The Governor-General* is pleased to issue the following rules under section 151 of the Government of India Act, 1935, as adapted by the Pakistan (Provisional Constitution) Order, 1947.
Section I. -Short title and Commencement
1 – These rules may be called the “Treasury Rules of the Federal Government” and they shall come into force with effect from the 15th August, 1947.
Section II. -Definitions
2. In these rules, unless the context otherwise requires, the following expressions have the meaning hereby assigned to them, that is to say:-
(a) “Accountant General” means the head of an office of accounts and audit or of accounts, ‘[or of a sub-office located at a Provincial Headquarter] who keeps the accounts of the Federal Government and, when used in relation to a treasury, the head of an office of accounts to whom the accounts of the treasury are rendered.
(b) “The Act” means the Government of India Act, 1935, as adapted by the Pakistan (Provisional Constitution) Order, 1947.
(c) “Audit Officer” means any officer subordinate to, or under the superintendence of, the Auditor General, who exercises audit functions.
(d) “Auditor-General” means the Auditor General of Pakistan.
(e) “The Bank” means the State Bank of Pakistan or any office or agency of the State Bank of Pakistan and includes any branch of the National Bank of Pakistan acting as the agent of the State Bank of Pakistan in accordance with the provisions of the State Bank of Pakistan Act, 1956 (Act XXXIII of 1956). “State Bank” means the State Bank of Pakistan.
(f) “Chief Accounts Officer”, in relation to accounts of Railways, means the head of a Railway Accounts Office.
(g) “Collector” means the head of a district, or an officer nominated by the Government to be the Collector in respect of a Federal Treasury, and includes any other officer for the time being authorised by the Government to discharge the duties of the Collector for the purposes of these rules.
(h) “Competent authority” means the Government or any other authority to whom the relevant powers may be” delegated by the Government.
(i) ” District” includes any area whether described as a district a Political Agency, a Consulate or otherwise, which is served by a treasury placed in direct relation with an Accountant General and the term “District Treasury” shall be construed accordingly.
(j) “Federal Consolidated Fund” means the consolidated fund of which all revenues received and all loans raised by the Federal Government, and all moneys received by the Federal Government in repayment of any loan, form part.
(k) “The Government” means the Federal Government.
(l) ” Province” means a Governor’s Province.
(m) ” Public Account of the Federation” means the account to which are credited all moneys, other than those forming part of the Federal Consolidated Fund, received by or on behalf of the Federal Government, including those received by or deposited with the Supreme Court or any other court established under the authority of the Federation.
(n) ” Public Moneys” means the moneys forming part of Federal Consolidated Fund and the Public Account of the Federation.
Note. -” Public Account of the Federation” would include unfunded debt and, unless the contrary intention appears, such receipts of a banking or-deposit nature as by virtue of any statutory provision or of any general or special executive order of the Government have to be held in the custody of the Government.
(o) “Treasury” includes a sub-treasury.
(p) ” Bank treasury ” means a treasury the cash business of which is conducted by the Bank and a ” Non-Bank treasury ” means a treasury other than a Bank treasury.
(q) ” Federal treasury” means and includes any treasury or sub-treasury not being a treasury or sub-treasury under the control of a Province.
Section III. -Location of Public Moneys
3. Subject to the provisions of sub-rules (2) and (3) of rule 7 and sub-rule (1) of rule 33, public moneys of the Federal Government must either be held in a Federal treasury or in the Bank. Moneys deposited in the Bank shall be considered as one general fund held in the books of the Bank on behalf of the Government.
The deposit of such moneys in the Bank shall be governed by the provisions of section 21 of the State Bank of Pakistan Act, 1956 (Act XXXIII of 1956).
Section IV-General System of Control over Federal Treasury
4. (1) Unless the Government after consultation with the Auditor General otherwise direct, there shall be a treasury in each of districts specified in Annexure ‘A’ to this part. If public moneys of the Federal Government are in any district so specified, not deposited in the Bank, the treasury of that district shall be divided into two departments: a department of accounts under the charge of an Accountant, and a department of cash, stamps and opium under the charge of a Treasurer. Subject as hereinafter provided in this rule, the general procedure of, and conduct of business in, a district treasury shall be regulated by the provisions contained in Part II.
