONTENTS
DESCRIPTION PAGE NO. PARA NO.
DISALLOWANCES OF PERSONAL CLAIMS 17.1 1701 — 1702 PROVISIONAL PAYMENTS 17.1 — 17.3 1703 — 1712 (1710 Deleted) OBJECTIONS RELATING TO OTHER CLAIMS 17.3 — 17.4 1713 — 1716
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Disallowances of Personal Claims
1701. Claims which are not susceptible of internal check will be returned by the Accounts Officer to the officer submitting them for amendment or explanation.
1702. Claims which are susceptible of internal check, though incorrect otherwise, will be passed by the Accounts Officer for the correct amount, the amount not admitted being disallowed. The amount of disallowance and the reasons should be intimated to the officer drawing the bill, with the least possible delay, for communication to the person concerned. When the sanction of a higher authority is necessary to the payment of an amount disallowed, it shall be the duty of the officer drawing the bill to obtain such sanction before the amount disallowed is passed for payment.
1703. Provisional payments. In exceptionally urgent cases, where it is considered necessary to anticipate sanction, payments can be made provisionally on a definite request in writing to that effect which should be accompanied by a definite statement that sanction has been applied for or will be applied for within a week. Such a request should be made by the General Manager in the case of a gazetted officer, by the head of a department (or a lower authority to whom power may be delegated by the head of the department) in other cases; and every such request should specify a definite period (not exceeding three months) for which provisional payments should continue in anticipation of the sanction. Where sanction has not been applied for, before a claim is passed for payment, a copy of the application for sanction, when made, should be communicated to the Accounts Officer.
1704. When a claim has been disallowed on the ground that it is not covered by an existing rule or order and the drawing officer or the party concerned is unable to accept the Accounts Officer's interpretation, it shall be open to the drawing officer or the party concerned to represent the case to a higher authority, and the amount disallowed will not be passed for payment unless the Accounts Officer's interpretation of the rule or order is set aside by the authority competent to do so.
1705. Ordinarily all personal claims will be checked finally within one year of the date of payment, and if within this period, an amount is discovered to have been paid erroneously, through an oversight in the accounts office and not due to wrong interpretation of a rule or order, it will ordinarily be recovered. When the amount so detected can, without hardship to the party concerned, be recovered from a current bill, the recovery will be made by the Accounts Officer from such bill. If, however, 17.1
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the amount discovered to have been erroneously paid cannot be met from the amount payable in the current bill, or is so large as compared with the person's pay that its recovery is, in the opinion of the Financial Adviser and Chief Accounts Officer, likely to cause a hardship to the party concerned, the amount will be held under objection and the drawing officer requested to take steps to recover the amount from the next bill or to obtain the sanction of the Head of Department of the employee concerned to the recovery being made in a suitable number of installments.
1706. When erroneous payments have been passed for a considerable time owing to a wrong interpretation of a financial rule or order, the new interpretation will be given effect from the date which the competent authority may decide when giving the correct interpretation. If no date is specifically fixed, the correct interpretation will be given effect from the date of issue, by the competent authority, of the orders stating the correct interpretation.
1707. If any payments have to be disallowed more than one year after the date on which they were made, the amount of overpayment will be held under objection and reported to the head of the department for orders whether the recovery should be enforced or waived.
1708. Every railway officer should attend promptly to any objection communicated to him by the Accounts Officer and all objections relating to personal claims raised by the Accounts Officers or by the Audit Department, whether accepted or not, should immediately be communicated to the parties concerned, so that the question of write-off of the amounts on the ground that they are more than a year old may not arise, in case it is eventually decided that the objections are correct and the amounts disallowed are to be recovered.
1709. The Ministry of Railways (Railway Board) has full power to sanction the write-off of amounts overdrawn by railway servants or otherwise due from them. The General Managers may exercise the power of the Ministry of Railways (Railway Board) under this paragraph in respect of non-gazetted staff. In the case of gazetted officers, the General Managers may waive recovery of amounts overdrawn by them or otherwise due from them, if the erroneous payment or the amount due is discovered by Accounts or Audit more than one year after the date on which it was made or on which it was due. The General Manager may redelegate his powers under this paragraph to any authority subordinate to him, subject to such conditions as he may deem fit to prescribe. 17.2
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1710. Deleted
1711. The power to remit a disallowance, vide paragraph 1709 is exercisable only if the amount disallowed, having been finally passed by the Accounts Officer, had been drawn by the railway servant concerned under the reasonable belief that he was entitled to it.
1712. The circumstances in which the Accounts Officers may waive objections on their own authority have been described in the Pakistan Railways Code for the Accounts Department.
Objections relating to other Claims
1713. An item of expenditure may be held under objection for one or more of the following reasons:
(i) Want of sanctioned estimate,
(ii) Excess over sanctioned estimate,
(iii) Want of sanctioned appropriation,
(iv) Excess over sanctioned appropriation,
(v) Miscellaneous, e.g., absence of vouchers, breach of a financial rule, incorrect allocation, etc.
1714. It is the duty of the Accounts Officer to bring to the notice of the executive authority concerned, without any avoidable delay, all items of irregular expenditure held under objection by him; and it shall be the function of the executive authority to take the earliest possible steps for the regularization of the expenditure by according or obtaining the necessary sanction, or by ordering recovery of the amount irregularly disbursed, or by furnishing the further information required by the Accounts Officer.
1715. If the executive authority concerned is unable to accept the objection raised by the Accounts Officer, it should at once refer the matter for orders of the next higher authority and the objection shall not be considered as having been cleared
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until it has been either withdrawn by the Accounts Officer or over-ruled by the competent authority.
1716. When the Financial Adviser and Chief Accounts Officer considers that the action taken by the administration in a particular case is insufficient, he will ask the General Manager to report the matter to the Ministry of Railways (Railway Board) for orders, furnishing him at the same time, for transmission to the Ministry of Railways (Railway Board), a statement of the reasons for which he considers such action imperative. If the General Manager refuses, it is open to the Financial Adviser and Chief Accounts Officer to report the matter to the Member Finance himself.
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Riaz Ahmad & Company Chartered Accountants
CHAPTER XVIII
20 October, 2011
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CHAPTER XVIII
LOSSES, FRAUDS AND EMBEZZLEMENTS
CONTENTS
DESCRIPTION PAGE NO. PARA NO.
RESPONSIBILITY FOR LOSSES 18.1 1801
REPORT OF LOSSES 18.1 1802 — 1802A
LOSSES INVOLVING THE STATE BANK OF PAKISTAN 18.2 1803
INVESTIGATION OF LOSSES 18.2 1804
LEGAL ADVICE 18.2 1805
LAXITY OF CONTROL 18.3 1806
RECOVERIES OF LOSSES 18.3 1807 — 1809
WITHHOLDING OF PENSION AND GENERAL PROVIDENT FUND 18.3 — 18.4 1810 — 1811 BALANCE
POLICE INVESTIGATION 18.4 1812 — 1813
PROSECUTION 18.4 — 18.5 1814 — 1815
WITNESSES 18.5 1816
APPEAL AGAINST ACQUITTALS 18.5 1817
REPORTS TO THE GENERAL MANAGER 18.5 — 18.6 1818 — 1819
DEPARTMENTAL INQUIRIES 18.6 — 18.7 1820 — 1824
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1801. Responsibility for Losses. Every public officer should exercise the same vigilance in respect of public expenditure and public funds generally as a person of ordinary prudence would exercise in respect of the expenditure and the custody of his own money. Means should be devised to ensure that every railway servant realizes fully and clearly that he will be held personally responsible for any loss sustained by Government through fraud or negligence on his part and also for any loss arising from fraud or negligence on the part of any other railway servant to the extent it may be shown that he contributed to the loss by his own action or negligence.
1802. Report of Losses. Any defalcation or loss of cash, stores or other property belonging to Government should be reported immediately after its discovery, to the head of the accounting unit, division or department, as the case may be, and in serious cases to the General Manager also, copies of the reports being sent simultaneously to the Financial Adviser and Chief Accounts Officer. If any irregularity or loss is detected by, or is brought to the notice of, the Accounts Officer in the first instance, it will be his duty to apprize immediately the administrative authority concerned with the facts of the case and ask for a proper investigation. If, however, the irregularity or loss is discovered by, or is brought to the notice of, the administrative authority in the first instance, that authority should immediately report the matter to the Accounts Officer. Petty cases, that is, cases involving losses not exceeding Rupees 2,000 each need not be reported to the Financial Adviser and Chief Accounts Officer unless there are important features which require detailed investigation and consideration. Every important case should be brought to the notice of the Ministry of Railways (Railway Board), as soon as possible, by the General Manager. When the loss involved does not exceed Rupees 10,000 the case need not be reported to the Ministry of Railways (Railway Board) unless it presents unusual features or reveals serious defects in procedure.
1802-A. The General Manager's report should clearly bring out:
(a) the amount involved and recovered,
(b) the modus operandi of the fraud,
(c) the nature of checks which ought to have been exercised under any rule or order and which were omitted, thereby facilitating the fraud, (d) whether the procedure in force is ineffective in preventing such frauds
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and, if so, what modifications are suggested therein,
(e) disciplinary action taken against the party at fault and the adequacy or otherwise of such action,
(f) whether the Financial Adviser and Chief Accounts Officer, agrees to the report submitted. In the case of his disagreement with the Administration on any aspect of the case such disagreement should be reported verbatim to the Ministry of Railways (Railway Board).
1803. Losses involving the State Bank of Pakistan. Whenever any case of loss, in which there is a possibility of the State Bank of Pakistan being made liable to Government either in respect of operations on Government Accounts conducted by itself or by its agents or otherwise, comes to notice, a report of the loss should also be made, without delay, to the Ministry of Railways (Railway Board). On receipt of the report, the Ministry of Railways (Railway Board) will arrange to have the facts examined, while they are fresh, by officers of the Bank and of Government with a view to reaching an amicable settlement or, if this is impossible, at least to clearing the ground as far as possible, so that a stated case may be referred to some outside arbitrator or legal authority. This examination will be undertaken at once and independently of any departmental or police inquiry.
1804. Investigation of Losses. It is of the greatest importance to avoid delay in the investigation of any loss due to fraud, negligence, financial irregularity, etc. Should the administrative authority require the assistance of the Accounts Officer in pursuing the investigation, he may call on that officer for all vouchers and other documents that may be relevant to the investigation; and if the investigation is complex and he needs the assistance of an expert Accounts Officer to unravel it, he should apply forthwith for that assistance to the General Manager who will then arrange with the Financial Adviser and Chief Accounts Officer for the services of an investigating staff. Thereafter, the administrative authority and the Accounts authority will be personally responsible, within their respective spheres, for the expeditious conduct of the inquiry.
1805. Legal Advice. In any case in which it appears that recourse to judicial proceedings is likely to be involved, competent legal advice should be taken as soon as the possibility emerges. In the case of losses involving a reasonable suspicion of fraud or other criminal offence, a prosecution should be attempted
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unless the legal advisers consider that the evidence available is not such as will secure a conviction. The reasons for not attempting a prosecution should be placed on record in all such cases.
1806. Laxity of Control. In cases where loss is due to delinquencies of subordinate officials and where it appears that this has been facilitated by laxity of supervision on the part of the superior officer, the latter should also be called strictly to account and his personal liability in the matter carefully examined.
1807. Recoveries of losses. The question of enforcing pecuniary liability should always be considered as well as the question of other forms of disciplinary action. In deciding the degree of the railway servant’s pecuniary liability it will be necessary to look not only to the circumstances of the case but also the financial circumstances of the railway servant, since it should be recognized that the penalty should not be such as to impair the railway servant’s future efficiency.
1808. In particular if the loss has occurred through fraud, every endeavour should be made to recover the whole amount lost from the guilty persons, and if laxity of supervision has facilitated the fraud, the supervising officer at fault may properly be penalized either directly by requiring him to make good in money a sufficient proportion of the loss, or indirectly by reduction or stoppage of his increments of pay.
1809. It should always be considered whether the value of Government property or equipment lost, damaged, or destroyed by the carelessness of individuals entrusted with their care should not be recovered in full up to the limit of the railway servant’s capacity to pay.
1810. Withholding of Pension and General Provident Fund Balance. One reason why it is important to avoid delay (paragraph 1804) is that in the course of a prolonged investigation, Government servants who are concerned may qualify for pension and a pension once sanctioned cannot be reduced or withheld for misconduct committed prior to retirement. As a primary precaution, steps should be taken to ensure that a railway servant concerned in any loss or irregularity, which is the subject of an inquiry, is not inadvertently allowed to retire on pension while the inquiry is in progress. Similar precaution should be taken in the case of a person entitled to the benefits of the General Provident Fund. Accordingly, when a railway servant is concerned in any irregularity or loss, the authority investigating the case
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should immediately inform the Accounts Officer and the administrative authority concerned and it will be the duty of the latter to make a note of the information and to see that pension is not sanctioned or the Provident Fund amount is not allowed to be withdrawn before either a conclusion is arrived at as regards the railway servant’s culpability or it has been decided by the sanctioning authority that the result of the investigation need not be awaited.
Note. In sanctioning the pension of a railway servant, who is involved in any loss or irregularity which is the subject of an inquiry, the provisions of rule 2308 of the Pakistan Railways Establishment Code, Volume II should be borne in mind.
1811. The fact that persons who were guilty of frauds or irregularities have retired and have thus escaped punishment, should not be made a justification for absolving those who are also guilty but who still remain in service.
Prosecutions
1812. Police Investigation. As soon as a reasonable suspicion exists that a criminal offence has been committed, the senior officer of the department concerned present at the station / office will report to the Superintendent of Police, Pakistan Railways and ask for a regular police investigation under the Code of Criminal Procedure.
1813. If the Superintendent of Police, Pakistan Railways agrees that an investigation may be made, the Senior Officer of the department concerned present at the station / office will (a) request the Superintendent of Police, Pakistan Railways to arrange for the investigation to proceed from day to day, (b) see that all witnesses and documents are made available to the investigating officer; and (c) associate with the investigating officer an officer of the department who is not personally concerned with the irregularity leading up to the loss, but who is fully cognizant of the rules and procedure of the office in which the loss has occurred.
1814. Prosecution. When the investigation has been completed, an officer of the department (accompanied by the officer who attended the investigation) must be made available for conferences with the authority who will decide whether a prosecution should be instituted. If it is decided not to prosecute, the case must be reported through the usual channel to the General Manager for orders.
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1815. If it is decided to prosecute, the departmental representative will ascertain from the Director-Legal Affairs, having regard to the engagements of the prosecuting staff and the state of work in the Court which would ordinarily hear the case, whether it is necessary to move the District Magistrate to make special arrangements for speedy trial, and will request the Director-Legal Affairs to make any application that he may think necessary.
1816. Witnesses. When the case is put into Court by the Police, the Senior Officer of the Department concerned present at the station / office will see that all witnesses serving in the department and all documentary evidence in the control of the department, are punctually produced, and will also appoint an officer of the department (preferably the officer who attended the investigation) to attend the proceedings in Court and assist the prosecuting staff.
1817. Appeal against Acquittals. If any prosecution results in the discharge or acquittal of any person, or in the imposition of sentences which appear to be inadequate, the Senior Officer of the department concerned will at once consult the Legal Advisor as to the advisability of instituting further proceedings in revision or appeal, as the case may be, and if the Legal Advisor is of opinion that further proceedings are necessary, will request him to proceed, as he would in any case. Appeals against acquittals can be made only under the orders of the General Manager.
1818. Reports to the General Manager. The Senior Officer of the department concerned present at the station / office will see that, in addition to the reports required under paragraphs 1802 and 1814 above, prompt reports are submitted to the General Manager through the usual channel regarding:
(a) The commencement of a police investigation.
(b) The decision to prosecute in any particular case.
(c) The result of any prosecution.
(d) The decision to proceed further in revision or appeal in any case. (e) The result of any proceedings in revision or appeal.
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1819. Notwithstanding anything contained in the foregoing paragraphs, the Senior Officer of the department concerned present at the station / office may, if he thinks fit, refer any matter through the usual channel for the orders of the General Manager before taking action.
Departmental Inquiries
1820. Where fraud or embezzlement of Government funds has occurred, the institution of criminal proceedings should not be regarded by the officer responsible as absolving him from the unpleasant and often laborious task of conducting immediately a thorough departmental inquiry. The natural reluctance to hold an inquiry, enhanced by an apprehension that it may prejudice the result of the trial in a court of law, has sometimes led to great delay in taking departmental proceedings and the results have been inconclusive. Departmental inquiries should not be delayed pending decision of criminal cases, as at a later stage, the evidence might disappear and the departmental inquiry could not be brought to any conclusion at all.
1821. Departmental proceedings cannot, as a rule, proceed concurrently with a criminal prosecution, as much of the evidence in a case of fraud or embezzlement is documentary, and as soon as the criminal proceedings begin, the documents go to the court as exhibits, and have to remain there till the case is over and if an appeal is filed, till the appeal is over. It is therefore essential that everything should be done to carry the departmental proceedings as far as possible before prosecution begins. The stage to which departmental proceedings, prior to prosecution, should be taken must depend on circumstances and cannot be precisely defined. The normal procedure is laid down in Chapter XVII of the Pakistan Railways Establishment Code, Volume l, and the stage, which departmental proceedings can reach, may according to circumstances be any one of the stages described or implied in the rules referred to, i.e., the preliminary recording of evidence, the receipt of the delinquent's written statement after the framing of the charge, the personal hearing, or the inquiry. If it is intended to prosecute, a finding and sentence should not be recorded in the departmental proceedings till after the disposal of the criminal case; but the proceedings should be completed up to the point that can properly be reached.
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CHAPTER XVIII
LOSSES, FRAUDS AND EMBEZZLEMENTS
1822. Where a number of persons are involved, one or more criminally, and others in such circumstances as show negligence, or warrant the suspicion of criminal abetment without sufficient proof to justify prosecution, or have similar features which necessitate a criminal prosecution of one or more and a departmental inquiry against others, the neglect to institute a formal departmental inquiry, or to carry it to the requisite stage, before criminal proceedings are taken, has the result that many months later, when the criminal case is over, effective departmental action becomes impracticable.
1823. The general rule that should be followed is that in all cases of fraud, embezzlement or similar offences, departmental proceedings should be instituted at the earliest possible moment against all the delinquents and conducted with strict adherence to the rules up to the point at which prosecution of any of the delinquents begins. At that stage it must be specifically considered whether further conduct of the departmental proceedings against any of the delinquents is practicable; if it is, it should continue as far as possible (which will not, as a rule, include finding and sentence). If the accused is convicted, the departmental proceedings against him should be resumed and formally completed. If the accused is not convicted, the departmental proceedings against him should be dropped unless the authority competent to take disciplinary action is of the opinion that the facts of the case disclose adequate grounds for taking departmental action against him. In either case, the proceedings against the remaining delinquents should be resumed and completed as soon as possible after the termination of the proceedings in court.
1824. The proceedings contemplated in these instructions are those which are regulated by the rules in Chapter XVII of the Pakistan Railways Establishment Code, volume I, where action is taken under the Government Servants (Efficiency and Discipline) Rules, 1973, this ordinarily takes the place of a criminal prosecution as regards the person or persons accused; but the procedure as regards other persons involved, against whom this Act is not employed, should be in accordance with the instructions given above.
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PAKISTAN RAILWAYS
PAKISTAN RAILWAYS GENERAL CODE
Riaz Ahmad & Company Chartered Accountants
CHAPTER XIX
20 October, 2011
9.1
PAKISTAN RAILWAYS GENERAL CODE
CHAPTER XIX
RECORDS OF SERVICE
CONTENTS
DESCRIPTION PAGE NO. PARA NO.
HISTORY OF SERVICES OF GAZETTED OFFICERS — FORM 19.1 1901 AND DATE OF ISSUE CONTENTS 19.1 — 19.2 1902 — 1903
COPY MAINTAINED BY ACCOUNTS OFFICE 19.2 1904 — 1905
SCRUTINY BY OFFICERS 19.2 1906
TRANSFERS OF OFFICERS 19.2 1907
ARRANGEMENT OF NAMES 19.3 1908
HEADING AND INITIAL ENTRIES 19.3 — 19.4 1909 — 1914 (1911, 1913 Deleted) EVENTS DURING SERVICE 19.4 1915
POSTINGS AND PROMOTIONS 19.4 — 19.5 1916 — 1921
OFFICERS PROMOTED FROM SUBORDINATE RANKS 19.5 1922
TEMPORARY OFFICERS 19.5 1923
OFFICERS BORROWED FROM OTHER CIVIL 19.6 1924 DEPARTMENTS (1925 Deleted) LEAVE 19.6 1926 MISCELLANEOUS EVENTS 19.6 1927 PENSIONABLE OFFICERS 19.7 1928 OFFICERS TRANSFERRED TO FOREIGN SERVICE 19.7 1929 — 1930 (1931 Deleted)
SERVICE BOOKS 19.7 1932 (1933 Deleted) SERVICE ROLLS 19.10 1934
ATTESTATION OF ENTRIES 19.10 1935
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CONTENTS
DESCRIPTION PAGE NO. PARA NO.
SUSPENSIONS AND INTERRUPTIONS 19.11 1936
PERSONAL CERTIFICATES 19.11 1937
ANNUAL VERIFICATION 19.11 1938 — 1939
TRANSFERS 19.11 — 19.12 1940 — 1941
SCRUTINY BY EMPLOYEES 19.12 1942 — 1943
DELIVERY OF SERVICE BOOKS ON RETIREMENT 19.12 1944
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History of Services of Gazetted Officers
1901. Form and Date of Issue. The record of the services of gazetted officers is maintained by the Personnel Department and Accounts Officer who disburses their pay or, if they proceed on leave, on deputation out of Pakistan or on Foreign Service, by the Accounts Officer who would disburse their pay but for the leave, deputation or Foreign Service. This record, known as the “History of Services of Officers of the Pakistan Railways” is compiled by the Financial Advisor & Chief Accounts Officer in form G. 1901 and issued in print on the 10th October of every alternate year, containing complete information up to the 1st July preceding.
FORM NO. G. 1901 HISTORY OF SERVICES
Full name ...... Employee No...... Date of birth ...... Date of joining the service ...... Domicile ...... Religion ...... Province of Origin...... Mother tongue ...... Date from which service counts for 1 - Pension ...... 2 - Leave ......
Governed by ...... Leave Rules.
Substantive Officiating Station Date appointment appointment 1 2 3 4
1902. Contents. The History of Services includes the names and records the events in the history of service of all gazetted officers, whether permanent or temporary, employed in Pakistan Railways. Persons holding gazetted posts in an officiating capacity or officers with honorary gazetted rank are, however, not included.
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1903. So long as a gazetted officer is employed in Pakistan Railways, though he be absent on long leave, or be on foreign service, his name is not removed from the History of Services. The name of an officer is removed only on death, resignation, retirement, or permanent transfer from employment in Pakistan Railways. The name of the officer, however, is published in the volume of the History of Services for the biennium in which death, resignation, retirement or permanent transfer takes place.
1904. Copy maintained by Accounts Office. An interleaved copy of the latest edition of the History of Services should be maintained in the Accounts Office of Pakistan Railways Administration, and steps should be taken by Financial Adviser and Chief Accounts Officer to see that subsequent changes are noted therein as they occur.
1905. On the receipt of notice of the appointment of a new gazetted officer, his name should immediately be entered in its proper place in the interleaved copy. The details of full name with degrees and titles, if any, date of birth, the date on which he joined the service, domicile, religion, province of origin and information regarding mother tongue should be ascertained and recorded without undue delay.
1906. Scrutiny by Officers. On the 1st May of the year in which the History of Services is to be printed, Financial Advisor and Chief Accounts Officer should send to each individual officer for whose History of Service he is responsible, a copy of the officer’s history sheet corrected up to date, for the latter’s scrutiny and remarks and then submit it to the Financial Advisor & Chief Accounts Officer. Subsequent changes made in May and June should be intimated to the Financial Advisor & Chief Accounts Officer and at the same time a copy should be forwarded to each of the officers concerned for scrutiny. The comments, if any, of the officers should be sent to the Financial Advisor & Chief Accounts Officer so as to reach him by the 22nd July.
1907. Transfers of Officers. When a gazetted officer is transferred from the jurisdiction of one Accounts Officer to that of another, a statement of his services should be prepared in form G. 1907 by the former, to supplement the information contained in the last printed History of Services, and forwarded to the latter.
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Form No. G 1907 Joined ...... Born ...... Statement of Services of ...... Employee No...... (For previous entries, please see History of Services of officers of Pakistan Railways corrected up to ...... )
Monthly pay Station Substantive Officiating Date Date Remarks / Office appointment appointment Substantive Officiating pay pay 1 2 3 4 5 6 7 8
Procedure for Preparation
1908. Arrangement of Names. The names of all officers included in the History of Services should be arranged in alphabetical order.
1909. Heading and initial entries. The particulars in the heading should be filled in accordance with the instructions contained in the following paragraphs.
1910. The date of joining the service should be filled in as follows. In the case of an officer:
(a) promoted from a subordinate service to Gazetted Service;
The date of first appointment to railway service should be recorded and not the date of promotion to Gazetted Service;
(b) promoted to the Gazetted Service from officiating Gazetted Service;
The date of first appointment to railway service should be recorded and not the date of promotion to Gazetted Service.
(c) appointed to Gazetted Service after undergoing a period of apprenticeship.
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The date on which service as an apprentice commenced should be recorded and not the date on which service in the Gazetted Service commenced.
(d) Deleted.
1911. Deleted
1912. By Province of origin is meant the provinces in which the officer was domiciled at the time of his appointment.
1913. Deleted
1914. (1) In filling the date of commencement of service for pension and leave, if the officer is pensionable, the date from which service counts for pension should be shown here, otherwise the word “Non-pensionable” should be inserted.
(2) In the case of officers who are appointed as temporary in the first instance and on subsequent confirmation are allowed to count a part or whole of their service for leave and pension, a suitable remark to this effect should be given below the heading and the dates from which service counts for leave and pension should be indicated in the space provided for the purpose.
1915. Events during Service. The events during the service of an officer fall under three categories:
(i) Postings and Promotions.
(ii) Leave.
(iii) Miscellaneous.
1916. Postings and promotions. The postings and promotions should be recorded in a form showing in parallel columns the station where posted, the date, the substantive post held and the officiating post, if any.
1917. Under the heading “Station” in the body of the history, the name of the Pakistan Railways and in the event of an officer being appointed in an office or department on deputation outside the Pakistan Railways, the name of such office will be shown, e.g., ”Ministry of Railways (Railway Board)”, “Economic Affairs Division”, “Coal and Energy Development Department” and so on.
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1918. Under the heading “Date” in the body of the history sheet, the actual date from which the event takes effect should be shown. If the event takes effect from the afternoon of a date the next day should be shown under this heading, but in no case the word “forenoon” or “afternoon” should be inserted.
1919. In the History of Services of officers who are appointed as probationers, the entry should be made under the heading “substantive appointment” clearly indicating the Department or Service to which the officer is appointed, i.e., “Probationer Pakistan Railways Civil Engineering Department”, ”Probationer Pakistan Railways Traffic Department”, “Probationer Pakistan Railways Mechanical Department” and so on.
1920. The first entry in the column “Date” in the body of the history sheet should be the date from which the officer commences to draw pay.
1921. On the confirmation of a probationer or an apprentice in the service, the date of confirmation should be recorded and the word “confirmed” should be added within brackets under the heading “substantive appointment”. This also applies to permanent promotions from lower gazetted service to junior scale or assistant officers’ grade, junior to senior scale or assistant officers' grade to district officers’ grade, and senior scale or district grade to administrative ranks, and from one administrative post to another.
1922. Officers promoted from subordinate ranks. When the appointment of an officer on permanent promotion from a subordinate service is gazetted, all the periods during which the officer had previously officiated in the gazetted ranks should be clearly and correctly recorded. The period of his service prior to the date of his permanent promotion should also be indicated below the heading thus: “Was employed in the subordinate establishment from ...... to ...... “
1923. Temporary Officers. In the case of temporary officers, a contemporaneous record of the events of their service should be kept in the History of Services as prescribed in paragraph 1902. On their confirmation the period during which they were borne on the temporary establishment should also be indicated below the heading thus:
“Was employed as a temporary officer from ...... to ...... “
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1924. Officers borrowed from other Civil Departments. When the services of an officer are obtained on loan from another Civil Department, the fact of such loan and his name should be included in the History of Services but the particulars of his past service should not be reproduced. A reference, should, however, be made to the volume, if any, which contains the History of Services of officer of the Department from which his services are borrowed. The conditions on which the loan of the officer's services have been obtained should also be briefly stated. If and when the services of such an officer are permanently transferred to Pakistan Railways, the revised conditions and the particulars of his past services should be reproduced in the History of Services.
1925. Deleted.
1926. Leave. When an officer proceeds on leave, the nature of the leave and its duration should be shown, as also the date from which it is availed of, in the body of the History of Services, by the entry of a special note. This entry should be revised, if necessary, and the date of return from leave shown, when the officer returns from leave. When the leave taken is out of Pakistan, the dates of embarkation and disembarkation should also be shown.
1927. Miscellaneous events. Miscellaneous events during an officer's service relate generally to:
(i) The passing of departmental examinations.
(ii) Deleted.
(iii) Deputation on special duty.
(iv) Election for revised leave or pension rules, or for any terms affecting leave, pay, pension, etc., in respect of which option is allowed. (v) Transfers to foreign service.
(vi) Literary productions.
(vii) Honours and decorations.
(viii) Deleted.
(ix) Deleted.
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Each miscellaneous event as it occurs should be recorded in the body of the History of Services by the entry of a special note with brief relevant particulars showing the date or period concerned, the nature of the event, etc.
Note. Deleted.
1928. Pensionable Officers. When a temporary post is declared as qualifying for additional pension, a note to that effect should be recorded in the History of the officer holding the post. If, while holding such a post, the officer proceeds on leave and it is certified that he would have continued to hold it if he had not proceeded on leave, such certificate should also be recorded.
1929. Officers transferred to foreign service. If the services of an officer of Pakistan Railways are lent to other Department, his History of Services should include all particulars of leave taken during the period of loan, and also of other events that have a bearing on the officer's service under the Government.
1930. If an appointment held by an officer on foreign service is certified to correspond in rank and responsibility to a similar appointment on Pakistan Railways for purposes of additional pension such certificate should be recorded.
Records of Service of Non-Gazetted Staff
1931. Deleted.
1932. Service Books. For each pensionable non gazetted railway servant a Service Book shall be maintained in Form G. 1932 and kept in the custody of the Divisional / Assistant Personnel Officer / Accounts Officer / Office Superintendent. Service Books of accounts staff will be maintained by Accounts Officer and that of executive staff by Personnel Department.
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FORM No. G. 1932 SERVICE BOOK (Opening page) 1. Name.
2. Employee No.
3. Residence.
4. Father's name and residence.
5. Date of birth.
6. Exact height by measurement.
7. Personal mark for identification.
8. Left hand thumb and finger impressions
Little Finger. Ring Finger.
Middle Finger. Fore Finger.
Thumb.
9. Signature of Government Servant.
10. Signature and designation of the Head of the Office, or other Attesting Officer.
Note 1. The entries on this page should be renewed or re-attested at least every five years and the signature in lines 9 and 10 should be dated. Finger prints need not be taken afresh every five years under this rule.
The remaining folios of the service book should be divided into fifteen columns, viz:
1. Name of post.
2. Whether substantive or officiating, and whether permanent or temporary. 3. If officiating state
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(i) Substantive appointment, or
(ii) Whether service counts for pension under Articles 371, Civil Service Regulations.
4. Pay in substantive post.
5. Additional pay for officiating.
6. Other emoluments falling under the term “Pay”.
7. Date of appointment.
8. Signature of Government servant.
9. Signature and designation of the head of the office or other Attesting Officer in attestation of columns 1 to 8.
10. Date of termination of appointment.
11. Reason of termination (such as promotion, transfer, dismissal, etc.)
12. Signature of the head of office or other Attesting Officer.
13. Leave
(i) Nature and duration of leave taken.
(ii) Allocation of periods of leave on average pay up to four months for which leave-salary is debitable to another Government:
(a) Period;
(b) Government to which debitable.
14. Signature of the head of the office or other Attesting Officer.
15. Reference to any recorded punishment or censure or reward or praise of the Government servant.
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Note 2. Complete record of academic qualifications and professional / departmental qualifications of the railway servant concerned will also be maintained.
1933. Deleted.
1934. Service Rolls. For each temporary servant, a Service Roll (Form G. 1934) should be maintained, showing:
(a) the date of his appointment;
(b) his date of birth, residence, height and marks of identification when enrolled;
(c) the rank which he from time to time holds, his promotions and his reductions and other punishments;
(d) his absences from duty, with or without leave;
(e) interruptions in his service;
(f) every other incident in his service which may involve forfeiture of a portion of it or may affect the amount of his pension.
No Record of Service, however, need to be maintained for persons who are recruited for purely temporary or officiating vacancies for short periods and are not eligible for permanent appointment.
1935. Attestation of Entries. Every step in Pakistan Railways servant's official life must be recorded in his service record and each entry in the service records of railway servants other than employees in Pay Scale 1 to 7 and labourers must be attested by a gazetted officer. As regards employees in Pay Scale 1 to 7 and labourers, every incident in the service of such employees which may affect the amount of their gratuity or pension must be carefully entered. Entries relating to the commencement and termination of service and recommendations for gratuity or pension shall be attested by a gazetted officer; other entries may be attested by a senior subordinate authorized by the head of a department. The Divisional / Assistant Personnel Officer / Accounts Officer / Office Superintendent must see that all entries are duly made and attested and that the record contains no erasure or overwriting, all corrections being neatly made and properly attested.
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1936. Suspensions and interruptions. Every period of suspension from employment and every other interruption of service must be noted, with full details of its duration, in any entry made across the page of the service record and duly attested. It is the duty of the Attesting Officer to see that such entries are promptly made.
1937. Personal certificates. Personal certificates of character must not, unless the head of the department so directs, be entered in a service book, but if a railway servant is reduced substantively to a lower appointment, the reason for the reduction must be briefly shown.
1938. Annual verification. At a fixed time early in the year, the service books and service rolls of pensionable employees should be taken up by the Divisional / Assistant Personnel Officer / Accounts Officer / Office Superintendent who, after satisfying himself that the services of the Government servant concerned are correctly recorded in each service book, should record in it a certificate in the following form over his signature:
“Service verified up to ...... (date) from ...... (the record from which the verification is made)”.
Note. The verification of service referred to above should be in respect of all service qualifying for pension whether permanent, provisional, temporary or officiating.
1939. The Divisional / Assistant Personnel Officer / Accounts Officer / Office Superintendent in recording the annual certificate of verification should, in the case of any portion of service that cannot be verified from office records, distinctly state that for the excepted periods (naming them) a statement in writing by the Government servant, as well as record of the evidence of his contemporaries, is attached to the book.
1940. Transfers. When a railway servant is transferred from one office, accounting unit or division to another, his record of service shall be sent to the Divisional / Assistant Personnel Officer / Accounts Officer / Office Superintendent to which he is transferred and not made over to him nor should it be given to him when proceeding on leave. In the case of a pensionable person, the head of the office under whom he was originally employed, should record in the service book under his signature the result of the verification of service, with reference to pay bills and acquaintance rolls, in respect of the whole period during which the railway servant was employed under him, before forwarding the service book to the office where the services are transferred.
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1941. If a railway servant is transferred to foreign service, the authority maintaining his record of service must send the record to the Accounts Officer. The Accounts Officer will return it after noting in it, over his signature, the order sanctioning the transfer, the effect of the transfer in regard to leave admissible during foreign service and any other particulars which he may consider to be necessary. On the railway servant’s retransfer to Government service, his service record must again be sent to the Accounts Officer, who will then note in it, over his signature, all necessary particulars connected with the foreign service. No entry relating to the time spent in foreign service may be attested by any authority other than the Accounts Officer.
1942. Scrutiny by employees. It is the duty of every pensionable non-gazetted railway servant to see that his service book is properly maintained in order that there may be no difficulty in verifying his service for pension. The Divisional / Assistant Personnel Officer / Office Superintendent should, therefore, permit such a railway servant to examine his service book should he at any time desires to do so.
1943. The scrutiny of his service book by the railway servant concerned must be made in the presence of a responsible official. As a token of his scrutiny and acceptance of entries in the service book, the railway servant should sign in the relevant column of the service book, and the official who supervised the scrutiny will also endorse his signature as evidence that scrutiny was conducted under proper supervision and the supervising officer is satisfied that it was bona fide and no unauthorized changes were made in the entries in the service book in the course of such scrutiny.
1944. Delivery of Service Books on retirement. A service book may be given up to a pensionable employee if he retires, resigns or is discharged from service without fault, an entry to this effect being first made in the service book.
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PAKISTAN RAILWAYS
PAKISTAN RAILWAYS GENERAL CODE
Riaz Ahmad & Company Chartered Accountants
CHAPTER XX
20 October, 2011
9.1 PAKISTAN RAILWAYS GENERAL CODE
CHAPTER XX
MISCELLANEOUS
CONTENTS
DESCRIPTION PAGE NO. PARA NO.
HOURS OF EMPLOYMENT 20.1 2001
SUPPLY OF PUBLICATIONS ON PROFESSIONAL 20.1 2002 SUBJECTS
PRINTING EXPENSES 20.1 2003
OFFICIAL RECORDS, PROPERTY OF STATE 20.1 2004
DESTRUCTION OF RECORDS 20.1 — 20.2 2005 — 2006
CORRESPONDENCE 20.2 — 20.4 2007 — 2020
COMMUNICATION SENT THROUGH THE POST 20.4 — 20.5 2021 — 2023
COMMUNICATIONS SENT OTHERWISE THAN BY POST 20.5 2024 — 2025 (2026 — 2029 Deleted)
SERVICE STAMPS AND STATIONERY 20.6 2030
REVISION OF ESTABLISHMENTS AND PROPOSITION 20.6 — 20.9 2031 — 2039 STATEMENT
SANCTIONS 20.9 — 20.10 2040 — 2044
DATE OF EFFECT OF SANCTION 20.10 2045
LAPSE OF SANCTION 20.11 2046
REPORT OF DEATH OF RAILWAY SERVANTS 20.11 2047 — 2048 (2049 Deleted) PLACING OF ADVERTISEMENTS IN NEWS PAPERS 20.12 2050
EXECUTION OF CONTRACTS 20.12 2051
EXAMINATION OF QUESTIONED DOCUMENTS 20.12 2052
38 PAKISTAN RAILWAYS GENERAL CODE
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CONTENTS
DESCRIPTION PAGE NO. PARA NO.
