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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, 00-00-2012

Arif Azim 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 INTRODUCTORY ORGANIZATION FOR THE CONTROL OF RAILWAYS RAILWAY FINANCE ANNUAL BUDGET REVISED AND BUDGET ESTIMATES APPROPRIATION ACCOUNTS FINANCIAL JUSTIFICATION OF RAILWAY EXPENDITURE CONTROL OVER EXPENDITURE ALLOCATION OF EXPENDITURE ALLOCATION OF EXPENDITURE ON STATE RAILWAYS MANAGED BY COMPANIES AND ON PRIVATE RAILWAYS WORKED BY THE STATE INCIDENCE OF THE COST OF WORKS FOR NON-RAILWAY DEPARTMENT 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

CHAPTER NO. I II III IV V VI VII VIII IX X (Deleted) XI XII XIII XIV XV XVI XVII XVIII XIX XX

PAKISTAN RAILWAYS GENERAL CODE LIST OF APPENDICES

DESCRIPTION

APPENDIX NO. I II III

CHART OF ACCOUNTS SUBSIDIARY CODING SCHEME FOR REVENUE FINANCIAL POWERS DELEGATED TO THE MINISTRIES AND THE HEADS OF THE DEPARTMENT BY FINANCE DIVISION, GOVERNMENT OF PAKISTAN HOURS OF EMPLOYMENT REGULATIONS

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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 GUARANTEED RAILWAYS SUBSIDIZED RAILWAYS STATE OWNERSHIP OF RAILWAYS COMPANY MANAGEMENT OF STATE RAILWAYS CATEGORIES OF SUB-CONTINENT RAILWAYS EFFECT OF PARTITION FEATURES OF CONTRACTS COMPANIES MANAGING STATE-OWNED RAILWAYS BRANCH LINES PROVINCIAL GOVERNMENT AND DISTRICT BOARD RAILWAYS OWNERSHIP OF RAILWAY PROPERTY TAXATION OF RAILWAY PROPERTY AND INCOME

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PARA NO. 101 102 103 104 105 111A 111B 111D 112 113 114 115 118 (117, 119 Deleted) 120 121

PAKISTAN RAILWAYS GENERAL CODE CHAPTER I I NTRODUCT O RY

101. Guaranteed Railways. The policy in regard to the construction of railways in subcontinent 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 I NTRODUCT O RY

106. The railways included in the first category were (i) (ii) (iii) (iv) (v) The Bengal and Assam Railway. The Bombay, Baroda and Central India Railway. The East Indian Railway. The Great Indian Peninsula Railway. 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 (i) Lucknow Bareilly (ii) Tirhoot (iii) Jodhpur Hyderabad (iv) Bezwada Extension (v) Dronachellam (Dhone) Kurnool British Frontier. Working Agency Rohilkund and Kumaon Railway. Bengal and North Western Railway. Jodhpur Railway

H. E. H. the Nizams 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 Nizams State Railway. (ii) The Mysore Railways. (iii) The Jodhpur Railway.

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PAKISTAN RAILWAYS GENERAL CODE CHAPTER I I NTRODUCT O RY

111. The following were examples of Branch Line Companies and District Board Railways. (a) Branch Line CompaniesGuaranteed (See paragraph 114) (i) Chaparmukh Silghat Railway. (ii) Katakhal Lalabazar Railway. (b) Branch Line CompaniesRebate (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 I NTRODUCT O RY

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 Companys 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 Companys 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 I NTRODUCT O RY

(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

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PAKISTAN RAILWAYS GENERAL CODE CHAPTER I I NTRODUCT O RY

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 I NTRODUCT O RY

(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

C O N T ENT S

DESCRIPTION MINISTRY OF RAILWAYS (RAILWAY BOARD) TECHNICAL DIRECTORATE MEMBER FINANCE CONSTITUTION FUNCTIONS AND POWERS SAFETY POLICY RULES OF BUSINESS LAND ACQUISITION CONTRACTS AND AGREEMENTS

PAGE NO. 2.1 2.1 2.1 2.2 2.2 2.2 2.2 2.2 2.2 2.2 2.3

PARA NO. 201 202 203 203A 207 (204 206 Deleted) 208 209 210 211 212 213 214 216 (217 218 Deleted) 219 220 (221 222 Deleted)

DIRECTORATES

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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

C O N T ENT S

DESCRIPTION SEPARATION CONVENTION ANNUAL RAILWAY CONTRIBUTION AMOUNT OF RAILWAY CONTRIBUTION TO GENERAL REVENUES LOSS DUE TO STRATEGIC RAILWAYS RAILWAY RESERVE FUND OBJECT OF RESERVE FUND TEMPORARY BORROWING RAILWAY DEPRECIATION FUND DEMANDS FOR GRANTS FORM OF BUDGET REVISION OF CONVENTION PRINCIPLES UNDERLYING CONVENTION FUNDS FOR CAPITAL OUTLAY SPECIFIC DEBT NON-SPECIFIC DEBT INTEREST ON SPECIFIC DEBT INTEREST IN RESPECT OF TERMINABLE ANNUITIES INTEREST ON NON-SPECIFIC DEBT

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PARA NO. 301 302 303 304 305 306 307 (308 Deleted) 309 310 311 312 313 (314 Deleted) 315 316 317 (318 Deleted) 319 320 321 323

PAKISTAN RAILWAYS GENERAL CODE CHAPTER III RAILWAY FINANCE

C O N T ENT S

DESCRIPTION INTEREST ON COMPANY AND STATE CAPITAL CAPITAL EXPENDITURE REVENUE EXPENDITURE WORKING EXPENSES CLASSIFICATION OF REVENUE EXPENDITURE REVENUE RECEIPTS DEPRECIATION RESERVE FUND APPROPRIATIONS TO THE FUND APPROPRIATION FROM THE FUNDSTATE RAILWAY COMPANY-MANAGED RAILWAYS INTEREST ON DEPRECIATION RESERVE FUND BALANCES TEMPORARY ADVANCES FROM DEPRECIATION RESERVE FUND RAILWAY RESERVE FUND RAILWAY DEBT RETURN ON INVESTMENT BY GOVERNMENT INTEREST AND AMORTISATION PAYMENTS OF FOREIGN LOANS / CREDITS FUNDS BALANCES

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PARA NO. 324 325E 326 327 328 329 330 331 332 333 334 335 336 337 338E 339 339-A 340 341 (342 343 Deleted)

PAKISTAN RAILWAYS GENERAL CODE CHAPTER III RAILWAY FINANCE

C O N T ENT S

DESCRIPTION APPLICATION OF RAILWAY RECEIPTS APPLICATION OF SURPLUSES LIABILITIES OTHER THAN RAILWAY DEBT BANKING

PAGE NO. 3.13 3.13 3.13 3.13

PARA NO. 344 345 346 (347 Deleted) 348

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 twothird 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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PAKISTAN RAILWAYS GENERAL CODE CHAPTER III RAILWAY FINANCE

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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PAKISTAN RAILWAYS GENERAL CODE CHAPTER III RAILWAY FINANCE

(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) (b) (c) by loans raised specifically for railway purposes by Government (specific debt); by the utilization of revenue surpluses and other resources at the disposal of the Government (non-specific debt); and 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. 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). Rupee debt specifically incurred for railways. 3.3

(b)

(c)

PAKISTAN RAILWAYS GENERAL CODE CHAPTER III RAILWAY FINANCE

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 Nonspecific 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 1916-7Rs. 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 3.4

PAKISTAN RAILWAYS GENERAL CODE CHAPTER III RAILWAY FINANCE

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) (ii) (iii) the amount of interest taken into account was the amount due for the year and not the amount paid in the year; a suitable addition was made for charges for management of debt and advertisement charges connected with new issue; and 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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PAKISTAN RAILWAYS GENERAL CODE CHAPTER III RAILWAY FINANCE

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) (ii) (iii) (iv) (v) (vi) Working Expenses. Deleted. Deleted. Miscellaneous Railway Expenditure. Deleted. Interest charges.

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PAKISTAN RAILWAYS GENERAL CODE CHAPTER III RAILWAY FINANCE

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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PAKISTAN RAILWAYS GENERAL CODE CHAPTER III RAILWAY FINANCE

333. Appropriation from the FundState 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 3.8

PAKISTAN RAILWAYS GENERAL CODE CHAPTER III RAILWAY FINANCE

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 IndoPakistan 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 Railways 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.

3.9

PAKISTAN RAILWAYS GENERAL CODE CHAPTER III RAILWAY FINANCE

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 Presidents 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. 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 Governments Investment made upto the 30 June 1962. 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 Presidents Order, obtained by the Central Government for the Railways. 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

ii.

iii.

v.

3.10

PAKISTAN RAILWAYS GENERAL CODE CHAPTER III RAILWAY FINANCE

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. 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 Governments investment. 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. 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. 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.

vii.

viii.

ix.

x.

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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PAKISTAN RAILWAYS GENERAL CODE CHAPTER III RAILWAY FINANCE

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) (ii) (iii) defraying working expenses; meeting payments due under contracts or agreement to railway undertakings; paying pensions; 3.12

PAKISTAN RAILWAYS GENERAL CODE CHAPTER III RAILWAY FINANCE

(iv)

(v) (vi) (vii)

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; making due provision for maintenance, renewals, improvements and depreciation; payment of interest on the amount owing to the Federal Government and other local and foreign institutions and Governments; and 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.

3.13

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

C O N T ENT S

DESCRIPTION ANNUAL BUDGET CHARGED AND OTHER THAN CHARGED EXPENDITURE CHARGED EXPENDITURE DEMANDS FOR GRANTS TYPES OF DEMANDS MAJOR, MINOR AND DETAILED HEADS OF DEMANDS PREPARATION OF THE ANNUAL BUDGET BUDGETARY PROCEDURE PRESENTATION TO THE NATIONAL ASSEMBLY AUTHENTICATION BY PRIME MINISTER GRANTS AND APPROPRIATIONS DISTRIBUTION OF FUNDS BY MINISTRY OF RAILWAYS (RAILWAY BOARD) DISTRIBUTION OF FUNDS BY GENERAL MANAGERS TO LOWER AUTHORITIES POWERS DELEGATED TO MINISTRY OF RAILWAYS (RAILWAY BOARD) POWERS OF PAKISTAN RAILWAYS ADMINISTRATION REVIEW OF EXPENDITURE

PAGE NO. 4.1 4.1 4.1 4.2 4.2 4.2 4.3 4.3 4.4 4.4 4.6 4.6 4.6 4.7

PARA NO. 401 402 403 404 (405 406 Deleted) 407 408 409 410 413 413A (414 416 Deleted) 417 418 419 420 425

4.7 4.9

426 433 (434 Deleted) 438 439

4.10 4.11

4.11 4.12 4.12 4.13

440 447 (441 443 Deleted) 448 449

PAKISTAN RAILWAYS GENERAL CODE CHAPTER IV ANNUAL BUDGET

C O N T ENT S

DESCRIPTION SUPPLEMENTARY GRANTS

PAGE NO. 4.13

PARA NO. 449A (450 Deleted) 451 458 (454 456 Deleted) (457 Cancelled)

FINAL MODIFICATION STATEMENT

4.14 4.15

PAKISTAN RAILWAYS GENERAL CODE CHAPTER IV THE ANNUAL BUDGET

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-

4.1

PAKISTAN RAILWAYS GENERAL CODE CHAPTER IV 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: S. No. 1 Number of Demand xxx Authority responsible for watching the progress of expenditure in each demand Heads of Pakistan Railways Administration for expenditure against the funds allotted. Project Director for each Public Sector Development Programme project / scheme.

Particulars of Demand

Pakistan Railways (nondevelopment grant)

xxx

Capital Outlay on Pakistan Railways (development / Public Sector Development Programme grant)

4.2

PAKISTAN RAILWAYS GENERAL CODE CHAPTER IV THE ANNUAL BUDGET

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; commitments entered into and expected to be paid in the current financial year; 12 months actual expenditure for each of the previous two years; 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) (vi) any other relevant factors: and the impact of development and non-development factors.

(ii)

(iii) (iv)

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

4.3

PAKISTAN RAILWAYS GENERAL CODE CHAPTER IV THE ANNUAL BUDGET

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 ProcedureThe 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. 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 4.4

(ii)

PAKISTAN RAILWAYS GENERAL CODE CHAPTER IV THE ANNUAL BUDGET

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. 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. 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. 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 4.5

(iv)

(v)

(vi)

PAKISTAN RAILWAYS GENERAL CODE CHAPTER IV THE ANNUAL BUDGET

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 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.