(2) The treasury shall be under the general charge of the Collector who may entrust the immediate executive control to a Treasury officer subordinate to him but may not divest himself of administrative control. The Collector shall be responsible for the proper observance of the procedure prescribed by or under these rules and for the punctual submission of all returns required from the treasury by the Government, the Auditor General, the Accountant General and the Bank.
(3) The duty of verifying and certifying the monthly cash balance, if any, in a Federal treasury and of submitting the monthly accounts of such balance in such form and after such verification as the Auditor General may require, shall be undertakers by the Collector or by such other officer as may be authorized by or under these rules to act in this behalf. It must be performed by the Collector in person at least once in every period of six
The procedure to be observed for the verification of cash balances, if any, in a Federal treasury shall be regulated by the provisions contained in this behalf in Part IV.
(4) When a new Collector is appointed to a district, he shall at once report his appointment to the Accountant General and shall certify to the Accountant Genera! the amount of the cash balance and stamp and opium stores, if any, which he has taken over. The certificate shall be submitted after the method of verification specified in Part IV has been applied.
(5) Ordinarily no] portion of the responsibility for the proper management and working of treasuries shall devolve upon the officers of the Pakistan Audit Department. The inspection of treasuries by officers of the Pakistan Audit Department shall not relieve the Collector of his responsibilities for management and inspection.
5. If the requirements of the public business necessitate the establishment of one or more treasuries under a district treasury, the arrangements for the administration thereof and for the proper conduct of business therein shall be such as may be prescribed by the Head of the Local Administration after consultation with the Accountant General; provided that in cases where a Federal sub-treasury renders accounts to a district treasury under the control of a Province, the arrangements for the administration thereof shall be such as may be settled by the Head of the Local Administration in agreement with the Government of the Province concerned.
The daily accounts of receipts and payments of moneys at a sub- treasury must be included in the accounts of the district treasury.
Other Collecting and Disbursing Offices
6. (1) Officers in charge of Military Treasurer Chests and such officers of the ‘(Federal Excise and Land Customs, ] Pakistan Post Office and the Pakistan Telegraph and Telephone Departments or of any other department of the Government as are authorized to maintain separate departmental cash balances outside the balances of the Government in the treasury or in the Bank, may, subject to the previsions of these rules, perform all or any prescribed part of the duties of a Treasury Officer in respect of claims against the Government that may he presented to them for disbursement and in respect of moneys that may be tendered to them for credit to the Federal.
Consolidated Fund or the Public Account of the Federation, as the case may be.
(2) An Accountant General may, subject to such conditions and limitations, if any, as the Government may think fit to impose, perform all or any prescribed part of the duties of a Treasury Officer in respect of claims against the Government that may fall due for disbursement and moneys that may be tendered for credit to the Federal Consolidated Fund or the Public Account of the Federation, at the case may be, at the office or within the jurisdiction of the said Accountant General; provided that where an Accountant General is subordinate to the Auditor General, the performance by the Accountant General of the duties aforesaid shall be subject to the content of, and such conditions as may be prescribed by the Auditor General.