SECURITY DEPOSITS FOR RAILWAY EMPLOYEES AND 20.12 — 20.14 2053 — 2061 CONTRACTORS
ANNUAL REPORT OF RAILWAY — OBJECT AND SCOPE 20.14 2062 — 2063
RESPONSIBILITY FOR PREPARATION 20.14 2064
SECTION I——REPORT PROPER 20.14 2065
SECTION II——FINANCIAL STATEMENTS 20.15 2066
SECTION III——ANALYSIS OF WORKING 20.15 2067
SECTION IV——APPENDICES 20.15 2068
ESTABLISHMENT RULES 20.15 2069
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2001. Hours of Employment.——The hours of work of railway servants belonging to the classes to whom Chapter VI-A of the Railways Act, 1890, has been made applicable by a Provincial Government under Section 71-E of the Act, are subject to the provisions of that Chapter, the hours of employment rules, and the Subsidiary Instructions issued by the Ministry of Railways (Railway Board). The Act, the Rules and the Subsidiary Instructions, referred to as the “Hours of Employment Regulations”, are reproduced in Appendix IV to this Code. The hours of the work of staff employed in railway workshops, sheds, presses, power houses and factories to which the Factories Act applies, are Governed by the provisions of that Act. The hours of employment of other railway servants will be regulated by such orders, general or special, as may be issued from time to time by the administrative authorities concerned.
2002. Supply of Publications on Professional Subjects.——Officers should not be supplied with ordinary books of reference on professional subjects at the expense of the State. The rules for the purchase of books, newspapers or other publications required for the public service are given in Chapter XIII.
2003. Printing Expenses.——Unnecessary expenditure on account of printing should be avoided. Printing should be resorted to only when the papers are of importance, or when so many copies are required that it would be more expensive to have copies by other means made, but in order to save clerical labour and to promote regularity, the forms of all ordinary returns and accounts required from subordinates should be printed.
2004. Official Records, Property of State.——All official books and records are the property of the State, and must be carefully preserved, unless their destruction be sanctioned by superior authority. This rule includes the records of subordinates which must be given up to their superior officers when demanded.
2005. Destruction of Records.——(a) Subject to any orders issued by the Ministry of Railways (Railway Board) in a particular case, the periods for which the various records of the railway shall be preserved, should be prescribed by the General Manager, except that the periods for the preservation of records of initial accounts in the executive offices and for other records (including correspondence) in such offices as may be connected with the accounts rendered to the Accounts Department, should be prescribed after consultation with the Financial Adviser and Chief Accounts Officer. The periods after which the records of the Accounts Department may be destroyed are detailed in Appendix XIII to the Pakistan Railways Code for the Accounts Department.
(b) The Ministry of Railways (Railway Board) have decided that the following records should be retained for the periods noted against each:
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(1) Leave accounts of non-gazetted staff: (i) 5 years after retirement (ii) 3 years after death (iii) 10 years after resignation, discharge, removal or dismissal from service.
(2) Service records of non-gazetted staff: The same period as in (1) above provided the General provident fund and gratuity claims have been disposed of.
2006. No record of the railway should be destroyed until after the expiration of the period prescribed for its preservation, and in each office full details should be maintained permanently of all records destroyed from time to time. The following records should on no account be destroyed:
(i) Records connected with expenditure which is within the statute of limitation. (ii) Records connected with expenditure on works not completed, although beyond the period of limitation. (iii) Records of experiments and observation. (iv) Records connected with claim to service and personal matters of persons in service. (v) Cash-books of disbursing officers.
Note.——Counterfoils of cheques issued may be destroyed after five complete years.
Correspondence
2007. Letters will usually be written on a sheet of foolscap (A4 sheet), leaving a quarter margin on the inside of the page, but brief letters or memoranda may be of the docket form on a quarter sheet of foolscap.
2008. Memoranda on half margin, the reference on one side and the reply on the other, will generally be found useful, no copy being taken by the person by whom the reference is made, as the original will be returned to him.
2009. Each separate subject should be embodied in a separate letter, e.g., questions connected with the strength of establishment should not be mixed up with matters relating to engineering or the construction of works.
2010. The subjects of a letter under reply should always be briefly but clearly stated in the opening of the reply (unless the reply practically repeats the whole of it in an 20.2
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affirmative or negative form). It is not enough to quote simply the number and date. Similarly, a reminder should state the subject, not merely the number and date of the letter to which attention is drawn. To facilitate reference, the paragraphs of a letter should be numbered and similar numbers should be inserted in the office draft.
2011. Extracts of correspondence should, as a general rule, be inserted in the letter in preference to attaching a mass of copies. When enclosures are sent with a letter, a list must accompany it giving the number and date of each.
2012. When a reference is made to the Ministry of Railways (Railway Board) as a result of an objection raised by the Financial Adviser and Chief Accounts Officer or the Director General Audit, Railways, a verbatim copy of the objection should be furnished to the Ministry (Board).
2013. The use of vernacular terms in English correspondence should be avoided.
2014. Officers should be encouraged to express in the fullest manner their opinions on subjects of a professional character, and should be allowed the utmost latitude of explanation as to points of executive management, but every officer must convey his opinion or explanation to superior offices in a respectful manner; and the heads of department are required to notice any improprieties in this respect, and to return for corrections all letters in which this rule is not attended to.
2015. Official letters addressed to the heads of an office should not bear his name on the cover, unless it is intended that the cover should be opened by the officer personally.
2016. No officer should correspond direct with any authority superior to the officer under whom he is immediately serving, or with the Provincial Government, the Ministry of Railways (Railway Board), or the Government of Pakistan out of the regular course, unless in a case of extreme emergency, in which case he must send copies of his communications to his immediate superior.
2017. (1) Direct communications of Government Officials (except in the cases of long established practice) with officials in the foreign countries are prohibited, but references to them may be made through the proper channel of the Government of Pakistan and the Pakistan Diplomat Abroad.
(2) Normally, all inquiries, etc., desired to be made from the various Departments and agencies of the Government or Government of foreign country should be conducted through:
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(i) The Federal Government, or (ii) The Pakistan Representative concerned abroad, or (iii) The Foreign Consular Officer concerned in Pakistan.
(3) A Foreign Consular Officer when initiating correspondence with the Government of Pakistan will address the Foreign Affairs Division, but the Ministry of Railways (Railway Board) may address a Foreign Consular Officer, and in the case of the latter may reply direct to the Ministry of Railways (Railway Board).
2018. Letters containing proposals concerning another department should, so far as possible, be accompanied by references to the opinion of the head of such department.
2019. Confidential papers should be placed in double covers, the inner cover being marked “confidential” and superscribed with the name only of the addressee, the outer cover being addressed to him by official designation only, and without the addition of his name.
2020. Letters containing remittances or valuable papers must be registered. When it is considered necessary to use wax-cloth for the purpose of protecting the papers from damp, etc., the wax-cloth should be used as an inside cover, the outer cover being as usual of paper.
Method of conveying correspondence
2021. Communication sent through the post.——The rules and rates of postage governing the dispatch through the post of different types of articles, namely, letters, book packets, newspapers and parcels are different. The inclusion within one cover or bundle of different types of articles normally renders the whole cover or bundle liable to postage at the rate prescribed for the most highly charged article included. Thus the inclusion of a letter within a book packet or a newspaper renders that article liable to be charged at the letter postage rate. Similarly, if letters are enclosed in a parcel, the parcel will be charged at the rate of the postage.
2022. There are two important exceptions to the general rule stated in the preceding paragraph, viz.:
(a) Rule 31 of the Post Office Rules contains a general exception providing that a parcel may contain only one letter provided it is addressed to the addressee of the parcel.
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(b) Exception 3 to Rule 181 of the Post Office Rules is a special exception for official correspondence only, permitting, where more than one office file included in one parcel, each file to contain a single official letter which was not on the file when it reached the officer dispatching it.
2023. Thus if a cover contains no communication of the nature of a letter or contains only the letter permitted by the two exceptions mentioned above, it can be sent at parcel rates of postage. If it contains letters not covered by these exceptions, it must pay the letter rate of postage. A cover paying the letter rate of postage may contain any number of articles such as letters, book packets, newspapers or other articles provided they are all intended for the addressee of the cover. It is not permissible to enclose in one cover a number of letters or post cards or personal communications of the nature of letters intended for different addressees.
2024. Communications sent otherwise than by post.——The exclusive privilege conferred by sections 4 and 5 of the Post Office Act covers only letters and post cards. Consequently, newspapers and other printed matters and parcels can be sent by means other than the post. Office files can thus be sent through messengers or by railways or by other means.
2025. There is also no objection to the sending of letters by private or official messengers within the same station. Further, “dak” of an officer on tour can be sent between his headquarters office and his camp office through private messengers. The provisions of the Post Office Act are contravened if a regular service is established through private or official messengers involving either the collection of letters for conveyance from one place to another place, or their distribution on arrival to different addressees. “Collection here does not mean combining into one packet or bundle, letters, etc., delivered by post or hand at a particular address but collection from different addressees.
2026. Deleted.
2027. Deleted.
2028. Deleted.
2029. Deleted.
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Service Stamps and Stationery
2030. Service stamps and official stationery should not be used in correspondence relating purely to matters of a personal nature. The covers of letters, etc. sent by Government officers in their official capacity, which relate nevertheless to the private interests and concerns of the individuals addressed, should be marked “Service unpaid”, and the unpaid postage at prepaid rates will be recovered from the addressee.
Revision of Establishments and Proposition Statement
2031. When the entertainment of a new establishment or a change, temporary or permanent, is proposed in an office, a letter fully explaining the proposals and the conditions which has given rise to them should be submitted to the authorities concerned. In this letter should be set out:
(i) the present cost, either of the section or sections affected, or of the total establishment as the circumstances of the case may indicate to be necessary; (ii) the cost after revision; and (iii) details of the number and pay of the appointments which it is proposed to add or modify.
2032. When a scheme requires the sanction of the higher authority only because particular items are beyond the powers of sanction of the subordinate authority, in the letter submitted to the higher authority full details should be given of these items and of any other part of the scheme so connected with them that, unless it is explained, it must be difficult for the higher authorities to determine whether sanction should be given to these items or not. Details of other parts of the scheme are not required and should not be given, lump-sum figures showing the total cost of each part of the scheme being sufficient.
2033. When the revision of a number of establishments is undertaken in pursuance of one definite central idea, which constitutes of a single scheme for purposes of sanction, and when the scheme requires the sanction of higher authority, full details of the several establishment need not be given in the letter submitting the proposals for sanction, but only such details as will indicate the financial effect of each portion of the proposals. Thus if the scheme is for the increase of pay of a number of establishments, it will suffice to set out:
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(i) the present cost of all establishments concerned; (ii) the various increases of pay or the various percentages of increases proposed and the reasons justifying the proposals; (iii) in respect of each separate rate on increase proposed, as set in (ii):
(a) a list of the establishments or classes of officers to which it is to be applied and reasons for such differentiation; (b) as accurate an estimate as possible of the probable cost, with a statement that this has been worked out in consultation with the Accounts Officer and that it is accepted by him as correct.
2034. In determining the extra cost, allowances whether fixed or variable, should be included. The estimate of the extra cost due to variable allowances, such as those granted under house allowance schemes, can not be exact but it should be as accurate as possible.
2035. In the following cases a proposition statement in duplicate in form G.2035 should also be submitted:
(i) cases of general revision of establishment ; (ii) proposals which can not be set out clearly without it ; or (iii) Schemes which require the sanction of the Chairman / Secretary Railways.
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FORM No. G.2035
Statement of proposition for Revision of Establishment
Nature of charges Proposition
Present scale. Proposed scale Permanent Temporary Increase Decrease Increase Decrease Pay Pay per per per per month month month month Remarks Remarks Number Number Designation *Minimum *Increment *Maximum cost Average Number Designation *Minimum *Increment *Maximum cost Average *Amount *Amount Period *Amount Period *Amount
*Money columns.
2036. The details to be shown in the proposition statement will be determined by the following rules:
(i) The proposition statement, where this is necessary, should relate strictly to the section or part of the office affected by the proposals. As regards the other parts or sections of the office, neither details nor figures of total cost need be included. (ii) Where a section consists of non — gazetted staff, details need be given only of the class affected, if a saving of labour will result from the adoption of this procedure. (iii) The rules as to detail set out in paragraphs. 2031 to 2033.
2037. Where the pay of any post, whether existing or proposed, rises from a minimum to a maximum by periodical increments, the average monthly cost, not the actual or the commencing cost, should be given. In the case of non-gazetted staff, the mean of the time scale may be taken as the average monthly cost, while in the case of officers, the following should be taken as the average cost of each post:
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Average monthly cost Service or Department Junior scale Senior scale Rupees Rupees Railway Service of Engineers, including 28,000 35,000 Bridge Engineers. Transportation (Traffic and Commercial) 28,000 35,000 Transportation (Power) and Mechanical 28,000 35,000 Engineering (including Signal and Electrical Engineers).
2038. The fixed allowances should be entered in the proposition statements when such statements are prepared but the variable allowances should not be included therein.
2039. The proposition statement or the proposal for revision should be forwarded through the Accounts Officer, who should verify the present scale or state the present cost, as the case may be, according to his cadre register; but it will not be necessary for him to reconcile differences or discrepancies unless they are sufficiently large to affect the consideration of the case by the sanctioning authority. It will also be unnecessary for the Accounts Officer to make the submission of proposals for the revision of establishment the occasion for the verification of present scales as shown in his cadre registers. In ordinary cases, the sanctioning authority may accept the Accounts Officer’s figures, and if there are discrepancies between his figures and those furnished by the authority initiating the proposals, they may be left over for adjustment subsequently.
Sanctions
2040. Unless otherwise stated in the order of delegation, a power delegated to an authority can be exercised by that authority only from the date of delegation.
2041. All sanctions or orders issued by an authority under power derived from a delegation must be expressed as having been accorded or issued by such authority.
2042. Officers who have not been formally delegated powers by the General Managers but are authorised to issue sanction on behalf of the latter, should prepare a weekly or fortnightly statement, as the General Manager may decide, of all sanctions so issued by them and submit it to the General Manager for examination.
2043. (a) Copies of all sanctions, effecting railway receipts and expenditure, should be communicated to the Accounts Officer concerned, under the signature of the sanctioning authority or that of a subordinate officer authorized by the sanctioning authority to do so.
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(b) All sanctions and orders involving financial considerations emanating from the office of the Ministry of Railways (Railway Board), should be sent by the Secretary, Ministry of Railways (Railway Board), to General Managers, in duplicate, to enable them to make over a copy promptly to the Financial Adviser and Chief Accounts Officer for necessary action. Where the Ministry of Railways (Railway Board) as such has power to accord sanction or to issue orders, the sanction or orders should be sent direct to the Audit Department by the Secretary, Ministry of Railways (Railway Board). All other sanctions and orders i.e., order of the Federal Government intended for the Audit Department should be endorsed by an Officer of the Finance Branch of the Ministry of Railways (Railway Board).
2044. All letters or memoranda conveying sanction to the grant of additions to pay such as special pay and compensatory allowance, should contain a brief but clear summary of the reasons for the grant of the addition so as to enable the Accounts Officer to see that it is correctly classified as special pay or compensatory allowance, as the case may be. In cases in which an official record in an open letter is considered undesirable, the reasons for the grant of such additions to pay should be communicated confidentially to the Accounts Officer. A similar procedure should also be followed in all other cases in which the rules require that reasons for the grant of special concessions or allowances should be recorded.
2045. Date of effect of Sanction.——(1) Unless otherwise expressly stated in the rules themselves, Statutory Rules made by the Federal Government with the concurrence of its advisers have effect from the date on which they are made by him and those made by the Federal Government take effect from the date of their notification in the Gazette of Pakistan or from the date of issue.
(2) Executive orders and sanctions issued by an authority take effect from the date of issue of the despatch, letter in which the order or sanction is conveyed, unless stated to the contrary in the order or sanction itself.
(3) Corrections to Pakistan Railways Codes take effect from the following dates:
(a) When a correction is based upon sanctions and orders already issued by letter, from the date specified in that letter and, when there is no such date specified in that letter, from the date of the letter.
(b) When a correction is first notified in the form of a correction slip, from the date of issue of the list of corrections unless a different date is specified in the correction slip itself.
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2046. Lapse of Sanction.——Except as provided in paragraph 956 of the Pakistan Railways Code for the Engineering Department, an order conveying a sanction will, in the absence of any indication to the contrary in the order itself, lapse only if and when it is superseded by an order of later date.
Report of Death of Railway Servants
2047. When a railway servant dies, a report of his death should be made immediately, through the regular channel, to the authority by which his appointment was made; and the relatives or friends of the deceased employee, if none of them be present on the spot, should be communicated with immediately by telephone, fax or email by local authorities of the railway.
2048. The death reports (Form G. 2048) of persons of foreign domicile should be made direct by the General Manager to Ministry of Foreign Affairs through fax or email, giving the following information:
(1) Name. (2) Designation. (3) Date of death. (4) Place of death. (5) Age at time of death. (6) Place of birth. (7) Particulars as to family connections. (8) Address in foreign country of relatives (if known). (9) Particulars as to property (if any). (10) Length of service. (11) Cause of death. (12) Any other remarks.
A copy of the report should simultaneously be sent to the Director General Health of the Government of Pakistan for information and, in the case of officers, an intimation of death should also be sent to the Ministry of Railways (Railway Board).
2049. Deleted
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Placing of Advertisements in Newspapers
2050. The list of newspapers in which advertisements may be placed by railway administration is available on application to the Principal Information Officer, Press Information Department. The list has been drawn up by the Federal Government solely on commercial considerations (largest circulation) so as to secure the maximum value of advertisement and should normally be adhered to in all cases. If for any reason, a railway administration finds it necessary or desirable to depart from the Federal Government list, it should periodically advise the Principal Information Officer of the names of the papers which the administration finds it essential to utilize and or which it considers should be added to the Federal Government List. Such correspondence should usually be conducted direct, but disputes which may arise may be referred to the Ministry of Railways (Railway Board).
Execution of Contracts
2051. The classes of deeds, contracts and other instruments which may be executed by various authorities on behalf of the President and the general principles which have been laid down by the Federal Government for the guidance of authorities who have to enter into contracts or agreements involving expenditure from Federal Consolidated Fund, have been embodied in Chapter IV of the Pakistan Railways Code for the Stores Department and the Appendices thereto. The Pakistan Diplomat abroad is authorized to make and execute on behalf of the President contracts relating to the working of railways and to vary and discharge such contracts.
Examination of Questioned Documents
2052. The rules prescribed by the competent authority or superior courts will be followed in making applications for the services of the Government Examiner of questioned documents and the payment to be made therefore.
Security Deposits from Railway Employees and Contractors
2053. Divisional Pay Masters, Sectional Pay Masters, Sub-Store-Keepers and Depot Store Keepers holding direct charge of stores, whether appointed permanently or temporarily, must furnish security, the amount being regulated according to circumstances and to local custom in each case under the sanction of the General Manager in consultation with the Financial Adviser and Chief Accounts Officer. Other subordinates entrusted with the custody of cash or stores may be required to furnish security in such manner as may be decided by the General Manager in consultation with the Financial Adviser and Chief Accounts Officer in each case.
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Securities should be taken, where necessary, for the due fulfilment of contracts entered into by railway administration.
2054. The security from railway servants may be:
(i) a deposit of cash; (ii) government securities at market value; (iii) guarantee bonds or deposit receipts of “scheduled banks” as defined in State Bank of Pakistan Act, 1956. (iv) a deposit in the Post Office Savings bank; or (v) a deposit receipt of the Pakistan Railways Co-operative Credit Society.
2055. The security from contractors may be:
(i) as provided in clauses (i) to (iv) of the preceding paragraph; (ii) a percentage deduction, ordinarily 10 per cent from the periodic payments made on account of work done or supply made; or (iii) personal security of two persons of known probity and financial standing.
2056. In the case of Government securities, a margin should be allowed for possible fluctuations in market value and power should be reserved to call on the depositor to make good any deficiency in this respect.
2057. Where a security is offered in the form of a deposit receipt of a bank or Pakistan Railways co-operative credit society, the depositor should be required to get the receipt made out in the name of the Accounts Officer and the receipt should remain in the custody of the latter. The depositor should be authorised by the Accounts Officer to receive the interest, when due, direct from the bank or the co-operative credit society. The deposit made with the Pakistan Railways Co-operative Credit Society will be at the risk of the depositor.
2058. Security deposits lodged in the Post Office Savings Bank should be hypothecated by the depositor to the Accounts Officer and the Bank’s Pass Book should remain in the custody of the latter. The Pass Book should be sent to the Post Office as soon as possible after the 15th June every year in order that the necessary entries on account of interest may be made therein.
2059. Cash Deposits may be converted, at the cost of the depositor, into one or more of the forms of interest-bearing securities provided:
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(i) that the depositor has expressly desired this in writing, and (ii) that the acceptance of the new form of security is permissible under paragraphs 2054 and 2055 as well as under the terms of agreement or bond.
2060. The security deposits, whether made in cash or in one of the forms of security referred to in paragraphs 2054 and 2055, should be covered by a bond or agreement setting forth the conditions under which the security is held and may be ultimately refunded or appropriated.
2061. It should be stipulated in the bond inter alia that amount of the deposit shall be liable to forfeiture, under the orders of the competent authority, specified in the bond, in the event of any loss to Government due to fraud, negligence or any other action (direct or contributory) on the part of the depositor, or for the non-fulfilment of any of the conditions of the bond. It should also be stipulated that no interest will accrue on the amount of the security deposited in cash.
Annual Report of Railway
2062. Object and Scope.——Railway administration should submit to the Ministry of Railways (Railway Board) an Annual Report reviewing the year’s working under all departments and referring to any matters either materially affecting the results of working or of general interest. The report is intended for the use of the Ministry of Railways (Railway Board), the administration of the railway concerned.
2063. Report prepared by Pakistan Railways will consist of four parts, viz:
I. Report proper (the narrative position). II. Financial statements (Capital and Revenue Accounts). III. Analysis of working (Statistical statements). IV. Appendices - Statistical statements.
2064. Responsibility for preparation.—— The administrative head of the Railway is responsible for the preparation and submission of the report, the Accounts Officer compiling the Financial Statements and furnishing such other information and figures as may be required for the purpose of the Report.
2065. Section I——Report proper.——This section which is signed by the Head of the Railway Administration should be devoted to a review of the working of the railway during the year. It should contain, for instance, the reasons for variations in gross receipts and departmental expenditure (generally as compared with the previous year) ;
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brief descriptions of exceptional events, such as damages by floods, etc., and the measures taken to cope therewith; important fluctuations in the operating results together with the contributory causes ; major works undertaken or completed during the year ; and steps taken to improve or add to the facilities provided for the comfort of the travelling public, particularly lower class passengers.
2066. Section II——Financial Statements.——This comprises a set of Financial Statement as per International Financial Reporting Standards. These should be prepared in accordance with the instructions laid down in Chapter XII of the Pakistan Railways Code for the Accounts Department, Part I.
2067. Section III——Analysis of Working.——This section should include statistical statements dealing with the different aspects of railway working, which are chiefly used for the compilation of the statistics published in Volume II of the Report by the Ministry of Railways (Railway Board) on Pakistan Railways. This section should also contain detailed Statements of Rolling-stock, Statements of Revenue (Earnings and Expenditure) and of Operating Statistics and key ratios, etc.
2068. Section IV——Appendices.——Statements relating to number and cost of staff, accidents, etc., should be included in this Section.
Establishment Rules
2069. The railway administration should prepare the Establishment Rolls so as to give the following information in respect of gazetted officers and non-gazetted staff separately:
(i) the detailed sanctions of the number of posts in each category by departments and preferably by cost centre; (ii) the scales of pay for each category, viz., the old, and the revised scales and in the case of subordinate staff, coordinated scales also (if any). (iii) the distribution of the total number of posts sanctioned by divisions or districts or shops as the case may be.
Similar information should be given with regard to workshops, factories and other staff, labourers and inferior servants although not in such great detail as regards each separate category. The rates of pay and the distribution between divisions, districts or shops should be shown, but the amount of details under categories is left to each railway administration.
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Establishment rolls need not be prepared every year if there are no great changes in the sanctioned cadres or scales of pay, but they should be kept regularly corrected. Payee, whose signature must be known to the Treasury Officer, and if the latter directs the Treasury Officer to pay the money to a certain named person, that person must be identified to the Treasury Officer before payment can be made to him.
Before presentation for encashment the draft must be receipted on the back by a person entitled to give a legal quittance.
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CHART OF ACCOUNTS APPENDIX I (See paragraph 329)
1) Entity Element
Attached Department / Spending unit Accounting Unit Govt Ministry Division Department Code Description Code Description
F 27 1 PR01 01 General Manager, Operations 000 Senior Accounts Office/GB HQ (Headquarters, Lahore) 02 FA & CAO, Pakistan Railways 001 Divisional Accounts Office, Karachi 03 FA & CAO, Revenue 002 Divisional Accounts Office, Sukkur 04 Traffic Department 003 Divisional Accounts Office, Multan 05 Civil Engineering Department 004 Divisional Accounts Office, Lahore 06 Electrical Department 005 Divisional Accounts Office, Rawalpindi 07 Signal Department 006 Divisional Accounts Office, Quetta 08 Telecom Department 007 Divisional Accounts Office/WAC/MGPR, (Workshops Accounts Moghalpura) 09 Locomotive Department 008 - 10 Wagon Department 009 Divisional Accounts Office, Peshawar 11 Carriage Department 010 Senior Accounts Office/Revenue, Lahore (Traffic Accounts, Lahore) 12 Stores Department 011 SAO/Pension & Funds, Headquarters, Lahore 13 MIS Department 012 SAO/Stores, Headquarters, Lahore 14 Law Department 013 AO/MIS/ HQ (IT Centre, HQ, Lahore) 15 Police Department 014 AO/Steel Shop/MGPR (Steel Shop, Moghalpura, Lahore) 21 General Manager, Manufacturing & Services 015 AO/CDL/ Rawalpindi (Central Diesel Locomotive Shop, Rawalpindi) 22 FA & CAO, Manufacturing & Services 016 AO/C&W/Hyderabad (Carriage and Wagon Shop, Hyderabad) 31 General Manager, Development 017 S F&AO/TR Karachi (Track Rehabilitation Project, Karachi) 32 Directorate of Schools 018 S F&AO/EPZ Karachi (Export Processing Zone, Karachi) 33 Medical Department 019 AO/Dry Port Karachi (Dry Port, Karachi) 34 Research IRM Surveys 020 S F&AO/DOT (Doubling of Track, HQ, Lahore) 41 Chief Internal Auditor 021 S F&AO/MPS/Karachi (Mirpur Khas Project, Karachi) 42 Federal Government Inspector of Railways 022 AO/ RBOD /K.C (Right Bank Outfall Drain, Karachi) 43 Marketing Department 023 S F&AO/M&S (Manufacturing & Services, Headquarters, Lahore) 44 Railway Board 024 SAO/CF/Islamabad (Carriage Factory, Islamabad) 025 SAO/LMF/Risalpur (Locomotive Factory, Risalpur) 026 S F & AO/ CSF / HQ / LHR (Concrete Sleeper Factories, Lahore) 027 S F & AO/ AVLB, MGPR/WAC (Moghalpura Workshops Lahore) 028 S F&AO/ H.C.W/ MGPR (High Capacity Wagons, Moghalpura, Lahore) 029 S F&AO/ RE (Rehabilitation, Moghalpura, Lahore) 030 Deputy Director/Walton (Training Centre, Walton, Lahore) 031 AO Payment Islamabad (Ministry of Railways, Islamabad)
District and DDO codes (suggested by NAM training manual) have been ignored in the coding scheme as Railways does not report its transactions on the basis of district and DDO. Accounting unit element has been taken into consideration because Railways has developed the accounting units for financial reporting purposes.
Page 1 of 100 CHART OF ACCOUNTS APPENDIX I (See paragraph 329)
2) Object Element
Major Object Minor Object Detailed Object Code Description Code Description Code Description
A01 Employee Related A011 Pay Pay of Officers (A01101 - A01150) Expenses A01101 Basic Pay A01102 Personal Pay A01103 Special Pay A01104 Technical Pay A01105 Qualification Pay A01106 Pay of Contract Staff A01107 Index Pay A01108 Pay of Shaheed Police Officers A01109 Command Pay A01150 Others Pay of Other Staff (A01151 - 99) A01151 Basic Pay A01152 Personal Pay A01153 Special Pay A01154 Good Conduct Pay A01155 Qualification Pay A01156 Pay of Contract Staff A01157 Index Pay A01158 Pay of Shaheed Police Officials A01170 Others A012 Allowances Regular Allowances (A01201 - 10) A01201 Senior Post Allowance A01202 House Rent Allowance
Page 2 of 100 CHART OF ACCOUNTS APPENDIX I (See paragraph 329)
Major Object Minor Object Detailed Object Code Description Code Description Code Description
A01203 Conveyance Allowance A01204 Sumptuary Allowance A01205 Dearness Allowance A01206 Local Compensatory Allowance A01207 Washing Allowance A01208 Dress Allowance A01209 Special Additional Allowance A01210 Risk Allowance Other Regular Allowances (A01211 - 70) A01211 Hill Allowance A01212 Telecommunication Allowance A01213 Expatriation Allowance A01214 Postal Operation Allowance A01215 Extra Departmental Employees Allowance A01216 Qualification Allowance A01217 Medical Allowance A01218 Fixed Contingent/Stationary Allowance A01219 Foreign Allowance A01220 Language Allowance A01221 Accreditation Allowance A01222 Hardship Allowance A01223 Exchange Compensation Allowance A01224 Entertainment Allowance A01225 Instructional Allowance A01226 Computer Allowance A01227 Project Allowance A01228 Orderly Allowance A01229 Special Compensation Allowance A01230 Dusting Allowance A01231 Drinking Water Allowance
Page 3 of 100 CHART OF ACCOUNTS APPENDIX I (See paragraph 329)
Major Object Minor Object Detailed Object Code Description Code Description Code Description
A01232 Performance Evaluation Allowance A01233 Unattractive Area Allowance A01234 Training Allowance A01235 Secretariat Allowance A01236 Deputation Allowance A01237 Design Allowance A01238 Charge Allowance A01239 Special Allowance A01240 Utility Allowance for Gas A01241 Utility Allowance For Electricity A01242 Consolidated Travelling Allowance A01243 Special Allowance A01244 Adhoc Relief A01245 Indexed House Rent Allowance A01246 Indexed Conveyance Allowance A01247 NAB Allowance A01248 Judicial Allowance A01249 Utility Allowance to Ministers/Ministers of State A01250 Incentive Allowance A01251 Mess Allowance A01252 Non Practicing Allowance A01253 Science Teaching Allowance A01254 Anaesthesia Allowance A01255 Hostel Superintendent Allowance A01256 Special Adhoc Relief Allowance A01257 RC Allowance A01258 President/Prime Minister/Parliament House Allowance A01259 Fuel Allowance A01260 Ration Allowance A01261 Constabulary Allowance
Page 4 of 100 CHART OF ACCOUNTS APPENDIX I (See paragraph 329)
Major Object Minor Object Detailed Object Code Description Code Description Code Description
A01262 Special Relief Allowance A01263 Research Allowance A01264 Technical Allowance A01265 Cash Handling Allowance A01266 Disturbance Allowance A01267 Warden/Boarding Allowance A01268 Cost of Living Allowance A01269 Basic Science Allowance A01270 Others A0120A Special Message Allowance A0120B Servant Allowance A0120C Club Allowance A0120D Integrated Allowance A0120E Housing Subsidy Allowance to Government Servants A0120F Mobility Allowance A0120G Field Allowance A0120H Hair Cutting Allowance A0120I Remote Area Allowance A0120J ATS Allowance A0120K Special Judicial Allowance A0120L Hard Area Allowance @ 50% of running basic pay for Northern Areas A0120M Car Allowances A0120N Special Allowance @ 20% of Basic Pay for Secretariat Employees A0120P Adhoc Relief - 2009 A0120Q Fixed Daily Allowance A0120R Prison Allowance A0120S Elite Force Allowance A0120T Education Allowance Other Regular (Allowances excluding TA) (A01271 - 99) A01271 Overtime Allowance
Page 5 of 100 CHART OF ACCOUNTS APPENDIX I (See paragraph 329)
Major Object Minor Object Detailed Object Code Description Code Description Code Description
A01272 Night Duty Allowance A01273 Honoraria A01274 Medical Charges A01275 Rest and Recreation Allowance A01276 Outfit Allowance A01277 Contingent Paid Staff A01278 Leave Salary A01279 Extra Duty Allowance A01280 Out Station Allowance A01281 Danger Money Allowance A01282 Session Allowance A01283 Field Allowance A01284 Firewood Allowance A01285 Motor Cycle Maintenance Allowance A01286 Suspension Allowance A01287 Land Revenue Collector's Allowance A01288 Contract Allowance A01289 Teaching Allowance A01290 President / Governor's House Allowance A01291 Special Allowance For Hiring Drivers to the Parliamentary Secretaries / Chairmen Standing Committees A01292 Screener Allowance A01293 Diet charges A01294 Ticketing Allowance A01295 Road Safety Education Allowance A01299 Others A02 Project Pre- A021 Feasibility Studies A02101 Feasibility Studies investment Analysis
A02102 Consultant based Feasibility Studies
Page 6 of 100 CHART OF ACCOUNTS APPENDIX I (See paragraph 329)
Major Object Minor Object Detailed Object Code Description Code Description Code Description
A022 Research, Surveys and A02201 Research and Surveys Exploratory Operations A02202 Exploratory Operation A02203 Consultant Based Research and Surveys A02204 Consultant Based Exploratory Operation A03 Operating Expenses A030 Fuel and Power A03001 High Speed Diesel (HSD) Oil- Operational
A03002 High Speed Diesel (HSD) Oil - Non Operational A03003 Furnace Oil - Operational A03004 Furnace Oil - Non Operational A03005 Electric Traction A03070 Others A031 Fees A03101 Bank Fees A03102 Legal Fees A03103 License Fee A03170 Others A032 Communication A03201 Postage and Telegraph A03202 Telephone and Trunk Calls A03203 Telex,Teleprinter and Fax A03204 Electronic Communication A03205 Courier and Pilot Service A03270 Others A033 Utilities A03301 Gas A03302 Water A03303 Electricity A03304 Hot and Cold Weather Charges A03370 Others A034 Occupancy Costs Occupancy Cost (A03401 - A03470) A03401 Charges
Page 7 of 100 CHART OF ACCOUNTS APPENDIX I (See paragraph 329)
Major Object Minor Object Detailed Object Code Description Code Description Code Description
A03402 Rent for Office Building A03403 Rent for Residential Building A03404 Rent for Other Buildings A03405 Rent other than on Building A03406 Royalties A03407 Rates and Taxes A03408 Rent of Machine and Equipment A03409 Insurance A03410 Security A03411 Rent of Hall for Council Meetings A03412 Sewerage Charges/Waste Charges A03470 Others A035 Operating Leases Operating Leases (A03501 - A03570) A03501 Machinery and Equipment A03502 Building A03503 Motor Vehicles A03504 Computers A03506 Medical Machinery and Technical Equipment A03570 Others A036 Motor Vehicles Motor Vehicles (A03601 - A03670) A03601 Fuel A03602 Insurance A03603 Registration A03670 Others A037 Consultancy and Consultancy and Contractual Work (A03701 - A03770) Contractual Work A03701 Computer A03702 Management A03703 Government Departments A03770 Others
Page 8 of 100 CHART OF ACCOUNTS APPENDIX I (See paragraph 329)
Major Object Minor Object Detailed Object Code Description Code Description Code Description
A038 Travel & Government Servants (A03801 - A03820) Transportation A03801 Training - Domestic A03802 Training - International A03803 Other - Domestic A03804 Other - International A03805 Travelling Allowance A03806 Transportation of Goods A03807 P.O.L Charges, Aeroplanes, Helicopters, Staff Cars, Motor Cycles A03808 Conveyance Charges A03809 CNG Charges (Government) A03810 Tour Expenditure State Conveyance and Motor Cars A03811 Railway Concession Voucher A03820 Others A038 Travel & Other than Government Servants (A03821 - 40) Transportation A03821 Training-Domestic A03822 Training - International A03823 Other - Domestic A03824 Other - International A03825 Travelling Allowance A03826 Transportation of Goods A03827 P.O.L Charges, Aeroplanes, Helicopters, Staff Cars, Motor Cycles A03828 Conveyance Charges A03829 CNG Charges (Non-Govt) A03840 Others A039 General General (A03901 - 3971) A03901 Stationery A03902 Printing and Publication A03903 Conferences / Seminars / Workshops / Symposia
Page 9 of 100 CHART OF ACCOUNTS APPENDIX I (See paragraph 329)
Major Object Minor Object Detailed Object Code Description Code Description Code Description
A03904 Hire of Vehicles A03905 News Papers, Periodicals and Books A03906 Uniforms and Protective Clothing A03907 Advertising & Publicity A03908 Discount Given A03909 Tax Refunds A03910 Commission Paid A03911 Loss on Exchange A03912 Expenditure on Pakistani Delegations to Foreign Countries A03913 Contribution & Subscription A03914 Secret Service Expenditure A03915 Payments to Government Department for Services Rendered A03916 Essay Writing and Copyrights A03917 Law Charges A03918 Exhibitions, Fairs and other National Celebrations A03919 Payment to Other for Services Rendered A03920 Relief and Repatriation of Civilian Internees A03921 Unforeseen Expenditures for Disaster Preparedness & Relief A03922 Reimbursement of interest to Bank A03923 Security of VIPs A03924 Expenditure on Refugees, Security, Prisoners & Detainees A03925 Subsistence Allowance to Detainees A03926 Allied Branch of the Provincial C.I.D A03927 Purchase of Drugs and Medicines A03928 Expenditures on Confiscated Goods A03929 Weight & Measures, Trade Marks and Patent Rights A03930 Vocational and Manpower Training A03931 Expenditure on Foreign Experts Assistance Received from Abroad A03932 Demarcation of Pakistan-India Boundary A03933 Services Charges
Page 10 of 100 CHART OF ACCOUNTS APPENDIX I (See paragraph 329)
Major Object Minor Object Detailed Object Code Description Code Description Code Description
A03934 Re-imbursement of T.T Charges to Banks for Home Remittances A03935 Depreciation Expenses A03936 Foreign/Inland Training Course Fee A03937 Refresher/Recurrent Courses of Pilot A03938 Insurance of Aircrafts and Pilots A03939 Landing/Parking Charges of Aircrafts A03940 Unforeseen Expenditure A03941 Expense against National Fund for Control of Drug Abuse A03942 Cost of Other Stores A03943 HIV/AIDS - Training Foreign A03944 HIV/AIDS - Local Training and Meetings A03945 HIV/AIDS - Technical Assistance A03946 HIV/AIDS - Surveillance A03947 HIV/AIDS - Monitoring, Research & Evaluation A03948 HIV/AIDS - Behaviour Change communication and Advocacy A03949 HIV/AIDS - Services for vulnerable Population A03950 HIV/AIDS - Drugs & Medical Supplies A03951 HIV/AIDS -Contingencies A03952 HIV/AIDS -Operational Cost of Old Surveillance Centres A03953 Investigation Cost A03954 Ordnance Store A03955 Other Store - Tear Gas/Computer , Stationary A03956 Losses to Local Government and Entities due to Abolition of Taxes A03957 Special Costs incurred in Performance of Government Functionaries A03958 Special Expenditures Incurred in Executives Directives A03959 Stipend, Incentives, Awards and Allied Expenditure A03960 Expenditures on Foreign Delegations Arriving in Pakistan A03961 Discount on Judicial Stamps A03962 Discount on Non Judicial Stamps A03970 Others
Page 11 of 100 CHART OF ACCOUNTS APPENDIX I (See paragraph 329)
Major Object Minor Object Detailed Object Code Description Code Description Code Description
A03971 Cost of State Trading Medicines A03972 Expenditure on Diet for Patients A03973 Monitoring/SEMIS A03974 School Rehabilitation Program/Terms of Partnership A03975 School Management Committee (SMC) A03976 Public Private Partnership A03977 Stipend to Girls Students A03978 Free Text Books A03979 Teachers/Managers Training A03980 Incremental Technical Assistance Staffing A03981 Learning Assessment/ PEACE A03982 Capacity Building A03983 Expenditure Tracking/Monitoring A04 Employees A041 Pension Pension (A04101 - 4170) Retirement Benefit A04101 Pension - Civil A04102 Commuted Value of Pension - Civil A04103 Gratuity - Civil A04104 Other Pension (e.g. Family Pension) A04105 Gratuities (e.g. Gratuity where Pension is not Mature) A04106 Reimbursement of Medical Charges to Pensioners A04107 Pension -Defence A04108 Commuted Value of Pension - Defence A04109 Gratuity - Defence A04110 Payment of Pension Contribution of Ex-Local Fund Employees A04111 Travelling Allowance for Retired Government Servants in Connection with Journey on Medical Grounds A04112 Grants to Civil-Defence A04113 Superannuation and Retirement Allowance A04114 Superannuation Encashment on L.P.R
Page 12 of 100 CHART OF ACCOUNTS APPENDIX I (See paragraph 329)
Major Object Minor Object Detailed Object Code Description Code Description Code Description
A04115 30% of Minimum Pay Scale as Social Security Benefit in Lieu of Pension to Contract Appointee A04116 Pension Contribution (LCS/ Non LCS) A04170 Others A042 Others - Post A04201 Employer's Contribution to Benevolent Fund Retirement Benefits A04202 Post Retirement Free Medical Facility A04203 Post Retirement Travel Facility A04220 Others A05 Grants, Subsidies A051 Subsidies Subsidy (A05101 - A05120) and Write offs of Loans / Advances / Others A05101 Wheat A05102 Food A05103 Edible oil A05104 Fertilizer A05105 Tubewell A05106 Cotton A05107 Freight Subsidy on imported cement A05108 Subsidy on Imported Whole Gram Black A05109 Mark-up Rate Subsidy for Spinning Industries A05120 Others A052 Grants Domestic Grants Domestic (A05201 - A05270) A05201 To Federal Government A05202 To Provincial Government A05203 To District Government A05204 To TMAs A05205 To Financial Institution A05206 To Non Financial Institution
Page 13 of 100 CHART OF ACCOUNTS APPENDIX I (See paragraph 329)
Major Object Minor Object Detailed Object Code Description Code Description Code Description
A05207 To Union Administration A05208 Local Bodies A05209 Share from Provincial Allocable Amount (District Government) A05210 Special Grants from Provincial Retained Amounts (District Government) A05211 Federal Funded Projects (District Government) A05212 Special Grants from Provincial Allocable Amounts (TMAs) A05213 Special Grants from Provincial Retained Amounts (TMAs) A05214 Federal Funded Projects/Schemes (TMAs) A05215 Grants to Union Administration A05216 Financial Assistance to the Families of Civil Servants Who Expire during Service A05217 Share from Provincial Allocable Amount (Cantonment Board) A05218 Special Grants from Provincial Retained Amount (Cantonment Board) A05270 To Others A053 Write off of Loans and Write-off of Loans and Advances (A05301 - A05320) Advances A05301 Government Servants A05320 Others A054 Write off / Loss of A05401 Inventories Obsolescence / Slow Moving Charge Assets A05402 Impairment of Property, Plant and Equipment A05403 Write off of Inventories A05404 Loss on Disposal of Property, Plant and Equipment A05405 Loss on Sale of Scrap A05420 Others A06 Transfers A061 Scholarships, Bonuses Scholarships (A06101 - A06104) and Other Awards
A06101 Merit Scholarships A06102 Other Scholarships A06103 Cash Awards
Page 14 of 100 CHART OF ACCOUNTS APPENDIX I (See paragraph 329)
Major Object Minor Object Detailed Object Code Description Code Description Code Description
A06104 Bonuses A062 Technical Assistance Technical Assistance (A06201 - A06270) A06201 Expenditures on Foreign Trainees in Pakistan A06202 Contribution To International Agencies A06270 Others A063 Entertainments and Entertainment & Gifts (A06301 - A06399) Gifts A06301 Entertainments and Gifts A064 Other Transfer Other Transfer Payments (A06401 - A06470) Payments A06401 To Foreign Governments A06402 Contributions/Transfers to Reserve Fund A06403 Renewal & Replacements A06404 Return To Government Investment A06405 To Sugar Cess Fund A06406 Premium under Group Term Insurance Schemes for employees of NH & MP A06407 Transfer to Staff Benefit Fund - Railways A06408 Premium for Railways Employees Group Insurance A06470 Others A065 Public Private A06501 Grant In Aid to Sindh Education Foundation Partnership A06502 Fellowship Program A06503 100 Community Supported Schools A06504 Early Learning Program A06505 Rural Based Community School A06506 Promotion of Private School in Rural Area A06507 Integrated education Learning Program A06599 Others A07 Interest Payment A071 Interest - Domestic Permanent Debt (A07101 - 10) Debts
Page 15 of 100 CHART OF ACCOUNTS APPENDIX I (See paragraph 329)
Major Object Minor Object Detailed Object Code Description Code Description Code Description
A07101 To Federal Government A07102 To Provincial Governments A07103 To District Governments A07104 To TMAs A07105 To Financial Institution A07106 To Non Financial Institutions A07107 Sukuk A07110 Others Floating Debt (A07111-20) A07111 To Federal Government A07112 To Provincial Governments A07113 To District Governments A07114 To TMAs A07120 Others Unfunded Debt (A07121 - 30) A07121 To Federal Government A07122 To Provincial Governments A07123 To District Governments A07124 To TMAs A07130 Others A072 Interest - Foreign Permanent Debt (A07201 - 10) A07201 To Federal Government A07202 To Provincial Governments A07203 To Financial Institutions A07204 To Non Financial Institutions A07205 Suppliers' Credit A07210 Others A073 Others Other Obligations (A07301 - A07399) A07301 Other Obligations (e.g. Depreciation and other Reserve Fund, Deposits of Income Tax Under Section18A etc.)