(b)

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. 4.6

PAKISTAN RAILWAYS GENERAL CODE CHAPTER IV THE ANNUAL BUDGET

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 4.7

PAKISTAN RAILWAYS GENERAL CODE CHAPTER IV THE ANNUAL BUDGET

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 reappropriation 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 reappropriation 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.

4.8

PAKISTAN RAILWAYS GENERAL CODE CHAPTER IV THE ANNUAL BUDGET

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 4.9

PAKISTAN RAILWAYS GENERAL CODE CHAPTER IV THE ANNUAL BUDGET

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. 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 4.10

(c)

PAKISTAN RAILWAYS GENERAL CODE CHAPTER IV THE ANNUAL BUDGET

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 Managers 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 reappropriations should be made promptly. The whole object is to ensure that, as far as 4.11

PAKISTAN RAILWAYS GENERAL CODE CHAPTER IV THE ANNUAL BUDGET

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)
Actuals last year Grants. 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. First months. Full year. Latest Estimates current year First Full months. year. Budget current year. Variation. Excess (+) Saving () Brief reasons for large variations

4.12

PAKISTAN RAILWAYS GENERAL CODE CHAPTER IV THE ANNUAL BUDGET

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 4.13

PAKISTAN RAILWAYS GENERAL CODE CHAPTER IV THE ANNUAL BUDGET

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.

4.14

PAKISTAN RAILWAYS GENERAL CODE CHAPTER IV THE ANNUAL BUDGET

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.

4.15

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

C O N T ENT S

DESCRIPTION PARTICULARS OF ESTIMATES AND THEIR DUE DATES LATEST DUE DATES SUBSEQUENT ALTERATIONS IN ESTIMATES BUDGET FORMS GLOSSARY OF TERMS USED FORMAL ALLOTMENT OF FUNDS RESPONSIBILITY FOR FRAMING THE ESTIMATES MISCELLANEOUS RAILWAY RECEIPTS EXPENDITURE ON LAND SURVEYS GROSS RECEIPTS COACHING EARNINGS GOODS EARNINGS OTHER INCOME / SUNDRY REFUNDS OF REVENUE AUTHORITIES WHO SHOULD PREPARE THE ESTIMATES OF EARNINGS EXPLANATION OF VARIATIONS IN RECEIPTS

PAGE NO. 5.1 5.1 5.1 5.1 5.1 5.3 5.3 5.3 5.4 5.5 5.5 5.5 5.6 5.7 5.7 5.7 5.7 5.7 5.7

PARA NO. 501 (502 Deleted) 503 503A 504 505 506 507 515 (510, 516 Deleted) 517 518 519 (520 523 Deleted) 524 525 526 527 (528 Deleted) 529 530 531

10

PAKISTAN RAILWAYS GENERAL CODE CHAPTER V REVISED AND BUDGET ESTIMATES

C O N T ENT S

DESCRIPTION EXPLANATION OF SPECIAL FEATURES EFFECT OF NEW LINES REVIEW OF TRAFFIC OUTLOOK SUMMARY OF REVENUE RECEIPTS AND EXPENDITURE WORKING EXPENSES FIGURES OF ACTUALS EXPLANATION OF DIFFERENCES ESTIMATE OF EMPLOYEE RELATED EXPENSES REPAIRS AND MAINTENANCE EXPENDITURE OF ROLLING STOCK STATEMENT OF EXPENDITURE ON REPAIRS AND MAINTENANCE OF LOCOMOTIVES

PAGE NO. 5.8 5.8 5.8 5.8 5.8 5.9 5.9 5.9 5.10 5.10 5.10 5.11

PARA NO. 532 533 534 535 (536 Deleted) 537 539 (538 Deleted) 540 541 542 543 544 (545 548 Deleted) 549 550 550A

STATEMENT SHOWING THE QUANTITY AND COST OF 5.12 COAL, FUEL AND THE FREIGHT AND HANDLING CHARGES ESTIMATES OF EXPENDITURE ON REPAIRS & MAINTENANCE OF COACHING AND GOODS VEHICLES ESTIMATES OF EXPENDITURE ON REPAIRS & MAINTENANCE OF ELECTRIC LOCOMOTIVES ESTIMATES OF EXPENDITURE ON REPAIRS & MAINTENANCE OF ELECTRIC COACHING VEHICLES LISTS OF CREDITS 5.13

551

5.15 5.16 5.17

552 553 554 555

11

PAKISTAN RAILWAYS GENERAL CODE CHAPTER V REVISED AND BUDGET ESTIMATES

C O N T ENT S

DESCRIPTION RECOVERIES FOR GOVERNMENT SUPERVISION SUMMARY OF WORKING EXPENSES STATEMENT OF POSTS INTEREST CHARGES ROLLING-STOCK PROGRAM WORKS PROGRAM NEW CONSTRUCTIONS AND OPEN LINE WORKS STORES TRANSACTIONS AND MANUFACTURE OPERATIONS PAYMENT OF COMMUTED VALUE OF PENSIONS INTEREST ON ADVANCES BY FEDERAL GOVERNMENT AND INTEREST ON DEBT PUBLIC ACCOUNT LOANS, ADVANCES AND DEPOSITS REMITTANCE TRANSACTIONS

PAGE NO. 5.17 5.17 5.18 5.19 5.19 5.19 5.19 5.20 5.20 5.20

PARA NO. 556 557 558 (559 560 Deleted) 561 (562 Deleted) 563 564 565 (566 571 Deleted) 572 573 574

5.21 5.21 5.22

575 576 577

12

PAKISTAN RAILWAYS GENERAL CODE CHAPTER V REVISED AND BUDGET ESTIMATES 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.

5.1

PAKISTAN RAILWAYS GENERAL CODE CHAPTER V REVISED AND BUDGET ESTIMATES Glossary of Terms A. (i) (ii) (iii) (iv) Revenue Receipts Passenger Earnings (less refunds) Other Coaching Earnings (less refunds) Goods Earnings (less refunds) Military Traffic Earnings (less refunds) Passenger Other Coaching Goods / Freight Total Sundry / Other Income (less refunds) Marketing Earnings Land & Property Commercial Department Stores Others Total Miscellaneous Receipts 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. D. E. Total Working Expenses & Other Expenditure Operating Surplus / Deficit = (A) - (C) 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 5.2

(v)

(vi) B.

PAKISTAN RAILWAYS GENERAL CODE CHAPTER V REVISED AND BUDGET ESTIMATES F. G. Repayment of Overdraft (Domestic Debt) Repayment of Foreign Loans i) Replacement Account ii) Capital Account iii)Chinese Loans Total Debt Servicing = E + F + G Total Revenue Expenditure = C + H Net Profit / Loss = A - I Cash Deficit Picked by Federal Government Un-Covered Cash Deficit / Cash Surplus J-K

H. I. J. K. L.

*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

5.3

PAKISTAN RAILWAYS GENERAL CODE CHAPTER V REVISED AND BUDGET ESTIMATES 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) (ii) (iii) (iv) (v) (vi) Actuals during each of the last two years; Actuals for the first 4 months of the current financial year plus actuals for the last 8 months of the previous financial year; Commitments entered into and expected to be paid in the current financial year; Budget estimates for the current year; Revised estimates for the current year; and 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.

5.4

PAKISTAN RAILWAYS GENERAL CODE CHAPTER V REVISED AND BUDGET ESTIMATES 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 Particulars 2008-09 1 2 2009-10 3 Revised Estimates, 2010-11 5 Budget Estimates, 2011-12 6

Budget, 2010-11 4

Remarks

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) (ii) (iii) (iv) (v) (vi) (vii) The particulars of the survey; The total estimated or sanctioned cost; Expenditure to the end of the second preceding year; Actual expenditure for the last two years; Budget estimate for the current year; Revised estimate for the current year; and Budget estimate for the next year.

5.5

PAKISTAN RAILWAYS GENERAL CODE CHAPTER V REVISED AND BUDGET ESTIMATES 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 for last eight months of the last year. Estimate for last eight months of the current year. 8

Actuals for last 3 years.

Description of earnings

Actuals for first four months Last year Current year 6

Budget estimate for the current year.

Revised estimate for the current year.

Budget estimate for the next year.

Remarks

10

11

12

As given in Note below. Note: ITraffic Earnings


(a) Coaching (i) Passengers (Class wise) (ii) Other Coaching. (b) Goods Total Traffic Earnings.. IISundry 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.

5.6

PAKISTAN RAILWAYS GENERAL CODE CHAPTER V REVISED AND BUDGET ESTIMATES 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 railways 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 5.7

PAKISTAN RAILWAYS GENERAL CODE CHAPTER V REVISED AND BUDGET ESTIMATES 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 5.8

PAKISTAN RAILWAYS GENERAL CODE CHAPTER V REVISED AND BUDGET ESTIMATES 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 2010-11 2008-09 2009-10 1 2 Charged 3 Other than Charged 4 Actuals Description (Account head First 4 months Last 8 months code and description) 2010-11 2011-12 2010-11 2011-12 Total 5 6 7 8 9 10

Budget estimate 2011-12 Charged 11 Other than Charged 12 Total 13

Revised estimate 2011-12 Charged 14 Other than Charged 15 Total 16

Estimates

Budget estimate 2012-13 Charged 17 Other than Charged 18 Total 19 Remarks

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

5.9

PAKISTAN RAILWAYS GENERAL CODE CHAPTER V REVISED AND BUDGET ESTIMATES 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 5.10

PAKISTAN RAILWAYS GENERAL CODE CHAPTER V REVISED AND BUDGET ESTIMATES 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 'Standard kilometres kilometres Locomotives heavy repair locomotives in thousands in on the line (during Previous on the line thousands year)

Locomotive Class and Type

Revised Estimates, 2010-11


Locomotive type and class Total

Budget Estimate, 2011-12


Locomotive type and class Total
Average actual cost per equated engine kilometre (Mechanical workshops) during the previous year Average actual cost per Total cost Total cost equated engine (Mechanical (Transportation kilometre Department) Department) (Transportation (Col. 6x (CoI.6X Department) Col. 9) Col.10) during the previous year

Number of workshop repairs which will be carried out during the year

Number of Standard Repairs which will be carried out during the year

Total cost (Mechanical and Transportation Departments) (Col.11+ Col. 12)

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

5.11

PAKISTAN RAILWAYS GENERAL CODE CHAPTER V REVISED AND BUDGET ESTIMATES


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 2008-09 Quantity Revised, 2009-10 Cost (excluding freight) Budget, 2010-11 Quantity Cost (excluding freight) 2008-09 Revised, Budget 2009-10 2010-11 Freight and Handling charges

Cost (exclud- Quantit ing freight) y

Reasons for variations


Coal / Fuel consumed (on all services including departmental) 2008-09 Revised, 2009-10 Budget, 2010-11

Reasons for variations


Stock of coal / fuel at end of year (in tonnes / litres) Remarks

Cost Cost Cost Quan(excluding Quantity (excluding Quantity (excluding tity freight) freight) freight)

Revised, Budget, 2008-09 2009-10 2010-11

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.

5.12

PAKISTAN RAILWAYS GENERAL CODE CHAPTER V REVISED AND BUDGET ESTIMATES


Figures of excise duty on coal / fuel included in the cost of coal / fuel should be shown in a footnote. Train Kilometres .. .. .. Actuals. 2008-9 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 months) vehicles Average were in Number service of before vehicles undergoing on the workshop line. repairs (during the previous year) 2 3

Vehicle Class and Type

Number of vehicles it is proposed to pass through shops during the year

Average actual cost of repair per vehicle on line during previous year (Mechanical Workshops)

Average actual cost of repair per vehicle on line during previous year (Transportation Depots)

Total cost Total cost Total cost (Mechanical (Mechanical (Transportation and Department) Department). Transportation (Col. 2xCol. (Col. 2xCol. 6). Departments). 5). (Col. 7+Col.8)

Revised Estimate 2008-09 Vehicle class and type Total Budget Estimate, 2009-10 Vehicle class and type
Anticipated average period (in months) vehicles will be in service before undergoing repairs. Anticipated average cost per vehicle on line. Anticipated average cost per vehicle on line.

Total
(Years have been shown for purpose of illustration.)

5.13

PAKISTAN RAILWAYS GENERAL CODE CHAPTER V REVISED AND BUDGET ESTIMATES

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

5.14

PAKISTAN RAILWAYS GENERAL CODE CHAPTER V REVISED AND BUDGET ESTIMATES 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
Average actual cost per engine kilometre (Mechanical Workshops) during the previous year. Average actual cost per engine kilometre (Transportation Department) during previous year. Total cost Workshop repairs (Col. 4xCol.6). Total cost Running repairs (Col. 4xCol.7). Average kilometres since undergoing last heavy repair (during previous year). Total cost Workshop and running repairs (Col. 8+Col.9). No. of Workshop repairs which will be carried out during the year. Total engine kilometres in thousands.