Section V. -Payment of Revenues of the Federal Government into the Federal Consolidated Fund
7. (1) Save as hereinafter provided in this section, all moneys received by or tendered to Government officers on account of the revenues of the Federal Government shall without undue delay be paid in full into a treasury or into the Bank, or in the case of moneys received by, or tendered to the Ambassador of Pakistan in the United Kingdom, into such Bank or Banks as may be authorized by the State Bank of Pakistan in this behalf, and shall be included in the Federal Consolidated Fund of the Federal Government. Moneys received as aforesaid shall not be appropriated to meet departmental expenditure, nor otherwise kept apart from the Federal Consolidated Fund of the Federal Government. No department of the Government may require that any moneys received by it on account of the revenues of the Federal Government be kept out of the Federal Consolidated Fund of the
(2) Notwithstanding anything contained in sub-rule (1) of this rule, direct appropriation of departmental receipts for departmental expenditure is authorized in the following cases, that is to say:
(a) In the case of cash receipts utilized in accordance with departmental regulations by Postmasters and other heads of offices of the Pakistan Post Office and the Pakistan Telegraph and Telephone Departments for departmental purposes;
(b) In the case of moneys received on account of the service of summons, diet-money of witnesses and similar purposes, in Civil, Revenue and Criminal cases;
(c) In cases of deposits received at a Civil Court and utilized by the Court to meet claims for the refund of such deposits;
(d) In the case of fees received by Government servants appointed Notaries Public under Act XXVI of 1881, and utilized to defray legal expenses incurred by them in the discharge of their duties as such Notaries Public;
(e) In the case of the Pubic Works Department and the Department of Federal Excises and Land Customs to permit the use under departmental regulations of cash receipts temporarily for current works expenditure or, in very exceptional cases, for disbursement of pay and travelling allowance charges, where this course has been authorized by the Accountant General to prevent any abnormal delay in payment;
(f) In the case of cash collections of the Customs Department utilised, under special authorisation of the Government, in meeting payments on account of departmental expenditure;
(g) In the case of cash received by the Forest Department and utilised in meeting immediate local expenditure;
(h) In the case of cash found on the person of prisoners at the time of their admission to jail, and used for the repayment by jail Superintendents under departmental regulations of similar sums due to other prisoners on their release;
(i) In the case of cash receipts of Railways utilised under departmental regulations or with the previous approval, general or special, of the President, for departmental purposes;
(j) In cases of Government Libraries, to permit the replacement of books, belonging to the Library, which are not returned by borrowers, out of their deposit money;
(n) In the case of the Survey of Pakistan Department, to permit the payment of commission to Map Agents out of map sale receipts;
(p) In the case of Branch Military Dairies located at stations where there is no treasury, Military treasure chest or authorised bank, to enable the sale proceeds of dairy product being utilised for meeting their current expenditure, the equivalent amount being remitted into treasury by the parent Dairy Farms;
(r) In the case of sale proceeds of office furniture, etc, purchased from the office Allowance Fund of a Military Unit or Office, and utilized under departmental regulations for the purposes of the Fund;
(s) In the case of the Collectors rates of Customs and Federal Excises and Land Customs, to permit the payment of:
(i) commission to duly authorized auctioneers out of the sale proceeds of the auctioned goods and
(ii) rebate or refund claim on account of customs-duties, excise duty and sales-tax paid on raw materials imported and used in the manufacture of goods, machinery and other items exported out of Pakistan or supplied by Pakistani suppliers to such industries and projects as may be approved by the Government from time to time; and];
(t) In the case of the Department of Investment Promotion and Supplies, to permit the payment of commission to duly authorised auctioneers out of the sale proceeds of the auctioned goods: Provided that the authority hereby given for appropriation of departmental receipts for departmental expenditure shall not be constructed as authority to keep the departmental receipts and expenses defrayed therefrom outside the account of the payments into and the withdrawals from the Federal Consolidated Fund,
(3) In special cash authorised by the Government, moneys received or tendered on account of the revenues of the Federal Government may be deposited with a treasury in a State which has acceded to Pakistan or with a bank or with some recognized private banker. The conditions under which such deposits may be made and the manner, in which the balances of such deposits shall be included in the Federal Consolidated Fund, will be decided by the Government in each case after consultation with the Auditor General.
(4) All moneys received by, or tendered to, Pakistan Missions abroad (other than the Ambassador of Pakistan in the U. K. ) on account of-the revenues of the Federal Government shall be paid into such bank or banks as may be authorised by Government in consultation with the Auditor General and the State Bank of Pakistan.
8. Save as provided in rule 31 and sub-rule (2) of rule 33, moneys received by a Government officer whether in an official or other capacity, which do not relate to or form part of the revenues of the Federal Government shall not be included in the Federal Consolidated Fund and a Government officer, is not required to pay into the Federal Consolidated Fund any such moneys. If any question arises whether moneys are or are not moneys relating to or forming part of the revenues of the Federal Government the question shall be referred to the Government for decision.
9. (1) Save as hereinafter provided, a Government officer may not, except with the special permission of the Government, deposit in a bank moneys withdrawn from the Federal Consolidated Fund or the Public Account of the Federation, as the case may be, under the provisions of Section VII of this part.