Page 16 of 100 CHART OF ACCOUNTS APPENDIX I (See paragraph 329)
Major Object Minor Object Detailed Object Code Description Code Description Code Description
A07302 Other payments ( e.g. Management of Loan, Interest of Commercial Banks, Loan on Food Account) A07303 On Loans Received by Post Office etc. A074 Interest / Profit on A07401 Defence Savings Certificates National Savings Schemes A07402 Special Savings Certificates A07403 Regular Income Certificates A07404 Behbood Savings Certificates A07430 Other Savings Certificates A07431 Pensioner Benefit Accounts A07432 Special Savings Accounts A07433 Savings Accounts A07434 Mahana Amdani Accounts A07460 Other Savings Accounts A08 Loans and Advances A081 Advances to Advances To Government Servants (A08101 - A08170) Government Servants
A08101 House Building Advance A08102 Motor Car Advance A08103 Motor Cycle/Scooter Advance A08104 Cycle Advance A08170 Others A082 Provinces Loans To Provinces (A08201 - 08210) A08201 NWFP A08202 Punjab A08203 Sindh A08204 Balochistan A08205 Drought Emergency Relief Assistance A08206 Federal DERA Unit(See A08701and 02)
Page 17 of 100 CHART OF ACCOUNTS APPENDIX I (See paragraph 329)
Major Object Minor Object Detailed Object Code Description Code Description Code Description
A083 District Govt. / TMAs Loans to Districts/TMAs Government (A08301 - A08310) A08301 NWFP A08302 Punjab A08303 Sindh A08304 Balochistan A08310 Others A084 Loans to Financial Loans to Financial Institutions (A08401 - A08499) Institutions A08401 Loans to Financial Institutions A08499 Others A085 Loans to Non- Loans to Financial Institutions (A08501 - A08599) Financial Institutions
A08501 Loans to Non-Financial Institutions A08599 Other A086 Loans to Others Loans to Private Sector (A08601 - A08670) A08601 Private Sector A08670 Others A087 Drought Emergency DERA Loans (A08701 - A08799) Relief Assistance A08701 Federal DERA Unit A08702 Drought Emergency Relief Assistence (Provincial) - Blocked A08703 NWFP A08704 Punjab A08705 Sindh A08706 Balochistan A08707 Others (FATA, FANA, AJK) A09 Expenditures on A091 Purchase of Building Purchase of Building and Structures (A09101 - A09170) Acquiring of Physical Assets
Page 18 of 100 CHART OF ACCOUNTS APPENDIX I (See paragraph 329)
Major Object Minor Object Detailed Object Code Description Code Description Code Description
A09101 Land and Buildings A09102 Land and Buildings - Residential Buildings A09103 Land and Buildings - Office Buildings A09104 Buildings and Structures - Others A09170 Others A092 Computer Equipment Computer Equipment (A09201 - A09299) A09201 Hardware A09202 Software A09203 I.T. Equipment A093 Commodity Purchases Commodity Purchases(A09301-A09370) (Cost of State Trading)
A09301 Food (Sugar) A09302 Fertilizer A09303 Coal A09304 Cost of State Trading-Food (Wheat) A09305 Cost of State Trading-Food (Rice) A09306 Cost of State Trading-Others A09307 Provincial Judicial Stamps A09370 Others A094 Other Stores and Other Stores and Stocks (A09401-A09470) Stocks A09401 Medical Stores A09402 Newsprint A09403 Tractors A09404 Medical and Laboratory Equipment A09405 Workshop Equipment A09406 Storage and Carrying Receptacles A09407 Specific Consumables A09408 Generic Consumables
Page 19 of 100 CHART OF ACCOUNTS APPENDIX I (See paragraph 329)
Major Object Minor Object Detailed Object Code Description Code Description Code Description
A09409 Medical Stock A09410 Life saving Medical Supplies A09411 General Utility Chemicals A09412 Specific Utility Chemicals A09413 Drapery, Fabrics, Clothing and allied material A09414 Insecticides A09470 Others A095 Purchase of Transport Purchase of Transport (A09501-A09599)
A09501 Purchase of Transport A09502 Diplomatic Cars A09503 Others A096 Purchase of Plant & Purchase of Plant and Machinery (A09601-A09699) Machinery A09601 Purchase of Plant and Machinery A09602 Cold Storage Equipment A09603 Signalling System A09604 Railways Rolling Stock A097 Purchase of Furniture Purchase of Furniture and Fixture (A09701-A09799) & Fixture A09701 Purchase of Furniture & Fixture A09702 Unkept Furnishings A098 Purchase of Other Purchase of Other Assets (A09801-A09899) Assets A09801 Purchase of Live stocks A09802 Others A09899 Others A10 Principal A101 Loans - Domestic Principal Repayment (A10101-A10170) Repayments of Loans
Page 20 of 100 CHART OF ACCOUNTS APPENDIX I (See paragraph 329)
Major Object Minor Object Detailed Object Code Description Code Description Code Description
A10101 Domestic Direct A10102 To Federal Government A10103 To Provincial Governments A10104 To District Governments A10105 To TMAs A10106 To Financial Institutions A10107 To Non Financial Institutions A10108 Federal Investment Bonds A10109 Foreign Exchange Bearer Certificates A10110 US Dollar Bearer Certificates A10111 Foreign Currency Bearer Certificates A10112 Special US Dollar Bonds A10113 Pakistan Investment Bonds A10114 Sukuk A10170 To Others A102 Principal Repayment Repayment Of Foreign Loans (A10201-A10270) of Loans - Foreign
A10201 Foreign Direct A10202 To Federal Government A10203 To Financial Institutions A10204 To Non-Financial Institutions A10205 Suppliers' Credit A10270 To Others A103 Principal Repayment Other Repayments (A10301-A10399) of Loans - Others (NES)
A10301 Other Repayments
Page 21 of 100 CHART OF ACCOUNTS APPENDIX I (See paragraph 329)
Major Object Minor Object Detailed Object Code Description Code Description Code Description
A104 Principal Repayment Repayment Of Floating Debts (A10401-A10499) of Loans - Floating Debt
A10401 Prize Bonds A10402 Treasury Bills A10403 Ways and Means Advances A10404 Cash Credit Accommodation A11 Investments A111 Investment - Domestic Domestic Investments (A11101-A11170)
A11101 To Financial Institutions A11102 To Non-Financial Institutions A11170 To Others A112 Investment - Foreign Foreign Investments (A11201-A11270) A11201 To Financial Institutions A11202 To Non Financial Institutions A11203 Contribution to International Financial Institution A11270 To Others A113 Investment - Others Other Investments (A11301-A11399) A11301 Others A12 Civil Works A121 Roads, Highways and Roads, Highways and Bridges (A12101-A12199) Bridges A12101 Highways A12102 Other Roads A12103 Bridges of National Importance A12104 Other Bridges A12106 Track Work and Infrastructure A122 Irrigation Works Irrigation works (A12201-A12270) A12201 Main Canals A12202 Feeder Canals
Page 22 of 100 CHART OF ACCOUNTS APPENDIX I (See paragraph 329)
Major Object Minor Object Detailed Object Code Description Code Description Code Description
A12203 Tertiary and Other Subsidiary Links A12204 Agricultural Produce Carrying Equipment A12105 Transport Stands and Terminals A12270 Others A123 Embankments and Embankments and Drainage Works (A12301-A12370) Drainage Works A12301 Main Embankment A12302 Miscellaneous Embankment A12303 Drainage A12370 Others A124 Building and Building and Structures (A12401-A12470) Structures A12401 Office Buildings A12402 Residential Buildings A12403 Other Buildings A12404 Structures A12405 Electrification Plumbing and Other Infrastructure A12470 Others - Civil Works Construction of Building & Structure A125 Other Works Other Works (A12501-A12599) A12501 Works - Urban A12502 Works - Rural A126 Telecommunication Telecommunication Works (A12601-A12620) Works A12601 Lines And Wires A12602 Apparatus and Plants A12603 Share in Factories A12604 Stores A12605 Construction of Lines and Wires (Telegraph) A12606 Construction of Lines and Wires (Telephone) A12607 Construction of Lines and Wires (Radio)
Page 23 of 100 CHART OF ACCOUNTS APPENDIX I (See paragraph 329)
Major Object Minor Object Detailed Object Code Description Code Description Code Description
A12608 Construction of Apparatus and Plants (Telegraph) A12609 Construction of Apparatus and Plants (Telephone) A12610 Construction of Apparatus and Plants (Radio) A12620 Others A127 Drought Emergency DERA Works (A12701-A12799) Relief Assistance A12701 Works A12702 Goods & Commodities A12703 Consultant Services & Training A12704 Incremental Operational Cost (Establishment Charges) A13 Repairs and A130 Transport Transport (A13001 - A13099) Maintenance A13001 Transport A13002 Locomotives A13003 Railways Coaches and Carriages A13004 Railways Wagons A131 Machinery and Machinery and Equipment (A13101 - A13199) Equipment A13101 Machinery and Equipment A13199 Repair & Maintenance of Others A132 Furniture and Fixture Furniture and Fixture (A13201 - A13299)
A13201 Furniture and Fixture A133 Building and Building and Structures (A13301 - A13370) Structures A13301 Office Buildings A13302 Residential Buildings A13303 Other Buildings A13304 Structures A13370 Others - Repair and Maintenance of Building and Structures
Page 24 of 100 CHART OF ACCOUNTS APPENDIX I (See paragraph 329)
Major Object Minor Object Detailed Object Code Description Code Description Code Description
A134 Irrigation Irrigation (A13401-A13470) A13401 Main Canals A13402 Feeder Canals A13403 Tertiary and Other Subsidiary Links A13470 Others A135 Embankments and Embankments and Drainage (A13501-A13570) Drainage A13501 Main Embankment A13502 Miscellaneous Embankment A13503 Drainage A13570 Others A136 Roads, Highways and Roads, Highways and Bridges (A13601 - A13699) Bridges A13601 Highways A13602 Other Roads A13603 Bridges of National Importance A13604 Other Bridges A13305 Works - Urban and Rural / Water Supply/ Electrification A13605 Transport Stands and Terminals A13606 Railways Track A137 Computer Equipment Computer Equipment (A13701 - A13799)
A13701 Hardware A13702 Software A13703 IT Equipment A138 General General (A13801 - A13899) A13801 Maintenance of Gardens A139 Telecommunication Telecommunication Works (A13901 - A13920) Works A13901 Lines And Wires - Repairs
Page 25 of 100 CHART OF ACCOUNTS APPENDIX I (See paragraph 329)
Major Object Minor Object Detailed Object Code Description Code Description Code Description
A13902 Apparatus and Plants A13903 Repairs and Maintenance of Lines and Wires (Telegraph) A13904 Repairs and Maintenance of Lines and Wires (Telephone) A13905 Repairs and Maintenance of Lines and Wires (Radio) A13906 Repairs and Maintenance of Apparatus & Plants (Telegraph) A13907 Repairs and Maintenance of Apparatus & Plants (Telephone) A13908 Repairs and Maintenance of Apparatus & Plants (Radio) A13920 Others - Repair A14 Suspense and A141 Recovery of Suspense And Clearing (A14101 - A14199) Clearing Expenditures A14101 Recovery of Expenditure Suspense A142 P.W. Suspense A14201 Suspense (Irrigation). A14201 Suspense (Highway). A14201 Suspense (Building). A14201 Suspense (P.H.E.). A15 Miscellaneous A151 Citizen Community A15101 Citizen Community Board Current Schemes Board (Check with District Govt) A15102 On going Schemes Citizen Community Board A15103 On going Schemes ADP (Current year) A15104 On going Schemes ADP (Previous year) A15105 On going Schemes CM Grant A15106 On going Schemes (Office Complex) — NB funds A15199 Others
Tax Receipts
Non - Tax Receipts
Page 26 of 100 CHART OF ACCOUNTS APPENDIX I (See paragraph 329)
Major Object Minor Object Detailed Object Code Description Code Description Code Description
C01 Income from C010 Profits C01001 Railway Property and Enterprise C01002 Pakistan Post Office C01003 Irrigation C01004 Opium C01005 Salt C01006 Electricity C01007 State Trading C01008 Pakistan Telecommunication Authority C01009 Balochistan Mining Enterprise C01010 Trans Balochistan Enterprise C01070 Others C011 State Trading Schemes State Trading Wheat (C01101 - 10) C01101 Sale Proceeds of Wheat C01102 Federal Subsidy on Wheat C01103 Provincial Subsidy on Wheat C01104 Recoveries of Incidentals Charges C01105 Wheat Receipts - Others State Trading Fertilizer (C01111 - 20) C01111 Sale Proceeds of Fertilizer C01112 Federal Subsidy on Fertilizer C01113 Provincial Subsidy on Fertilizer C01114 Recoveries of Incidentals Charges C01115 Other Receipts State Trading Medical Stores (C01121 - 40) C01121 Sale Proceeds of Medical Stores C01122 Federal Subsidy on Medical Stores C01123 Provincial Subsidy on Medical Stores C01124 Recoveries of Incidentals on Supply of Medical Stores to Federal Government
Page 27 of 100 CHART OF ACCOUNTS APPENDIX I (See paragraph 329)
Major Object Minor Object Detailed Object Code Description Code Description Code Description
C01125 Medical Stores other Receipts State Trading Coal Stores (C01141 - 60) C01141 Sale Proceeds of Coal C01142 Federal Subsidy on Coal C01143 Provincial Subsidy on Coal C01144 Recoveries of Incidentals Charges C01145 Coal Receipts - Other State Trading Diplomatic Cars (C01161 - 70) C01161 Sale Proceeds of Diplomatic Cars C01170 Others State Trading Others (C01171 - 90) C01171 Sale Proceeds of Others C01172 Sale Proceeds of Others-Tractors C012 Interest on Loans and Interest Domestic Loans (C01201 - 04) Advances to Provinces
C01201 Punjab C01202 Sindh C01203 NWFP C01204 Balochistan Interest Foreign Loans (C01205 - 08) C01205 Punjab C01206 Sindh C01207 NWFP C01208 Balochistan Interest US-Aid Local Currency Loans (C01209 -12) C01209 Punjab C01210 Sindh C01211 NWFP C01212 Balochistan
Page 28 of 100 CHART OF ACCOUNTS APPENDIX I (See paragraph 329)
Major Object Minor Object Detailed Object Code Description Code Description Code Description
Interest German Loans (C01213 - C01299) C01213 Punjab C01214 Sindh C01215 NWFP C01216 Balochistan C013 Interest on Loans to Interest Domestic Loan (C01301 - 10) District Government / TMAs C01301 Karachi Shipyard and Engineering Works Limited C01302 Multan Hospital Multan C01303 Security Printing Corporation of Pakistan C01304 Ghee Corporation of Pakistan C01305 Rice Export Corporation of Pakistan C01306 Cotton Export Corporation C01307 Municipal Committees / Corporation / District Councils C01308 Mari Gas Company C01309 Interest on Cash Loans C01310 Sui Northern Gas Pipe Lines Ltd. C013aa Karachi Electricity Supply Corporation Interest Foreign Loan (C01311 - 30) C01311 Karachi Port Trust C01312 National Shipping Corporation C01313 Karachi Development Authority C01314 Karachi Electric Supply Corporation C01315 Suigas Transmission Company Ltd. C01316 Pakistan International Airline C01317 Karachi Shipyard & Engineering Works Ltd. C01318 Port Qasim Authority C01319 Oil And Gas Development Corporation C01320 Indus Gas
Page 29 of 100 CHART OF ACCOUNTS APPENDIX I (See paragraph 329)
Major Object Minor Object Detailed Object Code Description Code Description Code Description
C01321 Hyderabad Development Authority C01322 Sui Northern Gas Pipeline Ltd. C01323 Pakistan Television Corporation C01324 Pakistan Energy Commission C01325 Civil Aviation Authority C01326 Mari Gas Company C01327 Rice Export Corporation of Pakistan C01328 Interest 0n Foreign Loan C01329 Capital Development Authority C01330 National Highway Authority C01399 Others C014 Interest on Loans & Interest Domestic Loan (C01401 - 10) Advances to Financial Institutions
C01401 Industrial Development Bank of Pakistan C01402 Investment Corporation of Pakistan C01403 House Building Finance Corporation C01404 Cooperative Bank Gilgit C01405 Equity Participation Fund (EPF) C01410 Others Interest Foreign Loans (C01411 - 20) C01411 Agricultural Bank of Pakistan C01412 Pakistan Industrial Credit and Investment Corporation C01413 Industrial Development Bank of Pakistan C01414 National Development Finance Corporation C01415 Bankers Equity C01420 Others
Page 30 of 100 CHART OF ACCOUNTS APPENDIX I (See paragraph 329)
Major Object Minor Object Detailed Object Code Description Code Description Code Description
C015 Interest on Loans and Interest Domestic Loan (C01501 - 15) Advances to Non- Financial Institutions
C01501 WAPDA Water Wing C01502 WAPDA Power Wing C01503 National Fertilizer Corporation of Pakistan C01504 Fauji Fertilizer Corporation C01505 State Cement Corporation of Pakistan C01506 Pakistan Industrial Development Corporation C01507 Pakistan Automobile Corporation C01508 State Engineering Corporation C01509 Federal Chemical and Ceramic Corporation C01510 POF WAH C01511 Pakistan Steel C01512 Pakistan Railway C01513 Pakistan Mineral Development Corporation C01514 National Press Trust C01515 Shaheen Foundation (PAF) C01516 Mechanized Construction Pakistan Limited C01517 Oil and Gas Regulatory Authority Interest Foreign Loan (C01516 - 99) C01516 WAPDA Water Wing C01517 WAPDA Power Wing C01518 National Fertilizer Corporation of Pakistan C01519 Fauji Fertilizer Corporation C01520 State Cement Corporation of Pakistan C01521 Pakistan Industrial Development Corporation C01522 Pakistan Automobile Corporation C01523 State Engineering Corporation
Page 31 of 100 CHART OF ACCOUNTS APPENDIX I (See paragraph 329)
Major Object Minor Object Detailed Object Code Description Code Description Code Description
C01524 Federal Chemical and Ceramic Corporation C01525 POF WAH C01526 Pakistan Steel C01527 Pakistan Railway C01528 Pakistan Mineral Development Corporation C01551 Return C01599 Others C016 Interest on Loans & Interest on Loans & Advances to Government Servants (C01601 - 10) Advances to Government Servants
C01601 House Building Advance C01602 Motor Car Advance C01603 Motor Cycle/Scooter Advance C01604 Cycle Advance C01605 Others C017 Interest on Loan & Interest on Loans & Advances - Others (C01701 -C01710) Advances - Others C01701 Domestic Loans to Azad Kashmir Government C01702 Foreign Loan to Azad Kashmir Government C01703 Interest Regimental Loan C01704 Interest Accrued on Retained Funds on Account of Sale Proceeds of Special US Dollar Bonds by Banks/NBFIs C01705 Taccavi Loan to Cultivators C01706 Land Improvement Act 1883 C01707 Loan to Agricultural Loan Act 1958 Interest Received from Commercial Department (C01730 - C01740) C01730 Interest on Cash Loans C01731 Interest on Foreign Loans C01799 Others
Page 32 of 100 CHART OF ACCOUNTS APPENDIX I (See paragraph 329)
Major Object Minor Object Detailed Object Code Description Code Description Code Description
C018 Interest on Loan - Income on Loans - Others (C01801 - C01850) Others C01801 Interest -Pakistan Post Office Department C01802 Interest on Arrears of Revenue C01803 Interest realized on Investment of Cash Balances C01804 Return WAPDA Power Wing C01805 Interest German Counterpart Fund - WAPDA Power Wing C01806 Interest OPEC Special Loan -WAPDA Power Wing C01807 Interest on Loans and Advances - Others C01808 Penal Interest Recovered from Assesses of the Income Tax under Section 53 of Income Tax Ordinance 1979 C01809 Interest on UN Bonds Issue C01810 Interest on Late Payment of Government Dues C01811 Interest on Sale of Food Grains C01812 Interest on Sale of Fertilizer C01813 Percentage on Servicing of Foreign Loan and Credits C01814 Interest on undistributed Pension Paid by NBP C01815 Interest on Investment of GP Fund C01816 Interest - Pakistan T&T Department C01817 Interest - Taccavi Loans to Zamindars C01818 Taccavi Loans to Zamindars in Gilgit District C01819 Taccavi Loans to Zamindars in Balthistan District C01820 Interest on Debt recovered from Foreign Governments C01821 Interest German Counterpart Fund C01822 Interest - OPEC Special Loans C01823 Gains on Pakistan Investment Bonds C01824 Foreign Currency Bonds (SWAP) C019 Dividends Dividends (C01901 - C01930) C01901 Dividends from Government Investments (Financial Institutions) C01902 Dividends from Government Investments (Non Financial Institutions)
Page 33 of 100 CHART OF ACCOUNTS APPENDIX I (See paragraph 329)
Major Object Minor Object Detailed Object Code Description Code Description Code Description
C01903 Others C02 Receipts from Civil C021 General General Administration Receipts - Organs of State (C02101 - 2104) Administration and Administration Other Functions Receipts - Organs of State
C02101 Organs of State - Examination Fee Realized by Public Service Commission C02102 Organs of State - Receipt realized by Selection Divisional Boards for Recruitment in Secretariat Department C02103 Organs of State - Recoveries of Overpayments C02104 Organs of State - Collection of Payments for Services Rendered Organs of Merged State of Dir, Chitral, Swat (C02105 - 35) C02105 Industries C02106 Provincial Excise C02107 Stamps C02108 Forest C02109 Registration C02110 Motor Vehicle Act C02111 Other Taxes and Duties C02112 Tolls on Road C02113 Administration of Justice C02114 Jail and Convict Settlements C02115 Police C02116 Educational Institutes C02117 Health C02118 Agriculture C02119 Veterinary C02120 Cooperation C02121 Industries C02122 Mines, Oilfield & Minerals
Page 34 of 100 CHART OF ACCOUNTS APPENDIX I (See paragraph 329)
Major Object Minor Object Detailed Object Code Description Code Description Code Description
C02123 Public Works Department C02124 Recoveries of Overpayments C02125 Collection of Payment for Services Rendered C02135 Others C021 General Organs of State - Frontier Regions (C02136 - 65) Administration Receipts - Organs of State C02136 Land Revenue C02137 Provincial Excise C02138 Stamps C02139 Forest C02140 Registration C02141 Motor Vehicle Act C02142 Other Taxes and Duties C02143 Toll Fees on Khyber Road C02144 Administration of Justice C02145 Jail and Convict Settlements C02146 Police C02147 Educational Institutes C02148 Health C02149 Agriculture C02150 Veterinary C02151 Cooperation C02152 Industries C02153 Public Works Department C02154 Taxes on Agricultural Income C02155 Recoveries of Overpayments C02156 Collection of Payment for Service Rendered C02157 Receipts of Chartered Flights
Page 35 of 100 CHART OF ACCOUNTS APPENDIX I (See paragraph 329)
Major Object Minor Object Detailed Object Code Description Code Description Code Description
C02199 Others C022 General Receipts of Fiscal Administration - Audit (C02201 - 10) Administration Receipts - Fiscal Administration C02201 Private Organization C02202 Public Sector Organizations C02203 Government Organizations C02204 Recoveries of Overpayments C02205 Collection of Payment for Services Rendered C02206 Audit Other Receipts of Fiscal Administration - Currency (C02211 - 30) C02211 Share of Surplus Profits of the State Bank of Pakistan C02212 Dividends on Government Shares in State Bank of Pakistan C02213 Dividends on Government Shares in the Security Printing Corporation C02214 Royalty on Quaid-e-Azam Centenary - Gold and Silver Commemorative Coins C02215 Royalty on Allama Iqbal - Gold and Silver Commemorative Coins C02216 Royalty on Islamic Summit Minar Inauguration - Gold and Silver Commemorative Coins
C02217 Royalty on Gold and Silver W.W.F Conservation Coins C02218 Value of Quaid-e-Azam Gold and Silver Commemorative Coins C02219 Value of Allama Iqbal Gold and Silver Commemorative coins C02220 Value of Islamic Summit Minar inauguration Gold and Silver Commemorative Coins
C02221 Value of Gold and Silver W.W.F Conservation Coins C02222 Value of Allama Iqbal Centenary Commemorative Coins C02223 Value of Old Currency Notes Assumed to be no Longer in Circulation C02224 Value of Unclaimed Currency Notes C02225 Fines and Forfeitures under the Foreign Exchange Regulation Act C02226 Currency - Others
Page 36 of 100 CHART OF ACCOUNTS APPENDIX I (See paragraph 329)
Major Object Minor Object Detailed Object Code Description Code Description Code Description
C02227 Penalty Imposed by State Bank of Pakistan on National Bank of Pakistan against unlawful retention of Government Receipts Receipts of Fiscal Administration - Mint (C02231 - 40) C02231 Fee for Mintage of Foreign Coins Act C02232 Profit from Circulation of Small Coins C02233 Assay Fees C02234 Others Receipts in Aid of Superannuation (C02241 - 50) C02241 Contribution of Pension and Gratuities C02242 Receipt under Federal Government (B1& 2) Provident Fund Rules C02243 Others C02244 Fiscal Administration-Receipts-in-Aid of Superannuation -Share of Pension Liability recovered from Local Bodies for Provincialised College / Schools C02245 Fiscal Administration-Receipts-in-Aid of Superannuation -Receipts of undisbursed Pension Deposited by National Bank of Pakistan C02251 Fiscal Administration - Receipts- In- Aid of Superannuation contribution of Pension & Gratuity -Defence C023 General Economic Regulation (C02301 - C02370) Administration Receipts - Economic Regulation
C02301 Fee for Deposits and Registration of Trade Marks C02302 Fee Realized under the Insurance Act, 1938 C02303 Patent Fees C02304 Receipts under the Companies Ordinance, 1984 C02305 Federal Fees for Weights and Measures C02306 Receipt under the Weights and Measures and Trade Employees Act C02307 Receipts under the Securities & Exchange Ordinance, 1969 C02308 Receipts under Anti-Dumping Duties Ordinance, 2000
Page 37 of 100 CHART OF ACCOUNTS APPENDIX I (See paragraph 329)
Major Object Minor Object Detailed Object Code Description Code Description Code Description
C02370 Others C024 General Statistics (C02401 - C02470) Administration Receipts - Statistics C02401 Sale of Census Publication C02470 Others C025 Defence Services Defense Service Effective (C02501 - 20) Receipts C02501 Fighting Forces C02502 Administrative Services C02503 Military Farms C02504 General Headquarters C02505 Purchase & Sale of Stores Equipment and Animals C02506 Transportation, Conservancy, Hot Weather Establishment and Others C02507 Other Services of Armed Forces C02508 Military Engineering Services C02509 Auxiliary and Territorial Forces C02510 Air Force C02511 Pakistan Navy (including Stores and Works) C02512 Ordnance & Clothing Factories C02513 Procurement, Research & Product Development C02514 Receipts on Certain Measures of Inter-Services Nature C02520 Others Defense Service Non-Effective (C02521 - 30) C02521 Army Receipts C02522 Air Force Receipts C02523 Pakistan Navy Receipts C02530 Others C026 Law and Order Justice (C02601 - 20) Receipts
Page 38 of 100 CHART OF ACCOUNTS APPENDIX I (See paragraph 329)
Major Object Minor Object Detailed Object Code Description Code Description Code Description
C02601 Sale Proceeds of Unclaimed and Escheated Property C02602 Court Fees Realized in Cash C02603 General Fees Realized in Cash C02604 General Fees, Fines and Forfeitures C02605 Leadership and Mukhtarship Examination Fees C02606 Receipt of the Supreme Court C02607 Receipt of the Official Assignee C02608 Receipt of the Official Receiver C02609 Receipt of the Official Record room C02610 Recoveries of Overpayments C02611 Collection of the Payments C02612 Collection of the Payments of Services Rendered C02613 Others Frontier Watch and Ward (C02621 - 30) C02621 Frontier Constabulary and Militia Receipts C02622 Receipt in Northern Areas C02623 Federally Administered Tribal Areas C02624 Recoveries of Overpayments C02625 Others Police Department Receipts (C02631 - 45) C02631 Police Supplied to Railway C02632 Police Supplied to Federal Government C02633 Police Supplied to Municipalities, Cantonments C02634 Police Supplied to Public Departments, Private Companies and Persons C02635 Receipts Realised under the Arms Act C02636 Fees, Fines and Forfeitures C02637 Motor Driving License C02638 Traffic Fines C02639 Police Land Receipts C02640 Recoveries of Overpayments
Page 39 of 100 CHART OF ACCOUNTS APPENDIX I (See paragraph 329)
Major Object Minor Object Detailed Object Code Description Code Description Code Description
C02641 Collection of Payments for Services Rendered C02642 Others C02643 Receipts of Provincial Public Safety Commission C02644 Receipts of District Public Safety Commission C02645 Provincial Police Complaint Authority Provincial Border Force (C02646 - 55) C02646 Cash Receipt under Arms Act C02647 Fees, Fines and Forfeitures C02648 Recoveries of Overpayments C02649 Collection of Payments for Services Rendered C02650 Others Jails (C02656 - 65) C02656 Sale Proceeds of Articles Manufactured in Jail C02657 Value of Supplies Made by Factory Department to Maintenance Department in Jail C02658 Income from Hired Convicts C02659 Recoveries of Overpayments C02660 Collection of Payments for Services Rendered C02661 Others Civil Defense (C02666 - 99) C02666 Ordinary Receipts C02667 Reimbursement by Federal Government C02668 Fines Realization C02669 Others C02676 Sale Proceeds of Unclaimed and Escheated Property C02677 Other Receipts C027 Community Services Works - Building (C02701 - 10) Receipts C02701 Building Rent C02702 Receipts from Workshops and Rent of Equipment C02703 Recoveries of Expenditure
Page 40 of 100 CHART OF ACCOUNTS APPENDIX I (See paragraph 329)
Major Object Minor Object Detailed Object Code Description Code Description Code Description
C02704 Recoveries of Overpayments C02705 Collection of Payments for Services Rendered C02706 Others Works - Communications (C02711 - 20) C02711 Building Rent C02712 Tolls on Roads and Bridges C02713 Recoveries of Expenditure C02714 Recoveries of Overpayments C02715 Collection of Payments for Services Rendered C02716 Others C02717 Fee for use of Right of Way (ROW) for laying Cables/Pipelines etc. along the ROW of all Provincial Roads C02718 Taxes on Roads and Bridges C02719 Receipt from Workshops Public Health (C02721 - 30) C02721 Sale Proceeds of Sera and Vaccines C02722 Contributions C02723 Income from Endowments C02724 Recoveries of Overpayments C02725 Collection of Payments for Services Rendered C02726 Others Scientific Research and Survey (C02731 - 40) C02731 Survey of Pakistan C02732 Recoveries of Overpayments C02733 Collection of Payments for Services Rendered C02734 Others C02735 Receipts of Pakistan Technology Board (PTB) C02741 Receipt of Pakistan National Centre C02742 Fire Services C02743 Others-Citizen Community Board
Page 41 of 100 CHART OF ACCOUNTS APPENDIX I (See paragraph 329)
Major Object Minor Object Detailed Object Code Description Code Description Code Description
C02744 Registration Fee of Citizen Community Court C028 Social Services Education (C02801 - 20) C02801 Fees Government University Art Colleges C02802 Fees Government University Professional Art Colleges C02803 Fees Government Secondary (including Intermediate Classes) School C02804 Fees Government Primary School C02805 Fines under Sindh Primary Education Act 1947 C02806 Recoveries from Local Bodies for Primary Education C02807 Fees and Other Receipts, Government Special Schools C02808 Receipt of Technical and Commercial Institutes C02809 Contributions C02810 Education - General Income from Endowments C02811 Education - General Cess Fund C02812 Education - General Hostel Fees C02813 Education - General Admission Fees C02814 Education - General Recoveries of Overpayments C02815 Education - General Collection of Payments for Services rendered C02816 Archaeology C02817 Receipts from Museums C02818 Education - Others C02819 Receipts from Boys Secondary Schools C02820 Receipts from Girls Secondary Schools C02821 Receipts from Boys Primary Schools C02822 Receipts from Girls Primary Schools C02823 Receipts from Archives C02824 Receipts from Libraries Health (C02851 - 99) C02851 Health - Medical Colleges C02852 Health - Dental Colleges C02853 Health Schools
Page 42 of 100 CHART OF ACCOUNTS APPENDIX I (See paragraph 329)
Major Object Minor Object Detailed Object Code Description Code Description Code Description
C02854 Health - Medical Schools C02855 Health - Sale of Outdoor Tickets C02856 Health - Recoveries of Diet Charges C02857 Health - Rooms Rent C02858 Health - Government share of Fees realized by Doctors from Patients C02859 Health - Mental Hospital Receipts C02860 Sale of Medicines and Vaccines C02861 Health Contributions from Local Bodies on account of Salaries of District Medical Officers
C02862 Health Contributions from Local Bodies for the maintenance of Health Centres C02863 Health Contributions by Federal Government for Fatima Jinnah Medical College for Women maintenance of Health Centres C02864 Health Contributions by Federal Government for reservation of beds in T.B. Sanatorium Samli
C02865 Health other Contributions C02866 Health recoveries of Overpayments C02867 Health - Collection of Payments for Services rendered C02868 Health fees for Chemical Examination C02869 Health fees for Medical Examination C02870 Health Fees realized on account of Registration of Private, Clinics, Laboratories, X Ray Clinics