Average No. of Locomotives.

Locomotive class and type

1 Revised Estimate, 2009-10 (a) Electric locomotives. (Separately for each class and type) (b) Traction equipment of electronic multiple unit stock. Total
Notes.

(Traction units on the line).

10

(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.

5.15

PAKISTAN RAILWAYS GENERAL CODE CHAPTER V REVISED AND BUDGET ESTIMATES 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
Average cost of repair of vehicle on the line (Mechanical Workshops) during the previous year. Average actual cost of repair per vehicle on line (Transportation Depots) during the previous year. Average period (in months) vehicles were in service before undergoing workshop repairs during the previous year. No. of vehicles it is proposed to pass through shops during the year. Average No. of Vehicles on the line. Total cost (Mechanical and Transportation and Mechanical departments.) 9 Total cost (Transportation Department). 8 Total cost (Mechanical Department). 7

Vehicle class and type

Col. 2 x Col. 2 x Col. 7 + Col. 5 Col. 6 Col. 8

Revised estimate, 2009-10 Electric multiple unit stock (excluding traction equipment). Electric multiple unit stock (excluding traction equipment). Total Budget estimate, 2010-11 Electric multiple unit stock (excluding traction equipment). Electric multiple unit stock (excluding traction equipment). Total
Notes. (a) Vehicles in terms of 4wheelers. Anticipat ed period (in months) vehicles will be in service before undergoi ng repairs. Anticip ated average cost of Worksh op repair per vehicle on line. Anticipa ted average cost of repairs per vehicle on line (Transpo rtation Depots).

5.16

PAKISTAN RAILWAYS GENERAL CODE CHAPTER V REVISED AND BUDGET ESTIMATES


(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 2Column 312.

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.

5.17

PAKISTAN RAILWAYS GENERAL CODE CHAPTER V REVISED AND BUDGET ESTIMATES FORM No. G. 557
Minor Account Head Code Description Actuals, 2007-08 Actuals, 2008-09 Actuals, 2009-10 Budget, 2010-11 Revised, 2010-11 Budget, 2011-12 Remarks

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: ________________ Demand No.: ________________ Fund Centre (DDO) Code: ____________ Post Code BPS Designation Total Fund Description: _________________________ Demand Description: _________________________ Fund Centre Description: ________________________ Number of Posts Filled in Vacant Remarks

Total:

5.18

PAKISTAN RAILWAYS GENERAL CODE CHAPTER V REVISED AND BUDGET ESTIMATES 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.

5.19

PAKISTAN RAILWAYS GENERAL CODE CHAPTER V REVISED AND BUDGET ESTIMATES 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)
Revised Estimates current year Total Last First eight four Asmonths months proposed As accepted by Ministry of Railways (Railway Board) As proposed As accepted by Ministry of Railways (Railway Board) Remarks Budget Estimates next year

Heads of Account

Actuals Last Year

(1) (v) Loss or gain by exchange. (vi) Deduct Refunds. (2) Interest (i) On advances to Govt. servants

5.20

PAKISTAN RAILWAYS GENERAL CODE CHAPTER V REVISED AND BUDGET ESTIMATES Public Account 575. These estimates are required by Ministry of Railways (Railway Board) in the following form: FORM NO. G.575
Actuals last year (Figures in thousands of rupees) Budget Estimates Revised Estimates current year next year Withdrawals Payments First 4 months Withdrawals Receipts Last 8 Months Withdrawals Receipts Total Withdrawals Receipts Receipts Remarks

(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
Actuals last year (Figures in thousands of rupees) Budget Revised Estimates current year Estimates next year Recoveries First 4 months Recoveries Payments Last 8 Months Recoveries Payments Total Recoveries Payments Remarks

Recoveries

Loans and Advances to Government Servants (i) for House Building (ii) for Motor Cars (iii) for other Conveyances (iv) for Passages Total

Payments

Head of Account

Withdrawals

Receipts

Heads of Account

5.21

PAKISTAN RAILWAYS GENERAL CODE CHAPTER V REVISED AND BUDGET ESTIMATES 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 last year Credits Heads of Account Revised Estimates current year First 4 months Debits Last 8 Months Total Credits Budget Estimates next year. Remarks

Credits

Credits

Credits

Debits

Debits

State Bank Deposits

Debits

Debits

5.22

PAKISTAN RAILWAYS

PAKISTAN RAILWAYS GENERAL CODE

Riaz Ahmad & Company


Chartered Accountants

CHAPTER VI

20 October, 2011

9.1

PAKISTAN RAILWAYS GENERAL CODE

CHAPTER VI

APPROPRIATION ACCOUNTS

C O N T ENT S

DESCRIPTION INTRODUCTORY

PAGE NO. 6.1

PARA NO. 601 602 606 (603 604 Deleted) 607 608 613 614 615 616 617 618 619 619A 620 621 622 623 626 (624, 627 635 Deleted) 636

APPROPRIATION ACCOUNTS OF PAKISTAN RAILWAYS 6.1 FORM OF ACCOUNTS AND DATE OF SUBMISSION FIGURES TO BE EXHIBITED IN THE ACCOUNTS EXPLANATION OF VARIATIONS RE-APPROPRIATION 6.2 6.3 6.3 6.4

SAVINGS DUE TO POSTPONEMENT OF EXPENDITURE OR 6.4 ABANDONMENT OF SCHEMES UNANTICIPATED CREDITS UNADJUSTED ASSETS AND LIABILITIES OF SPECIAL SCHEMES OR PROJECTS OFFICES CLOSED OR TRANSFERRED TO ANOTHER DEPARTMENT OR GOVERNMENT PURCHASE OR DISPOSAL OF IMMOVABLE PROPERTY STORES AND WORK-IN-PROCESS CONSULTATION WITH THE EXECUTIVE LOSSES BALANCE SHEET AND PROFIT AND LOSS ACCOUNT OF PAKISTAN RAILWAYS STATEMENT OF IRREGULAR RE-APPROPRIATIONS 6.5 6.5 6.5 6.5 6.5 6.5 6.6 6.6

6.7

13

PAKISTAN RAILWAYS GENERAL CODE

CHAPTER VI

APPROPRIATION ACCOUNTS

C O N T ENT S

DESCRIPTION LIST OF UNANTICIPATED CREDITS STATEMENT OF UNDERCHARGES STATEMENT OF REMISSIONS AND ABANDONMENT OF CLAIMS TO REVENUE STATEMENT OF MISCLASSIFICATIONS STATEMENT OF EXPENDITURE ON STRATEGIC LINES PERCENTAGE OF WORKING EXPENSES TO EARNINGS STATEMENT OF OPEN LINE WORKS REVIEW OF WORKS PROGRAM STATEMENT OF EXPENDITURE ON WORKS MET OUT OF PROVISION FOR EMERGENCIES STATEMENT OF CREDITS TO CAPITAL FOR RETIRED ASSETS STORES ACCOUNT STATEMENT OF STORES TRANSACTIONS STOCK VERIFICATION SUMMARY OF ACCOUNTS CERTIFICATE OF SANCTIONED EXPENDITURE AND STATEMENT OF UNSANCTIONED EXPENDITURE EXPENDITURE OF PREVIOUS YEARS UNDER OBJECTION

PAGE NO. 6.7 6.7 6.8 6.8 6.8 6.9 6.9 6.10 6.10 6.10 6.11 6.11 6.13 6.13 6.13 6.16 6.16

PARA NO. 637 638 639 640 (641 Deleted) 642 642-A (643 Deleted) 644 645 646 647 648 649 650 651 652 654 655 657

14

PAKISTAN RAILWAYS GENERAL CODE

CHAPTER VI

APPROPRIATION ACCOUNTS

C O N T ENT S

DESCRIPTION EXPENDITURE OF CURRENT YEAR UNDER OBJECTION ESTIMATES PROVISIONALLY ACCEPTED BY STATUTORY AUDIT MAIN CONTENTS SUPPLEMENTARY STATEMENTS RECONCILIATION WITH THE FINANCE ACCOUNTS AND FINANCIAL STATEMENTS SUBMISSION TO AUDIT REVIEW OF APPROPRIATION ACCOUNTS EXAMINATION BY PUBLIC ACCOUNTS COMMITTEE

PAGE NO. 6.16 6.17 6.17 6.18 6.18 6.20 6.20 6.20 6.21 6.22

PARA NO. 658 659 660 672 (662 670 Deleted) 673 674 675 676 677 (678 679 Deleted) 680 681 682

15

PAKISTAN RAILWAYS GENERAL CODE CHAPTER VI APPROPRIATION ACCOUNTS

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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PAKISTAN RAILWAYS GENERAL CODE CHAPTER VI APPROPRIATION ACCOUNTS

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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PAKISTAN RAILWAYS GENERAL CODE CHAPTER VI APPROPRIATION ACCOUNTS

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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PAKISTAN RAILWAYS GENERAL CODE CHAPTER VI APPROPRIATION ACCOUNTS

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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PAKISTAN RAILWAYS GENERAL CODE CHAPTER VI APPROPRIATION ACCOUNTS

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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PAKISTAN RAILWAYS GENERAL CODE CHAPTER VI APPROPRIATION ACCOUNTS

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 1202A (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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PAKISTAN RAILWAYS GENERAL CODE CHAPTER VI APPROPRIATION ACCOUNTS

634. Deleted. 635. Deleted. 636. Statement of Irregular Re-appropriations. A list showing cases of irregular reappropriations 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 partsone 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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PAKISTAN RAILWAYS GENERAL CODE CHAPTER VI APPROPRIATION ACCOUNTS

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 Amount of under Amount of Total amount of Total undercharges Outstandi Charges under undercharges amount of Percentage Outstanding ng under Pertaining to undercharges Charges discovered by earnings of undercharges previous at the end of detected Accounts and audited charges to Recovered Written up to the years the year during the Audit excluding during the earnings during the off during end of the withdrawn year. those withdrawn year year the year previous during the year year

1+2-3=4

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 statementsone showing working expenses and other revenue charges, and the other showing expenditure on open line works met from Capitalshould also be appended to the appropriation account by detailed object wise.

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PAKISTAN RAILWAYS GENERAL CODE CHAPTER VI APPROPRIATION ACCOUNTS

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:

Percentage = 643. Deleted.

Total Revenue Expenditure for the year (cash / accrual basis) Total Revenue for the year (cash / accrual basis)

X 100

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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PAKISTAN RAILWAYS GENERAL CODE CHAPTER VI APPROPRIATION ACCOUNTS

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; show instances, if any, where appropriations were diverted to purposes other than those for which they had been originally sanctioned, and the reasons therefore; indicate how the original appropriation to works actually carried out compared with the actual expenditure, giving the reasons for the variations; and 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.

(b)

(c)

(d)

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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PAKISTAN RAILWAYS GENERAL CODE CHAPTER VI APPROPRIATION ACCOUNTS

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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PAKISTAN RAILWAYS GENERAL CODE CHAPTER VI APPROPRIATION ACCOUNTS

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 (Rupees in Million)
Unaccounted for increases, shortage in issues, etc.

STATEMENT OF STORES TRANSACTIONS


Opening Balance Ordinary stores Stores for special works Surplus stores Imported Stores Local Stores Receipts

Total

Receipts from Material manufacture returned form into stores works

Other debits

10

Receipts Issue other Issue of than Fuel & Fuel and Rationing Rationing

Issues

Closing Balance Stores for special works

Total debits

Total

Impairment shortage, etc.

Other Total Ordinary credits credits stores

Surplus Total stores

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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PAKISTAN RAILWAYS GENERAL CODE CHAPTER VI APPROPRIATION ACCOUNTS

FORM No. G. 650 STATEMENT SHOWING RESULTS OF STOCK VERIFICATION OF STORES DURING_______ Rupees in Million Result of stock verification
Amount adjusted during the year Closing balance (unadjusted amount at the end of the year) Percentage of net surplus + or deficiency during the year to total issues during the year

Opening balance

Surplus +

Deficiency -

Net surplus + or deficiency -

Miscellaneous items
Opening balance Surplus + Deficiency Net surplus + or deficiency Amount adjusted during the year Closing balance

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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PAKISTAN RAILWAYS GENERAL CODE CHAPTER VI APPROPRIATION ACCOUNTS

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
S. No.