(2) So much of the grant of the Commander-in-Chief as may be drawn in advance under departmental regulations may be kept in any bank in his official title.
(3) Officers commanding Units and others concerned in the administration of Public Funds in the Defence Department may open current accounts for such funds with the Bank in their official capacity.
10. The procedure to be adopted by Government officers and other authorised collecting agencies other than those in the United Kingdom in receiving moneys on account of the revenues of the Federal Government granting receipts for such moneys and paying them into the Federal Consolidated Fund, and by the treasury and the Bank in receiving such moneys and granting receipts for them shall be regulated by the provisions contained in Part III.
Section VI. -Custody of Public Moneys
11. (1) Save as provided in sub-rule (1) of rule 33, the procedure for the safe custody of public moneys in the hands of Government officers or held in a Federal treasury, shall be regulated by the provisions contained in Part IV.
(2) The Bank is responsible for the safe custody of Government moneys deposited in the Banks.
Section VII. -Withdrawals of Public Moneys.
12. In this section “withdrawal”, with its cognate expressions, refers to the withdrawal of funds from, the Federal Consolidated Fund or the Public Account of the Federation, as the case may be, for disbursements of or on behalf of the Government other than the disbursements in the United Kingdom.
13. Save as expressly provided by or under these rules/or unless the Government after consultation with the Auditor General -otherwise – direct in any case, moneys may not be withdrawn from the Federal Consolidated Fund or the Public Account of the Federation, as the case may be, without the written permission of the Treasury Officer or of an officer of the Pakistan Audit Department authorised in this behalf by an Accountant General.
14. An Accountant General may, within the limit of his own jurisdiction, permit withdrawal for any purpose. Unless expressly authorised by these rules or by any special orders of the Government, an Accountant General may not permit withdrawal at a place outside the limits of his own jurisdiction.
15. (1) Subject as hereinafter provided in this section, a Treasury Officer may permit withdrawal for all or any of the following purposes, namely: –
(i) To pay sums due from the Government to the drawing officer;
(ii) To provide the drawing officer with funds to meet claims likely to be presented against the Government in the immediate future by:
(a) other Government servants, ” or
(b) private parties;
(iii) To enable the drawing officer to supply funds to another Government officer from which to meet similar claims;
(iv) To pay direct from the treasury or from the Bank sums due by the Government to a private party;
(v) In the case of a Government officer or authority empowered to make investments of moneys, standing in the Public Account, for the purpose of such investments.
(2) Unless expressly authorised by an Accountant General, a Treasury Officer shall not permit withdrawal for any purpose not specified in sub-rule (1) of this rule.
16. Except as provided in rules 24 and 25. a Treasury Officer shall not permit withdrawal for any purpose unless the claim for withdrawal complies with the provisions contained in Part V as to the person by whom, and the form in which, the claim shall be preferred and the checks to which the claim shall be submitted by the Treasury Officer before directing payment thereof.
17. A Treasury Officer has no general authority to make payments on demands presented at the treasury, his authority being strictly limited to the making of payments authorized by or under these rules. If a demand of any kind is presented at a treasury for a payment which is not authorised by or under these rules, or is not covered by a special order received from the Accountant General, the Treasury Officer shall decline payment for want of authority. A Treasury Officer has no authority to act under an order of the Government sanctioning a payment unless the order is an express order to him to make the payment; and even such special orders should, in the absence of urgency, be sent through the Accountant General.
18. A Treasury Officer shall not honour a claim which he considers to be disputable. He shall require the claimant to refer it to the Accountant General.
19. Except as otherwise provided in Part V, a payment shall only be made in the district in which the claim arises.
20. No withdrawal shall be permitted in order to meet the pay, leave salary or allowances of a gazetted Government servant, or a reward or honorarium payable to a gazetted Government servant, or any pension, until the Accountant General has intimated to the Treasury Officer the rate at which payment shall be made; provided that the Government may, for special reasons and with the concurrence of the Auditor-General, waive the provisions of this rule.
