Year Book 2016–2017
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Year Book 2016–2017 Government of Pakistan Finance Division Islamabad www.finance.gov.pk i PREFACE In pursuance of Rule 25 of the Rules of Business 1973 and as per practice, the Yearbook of Finance Division for fiscal year (FY) 2016-17, delineates activities undertaken, functions performed by the various Wings / Sections of the Finance Division and its constituent organizations during the year under preview. The Yearbook explains functions, organizational set up, area of responsibility and working set up which is largely embedded in the activities pursued and accomplished during FY 2016-17. The Yearbook serves as a source of information to the functions and achievements of Finance Division and its attached departments / organization in the process of policy making for economic development. The Finance Division is committed to pursuing pragmatic economic policies for sustained and equitable economic growth through transparent and efficient financial management. Pakistan’s economy has witnessed an upward growth trend since FY 2013-14. Real GDP maintained its growth rate above four percent three years in a row with highest in ten year at 5.28 percent in FY 2016- 17. The accommodative monetary policy stance, increase in development spending, substantial growth in private sector credit, inspired activities in the power sector, friendly and pro-growth policies across the board remained instrumental in achieving the impressive growth performance. The country’s outlook looks promising based on agricultural recovery, rebound in industrial activities and inflows of investment under China-Pak Economic Corridor (CPEC) which is not only a short term economic growth booster, but far reaching consequences which will continue to accrue in the future. The development of infrastructure, energy and communication sector will provide much needed impetus to the growth of capital formation, productivity and employment. I hope this book will serve as a useful reference document. I appreciate the work done by the staff and the officers of the Finance Division in preparation of this Year Book. Soft version of this Year Book 2016-17 can be downloaded from the website www.finance.gov.pk. We would appreciate suggestions / comments and feedback to improve the quality of this book in future. ( Arif Ahmed Khan ) Finance Secretary ii COMPILATION TEAM Mr. Ghulam Farooq Joint Secretary (HRM) (Head of Compilation Team) Mr. MIR AFZAL KHAN Deputy Secretary (Services) SYED BUNIAD HAIDER Section Officer (Doc/CSD) MR. IZHAR KHAN Assistant (Doc) Mr. SAJJAD ANWAR Stenotypist (Doc) Vetted by: MR. ZAILA HUSNAIN Deputy Economic Adviser Composed by: Mr. MAQSOOD AHMAD KHAN Composer Mr. SHOAIB HAMID MALIK Composer iii CONTENTS Page No. Title Page i Preface ii Compilation Team iii Vision Statement 1 Mission Statement 2 Functions of Finance Division 3 Future Goals of Finance Division 4 Organizational Chart of the Finance Division 5 Human Resource Management (HRM) Wing 6 Financial Analyst 14 Budget Wing 15 -Functions of Various Sections of Budget Wing 16 -Medium Term Budgetary Framework (MTBF) 20 -Types of Budget 21 -Central Directorate of National Savings (CDNS) 25 Corporate Finance Wing 27 Economic Adviser’s Wing 31 Expenditure Wing 35 External Finance Policy Wing 39 Implementation and Economic Reforms Unit (IERU) Wing 42 Finance Division (Military) 45 Development Wing 47 Internal Finance Wing 48 -Zarai Taraqiati Bank Ltd. (ZTBL) 50 -Pakistan Mint 52 -House Building Finance Corporation 54 National Bank of Pakistan 54 -First Women Bank Limited 56 iv -Financial Monitoring Unit (FMU) 57 Investment Wing 59 -Infrastructure Project Development Facility (IPDF) 66 -Competition Commission of Pakistan 68 -National Investment Trust Limited (NITL) 71 -NIT Equity Market Opportunity Fund (NIT-EMOF) 73 -Income Funds 74 -Securities and Exchange Commission of Pakistan (SECP) 76 Provincial Finance 92 Regulations Wing 97 Litigation Wing 102 Auditor General of Pakistan 106 Controller General of Accounts (CGA) 122 Federal Treasury Islamabad 124 Debt Policy Coordination Office (DPCO) 128 ***** v VISION STATEMENT OF THE FINANCE DIVISION To manage the national economy in the most efficient and effective manner both at the Macro and Micro levels. 1 MISSION STATEMENT OF THE FINANCE DIVISION To pursue sound and equitable economic policies that put Pakistan on the path of sustained economic development and macroeconomic stability with a view to continuously and significantly improving the quality of life of all citizens through prudent and transparent public financial management carried out by dedicated professionals. 2 Functions of Finance Division The following functions are allocated to the Finance Division under the Rules of Business, 1973: 1. Finances of the Federal government and financial matters affecting the country as a whole. 