C02871 Health other Receipts C02872 Fees realised on account of Birth and Death Certificates C02873 Fees realised on account of Anti-Rabic Treatment C02874 Income from Endowments C02875 Health - Hospital Receipts C029 Social Services Manpower Management (C02901 - 30) Miscellaneous C02901 Emigration Fees C02902 Fees for Registration of Trade Union under Act, 1926
Page 43 of 100 CHART OF ACCOUNTS APPENDIX I (See paragraph 329)
Major Object Minor Object Detailed Object Code Description Code Description Code Description
C02903 Receipts of the Manpower and Employment Organization C02904 Receipts under the Factories Act, 1940 C02905 Receipts under the West Pakistan Ordinance, 1969 C02906 Registration and other Fees from Pakistanis Working Abroad C02930 Others Housing and Physical Planning (C02931 - 50) C02931 Sale of Plots C02932 Sale of Building C02933 Income from Satellite Town Scheme C02934 Recoveries of Overpayments C02935 Collection of Payments for Services Rendered C02950 Others Social Security and Social Welfare Measures (C02951 - 70) C02951 Receipts under the Wild Birds & Wild Animals Protection Act C02952 Recoveries of Overpayments C02953 Fee for NOC to Wildlife Traders C02954 Penalties under NWFP Consumer Protection Act 1997 C02955 Penalties under Punjab Consumer Protection Act 2005 C02970 Others Refugees Relief Measures (C02971 - 90) C02971 Receipts of Afghan Refugees C03 Miscellaneous C031 Economic Services Food (C03101 - 15) Receipts Receipts - Food & Agriculture C03101 Receipts of the Federal Food Departments C03102 Recoveries of Overpayments C03103 Collection of Payments for Services Rendered C03104 Others Agriculture (C03116 - 50) C03116 Agriculture Receipts
Page 44 of 100 CHART OF ACCOUNTS APPENDIX I (See paragraph 329)
Major Object Minor Object Detailed Object Code Description Code Description Code Description
C03117 Receipts from Experimental Farms C03118 Receipts from Agriculture / Seed Farms C03119 Receipts from District Farms C03120 Receipts from Agriculture/Engineering/Machinery Maintenance Farms C03121 Receipts from Boring Operation C03122 Receipts from Research Operation C03123 Receipts from Plant Protection Operation C03124 Receipts from Soil Conservation and Operation C03125 Receipt of Zoo C03126 Fees Other than Cotton Fee under Cotton Control Ordinance C03127 Agriculture College & School Fees C03128 Grants by the Agricultural Research Council and the Central Cotton Committee C03129 Receipt from Karkhana Alat-e-Zarae C03130 Agricultural Receipts from Government Gardens C03131 Agricultural Receipts from Station Gardens C03132 Agriculture-Receipts of Arrears from Ex-Commission Agents on Account of Sale of Cotton Seeds and Fertilizer C03133 Agriculture Receipts from on Farm Management Project C03134 Agriculture-Recoveries of Overpayments C03135 Collection of Payments for Services Rendered C03136 Agriculture Others C03137 Hire Charges of Tractors/Lower Land Levelling Equipment C03199 Others C032 Economic Services Fisheries (C03201 - 20) Receipts - Fisheries & Animal Husbandry
C03201 Ordinary Receipts C03202 Grants made by the Agriculture Research Council C03203 Recoveries of Overpayments
Page 45 of 100 CHART OF ACCOUNTS APPENDIX I (See paragraph 329)
Major Object Minor Object Detailed Object Code Description Code Description Code Description
C03204 Collection of Payments for Services Rendered C03205 Others Animal Husbandry (C03221 - 50) C03221 Veterinary College and School Fees C03222 Grants Made by the Agriculture Research Council C03223 Receipts from Livestock Farms C03224 Receipts from Broiler Farms C03225 Receipts from Research Institute C03226 Receipts from Transferred Agricultural Farms C03227 Insemination Fees C03228 Receipts from Biological Section C03229 Recoveries of Overpayments C03230 Collection of Payments for Services Rendered C03231 Others C033 Economic Services Forests (C03301 - C03370) Receipts - Forests C03301 Timber and other Produce Removed from the Forest by Government Agencies -Timber
C03302 Timber and other Produce Removed from the Forest by Government Agencies-Firewood and Charcoal C03303 Timber and other Produce removed from the Forest by Government -Brushwood, Chips and Stumps C03304 Timber and other Produce Removed from the Forest by Government-Rosin C03305 Timber and other Produce Removed from the Forest by Government-Planting Stump, Seeds, Mazri, Palm, Grass other than Fodder etc. C03306 Timber and other Produce Removed from the Forest by Government-Sericulture Receipts
C03307 Timber and other Produce Removed from the Forest by Consumer or Purchasers-Timber
Page 46 of 100 CHART OF ACCOUNTS APPENDIX I (See paragraph 329)
Major Object Minor Object Detailed Object Code Description Code Description Code Description
C03308 Timber and other Produce Removed from the Forest by Consumer or Purchasers-Firewood and Charcoal C03309 Timber and other Produce Removed from the Forest by Consumer or Purchasers-Brush wood, Chips and Stumps C03310 Timber and other Produce Removed from the Forest by Consumer or Purchasers-Grazing & Fodder Grass C03311 Timber and other Produce Removed from the Forest by Consumer or Purchasers-Honey, Herbs and Medicinal Plants C03312 Timber and other Produce Removed from the Forest by Consumer or Purchasers-For Plants ,Stumps ,Seeds Mazri, Palm, Grass other than Fodder etc. C03313 Drift and Waif Wood and Confiscated Forest Produce -Driftwood C03314 Drift and Waif Wood and Confiscated Forest Produce -Sale of Confiscated Forest Produce
C03315 Revenue from Forests not Managed by Government C03316 Revenue from Forests not Managed by Government -Duty on Transport of Timber from Forest and Road Developments C03317 Jallo Rosin Factory - Sale of Rosin C03318 Jallo Rosin Factory - Sale of Turpentine C03319 Jallo Rosin Factory - Sale of Stores C03320 Jallo Rosin Factory - Other Factory Receipts C03321 Fines and Forfeitures (except Fines by Court) C03322 Compensation under Forest Act including Fines by Courts C03323 Lease Rent from Temporary Cultivation C03324 Hire Charges of Bulldozers and Other Machinery C03325 Recovery of Water Rates C03326 Rent of Buildings, Shops, Lands and Watermills C03327 Receipts under Wild Birds and Wild Animals Protection Act C03328 Recoveries of Overpayments C03329 Collection of Payments for Services Rendered C03330 Receipts on Account of Tree Cess
Page 47 of 100 CHART OF ACCOUNTS APPENDIX I (See paragraph 329)
Major Object Minor Object Detailed Object Code Description Code Description Code Description
C03370 Other Receipts C034 Economic Services Cooperation (C03401 - 30) Receipts - Cooperation, Irrigation & Embankment - Drainage - Works C03401 Audit fees C03402 Income from Pak-German Demonstration Farm C03403 Recoveries from other Provincial Governments on Account of Training in Cooperative Training Institutes C03404 Recoveries of Overpayments C03405 Collection of Payments for Services Rendered C03406 Other Irrigation Works (C03431 - 60) C03431 Direct Receipts on Account of Water Rates C03432 Direct Receipts on Account of Sale of Water C03433 Recoveries of Expenditures C03434 Others C03435 Tolls on Barrages Embankments and Drainage Works (C03461 - 99) C03461 Direct Receipts on Account of Sale of Water C03462 Direct Receipts on Account of Sale of Hill Torrents C03463 Recoveries of Expenditures C03464 Collection of Payments for Services Rendered C03465 Other C03466 Receipts from Canal Side Plantations of the Forestry Wing of Irrigation and Power Department
C03467 Timber & Other Produce Removed from Canal Side Plantation by Government Agency
Page 48 of 100 CHART OF ACCOUNTS APPENDIX I (See paragraph 329)
Major Object Minor Object Detailed Object Code Description Code Description Code Description
C03468 Timber Removed by Government Agency C03469 Fire Wood & Charcoal Removed by Government Agency C03470 Brushwood, Chips & Stumps Removed by Government C03471 Planting Stumps, Seed, Mazri etc. Removed by Government Agency C03472 Timber & Other Produce Removed from Canal Side Plantation by Consumers & Purchasers
C03473 Timber Removed by Consumers & Purchasers C03474 Fire Wood Removed by Consumers & Purchasers C03476 Grazing & Fodder Grass Removed by Consumers & Purchasers C03477 Others Minor Produce Removed by Consumers & Purchasers C03478 Others - Canal Side Plantations of Forestry Wing C03479 Fine & Forfeiture (Except Fines by Courts) C03480 Compensation under Forest Act including Fines Credited by Courts C03481 Other Miscellaneous Revenue C03482 Brushwood ,Chips & Stumps Removed by Consumers & Purchasers C035 Economic Services Fuel and Power (C03501 - 5) Receipts - Others C03501 Fees for Petroleum Products C03502 Recoveries of Overpayments C03503 Others C03504 Commitment Fee for Gas Allocation Industrial and Mineral Resources (C03506 - 10) C03506 Industrial Safety - Explosives Department C03507 Receipts under Excise Duty on Minerals (Labour Welfare) Act 1967 C03508 Others C03509 Unspent Amounts Received from Oil & Gas Companies Needs for Social Welfare Programmes Printing (C03511 - 25) C03511 Sale of Gazette C03512 Sale of other Government Publications
Page 49 of 100 CHART OF ACCOUNTS APPENDIX I (See paragraph 329)
Major Object Minor Object Detailed Object Code Description Code Description Code Description
C03513 Pakistan Law Reports C03514 Civil List and Other Publications C03515 Sale of Forms and Registers C03516 Sale of Service Books C03517 Sale of Forms and Registers to Union Councils C03518 Sale of Other Forms C03519 Press Receipts C03520 Printing Charges for Work Done for Provincial Government Departments C03521 Recoveries of Overpayments C03522 Collection of Payments for Services Rendered C03523 Others Stationery (C03526 - 30) C03526 Stationery Receipts C03527 Sale of Stationery to Local Bodies etc. C03528 Sale of Stationery to Provincial Government Departments C03529 Sale of Plain Paper Used with Stamps C03530 Other Stationery Receipts Investment Promotion and Supplies (C03531 - 40) C03531 Fees on Account of Purchase of Stores C03532 Fees on Account of Inspection of Stores Purchased through the Department of Investment, Promotion and Supply C03533 Fees on Account of Inspection of Stores not Purchased through the Department of Investment, Promotion and Supply C03534 Receipts of Textile Commissioner C03535 Receipts of Coal Commissioner C03536 Receipts of Central Testing and Standard Laboratories C03537 Receipts of the Pakistan Standard Institutes C03538 Recoveries of Overpayments C03539 Collection of Payments for Services Rendered C03540 Others
Page 50 of 100 CHART OF ACCOUNTS APPENDIX I (See paragraph 329)
Major Object Minor Object Detailed Object Code Description Code Description Code Description
Industries (C03541 - 50) C03541 Industries Receipts C03542 Cottage Industries C03543 Stores purchases C03544 Fees of Inspection of Boilers C03545 Fees under Partnership Act 1932 C03546 Recoveries of Overpayments C03547 Collection of Payments for Services Rendered C03548 Metal Research and Development Centre C03549 Others C03550 Technical Education C0350A Technical Education and Vocational Training Authority (TEVTA) C0350B Penalties under Compensatory Support Order-2008 Transport and Communication (C03551 - 55) C03551 Aviation Receipts C03552 Aviation - Recoveries of Overpayments C03553 Others C03554 Fork Lifter Fee C03555 Car Parking Fee Ports and Pilotage (C03556 - 70) C03556 Receipts from Management and Upkeep of Ports and Rivers Dues C03557 Receipts from Management and Upkeep of Ports & Pilotage-Pilotage Receipts C03558 C03559 Receipts from Management and upkeep of Ports of Landing Charges and Mooring Hire
C03560 Survey Fees C03561 Fees for the Engagement and Discharges - Siemens C03562 Fees for the Registration of Vessels C03563 Sale Proceeds of Vessels and Stores C03564 Freight, Passage and Tonnage
Page 51 of 100 CHART OF ACCOUNTS APPENDIX I (See paragraph 329)
Major Object Minor Object Detailed Object Code Description Code Description Code Description
C03565 Registration and Other Fees C03566 Recoveries of Overpayments C03567 Others C03568 Purchase of Multidisciplinary Package Forms Lighthouses and Lightships (C03571 - 80) C03571 Light Dues C03572 Contributions C03573 Recoveries of Overpayments C03574 Others C03575 National Transport Research Centre - Consultancy Services C03576 Special Communication Organization - Receipt (blocked) C03577 Special Communication Organization - Other (blocked) C03578 Special Communication Organization - Deduct Share (blocked) Pakistan Post Office Department (C03581 - 90) C03581 Post Office Receipts C03582 Others C03583 Special Communication Organization - Receipt C03584 Special Communication Organization - Other C03585 Special Communication Organization - Deduct Share Payable to PTC C03586 Commission on Money Transfer C03587 Receipts from other Postal Administration C03588 Agency Receipts Railways (C03591 - 99) C03591 Railway Revenues Receipts C03592 Other Receipts C036 Grants Grants (C03601 - C03609) C03601 Foreign Grants - Development Grants from Foreign Governments C03602 Foreign Grants - Non-Development Grants from Foreign Governments C03603 Other Grants from Federal Government - Development Grants from Federal Government
Page 52 of 100 CHART OF ACCOUNTS APPENDIX I (See paragraph 329)
Major Object Minor Object Detailed Object Code Description Code Description Code Description
C03604 Other Grants from Federal Government - Non Development Grants from Federal Government C03605 European Union Grant C03608 Others - Foreign Grants C03609 Others - Domestic Grants Grants from Provinces in District Government Account (C03610 - 30) C03610 Share out of Principal Allocable Amount C03611 Special Grants from Provinces (unconditional) C03612 Special Grants from Provinces (conditional) C03613 Grants for Khushal Pakistan Program (KPP) C03614 Grants for Population Welfare C03615 Grants for Other Federal Funded Projects C03630 Others Foreign Aided Project Grants (C03631-40) C03631 DERA Programme C03632 HIV/AIDS Prevention Program C03633 Grants for Global Alliance C03634 Foreign Aided Project C03640 Other Foreign Aid Grants To TMAs C03681 Grant from Federal Government C03682 Grant from Federal Government in Lieu of Octroi/ GST C03683 Grant from Provincial Government (PFC Share) C03684 Grant from Provincial Government (Performance/ Conditional Grant) C03685 Grant from Provincial Government (Unconditional Grant) C03686 Grant from District Government C037 Extraordinary Receipts Extra Ordinary Receipts (C036701 - C03710) C03701 Sale of Land C03702 Sale of Land - Town Sites and Colonies
Page 53 of 100 CHART OF ACCOUNTS APPENDIX I (See paragraph 329)
Major Object Minor Object Detailed Object Code Description Code Description Code Description
C03703 Sale of Land - Sale of under-developed Agricultural Land by Auction or Private Treaty in Colonies C03704 Sale of Land - Sale of under-developed Agricultural Land by Auction or Private Treaty in other than Colonies C03705 Sale of Land - Sale of Proprietary Rights to Tenants in Colonies C03706 Sale of Other Government Assets C03707 Other Receipts - Fees, Fines and Forfeitures C03708 Sale of State Owned Assets C03709 Sale of Land by PPB / RPC C03710 Sale of Government Assets by PPB / RPC Sale of Agricultural Machinery (C03711 - 20) C03711 Sale of Tractor C03712 Sale of Threshers C03713 Sale of Machinery & Equipments C03720 Others Other Receipts (C03721 - 50) C03721 Sale Proceeds and Rent of Urban Evacuee Property and Rent of Mortgage Money of Agricultural Lands C03722 Interest on Deferred payments of Land Sold in Colonies C03723 Receipts from Sale of Plots in Industrial Estate C03724 Receipts of Bonus Shares from Lever Brothers Pakistan C03725 Others C03726 Sale of Mass Produced Roti C03741 Trading Receipts C03742 Receipts of Enercon C03743 Fee Collected by Staff Welfare Organizations C03744 Fee Collected by Pakistan National Accredition Council C03745 Receipts from Special Commercial Organizations C03746 Receipts from PAKSAT Project C038 Others Other Receipts (Not Elsewhere Stated) (C03801 - C03899)
Page 54 of 100 CHART OF ACCOUNTS APPENDIX I (See paragraph 329)
Major Object Minor Object Detailed Object Code Description Code Description Code Description
C03801 Unclaimed Deposits C03802 Sale of Stores and Materials C03803 Sale of Land & Houses etc. C03804 Contributions C03805 Rent, Rates and Taxes C03806 Citizenship, Nationalization, Passport and Copyright Fees C03807 Realizations under the Monopolies & Restrictive Trade Practices Ordinances C03808 Receipts under the Mines - Oilfields and Mineral Development Act C03809 Receipts from levy of Excise Duty imposed under Section 30-A of the Mines Act C03810 Departmental Receipts form Fertilizers C03811 Sugarcane Development Cess C03812 Other Receipts - Gains by Exchange on Remittance Abroad C03813 Other Receipts - Fees realized under the Import & Export Act 1950 C03814 Other Receipts - Sale proceeds of Export Guides C03815 Other Receipts - Collection charges of Sugarcane Development Cess C03816 Other Receipts - Sale of Publicity Material and rent of Documentaries and Films C03817 Receipts of Federal Haj Organization C03818 Fees for Registration of Societies under the Registration Act C03819 Sale Proceeds of Refugee Adhesive Stamps C03820 Sale Proceeds of Highway Safety Codes C03821 Receipts of Tourist Department C03822 Receipts from Zoological Gardens C03823 Recoveries from Federal Government on account of Compulsory Film Screening Scheme
C03824 Recoveries of Overpayments C03825 Collection of Payments for Services Rendered C03826 Subsidy Payments by I.M.F under Supplementary Financing Facility C03827 Remuneration Paid by I.M.F C03828 Leather Export Cess C03829 Other Receipts Fees, Fines and Forfeitures
Page 55 of 100 CHART OF ACCOUNTS APPENDIX I (See paragraph 329)
Major Object Minor Object Detailed Object Code Description Code Description Code Description
C03830 Fees for the issue of duplicate Identity Cards under the National Registration Act 1973
C03831 Fees and Subscription by Petition Writers and Traders in Katchery Compounds C03832 License Fees for Storage or Sale of Petroleum C03833 Fees under the Poisons Act C03834 Fees under the West Pakistan Ordinance 1960 C03835 Arms License Fees C03836 Under the Cattle Trespass Act 1939 C03837 Fees for all Allotment of Land and Gardens to Refugees C03838 Fees for the Screening of the Films (in the Punjab) C03839 Settlement Fees C03840 Fees for transfer and Issue of Duplicate Saving & Deposits Certificates, Pass Books and Withdrawal Slips C03841 Fees, Fines not Specified elsewhere C03842 Treasure Trove Act 1878 C03843 Sale Proceeds of Durbar and Other Presents C03844 Copying Agency Accounts C03845 Ferry Receipts under the Ferries Act of 1978 C03846 Receipts from the Deposit Account of the Chief Settlement Commissioner C03847 Sand and Quarry Fees C03848 Receipts from the Tolls C03849 Contractor Penalty C03850 Miscellaneous Recoveries made by NAB from defaulters C03851 Differential Amount between Exchange Rates Prevailing on the Date of Realization and Due Date of Export Bills C03852 Royalty, Pollution and Trekking Fee C03853 Sale of Publication of PPARC C03854 Certificate Fee of Environment Laboratories C03855 Initial Environmental Examination and Environmental Impact Assessment Review Fee
Page 56 of 100 CHART OF ACCOUNTS APPENDIX I (See paragraph 329)
Major Object Minor Object Detailed Object Code Description Code Description Code Description
C03856 Fee for Vehicles of Foreign Dignatories Visiting Afghanistan C03857 Registration Fee for Private Security Companies C03858 Fees on Transfer of Special US Dollar Bonds C03859 Collection of Registration/Work Permit Fee C03860 Fines Collected by National Highway & Motorway Police C03861 Transfer of Savings of Pakistan Banking and Finance Services Commission C03862 District Government - Receipts from Local Fund C03863 Recoveries Made by Ministry of Environment - Local Govt & Rural Development from Defaulters NGOs C03864 Staging Bungalow Fee C03865 Surcharges C03866 Fee for Issuance of Licences to Private Security Companies C03867 Fee for Renewal of Licences of Private Security Companies C03870 Others C03871 Hajj Arrangement - Recoveries of Electic and Similar Changes from Allotees of Government Buildings in the Hajj Camp C03872 Other Receipts - Recoveries of Claims Under the Ehtasab Act 1997 C03873 Fine Levied under Ordinance upon Printing Presses, Newspapers and News Agencies for Defaulting C03874 Receipts from Sports and Recreation Facilities C03875 5% Collection Charges on Federal Tax C03876 Fee Imposed under Dramatic Performance Act 1876 C03877 Fee for Issuance Renewal of Licences for illicit use of Medicinal Opeum Powder C03878 Fee for Grant / Renewal of Licences for Registration / Fines of Internet Cafes C03879 Recoveries Made by Anti-Corruption Establishment Punjab C03880 TMA Other Non-tax Revenues C03881 Fines and Penalties Imposed by Textile Commissioner C03882 Deposit of Fee, under Power Generation Policy, 2006 C03883 Production Bonus deposited by Exploration and Production Companies working under Ministry of Petroleum
Page 57 of 100 CHART OF ACCOUNTS APPENDIX I (See paragraph 329)
Major Object Minor Object Detailed Object Code Description Code Description Code Description
C03884 Marine Fee deposited by Exploration and Production Companies working under Ministry of Petroleum C03885 Fee payable for obtaining information and copies of public record. C03886 Fee for Issuance of NOC and Registration /Renewal Certificate for Publications C03887 Fines on Hoarding and High Price sale C039 Development C03901 Petroleum Development Levy Surcharge & Royalties
C03902 Development Surcharge on Gas C03903 Net Proceeds from Development Surcharge on Petroleum assigned to Provinces C03904 Net Proceeds from Development Surcharge on Gas assigned to Provinces C03905 Royalty on Crude Oil C03906 Royalty on Natural Gas C03907 Net Proceeds of Royalty on Crude Oil assigned to Provinces C03908 Net Proceeds of Royalty on Natural Gas assigned to Provinces C03909 Mineral Royalties C03910 Discount Retained on Local Crude Price C03911 Mineral Royalties from Sandak C03912 Mineral Royalties from Chamalang C03912 Mineral Royalties from Reko Diq C03914 Mineral Royalties from Duddar C03915 Salsabil Condensate
Capital Receipts E01 Recoveries of E011 Irrigation Receipts Irrigation (Productive) Receipts (E01101 - 25) Investments E01101 Water Rates E01102 Water Supply to Towns E01103 Sale of Water E01104 Plantations
Page 58 of 100 CHART OF ACCOUNTS APPENDIX I (See paragraph 329)
Major Object Minor Object Detailed Object Code Description Code Description Code Description
E01105 Other Canal produce E01106 Water Power E01107 Rents E01108 Fines E01109 Receipts from Workshops E01110 Recoveries of Expenditure E01111 Others Irrigation (Unproductive) Receipts (E01126 - 50) E01126 Water Rates E01127 Water Supply to Towns E01128 Sale of Water E01129 Plantations E01130 Other Canal produce E01131 Water Power E01132 Rents E01133 Fines E01134 Receipts from Workshops E01135 Recoveries of Expenditure E01136 Others E012 State Trading Schemes Wheat (E01201 - 10) Receipts E01201 Federal E01202 Provincial E01203 Others E01204 Recoveries of Incidentals on Supply of Wheat to Federal Government Medical Stores (E01211 - 20) E01211 Federal E01212 Provincial E01213 Others Fertilizer (E01221 - 40)
Page 59 of 100 CHART OF ACCOUNTS APPENDIX I (See paragraph 329)
Major Object Minor Object Detailed Object Code Description Code Description Code Description
E01221 Federal E01222 Provincial E01223 Others Coal (E01241 - 50) E01241 Federal E01242 Provincial E01243 Others Others (E01271 - 90) E01271 Sale Proceeds of Newsprint E01272 Newsprint Receipts - Other E01273 Sale Proceeds of Diplomatic Cars E01274 Other Diplomatic Cars Receipts E01275 Other State Trading Schemes Receipts E013 Investment Receipts Investment (E01301 - E01310) E01301 Federal/Provincial Investment (financial) E01302 Federal/Provincial Investment (non-financial) E01303 Federal Government Investment in Railway through Cash releases (non-financial) E01304 Receipt from Investment of Cash Balance by District Government E014 Works Receipts Works Receipts (E01401 - E01410) E01401 Receipts and Recoveries of Investments E015 Privatization Receipts Privatization Receipts (E01501 - E01510) E01501 Proceeds from Major Units E01502 Proceeds from Minor Units E016 Computed Value of Computed Value of Pension - Receipt (E01601 - E01610) Pension Receipts E01601 Recoveries of Computed Value of Pensions E02 Recoveries of Loans E021 From Provinces Domestic Loans (E02101 - 04) and Advances
E02101 Sindh
Page 60 of 100 CHART OF ACCOUNTS APPENDIX I (See paragraph 329)
Major Object Minor Object Detailed Object Code Description Code Description Code Description
E02102 Punjab E02103 Baluchistan E02104 Khyber Pukhtoonkhawa Foreign Loans (E02105 - 08) E02105 Sindh E02106 Punjab E02107 Balochistan E02108 Khyber Pukhtoonkhawa US - Aid Local Currency Loans (E02109 - 12) E02109 Sindh E02110 Punjab E02111 Balochistan E02112 Khyber Pukhtoonkhawa German Loans (E02113 - 16) E02113 Sindh E02114 Punjab E02115 Balochistan E02116 Khyber Pukhtoonkhawa E022 From District Domestic Loans (E02201 -E02202) Government/TMAs E02201 District Governments E02202 TMAs Foreign Loans (E02203 - 99) E02203 District Governments E02204 TMAs E023 From Financial Financial Institutions (E02301 - 20) Institution E02301 Domestic Loans E02302 Foreign Loans E02320 Others
Page 61 of 100 CHART OF ACCOUNTS APPENDIX I (See paragraph 329)
Major Object Minor Object Detailed Object Code Description Code Description Code Description
E024 From Non Financial Non Financial Institutions (E02401 - 20) Institution E02401 Domestic Loans E02402 Foreign Loans E02403 Interest German Counterpart Fund - WAPDA Power Wing E02404 Interest OPEC Special Loan - WAPDA Power Wing E02420 Others E025 From Government Government Servants (E02501 -50) Servants E02501 House Building Advance E02502 Motor Car Advance E02503 Motorcycle/Scooter Advance E02504 Cycle Advance E02520 Others E026 From Private Sector Private Sector (E02601 -20) E02601 Taccavi Loans to Zamindars E02602 To Cultivators E02620 Others E027 From Others Others (E02701 - 20) E02701 Domestic Loans E02702 Foreign Loans E02703 Regimental Loans E02704 Canteen Stores Loans E02705 Repayment Loans by Other Countries E03 Debt E031 Permanent Debt Domestic Permanent Debt (E03101 - 20) (Domestic) E03101 Permanent Debt - Direct E03102 Permanent Debt - received from Federal Government E03103 Domestic Debt (Permanent) - received from the Federal Government - SAP E03104 Federal Investment Bonds
Page 62 of 100 CHART OF ACCOUNTS APPENDIX I (See paragraph 329)
Major Object Minor Object Detailed Object Code Description Code Description Code Description
E03105 Pakistan Investment Bonds E03106 Foreign Currency Bearer Certificates E03107 Special US Dollar Bonds E03108 Received from Provincial Government E03109 Sukuk E03120 Others E032 Floating Debt Floating Debt (E03201 - E03270) E03201 Treasury Bills E03202 Cash Credit Accommodation E03203 Ways and Means Advances E03204 Received from Provincial Government E03205 Government Commercial Papers E03270 Others E033 Permanent Debt Foreign Permanent Debt (E03301 - 20) (Foreign) E03301 Permanent Debt (Foreign) - Direct E03302 Permanent Debt (Foreign) - received from Federal Government E03303 Foreign Debt (permanent) - Drought Emergency Relief Assistance E03304 PIFRA E03305 Foreign Debt (permanent) received from the Federal Government - SAP E03306 Foreign Debt (permanent) - Drought Emergency Relief Assistance (DERA) E03307 Euro Bonds E03308 Foreign Debt (Permanent) for Earthquake Reconstruction and Rehabilitation E03309 Foreign Debt (Permanent) - IMF Budget Financing
F01 Cash and Bank F011 Balance with SBP F01101 Non Food Account Balances F01102 Food Account F01103 Railways Account
Page 63 of 100 CHART OF ACCOUNTS APPENDIX I (See paragraph 329)
Major Object Minor Object Detailed Object Code Description Code Description Code Description
F01104 District Account F01105 Pakistan Railways Special Account F01106 Government Deposit Account No.XII (Escrow Account) F01107 National Debt Retirement Account F01108 Fertiliser Account F01109 TMAs Account F01110 Receipt Clearing Account (Food Account) SBP F01111 Receipt Clearing Account (Fertilizer Account) SBP F01112 Receipt Clearing Account (Government Deposit Account) SBP F01113 Receipt Clearing Account (National Debt Retirement Account) SBP F01114 Receipt Clearing Account (Non Food Account) SBP F01115 Receipt Clearing Account ( TMAs Account) SBP F01116 Receipt Clearing Account (Railways Account) SBP F01117 Receipt Clearing Account (District Account) SBP F01118 Receipt Clearing Account SBP F01119 National Bank Deposits Special Imprest 2 Other Account Other Account (E01201 - 20) F01201 Held in Special Deposit Account under American Aid Programme F01202 Deposits under other Commodity Loan F01203 U.S. Disbursing Officer Account F01204 State Bank Deposits - Food Account F01205 State Bank Deposits - Non Food Account Blocked F01206 State Bank Deposits - District Governments F01207 State Bank Deposits - Railways F013 Adhoc Treasury Bills Adhoc Treasury Bill Created (F01301 - 20) Created F01301 For Replenishment of Cash Balances F01302 Special Adhoc Treasury Bills Created for Loan to former East Pakistan Government F01303 Pakistan Railways F01304 IMF Account
Page 64 of 100 CHART OF ACCOUNTS APPENDIX I (See paragraph 329)
Major Object Minor Object Detailed Object Code Description Code Description Code Description
F014 Cash Balances Cash Balances (F01401 - 20) F01401 Cash Balances with Treasuries F01402 Remittances in Transit F01403 Petty Cash F01404 Cash Balances - Investment F01405 Cash at State Bank (District Governments) F01406 Cash at Other Bank (Local Governments ) F015 Civil Departmental Civil Balances - Departmental (F01501 - 30) Balances F01501 Civil F01502 Public Works F01503 Forest F01504 Mint F01505 Customs F01506 Pakistan Missions Abroad F01507 National Savings F01508 Pakistan Post Office F01509 Defence F01510 Railways F01511 Foreign Affairs F01512 Pakistan PWD F01513 Food Wing F01514 GSP (Geological Survey of Pakistan) F01515 Others F016 Balance with NBP Balances with NBP (F01601 - 20) F01601 Food Account F01602 Non Food Account F01603 Receipt Clearing Account (Food Account) NBP F01604 Receipt Clearing Account (Non Food Account) NBP F02 Receivables F021 Loans and Advances Loans and Advances (F02101 - 70)
Page 65 of 100 CHART OF ACCOUNTS APPENDIX I (See paragraph 329)
Major Object Minor Object Detailed Object Code Description Code Description Code Description
F02101 Permanent Advances (Civil) F02102 Permanent Advances (Defence) F02103 Account of Pakistan Post Office F02104 Account of Railways F02105 Account with Government of Sindh F02106 Account with Government of Punjab F02107 Account with Government of Balochistan F02108 Account with Government of Khyber Pukhtoonkhawa F02109 Account of Other Departments F02110 Accounts of Other Entities F02111 Account with Financial Institutes F02112 Account with Non Financial Institutes F02113 Account with Government Servants F02114 Account with District Governments F02115 Account with TMAs F02116 Account with Private Sector F02117 Account with Foreign Governments F02118 Account with SBP Blocked F02119 OB Advances (Civil) F02120 Advances Recoverable (Defence) F02121 Special Advances F02122 Civil Advances for Purchase of Prize Bonds F02123 Payment for Fertilizer on behalf of PADSC, ADA F02124 Permanent Advances (Pakistan Post office) F02125 Permanent Advances (Railways) Blocked F02126 Permanent Advances (Pakistan PWD) F02127 Permanent Advances (Foreign Affairs) F02128 Permanent Advances (Food Wing) F02129 Permanent Advances (National Savings) F02130 Permanent Advances (Mint) Blocked
Page 66 of 100 CHART OF ACCOUNTS APPENDIX I (See paragraph 329)
Major Object Minor Object Detailed Object Code Description Code Description Code Description