21. No withdrawal shall be permitted on a claim for the first of any series of payment in a district, of pay or allowances to a Government servant other than a person newly appointed to Government service unless the claim is supported by a last pay certificate in such forms as may be prescribed by the Auditor-General. A Treasury Officer may not permit any withdrawal in respect of pay or allowances of a Government servant to whom he has granted a last pay certificate unless
the certificate is first surrendered.
22. The Treasury Officer shall be responsible to the Accountant General for acceptance of the validity of a claim against which he has permitted withdrawal, and for evidence that the payee has actually received the sum withdrawn.
23. The Treasury Officer shall obtain sufficient information as to the nature of every payment he is making and shall not accept a claim which does not formally present that information unless there are valid reasons which he shall record in writing, for omitting to require it.
24. A Treasury Officer may correct an arithmetical inaccuracy or an obvious mistake in any bill presented to him for payment, but shall intimate to the drawing officer any correction which he makes.
25. A Collector may, in circumstances of urgency, by an order in writing authorise and require a Treasury Officer to make a payment, not being a payment of pension, without complying with the provisions of these rules. In any such case of payment the Collector shall at once forward a copy of his order and a statement of the circumstances requiring it, and the Treasury Officer shall at once report the payment to the Accountant General.
Section VIII. -Transfer of Public Moneys
26. (1) The transfer of Government moneys from one Federal treasury to another, between currency chest balance and treasury balance of a Federal treasury, between a Federal treasury and the Bank and between Pakistan and the United Kingdom shall be governed by such instructions as may be issued in this behalf by the President after consultation with the State Bank, Subject as provided above, the provisions of Part XI and any subsidiary instructions issued thereunder shall regulate the procedure with regard to the matters aforesaid,
(2) The transfer of moneys from or to a small coin depot to or front a treasury shall be governed by the procedure specified in Part XL
Section IX. -Responsibility for Moneys Withdrawn
27. If a Treasury Officer receives intimation from the Accountant General that moneys have been incorrectly withdrawn and that a certain sura, should be recovered from a drawing officer, he shall effect the recovery without delay and without regard to any correspondence undertaken or contemplated with reference to the retrenchment order; and the drawing officer shall without delay repay the sum in such manner as the Accountant General may direct.
28. (1) Subject as hereinafter provided in this rule, the procedure to be observed by a Government Officer in regard to public moneys withdrawn for expenditure shall be regulated by the provisions made in this behalf in Part V.
(2) A Government Officer supplied with funds for expenditure shall be responsible for such funds until an account of them has been rendered to the satisfaction of the Accountant General and of the Audit Officer concerned. He shall also be responsible for seeing that payments are made to persons entitled to receive them.
(3) If any doubt arises as to the identity of the Government officer by whom an account of such funds shall be rendered, it shall be decided by the Government.
Section X. -Inter-Government transactions
29. (1) Save as provided hereafter in this section, no transactions of the Federal Government with a Province shall be adjusted against the balance of the Federal Government except in accordance with such directions as may be given by the Auditor-General with the approval of the President to regulate the procedure for the accounting of transactions between different Governments.
(2) All adjustments against the balance of the Federal Government by debit or credit to the Government of a Province shall be made through the Central Accounts Section of the Bank.
30. Receipts and disbursements in a Province on behalf of the Federal Government shall be adjusted, as far as practicable, directly against the balance of the Federal Government held by the Bank, but where such transactions are temporarily taken into account against the balances of the Province with the Bank, the Accountant General of the Province mil, on receipt of intimation from the treasury, make the requisite adjustments in respect of the aforesaid transactions through the Central Accounts Section of the Bank against the balances of the Federal Government held by the Bank.
31. (1) The Treasury Officer in charge of a Federal treasury may, subject to any general or specific direction of the Government in this behalf, receive or authorise the Bank to receive moneys tendered on be- half of a Province and may, if so required by the Accountant General, make or authorise payment of any claim against a Province. The necessary credits or debits in respect of such receipts and payments against the balances of the Province concerned shall be made by the Accountant General through the Central Accounts Section of the Bank but, until such adjustments are made the credits and debits shall be entered in the Federal Consolidated Fund or the Public Account of the Federation, as the case may be.