(Rupees in Million)

Particulars

1 *

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 0.1 Million each or 0.1 Million each or than Rupees 0.1 Rupees 0.1 Million each more more Million each Previous Year Current Year Number Amount Number Amount Number Amount Number Amount 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 amounting to Rupees 0.1 amounting to less than Million each or more Rupees 0.1 Million each Previous Year Amount Number 12 13 Items of objection amounting to Rupees 0.1 Million each or more Items of objection amounting to less than Rupees 0.1 Million each

Number 11

Amount 14

Number 15

Current Year Amount Number 16 17

Amount 18

Miscellaneous Irregularities
Items of objection Items of objection amounting to Rupees 0.1 amounting to less than Million each or more Rupees 0.1 Million each Previous Year Amount Number 20 21 Items of objection Items of objection amounting to Rupees 0.1 amounting to less than Million each or more Rupees 0.1 Million each Current Year Amount Number 24 25

Number 19

Amount 22

Number 23

Amount 26

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PAKISTAN RAILWAYS GENERAL CODE CHAPTER VI APPROPRIATION ACCOUNTS

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 200809, 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 CHAPTER VI APPROPRIATION ACCOUNTS

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) (ii) (iii) Statement showing amount of expenditure held under objection relating to earlier than previous year, and to previous year. Statement showing amount of expenditure held under objection relating to the year under review. 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
Amount (Under Objection) Accounting Unit / Division Department / Spending Unit Particulars Earlier than Previous Year Month in which unsanctioned expenditure was first incurred

Remarks

Previous Year

Total

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


Name of Railway Division Amount placed under objection Remarks. (The reasons for delay in regularizing the expenditure to be explained clearly)

Particulars

Items relating to works Items of objection amounting to Rupees 0.1 Million or more. Items of objection amounting to less than Rupees 0.1 Million each.

Rupees

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 Relating to earlier than previous year Relating to previous year Relating to the year concerned Remarks

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

PAKISTAN RAILWAYS GENERAL CODE CHAPTER VI 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-cumObject 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.

6.18

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) (iv) Deleted.

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.
A statement showing remissions and abandonment of claims to Revenue (to form Annexure C to the appropriation accounts). 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). Deleted. General summaries of the appropriation accounts by grants and appropriations by major object wise of Pakistan Railways in the prescribed form. 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). A statement showing irregular re-appropriations made by railways in the detail indicated in paragraph 636 (to form Annexure F to the appropriation accounts). 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).

(vii)

(viii)

(ix) (x)

(xi)

(xii)

(xiii)

6.19

PAKISTAN RAILWAYS GENERAL CODE CHAPTER VI 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). Deleted. Deleted.

(xv) (xvi)

(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 / nondevelopment grant should be accompanied by two statementsone 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 Julyvide 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 IIDetailed Accounts will be accompanied by a review by the Member Finance to be titled Appropriation Accounts of Pakistan RailwaysPart IReview. This review will generally deal with the following topics (i) (ii) (iii) Financial results of the year; Changes in procedure, form and classification of accounts during the year; 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; Results of Appropriation Audit showing excesses over grants, irregular reappropriation, etc., requiring a report to or ratification by the National Assembly; Miscellaneous subjects, such as Balance Sheet, Store Balances, Railway Reserve Fund, Investments, etc.

(iv)

(v)

6.21

PAKISTAN RAILWAYS GENERAL CODE CHAPTER VI APPROPRIATION ACCOUNTS

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; that the expenditure conforms to the authority which governs it; and that every re-appropriation has been made in accordance with the provisions made in this behalf under rules framed by the Ministry of Finance.

(b) (c)

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 Officers Report and the Auditor Generals 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
GRAND SUMMARY OBJECT WISE REVENUE & CAPITAL SUMMARY APPROPRIATION ACCOUNTS-DETAILS BY GRANT-CUMFUNCTION-CUM-OBJECT WISE (REVENUE & DEVELOPMENT) APPROPRIATION ACCOUNTS BY ECONOMIC FUNCTION AND DEPARTMENT/DIVISION WISE CONSOLIDATED EXPENDITURE STATEMENT REVENUE STATEMENT REVENUE & EXPENDITURE STATEMENT CASH FLOW STATEMENT PUBLIC DEBT PROFILE PUBLIC ACCOUNT (OBJECT ELEMENT F & G)

PAGE NO.
1A

2A 3A & 4A 5A 6A 7A 8A 9A 10A 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

No. and Name of Grants / Appropriation No. Name Original Rupees Grant No. XXX Pakistan Railways xxx xxx Other than Charged Charged

Grant / Appropriation Supplementary Rupees Final Rupees

Actual Expenditure Rupees

Expenditure as Compared with the Final Grant / Appropriation

Recoveries adjusted in reduction of expenditure

Excess / (Saving)

Estimated

Recovery Actual More (+)/Less (-)

Rupees

xxx xxx xxx xxx

xxx xxx xxx xxx

xxx xxx xxx xxx

xxx xxx xxx xxx

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 xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx

Grand Total - Charged Grand Total - Other than Charged

Page 1A

Annex "A" PAKISTAN RAILWAYS SUMMARY OF APPROPRIATION ACCOUNTS BY GRANTS AND APPROPRIATION FOR THE YEAR ENDED ___________

Major and Minor Head of Accounts Code Description Original Rupees Grant No. XXX Pakistan Railways Other than Charged A01 Employee Related Expenses

Grant / Appropriation Supplementary Final / Total Rupees Rupees

Actual Expenditure Rupees

Expenditure as Compared with Final Grant / Appropriation % Excess / (Saving) Rupees

A011 A011-1 A011-2 A012 A012-1 A012-2

Pay Pay of Officers Pay of Other Staff Allowances Regular Allowances Other Allowances (Excluding TA)

A03 Operating Expenses A04 Employees Retirement Benefits A05 Grants, Subsidies & Write Off Loans A06 Transfers A08 Loans & Advances A09 Physical Assets A13 Repairs & Maintenance Total (Other than Charged) Charged A07 Interest Payments A10 Principal Repayments Total (Charged) Total - Pakistan Railways

xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx

xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx

xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx

xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx

xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx

xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx

xxx xxx xxx xxx xxx xxx xxx xxx

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xxx xxx xxx xxx xxx xxx xxx xxx

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xxx xxx xxx xxx xxx xxx xxx xxx

xxx xxx xxx xxx

Grant No. XXX Capital Outlay on Pakistan Railways A03 Operating Expenses A11 Investments Total Capital Outlay on Pakistan Railways Total Charged Total Other than Charged Grand Total xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx 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 Funds Provided Original Grant Supplementary Grant Total Grant Actual Expenditure Saving / Excess
ECONOMIC FUNCTION Major Function Minor Function Detailed Function Division/Department

Grant Name (CHARGED / OTHER THAN CHARGED) Rupees xxx xxx xxx xxx xxx xxx xxx xxx xxx

Major and Minor Head of Accounts Code Description Original Rupees Cost Centre as per pink book xxx xxx xxx xxx Sub Total Cost Centre as per pink book xxx xxx xxx xxx Sub Total TOTAL Add Surrender xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx

Grant / Appropriation Modification / Residual Supplementary Rupees Re-appropriation Rupees Surrender Final / Total Rupees Actual Expenditure Rupees

Expenditure as Compared with Grant / Appropriation

Prior Year Final Grant Actual Expenditure Excess / (Saving)

Final Excess / (Saving) Rupees %

xxx xxx xxx xxx

xxx xxx xxx xxx

xxx xxx xxx xxx

xxx xxx xxx xxx

xxx xxx xxx xxx

xx xx

xxx xxx xxx xxx

xxx xxx xxx xxx

xxx xxx xxx xxx

xxx xxx xxx xxx

xxx xxx xxx xxx

xxx xxx xxx xxx

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xxx xxx xxx xxx

xx xx

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xxx xxx

xxx xxx

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xxx xxx

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xx

xxx xxx

xxx xxx

xxx xxx

FINAL TOTAL Note

xxx xxx

xxx xxx

xxx xxx

xxx xxx

xxx xxx

xx

xxx xxx

xxx xxx

xxx xxx

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 Sr. No. Name, Location & Status of the Scheme Original 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) Foreign Loan Supplementary Rupees Residual / Modification Rupees Final Original Rupees Internal Local Currency Supplementary Rupees Residual / Modification Rupees Final Original Rupees Foreign Exchange Residual / Supplementary Modification Rupees Rupees Total Final Rupees

Actual Expenditure for 20090-10 Internal Foreign Loan Rupees Local Currency Rupees Foreign Exchange Rupees Total Rupees

xpenditure as Compared with Final Grant / Allocation Excess / (Saving) Foreign Loan Internal Total Amount Rupees % Local Currency Rupees % Foreign Exchange Rupees % Amount Rupees %

Page 4A

Annex "A"

PAKISTAN RAILWAYS APPROPRIATION ACCOUNTS BY ECONOMIC FUNCTION AND DEPARTMENT/ DIVISION FOR THE YEAR ENDED 30 JUNE __________ CURRENT YEAR Economic Function Total Appropriation Rupees Actual Exp Rupees Excess/ Savings Rupees Variance % Total Appropriation Rupees PREVIOUS YEAR Actual Exp Rupees Excess/ Savings Variance Rupees %

Total

CURRENT YEAR Division/ Department Total Appropriation Rupees Actual Exp Rupees Excess/ Savings Rupees Variance % Total Appropriation Rupees

PREVIOUS YEAR Actual Exp Rupees Excess/ Savings Variance Rupees %

Total

Page 5A

Annex "A"

PAKISTAN RAILWAYS
Consolidated Fund Payments Detailed level Object Description
Current Year Rupees XXXX XXXX Previous Year Rupees

A01101 A01102

Basic pay Personal pay

TOTAL:

XXXX

Page 6A

Annex "A"

PAKISTAN RAILWAYS
Summary Revenue Statement For the year ended 30 June ____ Object Description
Current Year Rupees Previous Year 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 RECEIPTS Non Tax Receipts CURRENT YEAR PREVIOUS YEAR

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 CASH FLOWS FROM OPERATING ACTIVITIES Non Tax Receipts Operations - Payments Cash generated from (used in) operations Servicing of Debt Transfers Net cash from / (used in) operating activities CASH FLOWS FROM INVESTING ACTIVITIES Capital expenditure on property, plant and equipment Capital expenditure on intangible assets Proceeds from sale of property, plant and equipment Dividend from subsidiaries Payment of Loans and Advances Net cash used in investing activities CASH FLOWS FROM FINANCING ACTIVITIES Receipt of Foreign Debt Domestic Floating Debt - Net Principal Repayment of Debt Investment by government of Pakistan Net receipt / (payment) of public accounts Net cash used in financing activities Net decrease in cash and cash equivalents Cash and cash equivalents at the beginning of the year Cash and cash equivalents at the end of the year 20 XX 20 XX ( Rupees in thousand) xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx

xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx

xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx xxx

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Page 9A

Annex "A"

PAKISTAN RAILWAYS PUBLIC DEBT PROFILE AS ON ____________ LOAN NO._______________ LEDGER CODE _____________________________
1 Loan Name

Classification (Replacement / Capital Addition)

Lender Name & Country

Purpose of Loan

Principal in Foreign Currency (----)

Opening Balance

Addition

Retired

Outstanding

Principal in Pak Rupee

Opening Balance

Addition

Retired

Outstanding

Date of Disbursement

Starting Date of Repayment

Retirement Date

Grace Period

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 Amount & Currency Total

Installments Paid Outstanding

Page 10A

Annex "A" PAKISTAN RAILWAYS PUBLIC ACCOUNT (OBJECT ELEMENT 'F' & 'G') AS ON _________________
Detailed Head of Account Code Description Opening Balance Rupees During the Period Payments Rupees Receipts Rupees Net Movement Rupees Closing Balance Rupees Comments

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 EXPENDITURE OF A CAPITAL NATURE REQUIRING NO FINANCIAL JUSTIFICATION SCRUTINY BY ACCOUNTS OFFICER EXPENDITURE OF A CAPITAL NATURE REQUIRING FINANCIAL JUSTIFICATION AVERAGE ANNUAL COST OF SERVICE USEFUL LIFE OF ASSETS SINKING FUND TABLE EXPENDITURE ON IMPROVEMENTS ALTERNATIVE SCHEMES AVERAGE COST PER UNIT OF SERVICE PROJECT APPRAISAL VARIOUS ASPECTS OF APPRAISAL TECHNICAL ANALYSIS INSTITUTIONAL/ORGANIZATIONAL/MANAGERIAL ANALYSIS SOCIAL ANALYSIS COMMERCIAL ANALYSIS FINANCIAL ANALYSIS