F02131 Permanent Advances (Forest) F02132 Permanent Advances (GSP) F02133 OB Advances (Railways) F02134 OB Advances (Pakistan PWD) F02135 OB Advances (Foreign Affairs) F02136 OB Advances (Food Wing) F02137 OB Advances (National Savings) Blocked F02138 OB Advances (Mint) Blocked F02139 OB Advances (Forest) F02140 OB advances (GSP) F02141 Provident Fund Advance to Government Servants (BPS -1&2) Blocked F02142 Forest Advances Blocked F02143 Permanent Advances (Railways) F02144 Permanent Advances (Mint) F02145 OB Advances (National Savings) F02146 OB Advances (Mint) F02147 Provident Fund Advance to Government Servants (BPS -1&2) F02148 Forest Advances F02149 Recovery of Loan Paid out of Benevolent Fund F02150 Advances to Punjab (Sindh Agriculture Development) Suppliers Corporation F02151 O.B. Advances (Pakistan Post) F02152 Advances to Others by Railways F02153 Interest accrued on Advances to Government Servants F022 Other Receivables Other Receivables (F02201 - F02250) F02201 Government of Straits Settlement, Singapore F02202 Government of Mauritius F02203 Her Majesty's Colonial Government, Hong Kong F02204 Government of Federated Malaya States F02205 Government of Srawak F02206 Her Majesty's Protectorate Government
Page 67 of 100 CHART OF ACCOUNTS APPENDIX I (See paragraph 329)
Major Object Minor Object Detailed Object Code Description Code Description Code Description
F02207 Account with Government of India (Civil) F02208 Account with Government of India (Defence) F02209 Account with Government of India (Bank Account Holder) F02210 Payments made to Indian Pensioners upto 1960 F02211 Payments made to Indian Pensioners after 1961 F02212 Payments to Refugee Government Servants from India F02213 Account with Government of Burma F02214 East Pakistan Suspense (Civil) F02215 East Pakistan Suspense (Defence) F02216 Account with the Bank-i-Milli Iran (Railways) F02217 East Pakistan Suspense (Post Office) F02218 East Pakistan Suspense (Railways) F02219 Account with the Government of India (Pakistan Post Office) Blocked F02220 Account with the Government of India (Pakistan Post Office) F02221 Account with Government of India (Railways) F02222 Federal Government Suspense (Railways) F02223 Interest Accrued on Funds F023 Accrued Earnings F02301 Accrued Earnings of Pakistan Railways F02302 Provision against Accrued Earnings of Pakistan Railways F03 Physical Assets F031 Cost of Assets Cost of Assets (F03101 - 50) F03101 Land and Buildings F03102 Vehicles F03103 Plant & Machinery F03104 Furniture & Fittings F03105 Livestock F03106 Roads, Highways and Bridges F03107 Office / Computer Equipment F03108 IT Equipments F03109 Railways Land F03110 Railways Buildings
Page 68 of 100 CHART OF ACCOUNTS APPENDIX I (See paragraph 329)
Major Object Minor Object Detailed Object Code Description Code Description Code Description
F03111 Railways Rolling Stock F03112 Railways Track work and Infrastructure F03113 Signalling System F03114 Work in Progress F032 Reserve for Depreciation Reserve for Depreciation (F03201 - 50) F03201 Land and Buildings F03202 Vehicles F03203 Plant and Equipment F03204 Furniture & Fittings F03205 Livestock F03206 F03207 Office / Computer Equipment F03208 IT Equipments F03209 Railways Buildings F03210 Railways Rolling Stock F03211 Railways Track work and Infrastructure F03212 Signalling System F03221 Provision against Inventories Obsolescence / Slow Moving F03222 Provision against Impairment of Property, Plant and Equipment F033 Inventories F03301 Stores, Spares and Loose Tools F03302 Stores in Transit F03303 Fuel Stock F03304 Fuel Stock in Transit F03305 Raw Materials F03306 Work in Process - Workshops F03307 Work in Process - Concrete Sleepers Factories (CSF) F03308 Work in Process - Others F03309 Finished Goods F04 Investments F041 Investments Investments (F04101 - 10) F04101 Deposits and Reserves
Page 69 of 100 CHART OF ACCOUNTS APPENDIX I (See paragraph 329)
Major Object Minor Object Detailed Object Code Description Code Description Code Description
F04102 Investments Deposit Accounts F04103 Investments by Railways F05 Other Assets F051 Other Assets Other Assets (F05101 - 20) F05101 Other Current Assets F05102 Down Payments F05103 Account with State Bank of Pakistan F05104 Transactions on Behalf of State Bank of Pakistan F05105 Other Deposits F05106 Inventories/ Consumable Tools and Spare Parts F05107 Prepaid Expenses F05108 Security Deposits - Utilities F05109 Deferred Assets F052 Control Account Control Account (F05201 - 20) F05201 Adjusting Account - Blocked F05202 Adjusting Account between Federal & Provincial Government - Blocked F05203 Inter Provincial Settlement Account - Blocked F05204 Miscellaneous Government Account - Blocked F05205 State Bank Suspense - Blocked F05206 District Accounts Office Suspense - Blocked F05207 Letter of Credit Suspense - Blocked F05208 Foreign Aid / Loan Suspense Account - Blocked F05209 Adjusting Account between Federal and District Government - Blocked F05210 Adjusting Account between Provincial and District Government - Blocked F05299 Suspense Account for Upload F053 Intangibles Assets F05301 Computer Softwares F05302 Patents F05303 Copyrights F05304 License F05310 Others
Page 70 of 100 CHART OF ACCOUNTS APPENDIX I (See paragraph 329)
Major Object Minor Object Detailed Object Code Description Code Description Code Description
G01 Current Liabilities G011 Cheque Clearing Cheque Clearing Account (G01101 - 99) Account G01101 Non Food Account G01102 Food Account G01103 Railways Account G01104 Fertiliser Account G01105 Government Deposit Account No.XII (Escrow Account) G01106 Social Action Programme G01112 Cheque Payment Clearing Account (Food Account) SBP G01113 Transfer Payment Clearing Account (Food Account) SBP G01114 Receipt Clearing Account (Food Account) SBP - Blocked G01115 Bank Charges Clearing Account (Food Account) SBP G01116 Bank Interest Clearing Account (Food Account) SBP G01117 Cheque Payment Clearing Account (Fertiliser Account) SBP G01118 Transfer Payment Clearing Account (Fertiliser Account) SBP G01119 Receipt Clearing Account (Fertiliser Account) SBP - Blocked G01120 Bank Charges Clearing Account (Fertiliser Account) SBP G01121 Bank Interest Clearing Account (Fertiliser Account) SBP G01122 Cheque Payment Clearing Account (Government Deposit Account) SBP G01123 Training Payment Clearing Account (Government Deposit Account) SBP G01124 Receipt Clearing Account (Government Deposit Account) SBP -Blocked G01125 Bank Charges Clearing Account (Government Deposit Account) SBP G01126 Bank Interest Clearing Account (Government Deposit Account) SBP G01127 Cheque Payment Clearing Account (National Debt Retirement Account) SBP G01128 Training Payment Clearing Account (National Debt Retirement Account) SBP G01129 Receipt Clearing Account (National Debt Retirement Account) SBP - Blocked G01130 Bank Charges Clearing Account (National Debt Retirement Account) SBP G01131 Bank Interest Clearing Account (National Debt Retirement Account) SBP G01132 Cheque Payment Clearing Account (Non Food Account) SBP
Page 71 of 100 CHART OF ACCOUNTS APPENDIX I (See paragraph 329)
Major Object Minor Object Detailed Object Code Description Code Description Code Description
G01133 Training Payment Clearing Account (Non Food Account) SBP G01134 Receipt Clearing Account (Non Food Account) SBP - Blocked G01135 Bank Charges Clearing Account (Non Food Account) SBP G01136 Bank Interest Clearing Account (Non Food Account) SBP G01137 Cheque Pay Clearing Account (TMAs Account) SBP G01138 Training Pay Clearing Account (TMAs Account) SBP G01139 Receipt Clearing Account (TMAs Account) SBP - Blocked G01140 Bank Charges Clearing Account (TMAs Account) SBP G01141 Bank Interest Clearing Account (TMAs Account) SBP G01142 Cheque Payment Clearing Account (Food Account) NBP G01143 Training Payment Clearing Account (Food Account) NBP G01144 Receipt Clearing Account (Food Account) NBP - Blocked G01145 Bank Charges Clearing Account (Food Account) NBP G01146 Bank Interest Clearing Account (Food Account) NBP G01147 Cheque Payment Clearing Account (Non Food Account) NBP G01148 Training Payment Clearing Account (Non Food Account) NBP G01149 Receipt Clearing Account (Non Food Account) NBP - Blocked G01150 Bank Charges Clearing Account (Non Food Account) NBP G01151 Bank Interest Clearing Account (Non Food Account) NBP G01152 Payment Suspense Account (Food Account) SBP G01153 Receipt Suspense Account (Food Account) SBP G01154 Payment Suspense Account (Fertiliser Account) SBP G01155 Receipt Suspense (Fertiliser Account) SBP G01156 Payment Suspense Account (Government Deposit Account) SBP G01157 Receipt Suspense (Government Deposit Account) SBP G01158 Payment Suspense Account (National Debt Retirement Account) SBP G01159 Receipt Suspense (National Debt Retirement Account) SBP G01160 Payment Suspense Account (Non Food Account) SBP G01161 Receipt Suspense Account (Non Food Account) SBP G01162 Payment Suspense Account (TMAs Account) SBP
Page 72 of 100 CHART OF ACCOUNTS APPENDIX I (See paragraph 329)
Major Object Minor Object Detailed Object Code Description Code Description Code Description
G01163 Receipt Suspense (TMAs Account) SBP G01164 Payment Suspense Account (Food Account) NBP G01165 Receipt Suspense Account (Food Account) NBP G01166 Payment Suspense Account (Non Food Account) NBP G01167 Receipt Suspense (Non Food Account) NBP G01168 Cheque Payment Clearing Account (Railways Account) SBP G01169 Training Payment Clearing Account (Railways Account) SBP G01170 Receipt Clearing Account (Railways Account) SBP - Blocked G01171 Bank Charges Clearing Account (Railways Account) SBP G01172 Bank Interest Clearing Account (Railways Account) SBP G01173 Payment Suspense Account (Railways Account) SBP G01174 Receipt Suspense (Railways Account) SBP G01175 Cheque Payment Clearing Account (District Account) SBP G01176 Training Payment Clearing Account (District Account) SBP G01177 Receipt Clearing Account (District Account) SBP - Blocked G01178 Bank Charges Clearing Account (District Account) SBP G01179 Bank Interest Clearing Account (District Account) SBP G01180 Payment Suspense Account (District Account) SBP G01181 Payment Suspense (District Account) SBP G01182 Cheque Payment Clearing Account (PR Special Account) SBP G01183 Training Payment Clearing Account (PR Special Account) SBP G01184 Receipt Clearing Account (PR Special Account) SBP - Blocked G01185 Bank Charges Clearing Account (PR Special Account) SBP G01186 Bank Interest Clearing Account (PR Special Account) SBP G01187 Payment Suspense Account (PR Special Account) SBP G01188 Receipt Suspense (PR Special Account) SBP G01189 Special Drawing Account Cheques (SDA) G01190 Special Drawing Account Cheques (SDA) G01191 Assignments Accounts Cheques G012 Others G01201 Outstanding Commitments
Page 73 of 100 CHART OF ACCOUNTS APPENDIX I (See paragraph 329)
Major Object Minor Object Detailed Object Code Description Code Description Code Description
G01202 Fines and Penalties Levied by Local Government. G02 Loans G021 Domestic Domestic Loans (G02101 - 20) G02101 Loans - Domestic (Permanent) G02102 Loans - Domestic (Floating) G02103 Loans - Domestic (Others) G02104 Others G022 Foreign Foreign Loans (G02201 - 20) G02201 Loan Foreign G03 Deferred Liabilities G031 Missing Missing Deferred Liabilities (G03101 - 30) G03101 Provident Fund - Blocked G03102 Saving Accounts, Savings and Deposits Certificates G03103 Annuities and Other Funds G03104 Benevolent Fund - Blocked G03105 Mint Account - Blocked G03106 Deposits & Reserves - Interest Bearing G03107 Deposits & Reserves - Non Interest Bearing G03108 Group Insurance G03109 Postal Life Insurance Fund G04 Other Liabilities G041 Other Liabilities Other Liabilities (G04101 - 10) G04101 Pension Fund Liability G05 Control Account G051 Miscellaneous Miscellaneous (G05101 - 30) G05101 Exchange Account - Blocked G05102 Adjusting Account G05103 Suspense Account G05104 HR Document Splitting Account G05105 Wages Clearing Account G05106 Inter Provincial Settlement Account G05107 Adjusting Account between Federal and Provincial Governments G05108 Miscellaneous Government Account - Blocked G05109 Remittances - Blocked
Page 74 of 100 CHART OF ACCOUNTS APPENDIX I (See paragraph 329)
Major Object Minor Object Detailed Object Code Description Code Description Code Description
G05110 State Bank Suspense G05111 District Accounts Office Suspense G05112 Letter of Credit Suspense G05113 Foreign Aid/Loan Suspense Account G05114 Adjusting Account between Federal and District Governments G05115 Adjusting Account between Provincial and District Governments G05116 Inter District Government Accounts G05117 Inter TMA Accounts G06 Trust Account - Fund G061 Provident Fund Provident Fund (G06101 - 50) G06101 Indian Civil Service Provident Fund G06102 Indian Civil Service (NEM) Provident Fund G06103 General Provident Fund (Civil) G06104 General Provident Fund (Defence) G06105 General Provident Fund (Foreign Affairs) G06106 General Provident Fund (Forest) G06107 General Provident Fund (Food Wing) G06108 General Provident Fund (GSP) G06109 General Provident Fund (Mint) G06110 General Provident Fund (National Savings) G06111 General Provident Fund (Pakistan PWD) G06112 General Provident Fund (PPO) G06113 General Provident Fund (T&T) G06114 General Provident Fund Account (Railway) G06115 State Railway Provident Fund Institution G06116 Defence Savings Provident Fund (Railway) G06117 Contributory (Transferred) Railway (Personnel) Provident Fund G06118 Defence Services Officers Provident Fund G06119 Provident Fund (MES) G06120 Provident Fund (Armed Forces Personnel) G06121 Provident Fund (AKRF Officers)
Page 75 of 100 CHART OF ACCOUNTS APPENDIX I (See paragraph 329)
Major Object Minor Object Detailed Object Code Description Code Description Code Description
G06122 Provident Fund (AKRF Personnel) G06123 Contributory Provident Fund G06124 Other Miscellaneous Provident Fund G06125 Unclaimed Deposits in Defence Services Officer's Provident Fund G06126 Unclaimed Deposits in the General Provident Fund G06127 Unclaimed Deposits in the Contributory Provident Fund G06128 Unclaimed Deposits in other Miscellaneous Provident Funds G06129 Provident Fund Advance to Government Servants (B 1-2) -Blocked G06130 Provident Fund Bonds G062 Benevolent Fund Benevolent Fund (G06201 - 50) G06201 Punjab Benevolent Fund G06202 Federal Government Employees Benevolent Fund (Civil) G06203 Federal Government Employees Benevolent Fund (Defence) G06204 Federal Government Employees Benevolent Fund (Telegraph and Telephone) G06205 Federal Government Employees Benevolent Fund (Pakistan Post Office) G06206 Federal Government Employees Benevolent Fund (Pakistan PWD) G06207 Federal Government Employees Benevolent Fund (Foreign Affairs) G06208 Federal Government Employees Benevolent Fund (Food Wing) G06209 Federal Government Employees Benevolent Fund (National Savings) G06210 Federal Government Employees Benevolent Fund (Mint) G06211 Federal Government Employees Benevolent Fund (Forest) G06212 Federal Government Employees Benevolent Fund (GSP) G06213 Railway Employees Benevolent Fund (Railways) G06214 Provincial Government Employees Benevolent Fund G06215 District Government Employees Benevolent Fund G06216 New: TMA Employees Benevolent Fund G06217 Government Employees Benevolent Fund working in TMAs G063 Welfare Funds Welfare Fund (G06301 - 30) G06301 Staff Welfare Fund (Customs and Excise) G06302 Staff Welfare Fund (Income Tax)
Page 76 of 100 CHART OF ACCOUNTS APPENDIX I (See paragraph 329)
Major Object Minor Object Detailed Object Code Description Code Description Code Description
G06303 Staff Welfare Fund (FPSC) G06304 Workers Welfare Fund G06305 Mines Labour Housing General Welfare Fund G06306 Coal Mines Labour Welfare Fund G06307 Endowment Fund for Welfare of Men of Letters G06308 Staff Welfare Fund - Balochistan Police G06309 Punjab Police Welfare Fund G06310 Northern Areas Police Welfare Fund G064 Insurance Fund Insurance Fund (G06401 - 50) G06401 Federal Government Employees Group Insurance Fund (Pakistan Public Works Department)
G06402 Federal Government Employees Group Insurance Fund (Foreign Affairs) G06403 Federal Government Employees Group Insurance Fund (Food Wing) G06404 Federal Government Employees Group Insurance Fund (National Savings) G06405 Federal Government Employees Group Insurance Fund (Mint) G06406 Federal Government Employees Group Insurance Fund (Forest) G06407 Federal Government Employees Group Insurance Fund (GSP) G06408 Provincial Government Employees Group Insurance Fund G06409 Federal Government Employees Group Insurance Fund (Civil) G06410 Federal Government Employees Group Insurance Fund (Defence) G06411 District Government Employees Insurance Fund G06412 Local Fund Govt. Employees GIF G06413 Group Insurance Fund for Government Employees working in TMAs G06414 Insurance Fund of Employees of Punjab Emergency Services G065 Relief Fund Relief Funds (G06501 - 30) G06501 President's Mian Amiruddin Himayat-e-Islam Fund 1986 G06502 Deposits of Badshahi Mosque Cess Fund G06503 Tajweed-ul-Quran Trust Azad-Kashmir G07 Trust Accounts - G071 Accounts of Pakistan Pakistan Post Office (G07101-50) Post Office Post Office
Page 77 of 100 CHART OF ACCOUNTS APPENDIX I (See paragraph 329)
Major Object Minor Object Detailed Object Code Description Code Description Code Description
G07101 Post Office Renewal Reserve Fund G07102 Pakistan Post Office Welfare Fund G07103 Pakistan Post Office Improvement Fund G07104 Federal Government Employees Group Insurance Fund (Pakistan Post Office) G07105 Pakistan Post Office Trust Interest Accounts G07106 Pakistan Post Office Miscellaneous G07107 Pakistan Post Office Cheques G07108 Permanent Advances (Pakistan Post Office) - Blocked G07109 OB Advances (Pakistan Post Office) - Blocked G07110 Account with the Government of India (Pakistan Post Office) -Blocked G07111 East Pakistan Suspense Post Office - Blocked G07112 Transfer between Post Office Officers G07113 In - Land Money Orders of Pakistan Post Office G07114 Postal Annuities G07115 Pakistan Post Office Cheques (CDNS Schemes) G08 Trust Account - G081 Accounts of Railways G08101 Foreign Loans / Credits on Capital Account (released by Federal Government) Railways Railways G08102 Foreign Loans/Credits on Replacement Account Railways G08103 Railway Employees Group Insurance Fund (Railways) G08104 Account with the Bank-i-Milli Iran (Railways) - Blocked G08105 Suspense Account Railways G08106 State Railway Deposits G08107 Railway Divisional Paymaster Account G08108 Railways Wages Account G08109 Pre-Audit Cheques (Railways) G08110 Account with the Government of India (Railways) G08111 East Pakistan Suspense Railways - Blocked G08112 Transfer within the same Railways G08113 Railways Remittances into State Bank / National Bank of Pakistan G08114 State Bank Deposits - Railways - Blocked
Page 78 of 100 CHART OF ACCOUNTS APPENDIX I (See paragraph 329)
Major Object Minor Object Detailed Object Code Description Code Description Code Description
G08115 OB Advances (Railways) - Blocked G08116 Permanent Advances (Railways) - Blocked G08117 Railways Reserve Fund G08118 Railways Improvement Fund G08119 Railways Pension Fund G08120 Staff Benefit Fund (Railways) G08121 Railways Depreciation Reserve Fund G08122 Deposit of Depreciation Reserve of Government Commercial Concerns G08123 Other Miscellaneous Remittance G08124 Freight Deposit Account G08125 Security Deposit of Employees G08126 Lease Key Money (Deposit against Finance Leases) G08127 Payable to Employees Cooperative Credit Society (ECCS) G08128 Subscription to Officer Club G082 Current Liabilities - G08201 Expenses Payables Railways G08202 Salaries and Wages Payable G08203 Lease Rentals Payables G08204 Accrued Mark-up/Interest - Domestic Loans G08205 Accrued Mark-up/Interest - Foreign Loans G08206 Accrued Management Fee - Foreign Loans G08207 Accrued Exchange Risk Fee - Foreign Loans G08208 Unpaid Salaries and Wages G08209 Unearned Revenue - Fare G08210 Unearned Revenue - Freight G08211 Unearned Lease Income - Operating G08212 Unearned Lease Income - Finance G08213 Sundry Creditors - Purchases G08220 Others G083 Other Liabilities G08301 Post Retirement Free Medical Facility
Page 79 of 100 CHART OF ACCOUNTS APPENDIX I (See paragraph 329)
Major Object Minor Object Detailed Object Code Description Code Description Code Description
G08302 Post Retirement Travel Facility G08303 Leave Encashment G09 Trust Account - T & G091 Accounts of Telegraph Telegraph and Telephone (G09101 - 50) T & Telephone
G09101 Telegraph & Telephone Renewal Reserve Fund G09102 Pakistan Telegraph and Telephone Welfare Fund G09103 Pakistan Telegraph and Telephone Improvement Fund G09104 Pakistan Telegraph and Telephone Cash Fund G09105 Pakistan Telegraph and Telephone Depreciation Fund G09106 Federal Government Employees Group Insurance Fund (Telegraph and Telephone) G09107 Pakistan Telegraph and Telephone Trunk Call Deposits G09108 Pakistan Telegraph and Telephone - Miscellaneous G09109 Permanent Advances (Pakistan Telegraph and Telephone) -Blocked G09110 OB Advances (Pakistan Telegraph and Telephone) - Blocked G09111 Telegraph and Telephone Remittances into Bank G09112 Civil Departmental Balances - Pakistan Telegraph and Telephone - Blocked G09113 State Bank Deposits - Telegraph and Telephone - Blocked G09114 Transfer between Telegraph and Telephone Officers G09115 East Pakistan Suspense Telegraph and Telephone - Blocked G09116 Account with the Government of India (Pakistan Telegraph and Telephone) G09117 Pakistan Telegraph and Telephone Cheques G10 Trust Accounts - G101 Accounts of Other Other Departments (G10101 - 99) Other Departments G10101 Pakistan PWD Receipt and Collection Account G10102 Foreign Affairs Receipt and Collection Account G10103 Food Wing Receipt and Collection Account G10104 Mint Receipt and Collection Account G10105 Pakistan Public Works Department Cheques G10106 Deposit Works of Survey of Pakistan
Page 80 of 100 CHART OF ACCOUNTS APPENDIX I (See paragraph 329)
Major Object Minor Object Detailed Object Code Description Code Description Code Description
G10107 Deposits of Department of Mineral Development G10108 Deposits of Department of Petroleum and Minerals G10109 Deposits of Industries Department G10110 Deposits for the Department of Advertising Films and Publications G10111 Food Department Deposits G10112 Sanitary Board Fund G10113 Public Works/Pakistan PWD Deposits G10114 Supply and Development Department Deposits G10115 Permanent Advances (Pakistan PWD) - Blocked G10116 OB Advances (Pakistan PWD) - Blocked G10117 OB Advances (Foreign Affairs) - Blocked G10118 OB Advances (Food Wing) - Blocked G10119 OB Advances (National Savings) - Blocked G10120 OB Advances (Mint) - Blocked G10121 OB Advances (Forest) - Blocked G10122 OB Advances (GSP) - Blocked G10123 Transfer between Forest Officers G10124 Transfer between MES Officers G10125 Transfer between Public Works Officers G10126 PRTC Employees Pension Fund G10127 Foreign Affairs Cheques G10128 Food Wing Cheques G10129 National Savings Cheques G10130 Mint Cheques G10131 Forest Cheques G10132 GSP Cheques G10133 Other Departmental Cheques G10134 Pre-Audit Cheques - Civil (Others) G10135 Pre-Audit - Civil Cheques Blocked G10136 Reserve Fund for Punjab Irrigation & Drainage Authority
Page 81 of 100 CHART OF ACCOUNTS APPENDIX I (See paragraph 329)
Major Object Minor Object Detailed Object Code Description Code Description Code Description
G10137 Pre-Audit - Civil Cheques G102 Accounts of Other Other Entities (G10201 - 30) Entities G10201 Permanent Advances (Foreign Affairs) - Blocked G10202 Permanent Advances (Food Wing) - Blocked G10203 Permanent Advances (National Savings) - Blocked G10204 Permanent Advances (Mint) - Blocked G10205 Permanent Advances (Forest) - Blocked G10206 Permanent Advances (GSP) - Blocked G10207 Suspense Account Mint G10208 Suspense Account Defence G103 Other Deposits and Reserves Other Deposits and Reserves (G10301 - 30) G10301 Reserve Fund for Lighthouses / Lightships and Depreciation thereof G10302 Sportsmen, Artists and Artisans Endowment Fund G10303 Political Agents Deposits G10304 Zakat Collection Account G10305 State Bank Deposits - District Government - Blocked G10306 Sinking Funds G10307 Other Appropriations G104 Other Remittances Other Remittances (G10401 - 99) G10401 National Savings Remittances G10402 Forest Remittances G10403 Mint Remittances G10404 Central Excise and Land Custom Remittances G10405 GSP Remittances G10406 Sindh Food Department Remittances G10407 PWD Remittances G10408 Remittances into Treasuries G10409 Works Audit Suspense G10410 Other Miscellaneous Remittances
Page 82 of 100 CHART OF ACCOUNTS APPENDIX I (See paragraph 329)
Major Object Minor Object Detailed Object Code Description Code Description Code Description
G10411 Sea Customs Remittances G10412 Income Tax Remittances G10413 Sales Tax Remittances G10414 Cash Remittances between Treasuries G10415 SBP Remittances G10416 Foreign Remittances G10417 Exchange Account between Civil and Civil G10418 Exchange Account between civil and Pakistan Post G10419 Exchange Account between Civil and Defence (including Navy) G10420 Exchange Account between Posts and Defence G10421 Exchange Account between Defence and Defence G10422 Cheques Blocked G10423 Other Remittances Blocked G10425 Cheques G10426 Other Remittances G10427 Fund Remitted to District Government G10428 Pakistan Post Office Remittances (CDNS Schemes) G11 Special Deposit G111 Investment Deposit Investment Deposit Accounts (G011101 - 50) Investment Accounts G11101 Savings Bank Accounts G11102 National Deposit Account G11103 Khaas Deposit Accounts G11104 Mahana Amdani Accounts G11105 Special Savings Accounts G11106 Defence Savings Certificates G11107 Premium Savings Certificates G11108 National Deposit Certificates G11109 Khaas Deposit Certificates G11110 Special Savings Certificates (Bearer) G11111 Special Savings Certificates (Registered)
Page 83 of 100 CHART OF ACCOUNTS APPENDIX I (See paragraph 329)
Major Object Minor Object Detailed Object Code Description Code Description Code Description
G11112 Special Savings Accounts G11113 Regular Income Certificate G11114 Qarz-e-Hasna for Prime Minister's National Debt Retirement Programme G11115 Term Deposit Certificates for Prime Minister's National Debt Retirement Programme
G11116 Ceased Savings and Deposit Certificates G11117 Ceased Savings and Deposit Certificates Bonus Fund G11118 National Deposit Certificates Bonus Fund G11119 Khaas Deposit Certificates Bonus Fund G11120 Defence Savings Certificates Bonus Fund G11121 Premium Savings Certificates Bonus Fund G11122 Pakistan Post Office unclaimed Saving Bank Deposits of less than Rs 2/- G11123 Pakistan Post Office Dead Savings Bank Accounts G11124 Pakistan Post Office fixed Deposits G11125 Pakistan Post Office Postal Orders G11126 Pensionery Benefits G11127 Behbood Saving Certificate G11128 Punjab General Provident Investment Fund G11129 Short Term Saving Certificates (STSC) G112 Other Deposit Account Other Deposit Account (G11201 - G11299) G11201 Special Deposit Fund for Army Supplies made to friendly Countries G11202 Deposit of Depreciation Reserve of Commercial concerns -Jallo Rosin Factory G11203 Deposit of Depreciation Reserve of Commercial Concerns -Motor Transport G11204 Deposits on Account of Foreign Mountaineering Expeditions G11205 Deposit Account of Grants and Donations for Educational Buildings G11206 Deposits of Cess on Oilseeds and Oils G11207 Deposits on Tea Cess Fund G11208 Deposits of Coconut Cess Fund G11209 Deposits of Tobacco Cess Fund G11210 Deposits of Agriculture Produce Cess Fund
Page 84 of 100 CHART OF ACCOUNTS APPENDIX I (See paragraph 329)
Major Object Minor Object Detailed Object Code Description Code Description Code Description
G11211 Deposits of Cotton Cess Fund G11212 Deposits of Sugarcane Development Cess Fund G11213 Deposits of Historical Mosque Fund G11214 Deposits of Jamia Mosque Fund Bahawalpur G11215 Revenue Deposits G11216 Civil and Criminal Courts Deposits G11217 Personal Deposits G11218 Forest Deposits G11219 Deposits on Account of Passage Money of the Pilgrims G11220 Deposits in connection with Elections G11221 Coal Deposits G11222 Deposits on Account of Evacuee Estates G11223 Deposits of Chief Controller of Imports and Exports Department made by the Exporters
G11224 Deposit Account with Defence G11225 Deposit Account with AGPR G11226 Deposits in favour of the Chief Settlement Commissioner G11227 Unclaimed Deposits G11228 Deposits for Repatriation of Pakistani Nationals Abroad G11229 Deposits for Imports against the UK Loans G11230 Special Remittances Deposits G11231 Deposits on Account of Cost of Medical Treatment of Federal Government Employees
G11232 Deposits of Pakistan Government Loans G11233 Deposits of Equalisation Fund for Iron and Steel G11234 Deposits on Account of Sugar supplied by Pakistan Government G11235 Local Fund Employees Pay and TA etc. Deposits G11236 Deposits on Account of Market Committee Employees G11237 Deposits made by Local Bodies to meet the Claims of Contractors G11238 Security Deposits of Supply Cell
Page 85 of 100 CHART OF ACCOUNTS APPENDIX I (See paragraph 329)
Major Object Minor Object Detailed Object Code Description Code Description Code Description
G11239 Deposits of Fees received by Government Servants for Work done for Private Bodies
G11240 Security Deposit of Cashiers etc G11241 Deposit Account of Foreign Guaranteed Loans G11242 Deposit Account of Transactions connected with Standardisation of Foreign Loans and Credits
G11243 Deposit Account of Grants made by the Federal Government for Social Uplift Schemes
G11244 Deposit Account of Duties, Taxes etc. realised on purchases of Indus Basin Replacement Works G11245 Deposit Account of the Grant made by the Federal Government for the development of Agriculture G11246 Deposit Account of Grants for Economic Development and Improvement of Rural Areas
G11247 Deposit Account of Grant made by the Agricultural Research Council of Pakistan G11248 Deposit Account of Special Grant by the Federal Government to the Punjab Government
G11249 Deposit Account of Sale Proceeds of Agricultural Commodities against convertible local currency credit under PL480 G11250 Deposits on Account of Recovery from Pakistan Railway in respect of foreign Loans and Credits G11251 Deposits of Surcharge on Sales of confiscated custom goods for donation to Motamar Alam-e- Islam G11252 Deposit Account under the Punjab Real Estate Agents and Motor Vehicles Dealers (Regulation of Business) Ordinance 1980 G11253 Deposit Account of Grant made by Federal Government for the Rehabilitation of Destitute from East Pakistan G11254 Deposit Account of the Grant made by the Pakistan Central Cotton Committee G11255 Defence Services Security Deposits G11256 Defence Services Miscellaneous Deposits
Page 86 of 100 CHART OF ACCOUNTS APPENDIX I (See paragraph 329)
Major Object Minor Object Detailed Object Code Description Code Description Code Description
G11257 Foreign Money Orders G11258 Assignment Account (Pak-PWD) G11259 Assignment Account (Foreign Affairs) G11260 Assignment Account (Food Wing) G11261 Assignment Account (Mint) G11262 Assignment Account (GSP) G11263 Assignment Account (IDA/IBRD) G11264 Assignment Account (ADB)) G11265 Assignment Account (Civil) G11266 Assignment Account (PM Secretariat) G11267 Recoveries of Loans granted by Cooperative Bank to AJK Government Employees G11268 Deposit Account of Unclaimed Dividends and Undistributed Assets under the Companies Liquidation Act G11269 Deposit Account of Fund for Welfare of Families of Disabled/Martyrs of Cargill Fighting
G11270 Deposit Account of Share made by Citizen Community Board G11271 Security Deposits Ex-Local Fund Officers (Ex-MEL & Ex-Zila Council Securities ) G11272 Withholding Tax on Profit from Investments in National Savings Schemes Blocked G11273 Deposit Account of Fees realized by Pakistan National Accreditation Council Blocked
G11274 Deductions on Account of Housing Loan G11275 Deposits Account for the Production of Balanced Feed at Government Livestock Farms.