2. The Annual Budget Statement and the Supplementary and Excess Budget Statements to be laid before the National Assembly; the schedules of authorized expenditure. 3. Accounts and Audit. 4. Allocation of share of each Provincial government in the proceeds of divisible Federal Taxes; National Finance Commission. 5. Public debt of the Federation both internal and external; borrowing money on the security of the Federal Consolidated Fund. 6. Loans and advances by the Federal Government. 7. Sanctions of internal and external expenditure requiring concurrence of the Finance Division. 8. Advice on economic and financial policies; promotion of economic research. 9. Proper utilization of the country’s foreign exchange resources. 10. Currency, coinage and legal tender, Pakistan Security Printing Corporation and Pakistan Mint. 11. Banking, investment, financial and other corporations, that is to say: (i) Central Banking; State Bank of Pakistan; (ii) Other banking (not including co-operative banking) and investment and financial corporations with objects and business not confined to one Province; and (iii) Incorporation, regulation and winding up of corporations including banking insurance and financial corporations not confined to or controlled by or carrying on business in one Province. 12. Company Law: Accountancy, Matters relating to the Partnership Act, 1932. 13. Investment policies; Capital issues (Continuance of Control) Act, 1947; statistics and research work pertaining to investment and capital. 14. Stock exchanges and future markets with objects and business not confined to one Province; Securities Regulations. 15. Financial settlement between Pakistan and India and division of assets and liabilities of the pre-independence Government of India. 16. Framing of rules on pay and allowances, retirement benefits, leave benefits and other financial terms and conditions of service. 17. Cost Accountancy. 18. International Monetary Fund. 19. State lotteries. 20. Monopoly Control and Anti-Cartel Laws. 21. Deregulation policies. 22. Administration of Economic Reforms Order, 1978. 23. Negotiations with international organizations and other countries and implementation of agreements thereof. 3 FUTURE GOALS OF FINANCE DIVISION • Preparation of Annual Budget/Financial Planning & Budgeting. • Publishing Pakistan Economic Survey Statistical Supplement of Pakistan Economic Survey and Year Book annually. • Proper utilization of country’s Foreign Exchange resources. • Proper application of share of each Provincial government in the proceeds of divisible Federal Taxes, National Finance Commission. • Framing of Investment Policies. • Issues with IMF and negotiations Economic Affairs Division (EAD) job. • Reforms of Public Sector Enterprises. • Deepen Power Sector Reforms. • Investment Climate Improvement Reforms. • Banking Sector Reforms. • Formulation and Implementation of Austerity measure. 4 ORGANIZATION CHART OF FINANCE DIVISION 5 HUMAN RESOURCE MANAGEMENT (HRM) WING INTRODUCTION: HRM Wing in Finance Division performs all the core functions like hiring/recruitment and developing skills of the employees to add value. Being ISO certified Division, the Wing performs job analysis, planning, managing salaries, providing benefits incentives, evaluating performance, resolving disputes and communicating with all employees at all levels to facilitate them in their service delivery. It also focuses on governance and analysis of quality output of all Wings of Finance Division. Besides, imparting knowledge of Rules of Business, Financial Rules, Esta Code and other instructions issued by the Government from time to time to the employees and their compliance to ensure better performance is also taken care of in different ways. The workload of HRM Wing increases manifold with the start of the process of preparation of budget. The Wing prepares strategy to ensure smooth flow of services during the process followed by printing of budget books, presenting of budget before the Parliament, and passage of the Finance Bill. In addition, the wing handles normal parliamentary business not only on behalf of Finance Division, but also caters to the parliamentary business of Economic Affairs, Revenue, Statistics and Privatization Divisions. A dedicated team comprising the following officers and their staff accomplishes all the above functions: Finance Secretary Additional Finance Secretary (HRM) Joint Secretary (HRM) DS(Coord) DS(Council) DS(HR) DS(Services) DS(QA) DS(B&A) SO(Coord-I) SO(Council) SO(HR-I) SO(Services-I) SO(QA-I) SO(B&A) (vacant) SO(Coord-II) SO(HR-II) SO(Services-II) SO(QA-II) AO/DDO SO(HR-III) OSD(Protocol) SO(QA-III) AAO SO(HR-IV) SO(Documentation) 6 MAIN FUNCTIONS PERFORMED DURING THE YEAR