PAGE NO. 7.1 7.2 7.2 7.2 7.2 7.3 7.4 7.4 7.5 7.5 7.5 7.5 7.6 7.6 7.6 7.6 7.6 7.7 7.7 7.7

PARA NO. 701 (702 Cancelled) 703 704 705 706 707 708 709 710 711 713 713-A 713-B 713-C 713-D 713-E 713-F 713-G

16

PAKISTAN RAILWAYS GENERAL CODE CHAPTER VII FINANCIAL JUSTIFICATION OF RAILWAY EXPENDITURE CONTENTS

DESCRIPTION ECONOMIC ANALYSIS PRICING OF PROJECT INPUTS AND OUTPUTS IDENTIFYING PROJECT COSTS AND BENEFITS APPRAISAL METHODS/TECHNIQUES PAY BACK PERIOD VALUE-ADDED CAPITAL-OUTPUT RATIO PROCEEDS PER UNIT OF OUTLAY AVERAGE ANNUAL PROCEEDS PER UNIT OUTLAY DISCOUNTING TECHNIQUES NET PRESENT WORTH (NPW) BENEFIT-COST RATIO (BCR) INTERNAL RATE OF RETURN (IRR) NET BENEFIT-INVESTMENT RATIO (NBIR) = (N/K RATIO) SENSITIVITY ANALYSIS (TREATMENT OF UNCERTAINTY) CHOOSING BETWEEN MUTUALLY EXCLUSIVE ALTERNATIVE PROJECTS

PAGE NO. 7.7 7.7 7.8 7.11 7.11 7.11 7.11 7.11 7.12 7.12 7.12 7.13 7.13 7.13 7.13 7.14

PARA NO. 713-H 713-I 713-J 713-K 713-L 713-M 713-N 713-O 713-P 713-Q 713-R 713-S 713-T 713-U 713-V 713-W 713-X 713-Y

17

PAKISTAN RAILWAYS GENERAL CODE CHAPTER VII FINANCIAL JUSTIFICATION OF RAILWAY EXPENDITURE CONTENTS

DESCRIPTION REPLACEMENTS AND RENEWALS RECONDITIONING SCRAPPING, CONDEMNING AND ABANDONING ASSETS SECOND-HAND VALUE REVIEW OF PRODUCTIVITY OF OUTLAY NEW LINES OPEN LINE WORKS ANNEXURE I ANNEXURE II ANNEXURE III ANNEXURE IV

PAGE NO. 7.15 7.16 7.16

PARA NO. 714 715 716 717 718

7.16 7.17 719 720 7.17 721

7.17 7.18 722 727 7.19 7.20 728 731 7.21 7.22 7.23 7.25 7.26 7.29 7.30 7.31

18

PAKISTAN RAILWAYS GENERAL CODE CHAPTER VII FINANCIAL JUSTIFICATION OF RAILWAY EXPENDITURE 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.

7.1

PAKISTAN RAILWAYS GENERAL CODE CHAPTER VII FINANCIAL JUSTIFICATION OF RAILWAY EXPENDITURE

Note 2Deleted Note 3No 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.

7.2

PAKISTAN RAILWAYS GENERAL CODE CHAPTER VII FINANCIAL JUSTIFICATION OF RAILWAY EXPENDITURE

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:
MAIN CLASS SUB CLASS DETAILED CLASS USEFUL LIFE (Years)

Land

Land - Freehold

Agriculture Commercial Operational Residential

Indefinite

Land - Leasehold

Lease Period Residential Service Track K.M. Loops and Sidings Points Sleepers Wood Sleepers and fastenings Cast Iron Sleepers and fastenings Steel trough Concrete Sleepers Steel Bridges Masonry Bridges 50 50 40 40 40 12 40 35 50 60 60 100 Indefinite 20 20 20

Buildings

Buildings on Freehold Land Buildings on Leasehold Land

Track work and Infrastructure

Track

Sleepers

Bridges

Tunnels Plant and Equipment Electrical Equipment Mechanical Equipment Electrical and Mechanical Accessories Electric fans Ceiling Electric fans carriage Batteries train lighting-Lead Acid Batteries Alkaline

20 10 6 14

7.3

PAKISTAN RAILWAYS GENERAL CODE CHAPTER VII FINANCIAL JUSTIFICATION OF RAILWAY EXPENDITURE
USEFUL LIFE (Years) 50

MAIN CLASS

SUB CLASS

DETAILED CLASS Electric Transmission Equipment-Catenary Equipment Copper

Telecommunication Equipment Furniture and Fixture Signalling System Rolling Stock Locomotives Steam Locomotives Electric Traction Locomotives Diesel Electric Locomotives Locomotive Boilers Passenger Carriage Goods Wagons Motor Vehicles Service Vehicles Transport Vehicles Production Vehicles Computer Hardware Computer Peripherals IT Accessories Networking Equipment Servers

25

5 25
About

40

Over 40 Engine life 20 years, other parts 40 years

35 30 40

IT Equipment

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
7.4

PAKISTAN RAILWAYS GENERAL CODE CHAPTER VII FINANCIAL JUSTIFICATION OF RAILWAY EXPENDITURE 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
7.5

PAKISTAN RAILWAYS GENERAL CODE CHAPTER VII FINANCIAL JUSTIFICATION OF RAILWAY EXPENDITURE 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 indepth 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, ongoing 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.
7.6

PAKISTAN RAILWAYS GENERAL CODE CHAPTER VII FINANCIAL JUSTIFICATION OF RAILWAY EXPENDITURE

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.
7.7

PAKISTAN RAILWAYS GENERAL CODE CHAPTER VII FINANCIAL JUSTIFICATION OF RAILWAY EXPENDITURE 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) (b) (c) Taxes (Direct and Indirect) Subsidies Credit Transactions
7.8

PAKISTAN RAILWAYS GENERAL CODE CHAPTER VII FINANCIAL JUSTIFICATION OF RAILWAY EXPENDITURE (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 likereturns 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.
7.9

PAKISTAN RAILWAYS GENERAL CODE CHAPTER VII FINANCIAL JUSTIFICATION OF RAILWAY EXPENDITURE

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.

7.10

PAKISTAN RAILWAYS GENERAL CODE CHAPTER VII FINANCIAL JUSTIFICATION OF RAILWAY EXPENDITURE 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, valueadded 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 valueadded 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.
7.11

PAKISTAN RAILWAYS GENERAL CODE CHAPTER VII FINANCIAL JUSTIFICATION OF RAILWAY EXPENDITURE

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 timevalue 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.

7.12

PAKISTAN RAILWAYS GENERAL CODE CHAPTER VII FINANCIAL JUSTIFICATION OF RAILWAY EXPENDITURE 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 benefitcost 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 benefitsstream 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 benefitinvestment 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
7.13

PAKISTAN RAILWAYS GENERAL CODE CHAPTER VII FINANCIAL JUSTIFICATION OF RAILWAY EXPENDITURE 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:

7.14

PAKISTAN RAILWAYS GENERAL CODE CHAPTER VII FINANCIAL JUSTIFICATION OF RAILWAY EXPENDITURE

Financial Analysis (a) i) Discounted measures Present Worth of Cost (PWC), Present Worth of Benefit (PWB), Net Present Value. (NPV), Benefit-Cost Ratio (BCR) at given discount rate. (a) i)

Economic Analysis Adjustment in prices Transformation of Financial Capital Cost into Economic Cost

ii) iii) iv) (b) i)

Internal Financial Rate of Return (IFRR) Return on Equity after taxes. Return on Equity before taxes. Sensitivity Analysis

ii) iii)

Transformation of Financial and Operation & Maintenance (O&M) costs into Economic Cost. Benefits Valued at Border prices.

(b)

Discounted Measures PWC, PWB, NPV given discount rate. & BCR at

PWC, NPV, BCR & IFRR with cost over-run, i) reduction in benefits and delay in realization of benefits. ii) iii)

Internal Economic Rate of Return (IERR) Domestic resource cost to earn one unit of foreign exchange. Undiscounted Measures Nominal and Effective rate of protection

(c) i) ii)

Undiscounted Measures Break-even analysis Pay back period

(c) i)

*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
7.15

PAKISTAN RAILWAYS GENERAL CODE CHAPTER VII FINANCIAL JUSTIFICATION OF RAILWAY EXPENDITURE 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.
7.16

PAKISTAN RAILWAYS GENERAL CODE CHAPTER VII FINANCIAL JUSTIFICATION OF RAILWAY EXPENDITURE

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.......................................
Capital cost on 30 June plus calculated interest during construction 2 Earnings of line Guarantee payable by Local Government, etc., it any. 4 Total (Col. 3+4) 5 Expenses of line Actual expenditure of line 6 Share of other expenditure pertaining to the line 7

Year

Line proper 3

Total (Col 6+7) 8

1 I. As estimated before construction. II. Actual after opening 1st year 2nd 3rd 4th 5th and after

7.17

PAKISTAN RAILWAYS GENERAL CODE CHAPTER VII FINANCIAL JUSTIFICATION OF RAILWAY EXPENDITURE

Main line Net earnings of line proper (Col. 58) Additional earnings minus any loss due to short circuiting or diversion of traffic 10 Additional expenses calculated at 50 per cent of the normal operating ratio (including depreciation) obtaining on the existing system of additional earnings after deducting loss (Col. 10) 11 Return on. capital -Col 13x100 Col. 2

Additional net earnings (Col 10-11)

Total net earnings (Col. 9+12)

Remarks

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 (i) (ii) (iii) (iv) (b) To reduce the expenses (i) (ii) (iii) (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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PAKISTAN RAILWAYS GENERAL CODE CHAPTER VII FINANCIAL JUSTIFICATION OF RAILWAY EXPENDITURE

(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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PAKISTAN RAILWAYS GENERAL CODE CHAPTER VII FINANCIAL JUSTIFICATION OF RAILWAY EXPENDITURE
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.
7.20

PAKISTAN RAILWAYS GENERAL CODE CHAPTER VII FINANCIAL JUSTIFICATION OF RAILWAY EXPENDITURE ANNEXURE I [See Paragraph.707] SINKING FUND PAYMENT TABLE U=Useful life of assets in years
U. 1 2 3 4 3 6 7 3 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 .35 36 37 2% 1.0000 0.4950 0.3268 0.2426 0.1922 0.1585 0.1345 0.1165 0.1025 0.0913 0.0822 0.0746 0.0681 0.0626 0.0578 0.0537 0.0500 0.0467 0.0438 0.0412 0.0388 0.0366 0.0347 0.0329 0.0312 0.0297 0.0283 0.0270 0.0258 0.0246 0.0236 0.0226 0.0217 0.0208 0.0200 0.0192 0.0185 2 1/2% 1.0000 0.4938 0.3251 0.2408 0.1902 0.1565 0.1325 0.1145 0.1005 0.0893 0.0801 0.0725 0.0660 0.0605 0.0558 0.0516 0.0479 0.0447 0.0418 0.0391 0.0368 0.0346 0.0327 0.0309 0.0293 0.0278 0.0264 0.0251 0.0239 0.0228 0.0217 0.0208 0.0199 0.0190 0.0182 0.0175 0.0167 3% 1.0000 0.4926 0.3235 0.2390 0.1884 0.1546 0.1305 0.1125 0.0984 0.0872 0.0781 0.0705 0.0640 0.0585 0.0538 0.0496 0.0460 0.0427 0.0398 0.0372 0.0349 0.0327 0.0308 0.0290 0.0274 0.0259 0.0246 0.0233 0.0221 0.0210 0.0200 0.0190 0.0182 0.0173 0.0165 0.0158 0.0151 3 1/2% 1.0000 0.4914 0.3219 0.2373 0.1865 0.1527 0.1285 0.1105 0.0964 0.0852 0.0761 0.0685 0.0621 0.0566 0.0518 0.0477 0.0440 0.0408 0.0379 0.0354 0.0330 0.0309 0.0290 0.0273 0.0257 0.0242 0.0229 0.0216 0.0204 0.0194 0.0184 0.0174 0.0166 0.0158 0.0150 0.0143 0.0136 4% 1.0000 0.4902 0.3203 0.2355 0.1846 0.1508 0.1266 0.1085 0.0945 0.0833 0.0741 0.0666 0.0601 0.0547 0.0499 0.0458 0.0422 0.0390 0.0361 0.0336 0.0313 0.0292 0.0273 0.0256 0.0240 0.0226 0.0212 0.0200 0.0189 0.0178 0.0169 0.0159 0.0151 0.0143 0.0136 0.0129 0.0122 4 1/2% 1.0000 0.4890 0.3188 0.2337 0.1828 0.1489 0.1247 0.1066 0.0926 0.0814 0.0722 0.0647 0.0583 0.0528 0.0481 0.0410 0.0404 0.0372 0.0344 0.0319 0.0296 0.0275 0.0257 0.0240 0.0224 0.0210 0.0197 0.0185 0.0174 0.0164 0.0154 0.0146 0.0137 0.0130 0.0123 0.0116 0.0110 5% 1.0000 0.4878 0.3172 0.2320 0.1810 0.1470 0.1228 0.1047 0.0907 0.0795 0.0704 6.0628 0.0565 0.0510 0.0463 0.0423 0.0387 0.0355 0.0327 0.0302 0.0280 0.0260 0.0241 0.0225 0.0210 0.0196 0.0183 0.0171 0.0160 0.0151 0.0141 0.0133 0.0125 0.0118 0.0111 0.0104 0.0098 6% 1.0000 0.4854 0.3141 0.2286 0.1774 0.1434 0.1191 0.1010 0.0870 0.0759 0.0668 0.0593 0.0530 0.0476 0.0430 0.0390 0.0354 0.0324 0.0296 0.0272 0.0250 0.0230 0.0213 0.0197 0.0182 0.0169 0.0157 0.0146 0.0136 0.012 0.0118 0.0110 0.0103 0.0096 0.0090 0.0084 0.0079 7% 1.0000 0.4831 0.3111 0.2252 0.1739 0.1398 0.1156 0.0975 0.0835 0.0724 0.0634 0.0559 0.0497 0.0443 0.0398 0.0359 0.0324 0.0294 0.0268 0.0244 0.0223 0.0204 0.0187 0.0172 0.0158 0.0146 0.0134 0.0124 0.0114 0.0106 0.0098 0.0091 0.0084 0.0078 0.0072 0.0067 0.0062 8% 1.0000 0.4808 0.3080 0.2219 0.1705 0.1363 0.1121 0.0940 0.0801 0.0690 0.0601 0.0527 0.0465 0.0413 0.0368 0.0330 0.0296 0.0267 0.0241 0.0219 0.0198 0.0180 0.0164 0.0150 0.0137 0.0125 0.0114 0.0105 0.0096 0.0008 0.008 0.0075 0.0069 0.0063 0.0058 0.0053 0.0049