G11276 Security Deposit of Private Companies G11277 Deposit of Number Plates & Smart Registration Cards G11278 Contribution to Government Servant Housing Foundation from its members G11279 Deposit for Smart Driving Licence Cards G11280 Withholding Tax on Profit from Investments in National Savings Schemes G11281 Deposit Account of Fees realized by Pakistan National Accreditation Council G11282 Assignment Account (others)
Page 87 of 100 CHART OF ACCOUNTS APPENDIX I (See paragraph 329)
Major Object Minor Object Detailed Object Code Description Code Description Code Description
G11283 Assignment Account (IP Bureau) G11284 Assignment Account (IDB) G11285 Assignment Account (AFD) G11286 Deposit for Small Cause Courts G11287 Assignment Account (DFID) G11288 Deposits of PTA G11289 Assignment Account (Australian Centre for International Agriculture Research (ACIAR)
G11290 Securities Deposits of Firms / Contractors G11291 Unclaimed Money Account G11292 Assignment Accounts - OFID G11293 Deposit Works for Private and Public Bodies G12 Special Deposit G121 Relief Funds Relief Funds (G12101 - G12150) Fund G12101 Prime Minister's Disaster Relief Fund G12102 Prime Minister's Fund for Welfare and Relief for Kashmiris G12103 Prime Minister's Bangladesh Cyclone Relief Fund - Blocked G12104 Prime Minister's Bosnia Herzegovina Relief Fund - Blocked G12105 Kashmir Relief Fund for Rehabilitation of Kashmiri Refugees and Freedom Fighters G12106 President's Fund for Afghan Refugees G12107 President's Fund for Assistance to Palestine G12108 President's Fund for Flood Relief 1978 - Blocked G12109 Sindh Governor's War Victims Relief Fund G12110 President's Famine Relief Fund for Africa G12111 Bangladesh Cyclone Relief Fund G12112 Quaid-e-Azam Relief Fund G12113 Governor's Relief Fund G12114 Sindh Relief Fund G12115 Sindh Emergency Medical Relief Fund G12116 Rosalinda Relief Fund
Page 88 of 100 CHART OF ACCOUNTS APPENDIX I (See paragraph 329)
Major Object Minor Object Detailed Object Code Description Code Description Code Description
G12117 Bangladesh Flood Relief Fund 1988 G12118 Chief Minister Punjab Flood Relief G12119 Sindh, Chief Minister's Rain Relief Fund, 1992 G12120 Afghan Refugees Benefit Wrestling Bouts 1984 Account G12121 Afghan Refugees Wrestling Bouts Sponsor's Account 1984 G12122 Funds for Assistance to the Muslims of Kosovo 1999 G12123 Chief Executive Drought Relief Fund 2000 G12124 Sindh Governor's Relief Fund 2000 for Drought Affected Areas G12125 Governor Punjab Rain Affectees Relief Fund G12126 Prime Minister Flood Relief Fund 1992 - Blocked G12127 Pakistan Post Office Postal Orders - Blocked G12128 Provincial Flood Relief Fund Khyber Pukhtoonkhawa-2005 G12129 Khyber Pukhtoonkhawa Chief Minister’s Fund for Internally Displaced Persons 2009 G12130 President’s Relief Fund for the Earthquake Victims 2005 G12131 Chief Minister Earthquake Fund Khyber Pukhtoonkhawa 2005 G12132 President’s Relief Fund for Flood Victims G12133 Chief Minister's Flood Relief Find Khyber Pukhtoonkhawa 2008 G12134 Chief Minister’s Balochistan Relief and rehabilitation Fund G12135 Prime Minister Special Fund for Victims of Terrorism G12136 Punjab Chief Minister’s Fund for Internally Displaced Persons of Khyber Pukhtoonkhawa G12137 Governor’s Support Programme for Internally Displaced Persons G122 Welfare Fund Welfare Fund (G12201 - 50) G12201 Prime Minister's Fund for Welfare of Widows and Orphans G12202 Fund for Remission of Advances made to Widows for House Building G12203 Special fund for welfare of prisoners of war and civil internees G12204 Special Fund for Welfare of Retarded and Handicapped Children G12205 Pakistan Minorities Welfare Fund G12206 Special Fund for Welfare and Uplift of Minorities G12207 Sindh Assembly (Members) Welfare Fund G12208 National Council Social Welfare Fund
Page 89 of 100 CHART OF ACCOUNTS APPENDIX I (See paragraph 329)
Major Object Minor Object Detailed Object Code Description Code Description Code Description
G12209 Fund for Scholarships to the Children of Government Servants B1 to 15 G12210 Fund for Scholarships to the Children of Government Servants (B16 and above) G12211 Population Welfare Programme Fund G12212 Subvention from Workers Welfare Fund G12213 Fund for Educational and Economic Uplift of Scheduled Castes G12214 Fund for Uplift Schemes G12215 Funds for Rehabilitation of War Displaced Persons 1965 G12216 Funds for Rehabilitation of War Displaced Persons 1971 G12217 Sindh Orphanages Fund (Sindh Darul Atfal Fund) G12218 Fund for Rehabilitation of Disabled Persons G12219 Subvention from the Fund for Rehabilitation of Displaced Persons G12220 Funds for Revenue Foundation Scheme of AJ&K G12221 Mines Labour General Welfare Fund G12222 Mines Labour Housing Fund G12223 Education employees Foundation NWFP Fund G12224 Balochistan Police Foundation Fund G123 Economic Fund Economic Fund (G12301 - 50) G12301 Sugar Export Subsidy Fund G12302 Economic Fund G12303 Procurement of Edible Oil through Trading Corporation of Pakistan under FY 1982 G12304 Special Fund for Assistance to Export of Sugar G12305 Export Development Fund G12306 Technical Advisory Services received from USA G12307 Technical Advisory Services received from Australia G12308 Reserve Fund for Exchange Risk on Foreign Loans G12309 Convertible Currency Release Fund G12310 Procurement of Edible Oil through Trading Corporation of Pakistan under FY 1981 G12311 Education Employees Foundation NWFP Fund Blocked G12312 Education Employees Foundation NWFP Fund G124 Development Fund Development Fund (G12401 - 50)
Page 90 of 100 CHART OF ACCOUNTS APPENDIX I (See paragraph 329)
Major Object Minor Object Detailed Object Code Description Code Description Code Description
G12401 Special Development Grant Fund G12402 Irrigation Works-Reserve for Renewal and Replacement of Irrigation Machinery G12403 Depreciation Reserve Fund Government Presses G12404 Buildings/Roads Works Reserve for Renewals and Replacement of Buildings/Roads Machinery
G12405 Federal/Provincial Road Fund G12406 Federal Rehabilitation Fund G12407 National Mass Transit Authority Fund G12408 Population Planning Programme G12409 Special Development Fund G12410 Women's Development Programme Fund G12411 Rural Development Works Programme Fund G12412 Pakistan Oil Seeds Development Cess Fund G12413 Fund for Administrative Restructuring of Public Sector G12414 Special Fund for Construction of GHQ Complex, Islamabad G12415 Thar Uplift Development Fund G12416 Depreciation Reserve Fund G12417 Forestry Development Fund G125 Education and Education and Training Fund (G12501 - 30) Training Fund G12501 Federal Education Fee Fund G12502 Fund for Grants to Universities G12503 Scholarship Fund for Training Abroad G12504 Worker's Children Education Fund G12505 National Training Board Fund G12506 Special Fund for Promotion of Science and Technology G12507 Education Special Development Fund G12508 Fund for Liaqat Memorial Library G12509 Pakistan Madrassah Education Fund G12510 Education Welfare Fund
Page 91 of 100 CHART OF ACCOUNTS APPENDIX I (See paragraph 329)
Major Object Minor Object Detailed Object Code Description Code Description Code Description
G126 Fund for Culture and Fund for Culture and Heritage (G12601 - 50) Heritage G12601 Fund for Development of Urdu G12602 Quaid-e-Azam Memorial Fund G12603 Alama Iqbal Memorial Fund G12604 Quad-e-Azam Centenary Fund G12605 National Fund for Cultural Heritage G12606 See Moenjodaro Fund G12607 Fund for Artists, Journalists, Men of Letters and their families G12608 Fund for promoting Pride of Performance G12609 Tarraqi-e-Urdu Fund G12610 Bazm-e-Iqbal Fund G12611 Arts and Literature Fund G127 Other Funds Other Funds (G12701 - 99) G12701 Jahez Fund G12702 Civil Defence Training Fund G12703 Riot and Civil Commotion Issuance Fund G12704 Police Fund G12705 Police Clothing and Equipment Fund G12706 Fund for Civil Defence G12707 Canal Clearance Fund G12708 Funds for Damages Deficiencies and Service Charges in respect of Houses on Estate Office pool G12709 Sindh Chief Minister's discretionary Grants Utilization Fund G12710 Central Rescue Station Fund G12711 Foreign Aid Counterpart Fund G12712 Trust Interest Fund (Charitable Endowment) G12713 Income Tax deduction from Salaries G12714 Income Tax deduction from Contractors/Suppliers G12715 War Risk Insurance Fund 1965
Page 92 of 100 CHART OF ACCOUNTS APPENDIX I (See paragraph 329)
Major Object Minor Object Detailed Object Code Description Code Description Code Description
G12716 War Risk Insurance Fund 1971 G12717 District Funds G12718 Municipal Funds G12719 Cantonment Funds G12720 Punjab Market Committee Fund G12721 Punjab Co-operative Board for Liquidation G12722 Other Miscellaneous Fund G12723 Prime Minister Fund for National Debt Retirement G12724 President's Hajj Fund G12725 Silver Jubilee Fund for Celebration of 50th Anniversary of Independence of Pakistan G12726 Sinking Funds for Loans granted to Local Bodies G12727 Advance Payment of Tax under Section 53 of the Income Tax Ordinance G12728 Sinking Fund Investment Account G12729 Fund for Social Services G12730 Olympic Stadium Fund G12731 Federal Fund for Agricultural Research G12732 Youth Development Fund G12733 Privatisation Fund G12734 Agriculture Prices Commission Fund G12735 National Defence Fund 1965 G12736 National Defence Fund 1971 G12737 National Reconstruction Fund G12738 National Fund for Control of Drug Abuse G12739 National Self Reliance Fund G12740 Pre-Partition Assets and Liabilities G12741 Federal Civil Servant's subscription to Services Book Club G12742 Fund for Education of Working Children and Rehabilitation of Freed Bounded Labourers
G12743 Fund for Strengthening Judiciary G12744 Sindh Sustainable Development Fund
Page 93 of 100 CHART OF ACCOUNTS APPENDIX I (See paragraph 329)
Major Object Minor Object Detailed Object Code Description Code Description Code Description
G12745 Central Research Fund G12746 HR Development Fund G12747 National Commission Fund G12748 Funds for Lady Reading Hospital, Peshawar Blocked G12749 Funds for Khyber Teaching Hospital, Peshawar Blocked G12750 Funds for Khyber Medical College, Peshawar Blocked G12751 Funds for Khyber College of Dentistry, Peshawar Blocked G12752 Funds for Hayatabad Medical Complex, Peshawar Blocked G12753 Funds for Post Graduate Medical Institute, Peshawar Blocked G12754 Funds for Ayub Medical College, Abbottabad Blocked G12755 Funds for Ayub Teaching Hospital, Abbottabad Blocked G12756 G12757 G12758 Fund for Women in Distress & Detention G12759 G12760 Deposit Account of Shares made by Citizen Community Board (CCB) G12761 Fund for Securities & Exchange Commission of Pakistan (SECP) G12762 Tameer-e-Karachi Fund G12763 Punjab Development Fund G12764 Access to Justice Development Fund G12765 President's Relief Fund for Tsunami Victims G12766 Funds for Lady Reading Hospital, Peshawar G12767 Funds for Khyber Teaching Hospital, Peshawar G12768 Funds for Khyber Medical College, Peshawar G12769 Funds for Khyber College of Dentistry, Peshawar G12770 Funds for Hayatabad Medical Complex, Peshawar G12771 Funds for Post Graduate Medical Institute, Peshawar G12772 Funds for Ayub Medical College, Abbottabad G12773 Funds for Ayub Teaching Hospital, Abbottabad G12774 National Disaster Management Fund
Page 94 of 100 CHART OF ACCOUNTS APPENDIX I (See paragraph 329)
Major Object Minor Object Detailed Object Code Description Code Description Code Description
G12775 Funds for Accident and Emergency Department under Lady Reading Hospital G12776 Competition Commission Fund G12777 Sales Tax Deduction at source under sales tax special Procedure (Withholding) Rules, 2007
G128 Pension Fund G12801 Punjab Pension Fund G13 Special Deposit G131 Grant in Aid Grants and Aid (G13101 - 99) Grant G13101 Cash Aid received from Ford Foundation G13102 Machinery, Equipment and Supplies received from West Germany G13103 Machinery, Equipment and Supplies received from Japan G13104 US Aid Local Currency Credit G13105 US Aid Fund for the projects of Federal and Provincial Governments G13106 UN Development Funding G13107 Norwegian Wheat G13108 German Wheat G13109 Sweden Wheat G13110 Australian Wheat G13111 Deposits on Account of Canadian Wheat G13112 Food Aid Convention G13113 Fertilizer from FAO G13114 Foreign Assistance for Afghan Refugees from United Nations High Commissioner for Refugees
G13115 Deposit Account of the Japanese Grant for Coastal Fisheries Development Project G13116 Other Foreign Grants G13117 Grants and Technical Assistance from Australia G13118 Grants and Technical Assistance from Canada G13119 Grants and Technical Assistance from UNO G13120 Grants and Technical Assistance from US Aid G13121 Grants and Technical Assistance from Singapore G13122 Grants and Technical Assistance from Switzerland
Page 95 of 100 CHART OF ACCOUNTS APPENDIX I (See paragraph 329)
Major Object Minor Object Detailed Object Code Description Code Description Code Description
G13123 Grants and Technical Assistance from Ford Foundation G13124 Grants and Technical Assistance from UK G13125 Grants and Technical Assistance from Germany G13126 Grants and Technical Assistance from Netherlands G13127 Grants and Technical Assistance from US government G13128 Commodity Grants from Australia G13129 Commodity Grants from Canada G13130 Commodity Grants from Germany G13131 Commodity Grants from Norway G13132 Commodity Grants from Aid Convention G13133 Commodity Grants from World Food Programme G13134 Foreign Non-Project Commodity Aid-USA G13135 Finance agreed Project on account of Butter Oil Grant from EEC G13136 UK Grants G13137 Grants from Saudia G13138 Grants from Japan G13139 Commodity Grant from Italy G13140 GSP Receipt and Collection Account G13141 US Aid Programme for US G13142 US Aid Ace Programme for US G13143 Special Subsidiary Account G13144 Special PL-480 Title II Account G13145 US Aid Programme for US 1983 G13146 US Aid Programme for US 1984 G13147 US Aid ECE for US 1984 G13148 US Aid ECE for US 1985 G13149 US Aid ACE for US 1986 G13150 US Aid ACE for US 1987 G13151 US Aid ACE for US 1988 G13152 US Aid Programme for US FY 1989
Page 96 of 100 CHART OF ACCOUNTS APPENDIX I (See paragraph 329)
Major Object Minor Object Detailed Object Code Description Code Description Code Description
G13153 Special Subsidiary Account FY 1984 G13154 Special Subsidiary Account FY 1985 G13155 Special Subsidiary Account FY 1986 G13156 Special Subsidiary Account FY 1987 G13157 Special Subsidiary Account FY 1988 G13158 Special Subsidiary Account FY 1989 G13159 Special Subsidiary Account FY 1990 G13160 Special Subsidiary Account FY 1993 G13161 Special Subsidiary Account FY 1995 G13162 Special Subsidiary Account FY 1996 G13163 Special Subsidiary Account FY 1997 G13164 Canadian Debt G13165 Tameer-e-Watan Fund G13166 Foreign Grant for Enercon G13167 Foreign Commodity Grant for Gwadar Port Authority G13168 Rescheduling of Indonesian Debt 1965 G14 Mint Account G141 Coinage Account Coinage Account (G14101 - G14150) G14101 Value of One Rupee Notes Issued G14102 Nickel Whole Rupee Balance G14103 Cupro Nickel Whole Rupee Balance G14104 Bronze and Copper Coining Account G14105 Nickel Coinage Account G14106 Cupro Nickel Coinage Account G14107 Aluminium Coinage Account G14108 Small Coin Depot Balance G14109 Purchase and Sale of Silver G14110 Profit from Circulation of Nickel - Coins G14111 Deficiency found in Coins Remitted to Mint G14112 Nickel Whole Rupee Remittances G14113 Cupro Nickel Whole Rupee Remittances
Page 97 of 100 CHART OF ACCOUNTS APPENDIX I (See paragraph 329)
Major Object Minor Object Detailed Object Code Description Code Description Code Description
G14114 Small Coin Depot Remittances G14115 One Rupee Coins G14116 Two Rupee Coins G14117 Five Rupee Coins G14118 Value of Ten Rupee Coins G14119 Value of Ten Rupee Commemorative Coin of Mohtarma Benazir Bhutto (Shaheed) G14120 Aluminium one Rupee Coins G14121 Aluminium two Rupee Coins G14122 Ten Rupee Commemorative Coin on 60th Anniversary of the Peoples Republic of China
H01 Equities H011 Equities Equities (H01101 - 99) H01101 Residual Equity H01102 Suspense Loss Account H01103 Unrecovered Losses H01104 Gain and Loss on Foreign Exchange H01105 Retained Earnings / Accumulated Loss H01106 Miscellaneous Government Accounts H012 Investment by H01201 Investment by Government Government H01202 Revaluation of Fixed Assets
Page 98 of 100 CHART OF ACCOUNTS APPENDIX I (See paragraph 329)
3) Fund Element
Fund Source Sub-Fund Grant/Public Account Number No. Description No. Description No. Description No. Description
C Consolidated Fund 1 Capital 1 Voted Current Expenditure Not Applicable 2 Voted Development Expenditure 186 Capital Outlay on Pakistan Railways 3 Voted Capital Expenditure Not Applicable 4 Charged Current Expenditure Not Applicable 5 Charged Development Expenditure Not Applicable 6 Charged Capital Expenditure Not Applicable
2 Revenue 1 Voted Current Expenditure 106 Pakistan Railways 2 Voted Development Expenditure 106 Pakistan Railways 3 Voted Capital Expenditure 106 Pakistan Railways 4 Charged Current Expenditure 106 Pakistan Railways 5 Charged Development Expenditure Not Applicable 6 Charged Capital Expenditure Not Applicable
P Public Account 2 Revenue 1 Trust Accounts 106 Pakistan Railways 2 Special Deposit Accounts 106 Pakistan Railways
Note i) The use of fund element is mandatory for all accounting transactions under NAM. ii) Voted expenditure means the expenditure the incurrence of which requires the approval of legislation (parliament). iii) Charged expenditure does not require the approval (vote) of parliament like interest, principal repayments, etc. iv) Non-financial assets are included under 'Development' whereas expenditures on Financial Assets (investments) are categorized under "Capital"
Page 99 of 100 CHART OF ACCOUNTS APPENDIX I (See paragraph 329)
4) Function Element
Major Function Minor Function Detailed Function Sub-Detailed Function Program Code Description Code Description Code Description Code Description Code Code Code
04 Economic Affairs 045 Construction and Transport 0454 Railway Transport 045401 Railway Transport
Note i) Provision for program code has been made in chart of accounts and it will be used to identify Government programs if Federal Government decides to introduce it. ii) All codes will be fixed except for program code (if introduced) and there will be no option to modify them.
Page 100 of 100 Appendix II SUBSIDIARY CODING SCHEME FOR REVENUE
(See paragraph 330)
STATION TRAIN EARNING TYPE SUB EARNING TYPEMAIN ACCOUNT DETAILED ACCOUNT RUPEES CODE NAME CODE NAME CODE DESCRIPTION CODE DESCRIPTION CODE DESCRIPTION CODE DESCRIPTION
0005 Kiamari 001 Khyber Mail 1 Coaching Earnings 01 Passenger Fare 01 Ordinary Full Fare 01 Air Conditioned Sleeper 0010 Import Yard 002 Khyber Mail 02 Air Conditioned Parlour 0015 Karachi City Junction 003 Bolan Mail 03 Air Conditioned Standard 0030 Karachi Bandar 004 Bolan Mail 04 Air Conditioned Business 0035 Hupm Yard 005 Tezrao 05 First Class Sleeper 0040 Thole Produce Yard 006 Tezrao 06 Economy Class 0045 Reception Yard 007 Tezgam 07 Second Class 0047 DCOS (Halt) 008 Tezgam 02 Ordinary Reduced Fare 01 Air Conditioned Sleeper 0050 Karachi Cant 009 Allama Iqbal Express 02 Air Conditioned Parlour 0055 Chanesar (Halt) 010 Allama Iqbal Express 03 Air Conditioned Standard 0060 Departure Yard 011 Hazara Express 04 Air Conditioned Business 0065 Karsaz 012 Hazara Express 05 First Class Sleeper 0070 Air Force (Halt) 013 Awam Express 06 Economy Class 0075 Drigh Road Junction 014 Awam Express 07 Second Class 0097 Drigh Colony 015 Karachi Express 03 Return Journey Tickets 01 Air Conditioned Sleeper 0100 Air Ship (Halt) 016 Karachi Express 02 Air Conditioned Parlour 0105 Air Port (Halt) 017 Millat Express 03 Air Conditioned Standard 0110 Malir Colony 018 Millat Express 04 Air Conditioned Business 0115 Malir 019 Khushal Khan Khatak Express 05 First Class Sleeper 0120 Landhi Junction 020 Khushal Khan Khatak Express 06 Economy Class 0133 Maddoki 021 Chiltan Express 07 Second Class 0135 Jumma Goth 022 Chiltan Express 04 Season and Zone Tickets 01 Air Conditioned Sleeper 0140 Bin Qasim 023 Quetta Express 02 Air Conditioned Parlour 0143 Badal Nala 024 Quetta Express 03 Air Conditioned Standard 0144 Marshalling Yard Pipri (Halt) 025 Baha-ud-Din Zakria Express 04 Air Conditioned Business 0145 Gaddar 026 Baha-ud-Din Zakria Express 05 First Class Sleeper 0150 Debheji 027 Shalimar Express 06 Economy Class 0155 Gharo 028 Shalimar Express 07 Second Class 0160 Ran Pethani 029 Shah Rukne Alam Express 05 Other Concessional Tickets 01 Air Conditioned Sleeper 0165 Jung Shahi 030 Shah Rukne Alam Express 02 Air Conditioned Parlour 0170 Saduro 033 Super Express 03 Air Conditioned Standard 0175 Braudabad 034 Super Express 04 Air Conditioned Business 0180 Utram 037 Fareed Express 05 First Class Sleeper 0185 Jhimpir 038 Fareed Express 06 Economy Class 0190 Latif Chang 039 Jaffar Express 07 Second Class 0195 Meting 040 Jaffar Express 06 Military 01 Air Conditioned Sleeper 0200 Ongar 041 Karakoram Express 02 Air Conditioned Parlour 0205 Bholari 042 Karakoram Express 03 Air Conditioned Standard 0210 Kotri Junction 045 Pakistan Express 04 Air Conditioned Business 0225 Gidu 046 Pakistan Express 05 First Class Sleeper 0227 Latifabaad 101 Islamabad Express 06 Economy Class 0230 Hyderabad Junction 102 Islamabad Express 07 Second Class 0255 Detha 103 Subak Kharam 07 Pracs 01 Air Conditioned Sleeper 0260 Khatian Road 104 Subak Kharam 02 Air Conditioned Parlour 0265 Allahdino Sand 105 Rawal Express 03 Air Conditioned Standard 0270 Palijani 106 Rawal Express 04 Air Conditioned Business 0275 Oderolal 107 Subak Raftar 05 First Class Sleeper 0280 Wahab Shah 108 Subak Raftar 06 Economy Class 0285 Tando Adam Junction 109 Chenab Express 07 Second Class 0300 Jalal Marri 110 Chenab Express 08 Foreign 01 Air Conditioned Sleeper
Page 1 of 24 Appendix II SUBSIDIARY CODING SCHEME FOR REVENUE
(See paragraph 330)
STATION TRAIN EARNING TYPE SUB EARNING TYPEMAIN ACCOUNT DETAILED ACCOUNT RUPEES CODE NAME CODE NAME CODE DESCRIPTION CODE DESCRIPTION CODE DESCRIPTION CODE DESCRIPTION
0305 Shahdabpur 111 Dachi Express 02 Air Conditioned Parlour 0310 Lundo 112 Dachi Express 03 Air Conditioned Standard 0315 Sarhari 113 Ghauri Express 04 Air Conditioned Business 0320 Nawaz Dahri 114 Ghauri Express 05 First Class Sleeper 0325 Nawabshah Junction 115 Shah Shamas Express 06 Economy Class 0350 Buchert 116 Shah Shamas Express 07 Second Class 117 Musa Pak Express 02 Special Trains and 01 Other Than Military 00 0355 Daur Reserved Carriages 0357 Balochpur 118 Musa Pak Express 02 Military 00 0360 Bandhi 119 Pakpattan Express 03 Luggage 01 Public 00 0365 Mir Jat (Halt) 120 Pakpattan Express 02 Military 00 0370 Kot Laloo 121 Ravi Express 03 Foreign 00 0375 Pad Idan Junction 122 Ravi Express 04 Pracs 00 0390 Bhiria Road 123 Sargodha Express 05 Others 00 0395 Ghulamabad (Halt) 124 Sargodha Express 04 Parcels 01 Public 00 0400 Lakha Road 125 Lasani Express 02 Military 00 0405 Sialabad (Halt) 126 Lasani Express 03 Foreign 00 0410 Mahrabpur Junction 127 Mehar Express 04 Pracs 00 0425 Deparja (Halt) 128 Mehar Express 05 Others 00 0430 Setharja 129 Thal Express 05 Intra-Railway Parcels 00 0435 Ranipur Riyasat 130 Thal Express 06 Dry Port 01 Public Dry Port 0440 Gambat 131 Rohi Express 02 Military Parcels Dry Port 0445 Pirkatpar 132 Rohi Express 03 Others Dry Port 133 Badar Express 05 Other Coaching Traffic 01 Rail Road Motor Vehicle & Carriage 00 0450 Tando Musti Khan 0455 Sahu 134 Badar Express 02 Live Stock by Passenger Trains 00 0460 Khairpur 135 Malakwal Express 03 Dining Car and Aerated Water 00 0465 Raina 136 Malakwal Express 04 Passenger 00 0470 Begmanji 137 Lala Musa Express 05 Luggage 00 0475 Rohri Junction 138 Lala Musa Express 06 Post Office Mails 01 Special Postal Trains 00 139 Sandal Express 02 Hire and Haulage of Postal Vans and 00 0490 Mando Dairo Compartment 140 Sandal Express 03 Post Office Bags and Parcels by Weight 00 0495 Sangi 141 Tipu Sultan Express 07 Demurrage, Wharfage and 01 Stations 01 Demurrage 0500 Hungoro Road (Halt) Storage Charges 0505 Pano Akil 142 Tipu Sultan Express 02 Wharfage 0510 Mahesar 143 Bahawalpur Express 03 Storage Charges 0515 Ali Nawaz Ghoto 144 Bahawalpur Express 02 Dry Port 01 Demurrage 0520 Ghotki 145 Sukkur Express 02 Wharfage 0525 Sarhad 146 Sukkur Express 03 Storage Charges 0530 Mirpur Mathelo 147 Mari Indus Express 03 Foreign 01 Demurrage 0535 Daharki 148 Mari Indus Express 02 Wharfage 0540 Kobar 149 Mehran Express 03 Storage Charges 0545 Reti 150 Mehran Express 04 others 01 Demurrage 0550 Dhandi 153 Kotri Express 02 Wharfage 0555 Chak Asmat Ullah 155 Saman Sarkar Express 03 Storage Charges 156 Saman Sarkar Express 08 Miscellaneous Coaching 01 Platform Tickets 00 0560 Walhar Receipts 0565 Machhi Goth 159 Mirpur Khas Express 02 Penalties for Irregular Travelling 00
Page 2 of 24 Appendix II SUBSIDIARY CODING SCHEME FOR REVENUE
(See paragraph 330)
STATION TRAIN EARNING TYPE SUB EARNING TYPEMAIN ACCOUNT DETAILED ACCOUNT RUPEES CODE NAME CODE NAME CODE DESCRIPTION CODE DESCRIPTION CODE DESCRIPTION CODE DESCRIPTION
0570 Sadikabad 160 Mirpur Khas Express 03 Left Luggage Receipts 00 0575 Chandrami (Halt) 163 Hyderabad Express 04 Karachi Port Trust 01 Karachi Port Trust Charges 0580 Adamsahaba 164 Hyderabad Express 02 Lighterage 0585 Rahim Yar Khan 165 Qalander Express 03 Cranage 0590 Tarinda 166 Qalander Express 05 Export Surcharge 00 0595 Dari Azim Khan 167 Rohri Express 06 Import Surcharge 00 0600 Kot Samaba 168 Rohri Express 07 Sundries 00 0605 Sahja 171 Sialkot Express 80 Refunds 01 Stations 01 Over Charges 0610 Khanpur Junction 172 Sialkot Express 02 Demurrage 0625 Jetha Bhutta 173 Multan Express 03 Wharfage 0630 Firoza 174 Multan Express 04 Storage 0635 Metla 175 Mianwali Express 05 Others 0640 Liaquatpur 176 Mianwali Express 02 Dry Port 01 Over Charges 0645 Tanwari 177 Faisal Express 02 Demurrage 0650 Chanigot 178 Faisal Express 03 Wharfage 0655 Kulab 179 Badin Express 04 Storage 0660 Dera Nawab Sahib 180 Badin Express 05 Others 0665 Tibbi Izzat 201 Attock Passenger 03 Foreign 01 Over Charges 0670 Mubarakpur 202 Attock Passenger 02 Demurrage 0675 Kalanchwala 203 Jand Passenger 03 Wharfage 0680 Samasata Junction 204 Jand Passenger 04 Storage 0695 Bahawalpur 205 Babu Passenger 05 Others 0700 Adamwahan Bridge 206 Babu Passenger 04 Others 01 Over Charges 0705 Adam Wahan 207 Waris shah Fast 02 Demurrage 0710 Lodhran Junction 208 Waris shah Fast 03 Wharfage 0735 Shahidan Wala (Halt) 209 Faiz Ahmad Faiz Express 04 Storage 0740 Rukanpur 210 Faiz Ahmad Faiz Express 90 Discounts 01 Passenger 00 0745 Sirajwala 211 Khush Khuram Passenger 02 Military 00 0750 Dunyapur 212 Khush Khuram Passenger 03 Others 00 0755 Jafarwala 213 Hashim Shah Passenger 0760 Kutabpur 214 Hashim Shah Passenger 0765 Sukh Beas 215 Mauj DaryaPassenger 0770 Jahania 216 Mauj DaryaPassenger 0775 Pervezwala 217 Shah Sarwar Passenger 0780 Jangal Mariala 218 Shah Sarwar Passenger 0785 Mehar Shah 219 Narowal Express 0790 Khanewal Junction 220 Narowal Express 0815 Dera Taj 221 Sangla Shuttle 0820 Pirawala 222 Sangla Shuttle 0825 Rajput Nagar 223 Okara Passenger 0830 Kacha Khuh 224 Okara Passenger 0835 Waris Ali Shaheed 225 Shaheen Passenger 0840 Mohsinwal 226 Shaheen Passenger 0845 Musa Virk 227 Marala Passenger 0850 Mian Channun 228 Marala Passenger 0855 Sadiq Ali Shaheed 229 Sultan Bahu Passenger 0860 Iqbal Nagar 230 Sultan Bahu Passenger 0865 Kassowal 233 Passenger 0870 Kotla Adib Shaheed 234 Passenger 0875 Chichawatni Road 235 Fast
Page 3 of 24 Appendix II SUBSIDIARY CODING SCHEME FOR REVENUE
(See paragraph 330)
STATION TRAIN EARNING TYPE SUB EARNING TYPEMAIN ACCOUNT DETAILED ACCOUNT RUPEES CODE NAME CODE NAME CODE DESCRIPTION CODE DESCRIPTION CODE DESCRIPTION CODE DESCRIPTION
0880 Dad Fatihana 236 Fast 0885 Masud Akhtar Shahid 239 Passenger 0890 Harappa 240 Passenger 0895 Mirdad Muafi 241 Kundian Passenger 0900 Sahiwal 242 Kundian Passenger 0905 Noor Muhammad Mokal 243 Passenger 0910 Yousfwala 244 Passenger 0915 Qadirabad 245 Passenger 0920 Okara Cant 246 Passenger 0925 Tabruk 249 Passenger 0930 Okara 250 Passenger 0935 Hazrat Karmanwala 251 Passenger 0940 Kissan 252 Passenger 0945 Renala Khurd 253 Passenger 0950 Akhtarabad 254 Passenger 0955 Habibabad 255 Passenger 0960 Sehjowal 256 Passenger 0965 Pattoki 257 Bullahay Shah 0970 Wan Adhan 258 Bullahay Shah 0975 Changa Manga 259 Passenger 0980 Bhoe Asal 260 Passenger 0985 Kot Radha Kishan 261 Passenger 0990 Prem Nagar 262 Passenger 0995 Raiwind Junction 263 Sakhi Abbas Passenger 1010 Jia Bagga 264 Sakhi Abbas Passenger 1015 Halloki (Halt) 265 Shuttle 1020 Kana Kacha 266 Shuttle 1025 Kot Lakhpat 267 Rawalpindi Passenger 1030 Walton 268 Rawalpindi Passenger 1035 Lahore Cant Junction 301 Sibi mixed 1045 Lahore Junction 302 Sibi mixed 1075 Badami Bagh 305 Chotiari Mixed 1080 Shahdara Bagh Junction 306 Chotiari Mixed 1105 Kala Shah Kaku 309 Kotri Mixed 1110 Koh-i-Noor 310 Kotri Mixed 1115 Muridke 313 Larkana Mixed 1120 Sadhoke 314 Larkana Mixed 1125 Kamoke 315 Lahore Mixed 1130 Eminabad 316 Lahore Mixed 1135 Theri Snasi 317 Amruka Mixed 1140 Gujranwala City 318 Amruka Mixed 1150 Gujranwala Cant 319 Multan Mixed 1155 Ghakkar Mandi 320 Multan Mixed 1160 Dhaunkal 321 Kasur Mixed 1165 Nizmabad 322 Kasur Mixed 1170 Wazirabad Junction 325 Noor Shah Mixed 1195 Haripur Band 326 Noor Shah Mixed 1200 Kathala 327 Peshawar Mixed 1205 Gujrat 328 Peshawar Mixed 1210 Deona Juliani 331 Wazirabad Mixed
Page 4 of 24 Appendix II SUBSIDIARY CODING SCHEME FOR REVENUE
(See paragraph 330)
STATION TRAIN EARNING TYPE SUB EARNING TYPEMAIN ACCOUNT DETAILED ACCOUNT RUPEES CODE NAME CODE NAME CODE DESCRIPTION CODE DESCRIPTION CODE DESCRIPTION CODE DESCRIPTION
1215 Lala Musa Junction 332 Wazirabad Mixed 1230 Lala Musa Goods 333 Koh-i-Noor Passenger 1235 Chak Pirana 334 Koh-i-Noor Passenger 1240 Kharian Cant 335 Marvi Mixed 1245 Kharian 336 Marvi Mixed 1250 Banni Bangla 341 Gharibwal Mixed 1255 Choa Kariala 342 Gharibwal Mixed 1260 Sarai Almagir 343 Khewra Mixed 1265 Jhelum 344 Khewra Mixed 1270 Kala Junction 345 Kohat Mixed 1285 Kaluwal 346 Kohat Mixed 1290 Dina Junction 349 Chaman Mixed 1305 Ratial 350 Chaman Mixed 1310 Domeli 351 Mixed 1315 Bakrala 352 Mixed 1320 Tarki 353 Mixed 1325 Sohawa 354 Mixed 1330 Tandoi 355 Mixed 1335 Missa Keswal 356 Mixed 1340 Pindora 357 Mixed 1345 Gujar Khan 358 Mixed 1350 Ghungrila 359 Mixed 1355 Mandra Junction 360 Mixed 1370 Banth 361 Mixed 1375 Kaliamawan 362 Mixed 1380 Mankiala 401 Samjhota Express 1385 Mughal 402 Samjhota Express 1390 Sihala 403 Zahidan Mixed Passenger 1395 Lohi Bhir 404 Zahidan Mixed Passenger 1400 Chak Lala 405 Thar Express 1405 Rawalpindi 406 Thar Express 1410 Nur Junction KL-1 Landhi Shuttle 1415 Madina-Tul-Hajjaj LK-2 Landhi Shuttle 1420 Golra Sharif Junction KM-1 Malir Shuttle 1435 Sangjani MK-2 Malir Shuttle 1440 Taxila Cant Junction 1455 Wah Cantt 1460 Budho 1465 Wah 1470 Hasan Abdal 1475 Burhan 1480 Faqeerabad 1485 Sanjwal 1490 Attock City Junction 1505 Rumian 1510 Attock Khurd 1515 Khairabad Kund 1520 Jahangira Road 1525 Akora Khattak 1530 Hayat Sher Pao Shaheed
Page 5 of 24 Appendix II SUBSIDIARY CODING SCHEME FOR REVENUE
(See paragraph 330)
STATION TRAIN EARNING TYPE SUB EARNING TYPEMAIN ACCOUNT DETAILED ACCOUNT RUPEES CODE NAME CODE NAME CODE DESCRIPTION CODE DESCRIPTION CODE DESCRIPTION CODE DESCRIPTION
1535 Nowshera Junction 1550 Khushhal Kot 1555 Pir Piai 1560 Pabbi 1565 Taru Jabba 1570 Nasarpur 1575 Peshawar City 1580 Peshawar Cantt 1585 Hasham Killi 1590 Isalamia College 1595 Kacha Garhi 1600 Jamrud Junction 1620 Baghiari 1625 Medanak 1630 Changai 301 Sibi mixed 2 Goods Earnings 01 Fuel 01 Coal and Coke 01 Public 1635 Shahgai 302 Sibi mixed 02 Furnace Oil 00 1640 Kata Kushta 305 Chotiari Mixed 03 Diesel Oil 00 1645 Zintara 306 Chotiari Mixed 04 Fire Wood 00 1650 Sultan Khel 309 Kotri Mixed 04 Other Hydrocarbons 00 1655 Landi Kotal 310 Kotri Mixed 02 General Merchandise 01 Dry Port 00 1660 Torra Tigga 313 Larkana Mixed 02 Other Than Dry Port 00 1665 Landi Khana 314 Larkana Mixed 03 Military Traffic 01 Military Traffic 00 1687 Mihran (Halt) 315 Lahore Mixed 04 Foreign 00 00 1690 Model Colony (Halt) 316 Lahore Mixed 05 Livestock 01 Livestock 00 317 Amruka Mixed 06 Intra-Railway Transactions 01 Coal, Coke and Patent Fuel for Home 00 1695 Matapar Line 318 Amruka Mixed 02 Other Railway Materials and Stores for 00 1700 Malir Cant Home Line 319 Multan Mixed 07 Other Charges Recovered 01 Siding Charges 00 1720 Sind University 1722 Akhundabad 320 Multan Mixed 02 Shunting Charges 00 1725 Cedet College Petaro 321 Kasur Mixed 03 Left Empty Charges 00 1730 Unarpur 322 Kasur Mixed 04 Local Movement Charges 00 325 Noor Shah Mixed 08 Demurrage, Wharfage and 01 Stations 01 Demurrage 1735 Budapur Storage 1740 Khanot 326 Noor Shah Mixed 02 Wharfage 1745 Gopang 328 Peshawar Mixed 03 Storage Charges 1750 Manjhand 331 Wazirabad Mixed 04 Others 1755 Khuman 332 Wazirabad Mixed 02 Dry Port 01 Demurrage 1760 Sann 333 Koh-i-Noor Passenger 02 Wharfage 1765 Amri 334 Koh-i-Noor Passenger 03 Storage Charges 1770 Laki Shah Sadar 335 Marvi Mixed 04 Others 1775 Bagatora 336 Marvi Mixed 03 Foreign 01 Demurrage 1780 Sehwan Sharif 341 Gharibwal Mixed 02 Wharfage 1785 Chana (Halt) 342 Gharibwal Mixed 03 Storage Charges 1790 Bubak Road 343 Khewra Mixed 04 Others 1795 Bhan Sayadabad 344 Khewra Mixed 04 Others 01 Demurrage 1800 Khudabad 345 Kohat Mixed 02 Wharfage 1805 Yar Muhammad Kalhoro 346 Kohat Mixed 03 Storage Charges
