K-P Finance issues strict fiscal guidelines

Circular outlines deadlines, cheque protocols, and spending rules for 2024-25

PESHAWAR:

The Khyber-Pakhtunkhwa finance department has issued detailed circular guidelines to all relevant government departments and regional bank branches to ensure fiscal discipline and the efficient utilization of funds for the financial year 2024-25.

To streamline public financial management and avoid year-end bottlenecks, all departments have been directed to ensure uniform expenditure throughout the year and to clear all valid liabilities well before the close of the fiscal year.

Departments have been instructed to complete all formalities related to bill processing and procurement in a timely manner.

The circular emphasizes that funds allocated to departments and offices must be utilized uniformly during the current financial year, and that all valid, accrued liabilities should be cleared promptly instead of being delayed until the end of the year.

The circular states that all concerned authorities must ensure the timely issuance of sanctions, completion of codal formalities, and procurement of stores, so that claims can be submitted for pre-audit to the Accountant General and respective district accounts offices without delay.

All bills related to releases for the financial year 2024-25 must be presented to the Accountant General and district accounts officers on or before 16, June 2025. The Accountant General and district accounts officers are directed to issue all cheques and pay orders by June 23, 2025. Additionally, the final schedule for the month of June will be submitted to the State Bank of Pakistan (SBP) prior to the presentation of cheques for payment.

The circular further directs that cheques related to lapsable PLAs, SDAs, Assan Assignment Accounts, reserve fund, SDF, Forest and Works Accounts must be issued in a timely manner and cleared by the treasury officer in Peshawar and the concerned DAO. All cheques drawn against these accounts must be encashed by June 30, 2025.

The finance department has clarified that all cheques already issued or to be issued for the financial year 2024-25 shall remain valid up to June 30, 2025, except for salary cheques issued to the drawing and disbursing officers (DDOs) for the month of June 2025, which will be payable on or after July 10, 2025.

The circular further states that any defects in cheques such as overwriting, deletions, incorrect payee addresses, discrepancies between amounts in figures and words, or missing signatures of authorized personnel, must be strictly avoided, as such issues will result in the cheques being declared unpassed.

Additionally, authorities responsible for issuing cheques and pay orders are advised to affix the stamp "Not payable after June 30, 2025" on all such instruments, excluding salary cheques issued to DDOs, if any.