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PAKISTAN RAILWAYS GENERAL CODE CHAPTER VII FINANCIAL JUSTIFICATION OF RAILWAY EXPENDITURE

U. 33 39 40 41 42 43 44 45 46 47 48 49 50 55 60 65 70 75 80 85 90 95

2% 0.0178 0.0172 0.0166 0.0160 0.0154 0.0149 0.0144 0.0139 0.0135 0.0130 0.0126 0.0122 0.0118 0.0101 0.0088 0.0076 0.0067 0.0059 0.0052 0.0046 0.0040 0.0036

2 1/2% 0.0161 0.0154 0.0148 0.0143 0.0137 0.0132 0.0127 0.0123 0.0118 0.0114 0.0110 0.0106 0.0103 0.0087 0.0074 0.0063 0.0054 0.0047 0.0040 0.0035 0.0030 0.0026

3% 0.0145 0.0138 0.0133 0.0127 0.0122 0.0117 0.0112 0.0108 0.0104 0.0100 0.0096 0.0092 0.0089 0.0073 0.0061 0.0051 0.0043 0.0037 0.0031 9.0026 0.0023 0.0019

3 1/2% 0.0130 0.0124 0.0118 0.0113 0.0108 0.0103 0.0099 0.0095 0.0091 0.0087 0.0083 0.0080 0.0076 0.0062 0.0051 0.0042 0.0035 0.0029 0.0024 0.0020 0.0017 0.0014

4% 0.0116 0.0111 0.0105 0.0100 0.0095 0.0091 0.0087 0.0083 0.0079 0.0075 0.0072 0.0069 0.0066 0.0052 0.0042 0.0034 0.0027 0.0022 0.0018 0.0015 0.0012 0.0010

4 1/2% 0.0104 0.0099 0.0093 0.0089 0.0084 0.0080 0.0076 0.0072 0.0068 0.0065 0.0062 0.0059 0.0056 0.0044 0.0035 0.0027 0.0022 0.0017 0.0014 0.0011 0.0009 0.0007 0.0006

5% 0.0093 0.0088 0.0083 0.0078 0.0074 0.0070 0.0066 0.0063 0.0059 0.0056 0.0053 0.0050 0.0048 0.0037 0.0028 0.0022 0.0017 0.0013 0.0010 0.0008 0.0006 0.0005 0.0004

6% 0.0074 0.0069 0.0065 0.0061 0.0057 0.0053 0.0050 0.0047 0.0044 0.0041 0.0039 0.0037 0.0034 0.0025 0.0019 0.0014 0.0010 0.0008 0.0006 0.0004 0.0003 0.0002 0.0002

7% 0.0058 0.0054 0.0050 0.0047 0.0043 0.0040 0.0038 0.0035 0.0033 0.0030 0.0028 0.0026 0.0025 0.0017 0.0012 0.0009 0.0006 0.0004 0.0003 0.0002 0.0002 0.001 0.0001

8% 0.0045 0.0042 0.0039 0.0036 0.0033 0.0030 0.0028 0.0026 0.0024 0.0022 0.0020 0.0019 0.0017 0.0012 0.0008 0.0005 0.0004 0.0002 0.0002 0.0001 0.0001 0.0000 0.0000

100 0.0032 0.0023 0.0016

0.0012 0.0008

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.

7.22

PAKISTAN RAILWAYS GENERAL CODE CHAPTER VII FINANCIAL JUSTIFICATION OF RAILWAY EXPENDITURE
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 Concrete Sleepers Sleepers Sleepers Rupees Cost per sleeper Cost of fittings 4 1 Rupees 7 1

Particulars.

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 belowRupees 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.

7.23

PAKISTAN RAILWAYS GENERAL CODE CHAPTER VII FINANCIAL JUSTIFICATION OF RAILWAY EXPENDITURE
Rupees 17,600 1,650 1,000 20,250

Cost of 2,200 sleepers and fittings at Rupees (7+1) each Cost of laying Cost of transportation Total

(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 Driver's Wages 360 Repairs 100 Other miscellaneous expenses 140 (ii) The average annual cost of service of the two engines compares as follows : Particulars. Operation, upkeep, etc. Interest at 6 per cent. on capital cost Sinking fund payment Steam. Rupees 1,600 180 20

(Oil) 500 480 180 140

Oil Rupees 1,300 150 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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PAKISTAN RAILWAYS GENERAL CODE CHAPTER VII FINANCIAL JUSTIFICATION OF RAILWAY EXPENDITURE

Particulars. Cost per 1,000 bulbs of 30 candle power Life Power consumption per candle power hour Number of hours each lamp is burnt per day Cost of electric power

Bulbs manufactured by firm A Rupees 1,000 1,000 hours 1/2 watt. Approximate 2.74 hours. Rupees 0.25 per unit.

Bulbs manufactured by firm B Rupees 200 500 hours 1 watt. Approximate 2.74 hours. 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.

7.25

PAKISTAN RAILWAYS GENERAL CODE CHAPTER VII FINANCIAL JUSTIFICATION OF RAILWAY EXPENDITURE
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. Particulars Cost of the locomotive Old Locomotive Rupees 10,000 (second hand cost) 25,000 6 per cent 6 years 6,000 10,000 a year New Locomotive Rupees 150,000 (new cost) .. 6 per cent 35 years 10,000 8,000 a year

Cost of reconditioning Rate of Interest Life Scrap value Maintenance, Operation and Repair Charges

(ii) The average annual cost of the existing locomotive after reconditioning would be Rupees 16,259, made up of the following: (a) Cost of maintenance, operation, repairs, etc. (b) Interest at 6 per cent on Rupees 35,000 (Rupees 10,000 plus Rupees 25,000). (c) Sinking fund payment [(25,000 + 10,000) 6,000] x 0.1434 (29,000 x 0.1434) i.e. Cost of reconditioning + Maintenance, operation cost Scrap value x Value from sinking fund table Total Rupees 10,000 2,100 4,159

16,259

(iii) The average annual cost of the new locomotive would be Rupees 18,500 made up of the following: Rupees 8,000 9,240

(a) Cost of maintenance, operation, repairs, etc. (b) Interest at 6 per cent on Rupees 154,000 (i.e., new cost Rupees 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) Total

1,260 18,500 7.26

PAKISTAN RAILWAYS GENERAL CODE CHAPTER VII FINANCIAL JUSTIFICATION OF RAILWAY EXPENDITURE
(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 Rupees 10,000 2,000 4,000 5 per cent 30 years 10,000

New girders Rupees 40,000 4,000 5 percent 60 years

Cost Scrap Value Scrap Value (after reconditioning Interest Life Reconditioning Cost

NOTEMaintenance 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 1,000 241.6 1,241.6

Interest on Rupees 20,000 (i.e., Rupees 10,000+ Rupees 10,000) Sinking fund payment at 5 per cent, on Rupees 16,000 Total

(iii) The annual cost of service of the new girders will be Rupees 2,500.8, vide details below Rupees 2,400

Interest on Rupees 48,000, i.e., on cost of new girders plus 2nd-hand 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) Total (iv) It follows that reconditioning is the cheaper method.

100.8 2,500.8

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.

7.27

PAKISTAN RAILWAYS GENERAL CODE CHAPTER VII FINANCIAL JUSTIFICATION OF RAILWAY EXPENDITURE
For providing additional fittings Rupees Cost of two additional sleepers including fittings. Cost of Duplex joint sleepers including fittings. Cost of fish-bolts and plates Cost of fitting these in each Life of 85 lb. rails Scrap value of rails 36 ft. long Scrap value of fittings 10 Cost of 2 new 90 lb. rails including carriage and laying. 20 Life 4 Scrap value 2 Rate of interest 30 years 40 2 Fitting new 90 lb. rails Rupees 100 60 years. 42 6 per cent

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 cost of 2 sleepers cost of Duplex joint sleepers, new cost of fish-plates and bolts cost of fitting second-hand value of old rail Less scrap value of fish-plates and bolts Rupees 10 20 4 2 60 96 2 94

=5.64

(b) Sinking fund payment on Rupees (10+20+4+2+60) - (40+2) or Rupees 54= (.0126x54). Total

.68 6.32

(iii) The average annual cost of service of new rails will be Rupees 7.19, vide calculations below

7.28

PAKISTAN RAILWAYS GENERAL CODE CHAPTER VII FINANCIAL JUSTIFICATION OF RAILWAY EXPENDITURE
(a) Interest on cost of new rails and fittings, etc. plus second-hand cost of old rails Less scrap value of old rails and fittings Sinking fund payment of Rupees (100-42)= (58x .0019) Total Rupees 100 60 160 42 118

=7.03

.11 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 dataLength of arc Length of chord Cost of chord Scrap value of items recoverable from the arc Scrap value of items recoverable from the chord Second-hand value of all assets of the arc Savings in operation and maintenance costs Loss on tickets owing to reduction of mileage Extra traffic expected Rate of interest 24 Kilometres 16 Kilometers Rupees 500,000 Rupees 50,000 Rupees 40,000 Rupees 300,000 Rupees 70,000 Rupees 10,000 Rupees 15,000 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 Rupees 50,000) at 5 per cent. (b) Sinking fund payment required to provide Rupees 460,000 (i.e., Rupees 500,000-Rupees 40,000) at the end of 35 years= (.0111x460,000). 37,500 5,106

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.

Total annual cost excluding operation, maintenance, etc. (iv) Hence it may be seem that realignment is financially justified.

Rupees 42,606

7.29

PAKISTAN RAILWAYS GENERAL CODE CHAPTER VII FINANCIAL JUSTIFICATION OF RAILWAY EXPENDITURE
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 the first cost is the scrap value is Life as second-hand asset is the annual cost of operation and maintenance, repairs, etc., of the asset while new is. the annual cost of operation and maintenance, repairs, etc., in the second-hand condition is; N years Rupees C. Rupees S. n years. Rupees O Rupees O

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+(XS) dn O1=Cr+(C-S) dN +O. Simplifying the equation, we have Xr+Xdn-Sd +O)=Cr.+(C-S)dN+O :. X (r+dn)4=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 or 530.5 0.0665 i.e., Rupees 7,977

*These are obtained from the Table in Annexure I. 7.30

PAKISTAN RAILWAYS GENERAL CODE CHAPTER VII FINANCIAL JUSTIFICATION OF RAILWAY EXPENDITURE
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 u1 :. X= = Cr+(C-S) dN+O u

u1/u [Cr+(C-S) dn +O] - O1+ Sdn 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 secondhand value of the asset at the end of 20 years will be
100,000 Rupees .06+.0430 100,000x.06+(100,000-10,000).009+120,000] -103,000+10,000x .0430

or

3105 .103

i.e., Rupees 30,146 nearly.