Page 6 of 24 Appendix II SUBSIDIARY CODING SCHEME FOR REVENUE
(See paragraph 330)
STATION TRAIN EARNING TYPE SUB EARNING TYPEMAIN ACCOUNT DETAILED ACCOUNT RUPEES CODE NAME CODE NAME CODE DESCRIPTION CODE DESCRIPTION CODE DESCRIPTION CODE DESCRIPTION
349 Chaman Mixed 09 Miscellaneous Goods 01 Rail Road Collection and Delivery 00 1810 Dadu Earnings 1815 Makhdum Sahib (Halt) 350 Chaman Mixed 02 Sundry Dry Port 00 1820 Phulji 351 Mixed 03 Sundry Others 01 Import Surcharge 1825 Ibrahim Kachhi (Halt) 352 Mixed 02 Export Surcharge 1830 Piaro Goth 353 Mixed 04 Karachi Port Trust 01 Wharfage Entry & Storare 1835 Rahuja (Halt) 354 Mixed 05 Dry Port 01 Cranage Dry Port 1840 Rehmani-Nagar 355 Mixed 06 Others 00 1845 Shah Murtaza (Halt) 356 Mixed 80 Refunds 01 Stations 01 Overcharges 1850 Balishah 357 Mixed 02 Demurrage 1855 Shah Panjo (Halt) 358 Mixed 03 Wharfage 1860 Radhan 359 Mixed 04 Storage Charges 1865 Sihar 360 Mixed 05 Others 1870 Badah 361 Mixed 02 Dry Port 01 Overcharges 1875 Moenjo Daro 362 Mixed 02 Demurrage 1880 Bakhsh Jatoi 401 Samjhota Express 03 Wharfage 1885 Haider Jatoi 402 Samjhota Express 04 Storage Charges 1890 Bakrani Road 403 Zahidan Mixed Passenger 05 Others 1895 Mashori Sharif (Halt) 404 Zahidan Mixed Passenger 03 Foreign 01 Overcharges 1900 Larkana Junction 405 Thar Express 02 Demurrage 1915 Mahiota 406 Thar Express 03 Wharfage 1920 Shah Nawaz Bhutto 501 Freight Train 04 Storage Charges 1925 Nasrat 502 Freight Train 05 Others 1930 Madeji Road 503 Freight Train 04 Others 01 Overcharges 1935 Allahadani 504 Freight Train 02 Demurrage 1940 Ruk 505 Freight Train 03 Wharfage 1945 Habib Kot Junction 506 Freight Train 04 Storage Charges 1980 Zeal Pak Oil-1 Freight Train 90 Discounts 01 Military 00 1985 Ganja Takkar Oil-2 Freight Train 02 Others 00 1990 Husri Oil-3 Freight Train 1995 Khattar Oil-4 Freight Train 2000 Norai Sharif PGB Phos Freight Train 2005 Tando Muhammad Khan PSC (G)-1 Freight Train 2010 Nizam Sama (Halt) PSC (G)-2 Freight Train 2015 Malti DC-1 Freight Train 2020 Hakimani Syed Halt DC-2 Freight Train 2025 Palh 2030 Talhar 2035 Peeru Lishari 2040 Yusaf Shah (Halt) 2045 Badin 2055 Khokhropar 2060 Vasar Bah 2065 Jalo-Jo-Cauhnro 2070 Parche-Ji-Veri 2075 New Chhor 2080 Chhor 2083 Sumrasar (Halt) 2085 Hasisar 2090 Sardar (Halt)
Page 7 of 24 Appendix II SUBSIDIARY CODING SCHEME FOR REVENUE
(See paragraph 330)
STATION TRAIN EARNING TYPE SUB EARNING TYPEMAIN ACCOUNT DETAILED ACCOUNT RUPEES CODE NAME CODE NAME CODE DESCRIPTION CODE DESCRIPTION CODE DESCRIPTION CODE DESCRIPTION
2095 Dhoro Naro 2100 Hiral 2105 Pithoro Junction 2120 Saindad 2125 Shadipalli 2130 Abdullahabad (Halt) 2135 Balochabad (Halt) 2140 Jamrao Junction 2155 Sugar Mills 2160 MirPur Khas Goods 2165 Mirpur Khas Junction 2180 Ratanabad 2185 Sultanabad 2190 Sultanabad Colony (Halt) 2195 Kamaro Sharif 2200 Tando Allahyar 2205 Tajpur Nasarpur Road 2210 Tando Jam College 2215 Tando Jam 2220 Rahuki 2225 Detha (M.G) 2230 Mirrani 2270 Salih Bhambro 2275 Muhammad Rahim Kalru 2280 Samaro Road 000 3 Sundry Earnings 01 Electric Telegraph 01 Electric Telegraph Earning 00 2285 Kinjhejhi Earnings 2290 Kunri 02 Gauge of Microwave 00 2295 Hasan Rind 02 Rent and Tolls 01 Land 01 Agricultural Land 2300 Nabisar Road 02 Open Land 2305 Talhi 03 Land for Building Purposes 04 Lease for Commercial Purposes 2307 Nafees Nagar 2310 Fazl Bhambro 02 Buildings 01 Residential Buildings 2315 Naukot 02 Commercial Buildings 2320 Roshanabad 03 Other Buildings and Rooms 2325 Jhudo 04 Other Railway Institutions 2330 Tando Jan Muhammad 05 Outsiders 2335 Sufiabad 03 Other Assets 00 2340 Digri 04 Toll 01 Tolls of Bridges 03 Receipts from Catering 01 Catering Services 00 2345 Kachelo Department 2350 Kot Ghulam Muhammad 02 Other Services 00 04 Charges Recovered on 01 Work Done in Workshops 00 Work Done for Outside 2355 Mir Allahdad Talpur Parties 2360 Jhuluri 05 Profit on Sale of Assets 01 Capital Assets 00 2365 Khatlani Shaheed 02 Other Fixed Assets 00 2405 Shafiabad 03 Sale of Stores 00 2410 Minhan Khan Rind 06 Revenue from Sale 01 Coal and Ashes 00
Page 8 of 24 Appendix II SUBSIDIARY CODING SCHEME FOR REVENUE
(See paragraph 330)
STATION TRAIN EARNING TYPE SUB EARNING TYPEMAIN ACCOUNT DETAILED ACCOUNT RUPEES CODE NAME CODE NAME CODE DESCRIPTION CODE DESCRIPTION CODE DESCRIPTION CODE DESCRIPTION
2415 Gul Beg Marri 02 Grass and Trees 00 2420 Jam Sahib 03 Unserviceable Scrap 00 2425 Tando Sarwar 04 Unclaimed and Damaged Goods 00 2430 Sarwar Nagar 07 Advertisement Fees 01 Station Buildings 00 2435 Shahpur Chakar 02 Other Buildings 00 2440 Khadro 03 Bridges 00 2445 Rajar 04 Land 00 2450 Sinjhoro 05 Others 00 08 Income from Investment 01 Land 00 2455 Jhol Property 2460 Bobi Road 02 Buildings 00 2465 Nao-Abad 09 Dividends 01 Pracs 00 2470 Patoyun 02 Railcop 00 2475 Nazikabad 10 Franchising 01 Stations 00 2480 Khan 02 Others 00 2485 Ali Muhammad Mihr 11 Exchange Gain 01 Foreign Loans 00 2520 Mulla Makhan 02 Others 00 12 Miscellaneous Receipts 01 Excess Cash 00 2525 Bhitshah 2530 Hala 02 Income from Pre-qualification 00 2535 Barocho Bagh 03 Maintenance Charges 01 Saloons 2540 New Saidabad 02 Other than Saloons 2545 Allahdad Rahu (Halt) 04 Sundry Marketing Earnings 00 2550 Sabu Rahu 05 Fee Collected from Schools 00 2555 Khair Muhammad Laghari 06 Fee Collected from Hospitals 00 2560 Sakrand Junction 07 Profit on Running Power 00 08 Other Income Sundry 01 Sale Proceeds of Indemnity Bonds 2575 Sukhio Manahejo 2580 Kazi Ahmed 02 Cost of Tender Forms 03 Charges for Printing Work Done In 2585 Nawab Wali Muhammad Khan Railway Press 2590 Daulatpur Safan 04 Cost of Store Bulletin 05 Commission Received for Audit of Warrants and Credit Notes 2595 Shahpur Jahania 06 Diet Charges Recovered from 2600 Moro Railway Employees 07 Commission for Cess Collection 2605 Faiz Muhammad Manahi 08 Amounts Recovered from Vendors 2610 Jatoi 09 Oil and Electric Charges Recovered from Rest Houses Occupants 2615 Sumer Chandio (Halt) 10 Water Charges Recovered from 2620 Mithinai Employees 2625 Dalipota 11 Forfeited Deposits 12 Amounts Forfeited from Railway 2630 Tharushah Junction Servants 2665 Sukhpur 80 Refunds 01 Over Charges 00
Page 9 of 24 Appendix II SUBSIDIARY CODING SCHEME FOR REVENUE
(See paragraph 330)
STATION TRAIN EARNING TYPE SUB EARNING TYPEMAIN ACCOUNT DETAILED ACCOUNT RUPEES CODE NAME CODE NAME CODE DESCRIPTION CODE DESCRIPTION CODE DESCRIPTION CODE DESCRIPTION
2700 Pir Sadiq Shah (Halt) 02 Other Refunds 00 2705 Kalhora 2710 Naushahero Feroze 2715 Machur 2735 Darbelo 2740 Kandiaro 2745 Aqil Shah 2780 Sukkur 2785 Arain Road 2790 Gosarji 2795 Pir Bahkir 2800 Lakhi Ghulam Shah 2820 Haji Muhammad Ihsan 2825 Shikarpur 2830 Shaheed Allah Bakhsh 2835 Sultan Kot 2840 Humayun 2845 Abad 2850 Adam Khan 2855 Jacobabad Junction 2880 Dera Allah Yar 2885 Mangoli 2890 Dera Murad jamali 2895 Shori 2900 Nuttal 2905 Wazirani 2910 Chukhra 2915 Moghari (Closed) 2920 Bakhtairabad Domki 2925 Damboli 2930 Lashari 2935 Lindsay 2940 Dingra 2945 Mithri 2950 Perak 2955 Bolan 2960 Sibi Junction 2975 Nari West 2980 Nari Bank 2985 Mushkaf 2990 Pehro Kunri 2995 Ocepur 3000 Gadalar 3005 Panir 3010 Kohsar 3015 Peshi 3020 Laleji 3025 Chidarzai 3030 Ab-i-Gum 3035 Bohar
Page 10 of 24 Appendix II SUBSIDIARY CODING SCHEME FOR REVENUE
(See paragraph 330)
STATION TRAIN EARNING TYPE SUB EARNING TYPEMAIN ACCOUNT DETAILED ACCOUNT RUPEES CODE NAME CODE NAME CODE DESCRIPTION CODE DESCRIPTION CODE DESCRIPTION CODE DESCRIPTION
3040 Mach 3045 Sar-i-Bolan 3050 Hirok 3055 Dozan 3060 Kolpur 3065 Kiridhor 3070 Spezand Junction 3085 Mian Ghundi 3090 Sar-i-ab 3095 Kechi Beg 3100 Quetta 3105 Samungli Road 3110 Sheikh Mandah 3115 Beleli 3120 Ammunition Siding 3125 Kuch Lak 3130 Mohat 3135 Bostan Junction 3150 Yaru 3155 Saranan 3160 Saiyid Hamid 3165 Gulistan 3170 Spin Ghundi 3175 Kila Abdullah 3180 Zozlan 3185 Shela Bagh 3187 Khojak 3190 Sanzala 3195 Signal 3200 Chaman 3220 Bero Chandia 3225 Pir Muhammad Metlo 3230 Kambar Ali Khan 3235 Bahram Hathiun 3240 Gulam Muhammad Kario 3245 Silra Shahdadkot 3250 Bhurgari 3255 Umid Ali Junejo 3260 Garhir Khairo 3265 Usta Muhammad 3270 Chachar 3275 Chang 3280 Mauladad 3325 Dil Murad 3330 Odhano 3335 Thul Nau 3340 Mir Hasan Khoso 3345 Unhar Wah 3350 Haibat Shahid 3355 Kandhkot
Page 11 of 24 Appendix II SUBSIDIARY CODING SCHEME FOR REVENUE
(See paragraph 330)
STATION TRAIN EARNING TYPE SUB EARNING TYPEMAIN ACCOUNT DETAILED ACCOUNT RUPEES CODE NAME CODE NAME CODE DESCRIPTION CODE DESCRIPTION CODE DESCRIPTION CODE DESCRIPTION
3360 Zongarh 3365 Bakhshapur 3370 Mir Dost Ali 3375 Kashmor Junction 3400 Nari 3405 Tarduri 3410 Babar Kachh 3415 Kochali 3420 Dalujal 3425 Spintangi 3430 Sunari 3435 Harnai 3440 Nakus 3445 Sharigh 3450 Khost 3455 Zardalu 3475 Doctor Chah 3480 Wali Khan 3485 Kanak 3490 Sheikh Wasil 3495 Barag Khund 3500 Kirdagap 3505 Galangur Kotal 3510 Galangur 3515 Kishingi 3520 Ablak 3525 Nushki 3530 Zangiabad 3535 Ahmedwal 3540 Sarmall 3545 Pain Mall 3550 Bilas 3555 Padag Road 3560 Yadgar 3565 Nok Chah 3570 Pishok 3575 Brickfield 3580 Dalbandin 3585 Taloo 3590 Ismaili 3595 Yakmach 3600 Noli 3605 Gat 3610 Azad 3615 Isatahir 3620 Nok-Kundi 3625 Alam Reg 3630 Tozghi 3635 Warechah (Halt) 3640 Reg-I-Malik
Page 12 of 24 Appendix II SUBSIDIARY CODING SCHEME FOR REVENUE
(See paragraph 330)
STATION TRAIN EARNING TYPE SUB EARNING TYPEMAIN ACCOUNT DETAILED ACCOUNT RUPEES CODE NAME CODE NAME CODE DESCRIPTION CODE DESCRIPTION CODE DESCRIPTION CODE DESCRIPTION
3645 Kuhi-Taftan 3655 Mirjawa 3660 Bug 3665 Khan Muhammad Chah 3670 Kacha Road 3675 Lar 3680 Zahidan 3700 Khanai 3705 Gwal 3710 Zarghun 3715 Khanozai 3720 Toraaghbargi 3725 Churmian 3730 Kan Mehtarzai 3735 Rahmgul 3740 Seratangi 3745 Muslimbagh 3750 Chorme (Halt) 3755 Shina Khewra 3760 Nasai 3765 Kila Saifullah 3770 Alozai 3775 Shinkai 3780 Tang Haiderzai 3785 Simzai 3790 Mina Bazar 3795 Badizai 3800 Zhob 3805 Chachran 3810 Zahir Pir 3815 Jajja Abbasian 3820 Kotla Pathan 3845 Hindumalkote 3850 Qasimwal 3855 Mandi Sadiq Ganj Junction 3870 Chet Singhwala 3875 Minchinabad 3880 Chabiana 3885 Chaweka Road 3890 Mitti Roya 3895 Bahawalnagar Junction 3910 Girdhariwal 3915 Takht Mahal 3920 Madrisa 3925 Chak Abdulla 3930 Sakhi Shauk Illahi 3935 Chistian 3940 Sadiqpur 3945 Bakhshan Khan 3950 Khanqah Muhd Panah
Page 13 of 24 Appendix II SUBSIDIARY CODING SCHEME FOR REVENUE
(See paragraph 330)
STATION TRAIN EARNING TYPE SUB EARNING TYPEMAIN ACCOUNT DETAILED ACCOUNT RUPEES CODE NAME CODE NAME CODE DESCRIPTION CODE DESCRIPTION CODE DESCRIPTION CODE DESCRIPTION
3955 Hasilpur 3960 Qaimpur 3965 Shikhwahan 3970 goolpur Talbani 3975 Temewal 3980 Asrani 3985 Goth Shah Muhammad 3990 Lalsuhanra 3995 Abbasnagar 4000 Dara Bakha 4005 Baghdad 4010 Kut-Al-Imara 4035 Amruka 4040 Sobhawalla 4075 Dhab Sanateka 4080 Sawai Wala 4085 Daunga Bunga 4090 Khatan 4095 Harunabad 4100 Mubarakabad 4105 Faqirwali 4110 Rafiqabad 4115 Khaichiwala 4120 Shahbazwala 4125 Tibba Alamgir (Halt) 4130 Fort Abbas 4155 Mujaldiwala (Halt) 4160 jamrani Wah 4165 Pir Jewan Sultan 4170 Kahror Pakka 4175 Amirpur (Halt) 4180 Sardar Jhandir 4185 Ashraf Shah 4190 Mailsi 4195 Farm Nur Muhammad 4200 Nur Shah 4205 Zafar Iqbal 4210 Vihari 4215 Kussam Sar 4220 Machhianwala 4225 Zahirnagar 4230 Mandi Burewala 4235 Rehmanpura 4240 Gaggoo 4245 Faridnagar 4250 Muhammad Nagar 4255 Arif Wala 4260 Kot Pir Abdul Aziz 4265 Murad Chisthi 4270 Pakka Sidhar
Page 14 of 24 Appendix II SUBSIDIARY CODING SCHEME FOR REVENUE
(See paragraph 330)
STATION TRAIN EARNING TYPE SUB EARNING TYPEMAIN ACCOUNT DETAILED ACCOUNT RUPEES CODE NAME CODE NAME CODE DESCRIPTION CODE DESCRIPTION CODE DESCRIPTION CODE DESCRIPTION
4275 Pakpattan 4280 Chah Nur Muhammad 4285 Maulviwala 4290 Chak Kambo 4295 Haveli Wasawewala 4300 Kila Dewa Singh 4305 Basirpur 4310 Gul Sher 4313 Rasulpur 4315 Mandi Ahmadabad 4320 Haji Chand 4325 Kanganpur 4330 Basti Qutab Shah 4335 Kul Mokal 4340 Usmanwala 4345 Dholan 4350 Khudian Khas 4353 Dostpura 4355 Bhila Hithar 4360 Kasur Junction 4400 Kasur Tehsil 4405 Khem Karn 4420 Ganda Singh Wala 4450 Athilpur 4455 Raokhanwal 4460 Raja Jang 4500 Shah Nal 4505 Mujahidabad 4510 Gilawala 4515 Noori Lal (Halt) 4520 Zrif Shaheed 4525 Basti Dad 4530 Shujabad 4535 Chak 4540 Buch 4545 Pir Mukhtiarwala 4550 Sher Shah Junction 4565 Muzaffarabad 4570 Qila-I-Nau (Halt) 4575 Multan Cant 4580 Multan City 4585 Mumtazabad (Halt) 4590 Piran Ghaib 4595 Tatipur 4600 Riazabad 4605 Kot Abbas Shaeed 4610 Shamkote 4650 Chenab West Bank 4655 Muzaffargarh 4660 Kotal Laghari
Page 15 of 24 Appendix II SUBSIDIARY CODING SCHEME FOR REVENUE
(See paragraph 330)
STATION TRAIN EARNING TYPE SUB EARNING TYPEMAIN ACCOUNT DETAILED ACCOUNT RUPEES CODE NAME CODE NAME CODE DESCRIPTION CODE DESCRIPTION CODE DESCRIPTION CODE DESCRIPTION
4665 Budh 4670 Pir Barkhudar (Halt) 4675 Hamdaniwala (Halt) 4677 Lal Pir 4680 Mahmud Kot 4685 Gurmani 4690 Sanawan 4695 Lal Mir (Halt) 4700 Kot Adu Junction 4715 Dera Dinpanah 4720 Ahsanpur 4725 Paharpur Thal 4730 Kot Sultan 4732 Kharal Azim 4735 Jaman Shah 4740 Leiah 4745 Kotla Haji Shah (Halt) 4750 Dorata 4755 Rajan Shah 4760 Karor 4765 Samtiah 4770 Sadan Sawaya 4775 Behal 4780 Notak 4785 Sultan Karori (Halt) 4790 Bhakkar 4795 Kotla Jam 4800 Darya Khan 4805 Panj Girain 4810 Shah Alam 4815 Maibal 4820 Kallur Kot 4825 Tibba Meharban Shah 4830 Piplan 4835 Bhumb 4840 Alluwali 4845 Khanqah Sirajia 4850 Kundian Junction 4865 Sabzazar 4870 Wanbhachran 4875 Shadia 4880 Bandial 4885 Qaidabad 4890 Mitha Tiwana 4895 Hadali 4900 Jauharabad 4905 Khushab Junction 4920 Sandral 4925 Rakh Rajar 4930 Dhak
Page 16 of 24 Appendix II SUBSIDIARY CODING SCHEME FOR REVENUE
(See paragraph 330)
STATION TRAIN EARNING TYPE SUB EARNING TYPEMAIN ACCOUNT DETAILED ACCOUNT RUPEES CODE NAME CODE NAME CODE DESCRIPTION CODE DESCRIPTION CODE DESCRIPTION CODE DESCRIPTION
4935 Kandwal (Halt) 4940 Lilla 4945 Lilla Town 4950 Tobah 4955 Saroba 4960 Golpur 4965 Pind Dadan Khan 4970 Chalisa Junction 4985 Haranpur Junction 5000 Chak Nizam 5005 Malakwal Junction 5030 Fateh Shahpur 5035 Hariah 5040 Ala 5045 Shah Taj 5050 Mandi Baha-Ud-Din 5055 Lakhnewala (Halt) 5060 Chilianwala 5062 Chak Sher Mahammad 5065 Dinga 5070 Jafarabad (Halt) 5073 Pir jand (Halt) 5075 Jaurah Karanana 5077 Akhtar Karnana 5095 Dandot 5100 Khewra 5105 Khewra Chemical Work 5110 Gujjar 5130 Gharibwal 5135 Rafiqwal 5155 Bhera 5160 Hazurpur 5165 Miani 5170 Nazirabad (Halt) 5175 Chak Saida (Halt) 5215 Sumbal Hamid 5220 Mianwali 5225 Biruli 5230 Sammandwala 5235 Pail Khel 5240 Dher Umid Ali 5245 Daud Khel Junction 5260 Massan 5265 Sohan Bridge 5270 Makhad Road 5275 Injra 5277 Khattakabad 5280 Chhab 5285 Jhamat 5290 Uchhri
Page 17 of 24 Appendix II SUBSIDIARY CODING SCHEME FOR REVENUE
(See paragraph 330)
STATION TRAIN EARNING TYPE SUB EARNING TYPEMAIN ACCOUNT DETAILED ACCOUNT RUPEES CODE NAME CODE NAME CODE DESCRIPTION CODE DESCRIPTION CODE DESCRIPTION CODE DESCRIPTION
5295 Jand Junction 5310 Lanagar 5315 Chura Sharif (Halt) 5320 Nammal 5325 Domel 5330 Basal Junction 5345 Sulaimanabad 5350 Jhalar 5355 Kanjur 5390 Cement Factory Siding 5395 Mari Indus 5400 KalaBagh 5405 Khudozai 5410 Kaman Mashani 5415 Trag 5420 Isa Khel 5425 Kurram Bridge 5430 Thanedarwala 5435 Arsala Khan 5440 Laki Marwat Junction 5455 Gambila Serat 5460 Gandi Khan Khel 5465 Naurang Serai 5470 Naurang Serai Sugar Mills 5475 Ghoriwal 5480 Bannu 5500 Aba Khel 5505 Shahbaz Khel (Halt) 5510 Pezu 5515 Drakki 5520 Gul Imam 5525 Sidki 5530 Tank Junction 5550 Boltonabad 5555 Kaur 5560 Manzai 5565 Thal 5570 Darsmand 5575 Doaba 5580 Kahi 5585 Togh 5590 Hangu 5595 Hangu Camp 5600 Ibrahimzai(Closed) 5605 Raisan 5610 Ustarzai 5615 Chikarkot 5620 Nasrat Khel(Closed) 5625 Kohat Tehsil 5630 Kohat Cant
Page 18 of 24 Appendix II SUBSIDIARY CODING SCHEME FOR REVENUE
(See paragraph 330)
STATION TRAIN EARNING TYPE SUB EARNING TYPEMAIN ACCOUNT DETAILED ACCOUNT RUPEES CODE NAME CODE NAME CODE DESCRIPTION CODE DESCRIPTION CODE DESCRIPTION CODE DESCRIPTION
5635 Cadat College Kohat 5640 Babari Banda 5645 Seni Gamabat 5650 Ghurzai 5655 Tilkan 5660 Faqir Hussain Shahed 5665 Khushalgarh 5705 Mian Shmir 5710 Makhdumpur Pahoran 5715 Jan Muhammedwala 5720 Abbdul Hakim 5725 Daira Mehram 5730 Darkhana 5735 Jarala 5740 Shorkot Cant Junction 5765 Sattarwala (Halt) 5770 Chutiana 5775 Alisar (Halt) 5780 Dabanwala 5785 Toba Tek Singh 5790 Seowal (Halt) 5795 Janiwala 5800 Noorpur 5805 Gojra 5810 Kot Saleem Shaheed 5815 Kot Abadan (Halt) 5820 Pakka Anna 5825 Sar Shmair Road 5830 Abbaspur 5835 Risalewala 5840 Samanabad 5845 Faisalabad 5850 Nishatabad 5855 Gatti (FSLD Dry Port) 5860 Sultan Nagar 5865 Chak Jhumra Junction 5880 Sahinawala 5885 Dar-Ul-Ihsan 5890 Sangla Hill Junction 5905 Marh Balochan 5910 Rattian 5915 Sukheke 5920 Nautheh 5925 Kaleke 5930 Madhrarianwala 5935 Hafizabad 5940 Shori Chatta (Halt) 5945 Gajargola 5950 Alipur Chatta 5955 Manchar Chatta
Page 19 of 24 Appendix II SUBSIDIARY CODING SCHEME FOR REVENUE
(See paragraph 330)
STATION TRAIN EARNING TYPE SUB EARNING TYPEMAIN ACCOUNT DETAILED ACCOUNT RUPEES CODE NAME CODE NAME CODE DESCRIPTION CODE DESCRIPTION CODE DESCRIPTION CODE DESCRIPTION
5960 Jamke Chatta 5965 Dharowal Kang (Halt) 5970 Mansurwali 5975 Wadala Cheema (Halt) 6005 Ghakha Mittar 6010 Sodhra Kopra 6015 Begowala 6020 Sambrial 6025 Sahowala 6030 Ugoke 6035 Sialkot Junction 6050 Sialkot Cant 6055 Suchetgarh Junction 6075 Ranbirsinghpura 6080 Miran Sahib 6085 Jammu Cantt 6090 Jammu(Tawi) 6115 Khanora 6120 Waryam 6125 Rustam Sargana 6130 Gilmala 6135 Mudduki 6140 Jhang Sadar 6145 Jhang City 6150 Thatta Mahla 6155 Rivaz East Bank 6160 Rivaz West Bank 6165 Chund 6170 Shah Jewana 6175 Shah Nikdur 6180 Panj Pir (Halt) 6185 Sobhage 6190 Hafeezabad (Halt) 6195 Haryanwal 6197 Khalidabad 6200 Sillanwali 6205 Manguana 6210 Aldana 6215 Shahinabad Junction 6230 Pindi Rasul 6235 Charnali 6240 Bajwa (Halt) 6245 Tariqabad 6250 Sargodha Junction 6265 Mitha Lak 6270 Chak Waraichanwala 6275 Ajnala 6280 Qudratabad 6285 Bhalwal 6290 Wilsonpur
Page 20 of 24 Appendix II SUBSIDIARY CODING SCHEME FOR REVENUE
(See paragraph 330)
STATION TRAIN EARNING TYPE SUB EARNING TYPEMAIN ACCOUNT DETAILED ACCOUNT RUPEES CODE NAME CODE NAME CODE DESCRIPTION CODE DESCRIPTION CODE DESCRIPTION CODE DESCRIPTION
6295 Phularwan 6300 Mansurabad 6305 Mona 6310 Pind Mukko (Halt) 6315 Pakhowal 6320 Banh Mianwali (Halt) 6325 Chak Saida (Halt) 6365 Sathoiwala 6370 Burj 6375 Munianwala 6380 Chiniot 6385 Chenab Nagar 6390 Lalian 6395 Tinoka 6400 Nishtarabad 6435 Ludewala 6440 Dherma 6445 Wegowal 6450 Shahpur Sadar 6455 Shahpur City 6485 Qila Sheikhupura Junction 6490 Bahrianwala 6495 Bahuman 6500 Mahmunwali 6505 Warburton 6510 Vakilwala 6515 Nanakana Sahab 6520 Zafarwal 6525 Buchiana 6530 Panj Pulla (Halt) 6535 Kot Daya Kishan 6540 Jaranwala 6545 Tufail Shahid (Halt) 6550 Patla 6555 Pithu Rana (Halt) 6560 Rurala Road 6565 Sarwar Shaheed (Halt) 6570 Jhok Ditta 6575 Chak Turan 6580 Tandianwala 6585 Chak Ibrahim Bhatti 6590 Mandi Rahme Shah 6595 Kanjwani 6600 Kot Khair Din (Halt) 6605 Manjhla Bagh 6610 Mamu Kanjan 6615 Kot Darya Bal 6620 Kamalia 6625 Magneja 6630 Pir Mahal
Page 21 of 24 Appendix II SUBSIDIARY CODING SCHEME FOR REVENUE
(See paragraph 330)
STATION TRAIN EARNING TYPE SUB EARNING TYPEMAIN ACCOUNT DETAILED ACCOUNT RUPEES CODE NAME CODE NAME CODE DESCRIPTION CODE DESCRIPTION CODE DESCRIPTION CODE DESCRIPTION
6635 Naim Ishfaq Shaheed 6680 Imamia Colony 6685 Missan Kalar 6690 Shakirabad 6695 Qila Sattar Shah 6700 Chichoki Mallian 6720 Machhike 6725 Farooqabad 6730 Sachca Sauda 6735 Bahalike 6740 Nawan Pind 6745 Safdarabad 6750 Abdullahpur Kolar 6755 Moman 6760 langowal Baruhi(Halt 6800 Kot Mul Chand 6805 Babakwal 6810 Srirampura 6815 Chah Sayidanwala 6820 Kala Khatai 6825 Shah Sultan (Halt) 6830 Narang 6835 Khunda Ladheke 6840 Mehta Suja 6845 Baddomalhi 6847 Alamgir Town 6850 Raya Khas 6855 Daud (Halt) 6860 Pejowali 6865 Kalas Goraya (Halt) 6870 Narowal Junction 6900 Jassar Junction 6925 Hazrat Shams Ghous 6930 Darbar Sahib Kartarp 6935 Bustan Afghanan 6940 NurKot 6945 Tehsil Shakargarh 6950 Mariyal 6955 Chak Amru 6975 Tasirabad 6980 Gunna Kalan 6985 Alhar 6990 Chawinda 6995 Pasrur 7000 Qila Sobha Sinagh 7005 Alipur Sayadan 7010 Domala 7045 Hanapur 7050 Rehana 7055 Hastedpur
Page 22 of 24 Appendix II SUBSIDIARY CODING SCHEME FOR REVENUE
(See paragraph 330)
STATION TRAIN EARNING TYPE SUB EARNING TYPEMAIN ACCOUNT DETAILED ACCOUNT RUPEES CODE NAME CODE NAME CODE DESCRIPTION CODE DESCRIPTION CODE DESCRIPTION CODE DESCRIPTION
7090 Harnal (Halt) 7095 Taragarh 7100 Sukho 7105 Muradi Janjil 7110 Daulatala 7115 Sood Bhidana 7120 Sayyad Kasran 7125 Dhudial 7130 Chak Naurang 7135 Behkari (Halt) 7140 Cakwal 7145 Bhaun 7165 Kahal 7170 Chauntra 7175 Mirjal 7180 Gagan 7185 Fateh Jhang 7190 Kutbal 7195 Nawgazi 7230 Mohra Shahwali 7235 Usman Khattar 7240 Farooqia 7245 Hattar 7250 Kot Najib Ullah 7253 Fertilizer Factory S 7255 Haripur Hazara 7260 Serai Saleh 7265 Baldher 7267 Sultanpur 7270 Havelian 7290 Kabul Seen Pul 7295 Kabul River 7300 Risalpur Cant 7305 Rashkai 7325 Gujar Garhi 7330 Kalpani 7335 Takht-i-Bhai 7340 Parkhoo Dheri 7345 Hathiyan 7350 Skhakot 7355 Durgai 7375 Qudrat 7380 Manga 7385 Qala-I-Nasir 7390 Sar Dheri 7395 Charsadda 7405 Wagah 7410 Taqipur 7415 Jallo 7420 Gullarpir (Halt)
Page 23 of 24 Appendix II SUBSIDIARY CODING SCHEME FOR REVENUE
(See paragraph 330)
STATION TRAIN EARNING TYPE SUB EARNING TYPEMAIN ACCOUNT DETAILED ACCOUNT RUPEES CODE NAME CODE NAME CODE DESCRIPTION CODE DESCRIPTION CODE DESCRIPTION CODE DESCRIPTION
7425 Harbanspura 7430 Muslimabad (Halt) 7435 Moghalpura Junction 7480 Depot Hill 7485 Karachi University 7490 Urdu College (Halt) 7495 Karachi Central 7500 Liaqatabad 7505 North Nazimabad 7510 Orangi 7515 Manghopir 7520 Site 7525 Shah Abdul Latif 7530 Baldia 7535 Lyari 7540 Wazir Mansion 7545 Karachi Port Trust 7580 Taunsa Barrage Colony 7585 Taunsa Barrage 7590 Shadan Lund 7595 Basti Rahman 7600 Basti Darwash Lashar 7605 Dost Muhammad Abad 7610 Yaru Khosa 7615 Dera Ghazi Khan 7620 Paigah 7625 Kot Chhutta 7630 Basti Fauja 7635 Jampur 7640 Azmatwala 7645 Muhammadpur Diwan 7650 Hamunwala 7655 Fazilpur Dhandi 7660 Kotla Ihsan 7665 Rajanpur 7670 Kotla Nasir 7675 Mithan Kot 7680 Murghai 7685 Kot Behram 7690 Badli Mazari 7695 Rojhan 7700 Wali Mazari 7705 Basti Abdullah Halt 7710 Shah Wali 7715 Kashmor Colony 7745 Korangi 7758 Lahore Dry Port 7785 Margala (Islamabad Dry Port) 7790 Islamabad
Page 24 of 24 APPENDIX III
FINANCIAL POWERS DELEGATED TO THE MINISTRIES AND THE HEADS OF THE DEPARTMENT BY FINANCE DIVISION, GOVERNMENT OF PAKISTAN
(See paragraph 438)
Powers Delegated to S. Powers Delegated to the Name of Powers the Heads of Remarks No. Ministries / Divisions Departments 1 2 3 4 5 1 Creation of The creation of new posts in the Pakistan Diplomat (i) A post in any office Temporary posts Current Expenditure shall require may create a or department the approval of the Finance temporary post for a which has remained Division, even when these are maximum period of 5 vacant for a period included in the current budget. The days for enabling the of three years or Secretaries of the Ministries / transferred official to more shall be Divisions shall have full powers to brief the incoming deemed to have create new post(s) in the official and to hand been abolished. The Development Expenditure / PSDP, over to him powers for revival of included in PC-I or PC-II after the accountable that post shall not be approval of the project by the documents etc. exercised without relevant forum subject to obtaining prior availability of development budget approval of the against Employees Related Financial Adviser. Expenses. These posts shall be continued on year to year basis till (ii) Financial Adviser’s the completion of the project. Such concurrence for posts(s) will cease to exist on the continuance of closure / completion of the project. temporary posts in After completion of the project and the next financial submission of PC-IV, the barest year may be sought minimum and essential post(s) shall well before the be converted from Development beginning of that Expenditure to Current Expenditure year so that the with the approval of the Financial posts not agreed to Adviser. by the Financial Adviser are not continued in the next financial year even for a day.
(iii) The proposals for creation of temporary posts belonging to Occupational Groups / Services administratively controlled by the Establishment Division will first be referred to the Establishment
Page 1 of 24 APPENDIX III
Powers Delegated to S. Powers Delegated to the Name of Powers the Heads of Remarks No. Ministries / Divisions Departments 1 2 3 4 5 Division for clearance. 2 Conversion of a Full powers, subject to the As in column 3. Details of temporary temporary post following conditions: posts converted into into a permanent permanent during the post Posts which have been in existence course of a financial continuously for five years or more, year, which are and have been created for work of proposed to be a permanent nature, and are likely transferred from Part-II to to continue for an indefinite Part-I of the budget for period. the next year, should invariably be reported to the Financial Adviser before the 1st October, every year. 3 Abolition of posts Full Powers. As in column 3.
4 Reimbursement of Full powers subject to availability As in column 3. Medical Charges of budget.
5 Re-appropriation Full powers, subject to the As in column 3. of funds observance of the following general restrictions and to the supply of a certificate to Audit by the administrative Ministry / Division while issuing orders for re-appropriation to the effect that the expenditure to be met by re- appropriation from the relevant minor and detailed objects was not foreseen at the time of budget; the expenditure cannot be reduced nor can it be postponed to the next year; and the expenditure in question was not specifically disallowed by the Finance Division at the time of approving the budget estimates.
General Instructions:
(I) (a) No appropriation or re- appropriation may be made:
(i) from one grant to another;
(ii) after the expiry of the financial year;
Page 2 of 24 APPENDIX III
Powers Delegated to S. Powers Delegated to the Name of Powers the Heads of Remarks No. Ministries / Divisions Departments 1 2 3 4 5
(iii) between funds authorized for expenditure charged on the Federal Consolidated Fund and other expenditure;
(b) Funds may not be appropriated or re-appropriated to meet: (i) any item of expenditure which has not been sanctioned by an authority competent to sanction it;
(ii) expenditure on a “new service” If funds to meet a new not provided for in the budget service are available estimates authorized for the year; under the relevant grant, and re-appropriation for such (iii) expenditure for a purpose the new service may be allotment for which was made after a token sum specifically reduced or refused by has been allocated the National Assembly. through a Supplementary Grant. (a) All powers of appropriation and re-appropriation conferred upon Administrative Ministries / Divisions/ Departments/Sub- ordinate Offices and other authorities are subject to the condition that without the previous consent of the Financial Adviser / Finance Division:
(i) an authority may not meet, by re-appropriation, expenditure which it is not empowered to meet by appropriation;. (ii) lump-sum provision for expenditure included in a grant may not be appropriated or re- appropriated;
(b) No re-appropriation may be made:
(i) from Development to Current Expenditure and vice-versa;
Page 3 of 24 APPENDIX III
Powers Delegated to S. Powers Delegated to the Name of Powers the Heads of Remarks No. Ministries / Divisions Departments 1 2 3 4 5 (ii) from to, or within the Employees Related Expenses, from Operating Expenses- Communication-Telephone & Trunk Calls, Telex, Teleprinter & FAX, Electronic Communication; Utilities: Gas, Water, Electricity; Secret Service Expenditure, Unforeseen Expenditure for Disaster Preparedness & Relief and Occupancy Costs. (iii) of provision specifically made in the budget for expenditure in foreign exchange to expenditure in local currency; and (iv) of provision allowed as Supplementary Grant;.
(d) Funds may not be appropriated or re-appropriated to meet any expenditure, which is likely to involve further outlay in a future financial year. (a) No Ministry / Division / In the case of Department / Subordinate Office expenditure on works, (including any autonomous body) the conditions laid down shall be authorized to re- in paragraphs 31 and 32 appropriate funds from one of Appendix 6 to the development scheme to another Central Public Works development scheme. In Account Code shall also exceptional cases, however, re- apply. appropriation of such funds may be allowed, where necessary, by Financial Adviser on the recommendation of Planning and Development Division. (b) In the case of development Appropriation or re- schemes controlled/ executed by appropriation in the Planning and Development accordance with Division themselves, approval for provisions of S.No. 5(I), re-appropriation of funds from one (II) and (III) in Column 3 development scheme to another, if by a competent authority necessary, shall be made with the will, if that authority is prior approval of the Financial authorized to sanction Adviser to that Division. the expenditure in question, operate as sanction to such expenditure.
Page 4 of 24 APPENDIX III
Powers Delegated to S. Powers Delegated to the Name of Powers the Heads of Remarks No. Ministries / Divisions Departments 1 2 3 4 5
6 Power to declare Full powers, subject to prescribed As in column 3. Heads of Pakistan stores surplus or conditions. Missions abroad may unserviceable. exercise these powers in accordance with approved scales, in respect of the residences of officers subordinate to them.
7 Powers to sell Full powers, subject to the As in column 3. Heads of Pakistan surplus or prescribed conditions. Missions abroad may unserviceable exercise these powers in stores and stock accordance with by auction. approved scales, in respect of the residences of officers subordinate to them.
8 Write off of Upto Rupees 5,000,000 (Rupees Upto to Rupees irrecoverable Five Million) in each case, 100,000 (Rupees One value of stores or provided that : hundred thousand) public money due (a) the loss does not disclose a subject to observance to losses on defect of system the amendment of of conditions account of fraud, which requires the orders of higher mentioned in Column theft, etc. authority; and 3. (b) there has not been any serious negligence on the part of some individual government officer or officers, which may possibly call for disciplinary action requiring the orders of any higher authority. (ii) Powers to write-off of losses up Subordinate authorities to a limit of Rupees 200,000 already enjoying the (Rupees Two Hundred Thousand) power in (ii) of Column 3 to cover deficiencies on account of beyond this limit may breakage, shortage in transit, continue to exercise wastage, spoilage and bottling, those powers. dryness in storage and depreciation on account of wear and tear fluctuation in market prices and obsolescence.
Page 5 of 24 APPENDIX III
Powers Delegated to S. Powers Delegated to the Name of Powers the Heads of Remarks No. Ministries / Divisions Departments 1 2 3 4 5 9 Expenditure against provisions in the budget shall be sanctioned in the following manners:
Project Pre- Investment Analysis
(1) Feasibility Full powers, subject to the As in column 3. Studies, Research prescribed conditions. and Surveys and Exploratory Operations
Operating Expenses
(2) Travelling Full powers, subject to the As in column 3. Allowance. prescribed conditions.
(3) Transportatio Full powers. As in column 3. n of goods.
(4) POL Charges Full powers, subject to observance As in column 3. and CNG of ceilings where applicable. Charges.
(5) Conveyance Full powers, subject to the As in column 3. charges. prescribed conditions.
(6) Postage Full Powers. As in column 3.