(2) Moneys paid or received in the office of an Accountant General on behalf of a Province, or book entries made in the office of an Accountant General affecting the accounts of a Province, where such moneys or book entries are credited or debited in the first instance against the balance of the Federal Government, shall be adjusted against the balance of the Province concerned in accordance with such directions as may be given in this behalf by the Auditor-General with the approval of the President.
(3) The provisions of the preceding sub rule may be extended with or without modification to payments made or moneys received on behalf of the Railway.
32. (1) In order that the transactions pertaining to the Federal Government may be correctly recorded against the balance of the Federal Government, all chalans, bills, cheques, vouchers, etc., which serve as evidence for payments into or withdrawals from the Federal Consolidated Fund or the Public Account of the Federation, as the case may be, or on the authority of which adjustments in the initial accounts are made against the balance of the Federal Government by treasuries and the Bank, shall be printed on blue paper;
Provided that in the case of any particular kind of document aforesaid, the Government may, after consultation with the Auditor General, suspend or waive the operation of this rule. This is subject to the condition that whenever forms other than those
of blue colour are used, such forms must invariably be so prominently marked as to indicate clearly that they pertain to
transactions of the Federal Government.
(2) The requirements of this rule shall not apply to transactions of the Government in the United Kingdom, which are governed by the provisions of rule 33.
Section XI. -Receipts and Disbursements of the Federal Government in the United Kingdom.
33. (1) Except as expressly provided in these rules, the Procedure in respect of the receipt and safe custody of moneys received in the United Kingdom on account of the revenues of the Federal Government, the payment of such moneys into the Federal Consolidated Fund, the withdrawal of such moneys from the said Federal Consolidated Fund, and any matters connected with or ancillary to the matters aforesaid shall be such as may be prescribed, by the Ambassador of Pakistan after consultation with the Director of Audit and Accounts attached to the Ambassador of Pakistan in the United Kingdom.
(2) Until other provision is made by a Province in this behalf, moneys received in the United Kingdom on account of the revenues of the Province may be paid into, and funds required for disbursements of or on behalf of the Province in that country may be withdrawn from, the balances in the Federal Consolidated Fund in that country, in accordance with such procedure as may be prescribed under sub-rule (1) of this rule. These transactions shall be adjusted in Pakistan at the earliest opportunity against the balances of the Province according to such directions as may be given in this behalf by the Auditor-General with the approval of the President.
Section XII. -Supplemental
34. An Accountant General who is subordinate to the Auditor General shall, in the exercise of any of his functions under these rules, be subject to the general control of the Auditor-General and any other Accountant General shall exercise those functions subject to the general control of the Financial Authority concerned which will act generally in consultation with the Auditor-General in all matters where the Auditor-General’s powers and duties as regards accounts are involved.
35. Nothing in these rules shall have effect so as to impede or prejudice the exercise by the Auditor-General of the powers vested in him by or under the Act to make rules or to give directions regulating the submission to the Pakistan Audit Department of the accounts kept in treasuries or in departmental offices, accompanied by such vouchers for their support as the Auditor-General may require for purposes of audit or for the purpose of keeping the accounts for which he is responsible.
36. Nothing contained in, or in the application of, these rules shall have effect so as to impose upon the Bank in connection with the business of the Government any responsibility not imposed upon the Bank by the provisions of State Bank of Pakistan Act, 1956 (Act XXXIII of 1956).
37. (1) Where under the provisions of these rules the detailed procedure with respect to any matter is required to be prescribed or regulated by departmental regulations and where no rule or order has been made by the President as to the authority by which the regulations shall be made, such regulations to be observed by particular departments shall be made by the Government, or with the approval of the Government, by such departmental authorities as may be authorized by the Government to act in this behalf.
The Head of a Local Administration may, subject to such limitations as may be imposed by the Government, make departmental regulations in relation to departments or areas under his administrative control.
(2) Nothing contained in this rule affects the validity of any order, instruction or direction contained in any authorised departmental regulation in force on the date of promulgation of these ruler., except in so far as such order, instruction or direction is inconsistent with or repugnant to any distinct provision contained in these rules-
ANNEXURE ” A”
Districts and stations where there are Federal Treasuries –