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

C O N T ENT S

DESCRIPTION DIFFERENT KINDS OF RAILWAY EXPENDITURE LIMITATIONS ON POWERS OF MINISTRY OF RAILWAYS (RAILWAY BOARD) DELEGATION OF FINANCIAL POWERS TO LOWER AUTHORITIES RESPONSIBILITY FOR CONTROL OVER EXPENDITURE STANDARDS Of FINANCIAL PROPRIETY

PAGE NO. 8.1 8.1 8.1 8.1 8.2 8.2

PARA NO. 801 (802 Deleted) 803 804 805 806 807 808 809 812 (810 Deleted) 813 814 816 817 820 821 822 823 824 827 828 830 831 832 838 (837, 839 846 Deleted)

BUDGETARY CONTROL AND CONTROL AGAINST DETAILED 8.2 ESTIMATES AUTHORIZATION ROLLS REVENUE ALLOCATION REGISTERS PROPORTIONATE BUDGET ESTIMATE MONTHLY FINANCIAL REVIEW REAPPROPRIATIONS DISTRIBUTION OF THE GRANT FOR THE YEAR WATCH OVER PROGRESS OF EXPENDITURE REVIEW OF EXPENDITURE REVIEW OF NEW CONSTRUCTIONS REVIEW OF OPEN LINE WORKS 8.3 8.4 8.4 8.4 8.5 8.5 8.6 8.6 8.7 8.7 8.8 8.9 8.9 8.10

19

PAKISTAN RAILWAYS GENERAL CODE CHAPTER VIII CONTROL OVER EXPENDITURE

C O N T ENT S

DESCRIPTION FINANCIAL ADVISER AND CHIEF ACCOUNTS OFFICERS REVIEW OF MONTHLY RECEIPTS AND EXPENDITURE UNREMUNERATIVE LINES MONTHLY STATEMENT OF APPROXIMATE RECEIPTS AND EXPENDITURE WATCH OVER EXPENDITURE AND EARNINGS OF THE LAST QUARTER OF THE YEAR ANNUAL REVIEW OF EXPENDITURE CONTROL AGAINST OVER-ALLOTMENTS

PAGE NO. 8.11 8.11 8.12 8.12 8.12 8.13

PARA NO. 847 848 851 852 853 854 855 856

20

PAKISTAN RAILWAYS GENERAL CODE CHAPTER VIII CONTROL OVER EXPENDITURE

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.

8.1

PAKISTAN RAILWAYS GENERAL CODE CHAPTER VIII CONTROL OVER EXPENDITURE

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

PAKISTAN RAILWAYS GENERAL CODE CHAPTER VIII CONTROL OVER EXPENDITURE

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 8.3

PAKISTAN RAILWAYS GENERAL CODE CHAPTER VIII CONTROL OVER EXPENDITURE

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. 8.4

PAKISTAN RAILWAYS GENERAL CODE CHAPTER VIII CONTROL OVER EXPENDITURE

(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).
Detailed Heads of Grant Description 1
Account Code Revised Budget Allotment for the Year 2011-2012 Cash Stores Total Proportionate Revised Budget to end of 2012_____ Cash Stores Total

Actual Revenue Expenditure to end of ______2012 Cash Stores Total

Actuals Revenue Expenditure to end of _____2011 (Previous Year) Cash Stores Total

Variation in Expenditure up to ___2012 Excess (+) Saving (-)


Cash Stores Total

8.5

PAKISTAN RAILWAYS GENERAL CODE CHAPTER VIII CONTROL OVER EXPENDITURE

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. 8.6

PAKISTAN RAILWAYS GENERAL CODE CHAPTER VIII CONTROL OVER EXPENDITURE

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. 8.7

PAKISTAN RAILWAYS GENERAL CODE CHAPTER VIII CONTROL OVER EXPENDITURE

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.)
Detailed heads of grant 1 Budget allotment for the year 2 Total of estimates sanctioned during the year 3 Actual expenditure to end of (..20..) 4 Proportion of expenditure to allotment (Col.4/Col.2) per cent. 5 Brief remarks as to the rate of progress of expenditure 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.)
PSDP Project/ Schemes 1 Budget allotment for the year Internal Total External CD Internal Cash Store /ST 2 3 4 5 6 Expenditure for ../.. Total Internal External 7 Internal Cash 8 Store 9 CD /ST 10 Total Internal 11 External 12 Total Internal External 13

8.8

PAKISTAN RAILWAYS GENERAL CODE CHAPTER VIII CONTROL OVER EXPENDITURE

Expenditure to end of ../..year (Cumulative)

Cash 14

Internal Store 15

CD/ST 16

Total Internal 17

External 18

Grand Total Internal External 19

Brief remarks as to the rate of progress of expenditure

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

PAKISTAN RAILWAYS GENERAL CODE CHAPTER VIII CONTROL OVER EXPENDITURE

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.

8.10

PAKISTAN RAILWAYS GENERAL CODE CHAPTER VIII CONTROL OVER EXPENDITURE

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

PAKISTAN RAILWAYS GENERAL CODE CHAPTER VIII CONTROL OVER EXPENDITURE

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 years 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.

8.12

PAKISTAN RAILWAYS GENERAL CODE CHAPTER VIII CONTROL OVER EXPENDITURE

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.

8.13

PAKISTAN RAILWAYS

PAKISTAN RAILWAYS GENERAL CODE

Riaz Ahmad & Company


Chartered Accountants

CHAPTER IX

20 October, 2011

9.1

PAKISTAN RAILWAYS GENERAL CODE CHAPTER IX ALLOCATION OF EXPENDITURE

CONTENTS

DESCRIPTION GENERAL PRINCIPLES OF ALLOCATION LAND SURVEYS NEW LINES LINES PARTIALLY OPENED FOR TRAFFIC NEW MINOR WORKS REVENUE SIDINGS ADDITIONS OF BALLAST TEMPORARY AND EXPERIMENTAL WORKS MAINTENANCE OF QUARTERS FOR CONSTRUCTION STAFF ROLLING-STOCK STAND-BYS SPARES REPLACEMENTS AND RENEWALS

PAGE NO. 9.1 9.2 9.2 9.3 9.3 9.3 9.4 9.4 9.5 9.5 9.5 9.6 9.6 9.6 9.7 9.7 9.8 9.8 9.9

PARA NO. 901 909 (906 907 Deleted) 910 916 (911 Deleted) 917 918 919 926 927 928 930 (931 Deleted) 932 933 934 935 936 941 (938 Deleted) 942 943 (944 946 Omitted) 947 951 (949 Deleted)

21

PAKISTAN RAILWAYS GENERAL CODE CHAPTER IX ALLOCATION OF EXPENDITURE

CONTENTS

DESCRIPTION RENEWALS OF RAILS, CRANES, WEIGHING MACHINES AND WEIGHBRIDGES RENEWALS OF GIRDERS RENEWALS OF LOCOMOTIVES RENEWALS OF TENDERS RENEWAL OF BOILERS RENEWALS OF CARRIAGES AND BRAKE-VANS RENEWALS OF STEAM COACHES RENEWALS OF WAGONS RENEWALS OF ROLLING-STOCK PARTS

PAGE NO. 9.9 9.10 9.10 9.11 9.12 9.12

PARA NO. 952 954 955 956 958 959 960 961 963

9.12 9.13 964 967 9.13 9.13 9.14 968 969 970 973 (971, 974-977A Deleted) 978

TRANSFERS OF ASSETS FROM OPEN LINE TO CONSTRUCTION REPLACED STOCK SECOND-HAND RAILS INCIDENTAL WORKS INCIDENTAL CHARGES EXPENDITURE ON CEREMONIAL OCCASIONS COST OF TOOLS AND PLANT AND SPECIAL POSTS

9.14

9.14 9.15 979 981 9.15 9.15 9.16 9.16 9.16 982 983 984 985 986 987

22

PAKISTAN RAILWAYS GENERAL CODE CHAPTER IX ALLOCATION OF EXPENDITURE 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) (2) (3) (4) the cost of land, the first cost of construction and equipment of the line, the cost of maintaining a section of the line not opened for working, 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, 9.1

PAKISTAN RAILWAYS GENERAL CODE CHAPTER IX ALLOCATION OF EXPENDITURE 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.

9.2

PAKISTAN RAILWAYS GENERAL CODE CHAPTER IX ALLOCATION OF EXPENDITURE 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. 9.3

PAKISTAN RAILWAYS GENERAL CODE CHAPTER IX ALLOCATION OF EXPENDITURE

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. 9.4

PAKISTAN RAILWAYS GENERAL CODE CHAPTER IX ALLOCATION OF EXPENDITURE

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 RevenueNew 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. 9.5

PAKISTAN RAILWAYS GENERAL CODE CHAPTER IX ALLOCATION OF EXPENDITURE

(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

9.6

PAKISTAN RAILWAYS GENERAL CODE CHAPTER IX ALLOCATION OF EXPENDITURE Class


1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18.

Particulars
Locomotives, steam, internal combustion and battery. Locomotives, electric. Locomotives, diesel electric. Coaching Stock (Suburban, Motor Units). Coaching Stock, self-propelled. Saloons. Tourist Cars and Restaurant Cars. Coaching Stock, upper classes, including all vehicles in which first class (sleeper) or second class accommodation is provided. Coaching Stock including brake, luggage and Postal in which first class (sleeper) or economy class accommodation is provided. Other coaching vehicles including brake, luggage, Postal, motor, fruit, fish, poultry, duck vans and horse-boxes. Officers' carriages. Service coaching vehicles, including stores vans, tool vans, break-down vans and subordinate inspection carriages. General service goods wagons, including open, covered, low-sided rail and timber trucks. Explosive vans, oil and petrol tank wagons. Other goods vehicles, including cattle wagon. Well wagons. Goods brake vans. 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. 9.7

PAKISTAN RAILWAYS GENERAL CODE CHAPTER IX ALLOCATION OF EXPENDITURE 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. 944946. 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.

9.8

PAKISTAN RAILWAYS GENERAL CODE CHAPTER IX ALLOCATION OF EXPENDITURE 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 R will be NOTE

N x W1 W2

(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

PAKISTAN RAILWAYS GENERAL CODE CHAPTER IX ALLOCATION OF EXPENDITURE

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=WK (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 All other spans up to 73.152 meters All spans over 73.152 meters

48 60 64

38 50 56

NOTEWhen 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 9.10

PAKISTAN RAILWAYS GENERAL CODE CHAPTER IX ALLOCATION OF EXPENDITURE 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.

9.11

PAKISTAN RAILWAYS GENERAL CODE CHAPTER IX ALLOCATION OF EXPENDITURE Renewals of Tenders 959. The cost of replacement of tenders should be obtained by using the formula
NxC1 C2 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. R=

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 9.12

PAKISTAN RAILWAYS GENERAL CODE CHAPTER IX ALLOCATION OF EXPENDITURE


A1 xN A2

R=

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
R= C1 xN C2 where R is the cost of replacement by a like asset; N is the cost of new wagon excluding the cost of improved appliances;

9.13

PAKISTAN RAILWAYS GENERAL CODE CHAPTER IX ALLOCATION OF EXPENDITURE 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.

9.14

PAKISTAN RAILWAYS GENERAL CODE CHAPTER IX ALLOCATION OF EXPENDITURE 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 Price per ton =
N 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.

9.15

PAKISTAN RAILWAYS GENERAL CODE CHAPTER IX ALLOCATION OF EXPENDITURE 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.