(7) Telephone Full powers, subject to observance As in column 3. and Trunk Calls of prescribed ceilings where applicable. (8) Telex and Full powers, subject to observance As in column 3. Teleprinter and of prescribed ceilings where FAX applicable.
(9) Electronic Full powers, subject to observance As in column 3. Communication. of prescribed ceilings where applicable.
Page 6 of 24 APPENDIX III
Powers Delegated to S. Powers Delegated to the Name of Powers the Heads of Remarks No. Ministries / Divisions Departments 1 2 3 4 5 (10) Courier and Full Powers. As in column 3. Pilot Services
(11) Utilities (Gas, Full powers, subject to observance As in column 3. Water, Electricity) of prescribed ceilings where Hot & Cold applicable. Weather Charges, Others.
(12) Office Full Powers. As in column 3. Stationery.
(13) Printing & Full powers, provided that printing As in column 3. The job of printing Publications. at a press other than a press of the material of sensitive and Printing Corporation of Pakistan, classified nature shall should be undertaken only if the continue to be Principal Accounting Officer is performed by Printing satisfied that it is in public interest Corporation of Pakistan. to do so and records a certificate to The Principal that effect. Accounting Officer shall determine the nature of such printing material.
(14) Newspapers Full Powers. As in column 3. Periodicals and Books.
(15) Uniform and Full Powers, provided that the As in column 3. Liveries. purchase of uniforms and liveries shall be made subject to the prescribed scales and prices.
(16) Rent of non- (i) Works Division & Defence The powers to incur residential Division. Full powers. expenditure on rent of buildings. “non-residential” and (ii) Ministry of Foreign Affairs. Full “residential” buildings powers in respect of Pakistan shall be subject to the Missions abroad. approved rates and (iii) Other Ministries/Divisions: scales. (a) Upto Rupees 100,000 (Rupees One Hundred Thousand) per In sanctioning rents, month for Islamabad / Rawalpindi / merits and local Lahore / Karachi / Peshawar / conditions in each case Quetta. will be kept in mind. (b) Upto Rupees 50,000 (Rupees Fifty thousand) per month for other place or as approved from time to time.
Page 7 of 24 APPENDIX III
Powers Delegated to S. Powers Delegated to the Name of Powers the Heads of Remarks No. Ministries / Divisions Departments 1 2 3 4 5
(17) Rent of (i) Full powers to incur expenditure As in column 3. (1)In sanctioning rent, Residential from within the sanctioned budget merits and local Buildings. grant as per prescribed rental conditions in each case ceiling and grant one year advance will be kept in mind. payment of rent during the lease (2) Powers at (i) and (ii) period and subject to availability of in Column 3 may be funds. exercised only in the case of government (ii) Ministry of Foreign Affairs: Full servants who are entitled powers in respect of Pakistan to provision of residential Missions Abroad. accommodation under any general or specific orders.
(18) Consultancy Full Powers subject to observance As in column 3. and Contractual of prescribed conditions. Work.
(19) Royalties, Full powers. As in column 3. Rates and Taxes, Rent of Machine and Equipment.
(20) Training Full powers. As in column 3. Domestic.
(21) Payment to Full powers. As in column 3. Government Departments for services rendered
(22) Essay writing Full powers. As in column 3. and Copy Rights
(23) Law Charges. Full powers, in consultation with As in column 3. Law Division.
(24) Fees to Law Full powers, in consultation with As in column 3. Officers Law Division.
(25) Exhibitions, Full powers. As in column 3. Fairs and Other National Celebrations
Page 8 of 24 APPENDIX III
Powers Delegated to S. Powers Delegated to the Name of Powers the Heads of Remarks No. Ministries / Divisions Departments 1 2 3 4 5 (26) Advertising Full powers, subject to prescribed As in column 3. and Publicity. conditions.
(27) Payments to Full powers, subject to observance As in column 3. Others for of prescribed conditions. services rendered.
(28) Purchase of Full powers. As in column 3. drugs and medicines.
(29) Contribution Full powers. As in column 3. & Subscription.
(30) Expenditure Full powers, in accordance with As in Column 3. on Pakistani prescribed conditions. delegations to Foreign Countries.
(31) Loss on Full powers, in accordance with As in column 3. Exchange prescribed conditions.
(32) Secret Full powers, in accordance with As in column 3. Service prescribed conditions. Expenditure (33) Conferences Full powers, in accordance with As in column 3. / Seminars / prescribed conditions. workshops / Symposia
(34) Unforeseen Rupees 100,000 (One Hundred Rupees 50,000 Expenditure. Thousand) (Rupees Fifty Thousand) Employees Retirement Benefits
(35) Reimbursem Full powers subject to availability As in column 3. ent of Medical of budget. Charges to Pensioners.
Grants
(36) Grants (i) Institutions wholly financed by As in clause (i) and (ii) domestic. the government:- (a) of column 3. Full powers, to release the amount
Page 9 of 24 APPENDIX III
Powers Delegated to S. Powers Delegated to the Name of Powers the Heads of Remarks No. Ministries / Divisions Departments 1 2 3 4 5 specifically provided for this purpose in the budget subject to the prescribed conditions. (ii) Institution not wholly financed by the government:-
(a) Full powers subject to the prescribed conditions to sanction recurring grants, provided that specific budget provision in respect of each individual institution is made. (b) For non-recurring grants not covered by the rules; upto Rupees 10,000 (Rupees Ten Thousand) in a year subject to the prescribed conditions provided that budget provision exists.
Transfers
(37) Scholarships, Full powers in accordance with the As in column 3. Bonuses and approved rates for scales. Other Awards.
(38) Entertainmen (i) For light refreshment not As in (i) of column 3. Welcome or farewell t. exceeding Rupees 30 (Rupees receptions, lunches and Thirty) per head at meetings dinners to Government convened for official business. functionaries should not Decision to incur such expenditure be arranged at the will be taken only by officers of expense of public and above the status of Joint exchequer. Secretary. (ii) For receptions, lunches and (a Notwithstanding the dinners: up to Rupees 40,000 provisions of para 8 (c) of (Rupees Forty Thousand) in each this O.M. the power at case for Ministries / Divisions (ii) and (iii) above shall subject to the condition that per not be delegated by the head expenditure including taxes Secretaries of and soft drinks etc should not in administrative Ministries any case exceed Rupees 1200 / Divisions to the officers (Rupees Twelve Hundred). subordinate to them in the Ministries / Divisions (iii) For serving lunch boxes not and elsewhere. exceeding Rupees 200 (Rupees Two Hundred) per head in meeting (b) The expenditure which are prolonged involved shall be subject
Page 10 of 24 APPENDIX III
Powers Delegated to S. Powers Delegated to the Name of Powers the Heads of Remarks No. Ministries / Divisions Departments 1 2 3 4 5 beyond office hours without break to availability of budget. in the interest of Government No proposals for work. reappropriation of funds from the restricted heads as mentioned at Sl. No 5 above and Supplementary Grant / Technical Supplementary Grant shall be entertained by Finance Division.
(39) Gifts Upto Rupees 10,000 (Rupees Ten (a) For presentation to Thousand) in one year subject to the foreign dignitaries availability of budget. only.
(b) Subject to the conditions mentioned under Sl.No. 9(38) (b) column 5 above.
Expenditure on Acquiring of Physical Assets.
(40) Purchase of Full powers, subject to observance As in column 3. Building, of prescribed conditions & Computer instructions of Cabinet Division, Equipment, regarding purchase of transport. Commodity purchases (Cost of State), Other Stores and Stocks, Transport, Plant and Machinery, Furniture & Fixture and purchase of Other Assets.
Civil Works
(41) Civil Works Approved Development schemes- Includes powers for on Roads, Full powers, subject to release of purchase of land for Highways & funds with the prior approval of Pakistan missions abroad Bridges, Irrigation Financial Adviser as provided and construction of Works, under Para 13 (vii) of this O.M. building thereon.
Page 11 of 24 APPENDIX III
Powers Delegated to S. Powers Delegated to the Name of Powers the Heads of Remarks No. Ministries / Divisions Departments 1 2 3 4 5 Embankment and Non-Development Works upto Drainage Works, Rupees 1,000,000 (Rupees One Building & Million). Structures, Other Works and Telecommunicati on Works and Drought Emergency Relief Assistance (DERA) works.
Repair & Maintenance
(42) Transport Rupees 100,000 (Rupees One As in column 3. US $2000 ($ Two Hundred Thousand) at any one thousand) at any one time to one or any number of time to one or any vehicles used by the Ministry / number of vehicles used Division. by the Pakistan Missions Abroad.
(43) Machinery & Full powers subject to the As in column 3. (i) Heads of Missions Equipment, prescribed conditions. abroad may exercise Furniture & these powers in Fixtures and accordance with Computer approved scales in Equipment. respect of the residence of the officers subordinate to them.
(ii) Heads of Pakistan Missions may incur expenditure on repairs up 10% of the assessed market value of furniture and furnishing per financial year.
(44) Buildings & Ministry of Foreign Affairs; per As in column 3. Structure of financial year upto 10% of annual Pakistan Missions standard rent. abroad owned by the Government of Pakistan.
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Powers Delegated to S. Powers Delegated to the Name of Powers the Heads of Remarks No. Ministries / Divisions Departments 1 2 3 4 5 (45) Building & Accommodation for office and Heads of Missions: Upto Structures (hired residential purposes: upto two $200 ($ Two hundred) and the months rent as the land lord’s per annum within the requisitioned) liability limited to the lease period financial year. of not less than three years. No liability shall be incurred for government on this account.
(46) Powers to Works Division upto Rupees give 2,000,000 (Rupees Two Million) administrative Other Ministries and Divisions approval to works upto Rupees 500,000 (Rupees Five in respect of non- Hundred thousand). residential buildings.
10 Powers to order Full powers. As in column 3. refund in accordance with the rules or in pursuance of decisions of courts in respect of which no appeal is proposed to be filed.
11 Compensation Full powers. As in column 3. payable to any individual under law, rules, or judgement of courts.
12 Charges for Full powers. As in column 3. remittance of pay and or allowances of establishment by money order or by bank drafts, other than leave salary.
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Powers Delegated to S. Powers Delegated to the Name of Powers the Heads of Remarks No. Ministries / Divisions Departments 1 2 3 4 5 13 Powers to Full powers subject to restrictions As in column 3. Claims of government sanction under paras 125 and 126 of GFR servants to arrears of pay investigation of Volume I. and allowances or claims of increments, or in respect government of any underpayments, servants to arrears which have been of pay, allowed to remain in allowances, etc. abeyance for a period exceeding one year may not be investigated by an Accountant General, except under the special orders of the competent authority, as vested under para 124 of GPR Volume I.
14 Fixation of initial Powers to grant not more than six As in column 3. Six advance increments pay by grant of premature increments for the initial can also be allowed to premature fixation of pay subject to the those nominees of the increments in following conditions: FPSC who are already in cases of first government service over appointment (a) In cases of persons appointed and above minimum of under through the FPSC, premature the respective pay scale government of increments should be granted, on to which they are persons not the recommendations of the FPSC, appointed and not over already in the and in consideration of the fact that and above their service of the suitable persons of requisite protected pay under FR. Federal, or a qualifications are not available in 22. Provincial the minimum pay of the post. Government. (b) No premature increments should be granted in cases of ‘adhoc’ appointments in anticipation of FPSC’s recommendations.
(c) In posts where appointment is not made through FPSC, premature increments should be granted only after the appointing authority certifies that suitable persons of requisite qualifications are not available on the minimum of the sanctioned pay scale of the posts.
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Powers Delegated to S. Powers Delegated to the Name of Powers the Heads of Remarks No. Ministries / Divisions Departments 1 2 3 4 5 15 Fixation of initial Power to fix the initial pay in the As in column 3. In case where the initial pay of an time scale of the new post at the pay in the time scale of officiating stage at which it would have been a new post is fixed in government fixed under the rules if the exercise of these powers, servant on officiating pay in respect of the old the government servant appointment to post was the substantive pay, of the will, for the purposes of another post in a government servant provided that:- subsequent drawls of pay time scale of pay. in that post (and for these (a) the government servant purposes only), be concerned has held that (post for a treated as if the period of three years continuously government servant were (including period of leave) or holding a lien on the old would have held it for that period if post. not appointed to the other post; and
(b) the appointing authority certifies that the government servant was not officiating in a leave or short term vacancy (sanctioned for less than one year) and was not likely to revert to a lower post at least for the period during which he/she holds the new post.
16 Fixation of Full powers to the scales/rates of pay heads of Pakistan and allowances of Missions abroad posts in Pakistan concerned to sanction Missions abroad increase in scales / to which rates of pay recruitment is corresponding to the made locally. increase allowed by the local government subject to the availability of budget provision.
17 Sanction to the Full powers upto the level of As in column 3. The power will be undertaking of Section Officer and equivalent. exercised subject to the work for which an The amount should not exceed condition that the honorarium is one month’s pay of the government relevant rules and policy offered and the servant concerned on each instructions issued by the grant of occasion. In the case of recurring Finance Division from acceptance of an honoraria, this limit applies to the time to time are duly honorarium. total of recurring payments made observed and that the
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Powers Delegated to S. Powers Delegated to the Name of Powers the Heads of Remarks No. Ministries / Divisions Departments 1 2 3 4 5 to an individual in a financial year. grant of honorarium is not used as a device to compensate a government servant for special pay etc. not admissible under the rules. No expenditure should be incurred on honoraria in excess of the specific provision made for this purpose In the sanctioned budget grant and that if expenditure in cases of such provision becomes necessary at same stage, prior concurrence of the Financial Adviser shall be necessary before such expenditure is incurred.
Notwithstanding the provisions of para 8 (c) of this O.M. this power shall not be delegated by the Secretaries of administrative Ministries / Divisions and Heads of Departments to the officers subordinate to them in Ministries / Divisions and Departments.
18 Sanction of Full powers, in accordance with As in column 3. honoraria to approved rates or scales. government servants in connection with departmental examinations in accordance with the rules.
19 Power to sanction Full powers. As in column 3.
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Powers Delegated to S. Powers Delegated to the Name of Powers the Heads of Remarks No. Ministries / Divisions Departments 1 2 3 4 5 the undertaking of work for which a fee is offered and acceptance of fee.
20 Exemption from Full powers in respect of fees paid As in column 3. One third of any fee in crediting portion to government servants for services excess of $1000 ($ One of fees to rendered in Pakistan. thousand) or equivalent government. received by a civil servant for a foreign Consultancy outside Pakistan shall be credited to general revenues.
21 Relaxation of the (i) Where no TA advance was As in column 3. prescribed time drawn: Full powers. limit for submission of TA (ii) Where T.A advance was drawn: Bill. TA adjustment bill should be submitted within one year of the date of performance of journey by the government servant, failing which the advance will be recovered.
22 Relaxation of the Full powers, subject to the As in column 3. prescribed time following conditions: limit where the (i) Instructions contained in family of Government Decision No. 15 transferred under S.R. 116 are duly observed. government servant could not (ii) Where advance of TA had been join within one drawn in respect of the family year due to members and the family did not shortage of accompany the government accommodation, servant, the advance would be education of refunded within one year. children or on medical or compassionate grounds.
23 Relaxation of the Full powers provided that the As in column 3. prescribed time family performed the journey after limit in respect of the transfer orders for the a member of the government servant were issued. family of a
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Powers Delegated to S. Powers Delegated to the Name of Powers the Heads of Remarks No. Ministries / Divisions Departments 1 2 3 4 5 transferred government servant preceding him.
24 Power to decide Full powers, provided that the limit the amount of laid down in SR 24 is not Permanent exceeded. travelling allowance to be drawn by a government servant holding more than one post to which Permanent travelling allowance is attached.
25 Relaxation of Full powers, subject to the As in column 3. prescribed time adjustment of TA advance within limit where the twelve months. family could not follow a government servant granted leave travel concession within the prescribed period of one month on medical grounds or due to private affairs.
26 Grant of Full Power, subject to the permission for the condition that the family precedes family to precede the government servant after the a government formal sanction of leave. servant granted leave travel concession.
27 Grant of TA Full powers. As in Column 3. concession during leave where leave is combined with
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Powers Delegated to S. Powers Delegated to the Name of Powers the Heads of Remarks No. Ministries / Divisions Departments 1 2 3 4 5 extraordinary leave due to circumstances beyond the control of government servant.
28 Permission to Full powers to send an official by travel by air on air. The decision shall be taken at transfer to a the level of Secretary. Pakistan Mission abroad in cases where air route is not the approved route.
29 Grant of travelling Daily allowance upto the and daily maximum rates admissible to allowance to non- government servants, and in official members addition, where the person of Commissions / concerned has, of necessity, to stay Committees etc. in a hotel, reimbursement of actual set up by the single room-rent, subject to the government and production of hotel receipts / to foreign experts. vouchers, upto the maximum rate admissible to government servants. 30 Grant of daily Full powers. As in column 3. allowance for compulsory halt due to dislocation of communications.
31 Grant of Full powers. As in column 3. As prescribed under extraordinary Revised Leave Rules, leave to 1980. temporary government servants upto one year for reasons beyond their control.
32 Grant of leave Full powers to the extent covered As in column 3. In terms of Item No. 8 of terms to by model rules laid down in the standard terms and employees Appendix-10 to FR & SR Volume conditions laid down
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Powers Delegated to S. Powers Delegated to the Name of Powers the Heads of Remarks No. Ministries / Divisions Departments 1 2 3 4 5 appointed on II. vide Establishment contract. Division’s O.M. No. 10/52/95-R-2, dated 18- 7-1996.
33 Grant of special Full powers provided that the As in column 3. disability leave. disability manifests itself within three months after the occurrence of its cause. 34 Grant of advance Full Powers, subject to the As in column 3. to government condition that advances will be servants from allowed in a manner that only one various provident advance will remain outstanding at funds. one time.
35 Permission to Power to postpone recovery of As in column 3. postpone advance for a period not exceeding recovery of two years. advance drawn from the GP Fund for a specified period.
36 Grant of advance Full powers subject to the As in column 3. for the purchase production of surety bond and of Motor fulfilment of other conditions Car/Motor Cycle prescribed by the rules. to temporary government servants.
37 Relaxation of the Full powers to raise the limit upto As in column 3. time limit of one six months. month within which purchase of conveyance should be completed.
38 Authorization of Full powers subject to the The amount is paid in the final payment production of indemnity bond or accordance with the of the dues of a provided that the amount or provisions of Clause (I) of deceased balance standing to the credit of a sub-rule (I) of rule 234 of government deceased subscriber in the fund is the Federal Treasury servant to the to the extent of Rupees 20,000 Rules Volume I. members of (Rupees Twenty thousand). family, dispensing
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Powers Delegated to S. Powers Delegated to the Name of Powers the Heads of Remarks No. Ministries / Divisions Departments 1 2 3 4 5 with the production of succession certificate and guardianship certificate in the case of minor heir (s).
39 Question of Full powers in consultation with deciding the real the Law Division. legal heir (s) in case where there is no nomination or the nomination is incorrect or invalid.
40 Condonation of Full powers provided each spell of Subject to fulfilment of interruption of service is qualifying but not in the conditions given under service. case of voluntary retirement, or on Civil Service Regulations resignation from public service. (CSR) 420.
41 Condonation of Upto any period, less than a year if The powers shall not be deficiency in both the conditions mentioned exercised in the case of qualifying service below are satisfied: government servants for pension. who have rendered less (i) If a government servant dies than 5 years continuous while in service or retires under service. circumstances beyond control such as on invalidation or abolition of the post and would have completed another year of qualifying service if he/she had not died or retired.
(ii) The service rendered was meritorious as laid down under CSR 423 (2) (b).
42 Grant of Power to sanction conveyance Subject to rates approved conveyance allowance to government servants by the Finance Division. allowance whose ordinary duties involve extensive travelling at or within a short distance from the headquarters in terms of SR 25, provided that:
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Powers Delegated to S. Powers Delegated to the Name of Powers the Heads of Remarks No. Ministries / Divisions Departments 1 2 3 4 5
(a) the powers shall not be available in respect of officers and staff of the Ministries/Divisions; and
(b) the expenditure can be met from within the sanctioned budget provision;
43 Power to sanction I. Temporary Duty Abroad deputation of Full powers subject to the government following conditions and the servants. orders issued by the Finance Division from time to time:
i) The approval of the competent authority has been obtained in accordance with the existing orders.
(ii) Where no expenditure in foreign exchange on passage, daily allowance, registration fee, contingent items, etc. is involved: or where expenditure on pay, passage daily allowances, or registration fee is involved but it is to be borne by the Ministry/Division concerned under the normal rules from within the foreign exchange allocation made for the specified period.
(iii) Sanction of drawl of pay, daily allowance etc, to the extent admissible under the normal rules, in foreign exchange in advance, if the duration of visit is upto one month and the rupee cover is provided by the government servant concerned.
iv) Grant of permission to the government servant to take his wife with him to the place of visit at his own expenses or when expenses on wife’s passage are borne by the
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Powers Delegated to S. Powers Delegated to the Name of Powers the Heads of Remarks No. Ministries / Divisions Departments 1 2 3 4 5 host government / agency, provided that no additional foreign exchange is involved and that the wife travels exclusively by a Pakistan carrier, like PIA etc.
II Training - International
Full powers subject to the following conditions:
(i) Budget provision exists.
(ii) The prescribed procedure is observed and approval of competent authority is obtained in accordance with the existing rules.
(iii) The terms of deputation are in accordance with the general orders issued by the Finance Division on the subject from time to time.
(iv) Foreign exchange expenditure is met out of the sanctioned allocation for the specified period.
(v) Sanction of drawal of pay in advance in foreign exchange for a period not exceeding one month, if the rupee cover is provided by the government servant concerned. (vi) Grant of permission to In both the cases government servant to take his wife mentioned at (vi) (a) and with him on training abroad in the (b), the government following cases: servant will draw his full pay and allowances (a) where the period of training is (excluding compensatory more than one year; allowances) in foreign exchange for the period (b) Where the period of training is of stay of his wife one year or less and the cost of abroad. wife’s passage is borne by the donor government/agency; and The permission shall be granted by the Secretary (c) where the period of training is or the Additional/Joint
Page 23 of 24 APPENDIX III
Powers Delegated to S. Powers Delegated to the Name of Powers the Heads of Remarks No. Ministries / Divisions Departments 1 2 3 4 5 more than six months but not more Secretary Incharge of a than one year and the government Division, who will certify servant concerned bears cost of that it would be desirable wife’s passage etc. provided that no for the government additional foreign exchange is servant to take his wife involved, the wife travels alongwith him. The exclusively by a Pakistani carrier Secretary / Additional like PIA etc, and the government lncharge shall also satisfy servant concerned shall draw, in that the salary, foreign currency, 50% of pay as subsistence allowance admissible under the normal rules. etc, admissible in foreign exchange is adequate to cover the expenses.
44 Advance payment Full Powers, subject to adjustment to other of previous advance, if any. government departments and government owned/ controlled organizations, in exceptional cases only.
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(See paragraph 2001)
HOURS OF EMPLOYMENT REGULATIONS
Act No. IX of 1890
An Act to consolidate, amend and add to the law relating to Railways.
Whereas it is expedient to consolidate, amend and add to the law relating to railways. It is hereby enacted as follows:
1. Short title and commencement.——(1) This Act may be called the Railways Act, 1890.
(2) It extends to the whole of Pakistan and applies also to all citizens of Pakistan, wherever they may be.
(3) It shall come into force on the first day of May, 1890.
CHAPTER VI-A
LIMITATION OF EMPLOYMENT OF RAILWAY SERVANTS
71-A. Definitions. In this Chapter, unless there is anything repugnant in the subject or context,——
(a) The employment of a railway servant is said to be “essentially intermittent” when it has been declared to be so by the authority empowered in this behalf, on the ground that it involves long periods of inaction; during which the railway servant is on duty but is not called upon to display either physical activity or sustained attention; and
(b) except in section 71B, a “railway servant” means a railway servant to whom this Chapter applies.
71.B. Application of Chapter VIA. (1) This Chapter has effect in respect of the Pakistan Railway and the Provincial Government, may by notification in the official Gazette, direct that it shall have effect on such date as may be appointed by the notification.
(2) This Chapter applies only to such Railway servants or classes of railway servants as the Provincial Government may by rules made under section 71E, prescribe.
71-C. Limitation of hours of work. (1) A railway servant, other than a railway servant whose employment is essentially intermittent, shall not be employed for more than sixty hours a week on the average in any month.
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(2) A railway servant whose employment is essentially intermittent shall not be employed for more than eighty-four hours in any week.
(3) Subject to rules made under section 71-E, temporary exemptions of railway servants from the provisions of sub-section (1) and sub-section (2) may be made:——
(a) when such temporary exemptions are necessary to avoid serious interference with the ordinary working of the railway, in cases of accident, actual or threatened, or when urgent work is required to be done to the railway or to rolling-stock, or in any emergency which could not have been foreseen or prevented; and
(b) in cases of exceptional pressure of work not falling within the scope of clause (a).
Provided that a railway servant exempted under clause (b) shall be paid for overtime at not less than one and a quarter times his ordinary rate of pay.
71-D. Grant of periodical rest. (1) A railway servant shall be granted, each week commencing on Sunday, a rest of not less than twenty-four consecutive hours:
Provided that this sub-section shall not apply to a railway servant whose employment is essentially intermittent, or to a railway servant to whom sub-section (2) applies.
(2) The Provincial Government may, by rules made under section 71E, specify the railway servants or classes of railway servants to whom periods of rest may be granted on a scale less than that laid down in sub-section (1), and may prescribe the periods of rest to be granted to such railway servants.
(3) Subject to rules made under section 71E, temporary exemptions from the grant of periods of rest may be made in the cases or circumstances specified in sub-section (3) of section 71C.
Provided that a railway servant shall, as far as may be possible, be granted compensatory periods of rest for the periods he has foregone.
71-E. Power to make rules. (1) The Provincial Government may make rules:——
(a) prescribing the railway servants or classes of railway servants to whom this Chapter shall apply;
(b) prescribing the authorities who may declare that the employment of any railway servant or class of railway servants is essentially intermittent;
(c) specifying the railway servants or classes of railway servants to whom sub- section (2) of section 71D shall apply; (d) prescribing the authorities by whom exemptions under sub-section (3) of
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section 71-C or sub section (3) of section 71-D may be made;
(e) providing for the delegation of their powers by the authorities prescribed under clause (d); and
(f) providing for any other matter which is to be provided for by rules or which the Provincial Government may deem to be requisite for carrying out the purposes of this Chapter.
(2) Such rules shall be subject to the provisions of section 143.
71-F. Railway servant to remain on duty. Nothing in this Chapter or the rules made thereunder shall authorize a railway servant to leave his duty where due provision has been made for his relief, until he has been relieved.
71-G. Supervisors of Railway Labour. (1) The Provincial Government may appoint persons to be Supervisors of Railway Labour.
(2) The duties of Supervisors of Railway Labour shall be:
(a) to inspect railways in order to determine if the provisions of this Chapter and of the rules made thereunder are duly observed; and
(b) such other duties as the Provincial Government may prescribe.
(3) A Supervisor of Railway Labour shall be deemed to be an Inspector for the purposes of sections 5 and 6.
71-H. Penalty. Any person under whose authority any railway servant is employed in contravention of any of the provisions of this Chapter or of the rules made thereunder shall be punishable with fine which may extend to five thousand rupees.
II. The Railway Servants (Hours of Employment) Rules, 1951
S.R.O. 450.–In exercise of the powers conferred by sub-section (1) of the section 71E of the Railways Act, 1890 (IX of 1890) and in supersession of the Railway Servants (Hours of Employment) Rules, 1931, the Central Government hereby makes the following rules for the regulation of hours of employment and periods of rest of railway servants, namely:--
1. Short title and commencement. (1) These rules may be called the Railway Servants (Hours of Employment), Rules 1951.
(2) They shall come into force on such date as the Central Government, may by notification in the official Gazette appoint.
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2. Definitions. In these Rules unless the context otherwise requires:--
(a) “Act” means the Railways Act, 1890 (IX of 1890);
(b) “Chapter” means a Chapter of the Act;
(c) “excluded staff” means the staff described in sub-rule (2) of rule 3;
(d) “intensive worker” means the staff described in sub-rule (2) of rule 5;
(e) “section” or ‘sub-section’ means a section or ‘sub-section’ of the Act.
3. Application of Chapter VI-A of the Act. (1) The provisions of Chapter VI-A (Sections 71-A to 71-H) of the Act shall apply to all classes of Railway Servants, except:--
(a) Railway Servants who are subject to the Factories Act, 1948, the Mines Act, 1923, or the Merchants Shipping Act, 1923.
(b) Exclude staff.
(2) The excluded staff referred to in clause (b) of sub-rule (1) shall consist of railway servants who fall under any of the following classes, namely:--
(i) supervisory staff;
(ii) certain sections of the staff of the Health and Medical Departments such as Assistant Surgeons, Sub-Assistant Surgeons, Matrons and Sisters-in- charge;
(iii) persons employed in confidential capacity;
(iv) saloon attendants;
(v) care-takers of rest-houses, reservoirs and other railway property, whose employment is declared by the Head of the Railway to be exceptionally light on the ground that the total effect war in 24 hours amounts to less than 6 hours;
(vi) gate-keeper of C class level crossings where the gates are normally closed against road traffic, whose employment is declared by the Head of the Railway to be exceptionally light on the ground that the total effective work in 24 hours amounts to less than 6 hours;
(vii) armed guards or other police personnel subject to military or police discipline, as the case may be;
(viii) staff of the Railway schools imparting technical training or academic
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education.
(3) If any question arises in respect of any declaration made by the Head of the Railway under clause (v) and (vi) of sub-rule (2) or as to whether a person holds a position of supervision or management, or are employed in a confidential capacity, the matter shall be referred–
(a) in a case falling under clause (i) of sub-rule (2), to the Federal Government, whose decision shall be final;
(b) in case falling under clauses (v) and (vi) of sub-rule (2), to the Regional Labour Commissioner whose decision subject to an appeal to the Federal Government, shall be final.
4. Classification of employment of railway servants. (1) The employment of all railway servant shall be declared by the General Manager of a Railway Administration (or by an officer, not below the rank of a senior scale officer, authorised by the General Manager as a temporary measure during the periods of emergency) into the following categories, namely;---
(i) intensive;
(ii) essentially intermittent;
(iii) includes staff;
(iv) continuous, that is to say, employment which do not fall under any of the aforesaid three categories.
(2) The employment of a railway servant shall be held to be ‘intensive’ when it has been declared to be so by the authority empowered in this behalf on the ground that it is of a strenuous nature involving continuous concentration or hard manual labour with little or no periods of relaxation.
5. Limitation of hours of work. (1) A railway servant whose employment is classified as intensive shall not be employed for more than 45 hours a week on the average in any month.
(2) The employment of a railway servant shall be held to be ‘intensive’ when it has been declared to be so by the authority empowered in this behalf on the ground that it is of a strenuous nature involving continuous concentration or hard manual labour with little or no periods of relaxation.
(3) A railway servant whose employment is continuous shall not be employed for more than 54 hours a week on the average in any month.
(4) A railway servant whose employment is essentially intermittent shall not be
Page 5 of 9 APPENDIX IV employed for more than 75 hours a week.
6. Periodic rest. (1) Subject to the provisions hereinafter contained, the following classes of railway servants shall be granted rest, each week, commencing on Sunday, on the following scale, namely:--
(i) intensive and continuous workers– a minimum of 30 consecutive hours;
(ii) essentially intermittent workers– a minimum of 24 consecutive hours including a full night.
(2) “Excluded Staff” shall be given at least one period of rest of 48 consecutive hours in a month or one period of 24 consecutive hours in each fortnight.
7. Periodic rest on less than the normal scale. (1) Loco and Traffic Running Staff may be granted periods of rest on a scale different from that laid down in rule 6. They shall enjoy four periods of rest of not less than 30 consecutive hours or five periods of rest of not less than 22 consecutive hours in a month.
(2) Mates, keymen and Gangmen, whether employed on lines under construction or for the maintenance of permanent way and artisans and unskilled labour employed for temporary purposes shall enjoy in each week commencing on Sunday a calendar day’s rest or, at the discretion of the railway administration, an equivalent number of consecutive days up to a limit of three.
(3) Other staff on duty in running trains may be given periodic rest as indicated in sub-rule (1).
8. Compensatory periods of rest. (1) A Railway servant exempted under the provisions of sub-section (3) of section 71-D form the grant of periods of rest shall not be required to work for more than 14 days without a rest of least 30 consecutive hours.
(2) Exemption under the provisions of sub-section (3) of section 71-D of the Act shall not be granted except by an order in writing made by the General Manager of a railway administration or an officer authorised by him in this behalf.
9. Power to grant temporary exemptions. Subject to the provisions of sub-section (3) of section 71-C and sub-section (3) of section 71-D of the Act, the General Manager of a railway administration or an officer authorised by him in this behalf may grant temporary exemptions in respect of any railway servant or class of a railway servants from the provisions of rules 5, 6 and 7.
10. Notice of hours of employment. A railway administration shall make known to railway servants the duration of hours of employment and the incidence of periods of rest by displaying in a conspicuous place where such servants work, duty lists rosters or other similar documents.
11. Publication of rules. Every administration shall display in a conspicuous place at each station of its railway a copy of Chapter VI-A of the Act and of these rules.
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IV. Definitions in connection with the Hours of Employment Regulations
(References to Sections refer to the Railways Act. Rules refer to the rules issued by the Provincial Government and Instructions to executive orders issued by the Railway Board)
1. Hours of Employment.——This term refers to time during which an employee is at the disposal of the employer. It includes effective or continuous work and periods of inaction when the worker must be present on duty, although not exercising physical activity or sustained attention. It does not include “intervals” when the employee is free to leave his place of work. Certain staff are given quarters near their place of work, so that they can be “on call” in case of necessity, but being “on call” does not constitute “employment” in this connection. Time taken in going between an employee’s place of residence and his place of work (or the employee’s headquarters from which he travels to his place of work) does not constitute hours of employment (vide Instruction No. 5).
2. Period of inaction.——[See section 71 (a)]. A period of inaction is time during which the employee must remain on duty at his place of work, but is not called upon to exercise either physical activity or sustained attention. An A. S. M. of a wayside station, who has to remain at his post to answer possible telephone calls is an example (see Instruction No. 1). In the case of staff who have to travel habitually from their headquarters to out stations to perform effective work, such as signal repair staff the time taken in travelling is generally considered as a period of inaction, but certain exceptions are made in the case of staff——such as pay clerks——when they make long journeys at night according to a regular program, or when staff who normally perform continuous work at their headquarters occasionally proceed to an out station to do work.
3. Interval.——During intervals the employee is free to go where he likes and these periods are not deemed to be hours of employment. They must, however, be definitely shown on rosters as breaks in continuous or essentially intermittent employment.
4. Continuous work.——Work is continuous when it can proceed without forced periods on inaction, i.e., a man doing hard manual labour may sometimes rest for five minutes, yet his work will remain continuous. Another man, on the other hand, may finish his immediate work——e.g., the dispatch of a train——and then have to wait on duty doing nothing in case and until some other work presents itself. When these forced periods of inaction exceed the limits laid down in Instruction No. 1, the work ceases to be continuous and becomes essentially intermittent. Continuous work may, of course, be split up by intervals.
5. Essentially Intermittent Work.——This has been defined in section 71-A of the Railways Act.
This definition has been further elaborated in Supplementary Instruction No. 1. 6. A Split Shift.——A Split Shift is a shift which is split up into several parts by
Page 7 of 9 APPENDIX IV intervals (not periods of inaction). It generally applies to continuous work, more rarely to work which is essentially intermittent.
7. With the above definition in mind, Hours of Employment may be represented diagrammatically as follows——
...... Continuous work. .
...... Interval...... Continuous work split up by one or more . intervals a “split shift”.
...... Period of inaction...... Essentially Intermittent work, i.e., continuous . or effective work interspersed with periods of inaction.
...... Essentially intermittent work split up by one . or more intervals, a rare form of “split shift”.
8. Accidents.——The “accidents actual or threatened” mentioned in section 71-C of the Railways Act must be occasional and definitely abnormal. Accidents to trains and rolling-stock, breaches due to floods, accidents to plant such as signals, are cases in point. Sickness (vide Instruction No. 6) is not an accident or an emergency as it is an ever present phenomenon to be allowed for by adequate relieving staff.
9. Exceptional Pressure of Work.——Exceptional pressure of work is caused by an increase in traffic either wholly unexpected, or the magnitude of which can not be foreseen. It includes Mela traffic, a “grain rush” and other temporary increases in the movement of passengers and goods.
10. Overtime.——Overtime and overtime pay within the meaning of the Regulations (Section 71-C and Instruction No. 7) is essentially exceptional, i.e., overtime is time worked occasionally over and above certain definite limits, and overtime pay is additional pay for the overtime worked. It may be noted in this connexion that the term “overtime” is at present often used in a very loose sense, to apply to time which is regularly worked, while overtime pay is sometimes used in references to pay for which no true overtime is worked at all. This latter is really an allowance and not overtime pay.
Section 47 Factory Act. Extra pay for overtime: (1) where a worker……..
(a) in a non-seasonal factory works for more than nine hours in any day or for more than forty-eight hours in any week, or (b) in a seasonal factory works for more than nine hours in any day or for more than fifty hours in any week,
He shall be entitled in respect of the overtime worked to pay at the rate of twice his ordinary rate of pay.
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(2) Explanations: In this sub-section, ‘ordinary rate of pay’ means all remuneration capable of being expressed in terms of money which would, if the term of the contract of employment, expressed or implied, were fulfilled, be capable to a worker in respect of his employment or of work done in such employment, but does not include:
i. the value of any house accommodation, supply of light, water, medical attendance or other amenity; ii. any contribution paid by the employer to any pension fund or provident fund; or iii. any travelling allowance or the value of travelling concession; or iv. any gratuity, bonus or share in the profits of factory.
(3) Where any workers are paid on a piece-rate basis, the Provincial Government in consultation with the industry concerned may, for the purposes of this section fix time rates are nearly as possible equivalent to the average rate of earnings of those workers, and the rates so fixed shall be deemed to be the ordinary rates of pay of those workers for the purposes of this section.
(4) The Provincial Government may prescribe the registers that shall be maintained in a factory for the purpose of securing compliance with the provisions of this section.
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