9.16

PAKISTAN RAILWAYS

PAKISTAN RAILWAYS GENERAL CODE

Riaz Ahmad & Company


Chartered Accountants

CHAPTER X

20 October, 2011

9.1

PAKISTAN RAILWAYS GENERAL CODE CHAPTER X ALLOCATION OF EXPENDITURE ON STATE RAILWAYS MANAGED BY COMPANIES AND ON PRIVATE RAILWAYS WORKED BY THE STATE

DELETED

10.1

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 WORKS REQUIRED FOR DEFENCE PURPOSES STRATEGIC LINES COMMERCIAL LINES DEFENCE WORKS ROADWAYS OVER RAILWAY BRIDGES COST OF CONSTRUCTION AND RENEWAL MAINTENANCE FOOTWAYS OVER RAILWAY BRIDGES

PAGE NO. 11.1 11.1 11.2 11.2 11.3 11.3 11.3 11.4 11.4 11.5 11.5

PARA NO. 1101 1102 1105 1106 1107 1108 1110 1111 1112 1113 1114 1115 1116 1117 1122 1123 1124 1129 1130 1140 1141 1142 (1143 Deleted)

WORKS FOR CIVIL DEPARTMENTS LEVEL-CROSSINGS, ROAD 11.5 OVERBRIDGES AND UNDERBRIDGES SURVEYS UNDERTAKEN FOR PROVINCIAL GOVERNMENTS POSTAL VANS SALOON CARRIAGES ASSISTED SIDINGS BUILDINGS CONSTRUCTED FOR OTHER DEPARTMENTS AND GOVERNMENTS 11.6 11.7 11.9 11.9 11.11 11.11 11.11

23

PAKISTAN RAILWAYS GENERAL CODE CHAPTER XI INCIDENCE OF THE COST OF WORKS FOR NON-RAILWAY DEPARTMENTS 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;

11.1

PAKISTAN RAILWAYS GENERAL CODE CHAPTER XI INCIDENCE OF THE COST OF WORKS FOR NON-RAILWAY DEPARTMENTS (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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PAKISTAN RAILWAYS GENERAL CODE CHAPTER XI INCIDENCE OF THE COST OF WORKS FOR NON-RAILWAY DEPARTMENTS (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.

11.3

PAKISTAN RAILWAYS GENERAL CODE CHAPTER XI INCIDENCE OF THE COST OF WORKS FOR NON-RAILWAY DEPARTMENTS 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. 11.4

PAKISTAN RAILWAYS GENERAL CODE CHAPTER XI INCIDENCE OF THE COST OF WORKS FOR NON-RAILWAY DEPARTMENTS

(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 levelcrossings, 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 11.5

PAKISTAN RAILWAYS GENERAL CODE CHAPTER XI INCIDENCE OF THE COST OF WORKS FOR NON-RAILWAY DEPARTMENTS

(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.

11.6

PAKISTAN RAILWAYS GENERAL CODE CHAPTER XI INCIDENCE OF THE COST OF WORKS FOR NON-RAILWAY DEPARTMENTS 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 216" standard carriage fan per 100 square feet of floor area.

11.7

PAKISTAN RAILWAYS GENERAL CODE CHAPTER XI INCIDENCE OF THE COST OF WORKS FOR NON-RAILWAY DEPARTMENTS (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 11.8

PAKISTAN RAILWAYS GENERAL CODE CHAPTER XI INCIDENCE OF THE COST OF WORKS FOR NON-RAILWAY DEPARTMENTS 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).

11.9

PAKISTAN RAILWAYS GENERAL CODE CHAPTER XI INCIDENCE OF THE COST OF WORKS FOR NON-RAILWAY DEPARTMENTS 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 12 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. 11.10

PAKISTAN RAILWAYS GENERAL CODE CHAPTER XI INCIDENCE OF THE COST OF WORKS FOR NON-RAILWAY DEPARTMENTS

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.

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PAKISTAN RAILWAYS

PAKISTAN RAILWAYS GENERAL CODE

Riaz Ahmad & Company


Chartered Accountants

CHAPTER XII

20 October, 2011

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PAKISTAN RAILWAYS GENERAL CODE CHAPTER XII INCIDENCE OF PAY, ALLOWANCES, LEAVE SALARY, PENSIONS, ETC.

CONTENTS DESCRIPTION TRANSFERS WITHIN THE PAKISTAN RAILWAYS DEPARTMENTS PERMANENT TRANSFERS TO AND FROM OTHER DEPARTMENTS TEMPORARY TRANSFERS TO AND FROM OTHER DEPARTMENTS PAGE NO. 12.1 12.1 12.1 PARA NO. 1201 1202 1203 1204 1205 1206 (1207 Deleted) 1208 1214 1215 1217 (1218 1219 Deleted) 1220 1221 1222 1223 1224 1225 1226 1227 1227-A

LEAVE AND JOINING TIME COMBINED WITH TRANSFERS 12.1 EMPLOYMENT OF SOLDIERS AND TROOPS ARMY IN PAKISTAN RESERVE OF OFFICERS RESERVISTS OF THE PAKISTAN ARMY STUDY ALLOWANCES COMPENSATORY ALLOWANCES DURING LEAVE TRANSFER WITHIN THE PAKISTAN RAILWAYS DEPARTMENTS PERMANENT TRANSFERS TO AND FROM OTHER DEPARTMENTS TEMPORARY TRANSFERS TO AND FROM OTHER DEPARTMENTS LEAVE AND JOINING TIME, BEFORE OR AFTER TRANSFER ATTENDANCE AT COURTS JOURNEY ON BEHALF OF PRIVATE BODIES JOURNEY IN CONNECTION WITH INTERVIEW BY ESTABLISHMENT COMMITTEE 24 12.1 12.2 12.3 12.3 12.4 12.4 12.4 12.4 12.4 12.4 12.5 12.5 12.5 12.5

PAKISTAN RAILWAYS GENERAL CODE CHAPTER XII INCIDENCE OF PAY, ALLOWANCES, LEAVE SALARY, PENSIONS, ETC.

CONTENTS DESCRIPTION PERSONS EXCLUSIVELY EMPLOYED IN THE PAKISTAN RAILWAYS OFFICERS EMPLOYED IN MINISTRY OF RAILWAYS (RAILWAY BOARD) OPEN LINE STAFF EMPLOYED ON CONSTRUCTIONS AND SURVEYS PERSONS IN FOREIGN SERVICE PERSONS WITH SERVICE UNDER DIFFERENT DEPARTMENTS AND GOVERNMENTS SPECIAL ADDITIONAL PENSIONS CALCULATION OF LENGTH OF SERVICE PENSION FOR A DEFICIENCY IN SERVICE SPECIAL PENSIONARY CONCESSIONS GRANTED BY ANOTHER DEPARTMENT OR GOVERNMENT WOUND AND INJURY PENSIONS ADJUSTMENT OF PENSIONARY CHARGES COMMUTED PENSIONS COMMUTATION / GRATUITY AND CONTRIBUTION TO GENERAL PROVIDENT FUND CONTRIBUTION TO GENERAL PROVIDENT FUND CONTRIBUTION TOWARDS LEAVE SALARY, COMMUTATION / GRATUITY, PENSION, ETC. INCIDENCE OF THE COST OF RAILWAY POLICE 25 PAGE NO. 12.5 12.6 12.6 12.6 12.6 12.9 12.9 12.10 12.10 12.11 12.11 12.12 12.13 12.14 12.14 12.15 12.16 12.16 12.18 PARA NO. 1228 1229 (1230 Deleted) 1231 1232 1233 1237 (1235 1236 Deleted) 1238 1239 (1240 Deleted) 1241 1242 (1243 Deleted) 1244 1245 1246 1247 1249 1250 (1251 1266 Deleted) 1267 1268 1269 1278

PAKISTAN RAILWAYS GENERAL CODE CHAPTER XII INCIDENCE OF PAY, ALLOWANCES, LEAVE SALARY, PENSIONS, ETC.

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. 12.1

PAKISTAN RAILWAYS GENERAL CODE CHAPTER XII INCIDENCE OF PAY, ALLOWANCES, LEAVE SALARY, PENSIONS, ETC.

(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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PAKISTAN RAILWAYS GENERAL CODE CHAPTER XII INCIDENCE OF PAY, ALLOWANCES, LEAVE SALARY, PENSIONS, ETC.

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 12.3

PAKISTAN RAILWAYS GENERAL CODE CHAPTER XII INCIDENCE OF PAY, ALLOWANCES, LEAVE SALARY, PENSIONS, ETC.

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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PAKISTAN RAILWAYS GENERAL CODE CHAPTER XII INCIDENCE OF PAY, ALLOWANCES, LEAVE SALARY, PENSIONS, ETC.

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 employers 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.

12.5

PAKISTAN RAILWAYS GENERAL CODE CHAPTER XII INCIDENCE OF PAY, ALLOWANCES, LEAVE SALARY, PENSIONS, ETC.

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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PAKISTAN RAILWAYS GENERAL CODE CHAPTER XII INCIDENCE OF PAY, ALLOWANCES, LEAVE SALARY, PENSIONS, ETC.

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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PAKISTAN RAILWAYS GENERAL CODE CHAPTER XII INCIDENCE OF PAY, ALLOWANCES, LEAVE SALARY, PENSIONS, ETC.

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. 1233-B.

Deleted. 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.

12.8

PAKISTAN RAILWAYS GENERAL CODE CHAPTER XII INCIDENCE OF PAY, ALLOWANCES, LEAVE SALARY, PENSIONS, ETC.

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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PAKISTAN RAILWAYS GENERAL CODE CHAPTER XII INCIDENCE OF PAY, ALLOWANCES, LEAVE SALARY, PENSIONS, ETC.

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). Note (5). Deleted. 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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PAKISTAN RAILWAYS GENERAL CODE CHAPTER XII INCIDENCE OF PAY, ALLOWANCES, LEAVE SALARY, PENSIONS, ETC.

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 Defences 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 Defences 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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PAKISTAN RAILWAYS GENERAL CODE CHAPTER XII INCIDENCE OF PAY, ALLOWANCES, LEAVE SALARY, PENSIONS, ETC.

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 Defences 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: Government A Government B Government C .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. Rupees 80 100 220

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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PAKISTAN RAILWAYS GENERAL CODE CHAPTER XII INCIDENCE OF PAY, ALLOWANCES, LEAVE SALARY, PENSIONS, ETC.

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 Total Years of Service x Gratuity actually drawn x Pay last drawn on the department last served Pay last drawn on Department A

Portion to be borne by Department B =


Years of service on Department A and B Total Years of Service x Gratuity actually drawn Pay last drawn on the department last served x Pay last drawn on Department B minus portion to be borne by Department A

Portion to be borne by Department C =


Years of service on Department A, B & C Total Years of Service x Gratuity actually drawn Pay last drawn on the Railway last served x Pay last drawn on Department minus portion to be borne by 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:

12.13

PAKISTAN RAILWAYS GENERAL CODE CHAPTER XII INCIDENCE OF PAY, ALLOWANCES, LEAVE SALARY, PENSIONS, ETC.

= (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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PAKISTAN RAILWAYS GENERAL CODE CHAPTER XII INCIDENCE OF PAY, ALLOWANCES, LEAVE SALARY, PENSIONS, ETC.

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) (c) Deleted. Deleted.
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PAKISTAN RAILWAYS GENERAL CODE CHAPTER XII INCIDENCE OF PAY, ALLOWANCES, LEAVE SALARY, PENSIONS, ETC.

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) (b) (c) (ii) (iii) (iv) the cost of leave and casualty reserve; all kinds of allowances and contingencies, and Pensionary charges.

Deleted. The full cost of rent of quarters for Order staff proper. 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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PAKISTAN RAILWAYS GENERAL CODE CHAPTER XII INCIDENCE OF PAY, ALLOWANCES, LEAVE SALARY, PENSIONS, ETC.

(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. The control of vehicular and other traffic in the station compound.

(ii)

(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 Inspectors-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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PAKISTAN RAILWAYS GENERAL CODE CHAPTER XII INCIDENCE OF PAY, ALLOWANCES, LEAVE SALARY, PENSIONS, ETC.

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.

12.18

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

C O N T ENT S

DESCRIPTION NATURE OF CONTINGENT CHARGES CLASSIFICATION OF CONTINGENT CHARGES SPECIAL CONTINGENCIES UNIFORMS AND PROTECTIVE CLOTHING (A03906) HIRE OF VEHICLES GAZETTED OFFICERS UNUSUAL CHARGES ORDINARY CONTINGENCIES HIRE OF VEHICLES INCLUDING TRAVELLING ALLOWANCE NON GAZETTED STAFF COMMUNICATION CHARGES STATIONERY (A03901) REPAIR OF COMPUTERS, COMPUTING MACHINES, ETC. OTHER STORES PRINTING AND PUBLICATIONS (A03902) OFFICIAL PUBLICATIONS NEWS PAPERS, PERIODICALS AND BOOKS (A03905) PURCHASE OF DRUGS AND MEDICINES (A03927) RECURRING CHARGES

PAGE NO. 13.1 13.2 13.2 13.2 13.2 13.3 13.3 13.3 13.3 13.3 13.4 13.4 13.5 13.5 13.6

PARA NO. 1301 1303 1304 1305 1306 1311 1312 1313 1314 1315 1317 1318 1319 (1320 1323 Deleted) 1324 1327 (1328 1333 Deleted) 1334 1341 (1335, 1336, 1339, 1340 Deleted) 1342 1343 1345 1346 1350 (1347 1349 Deleted) 1351 1353 (1354 Deleted) 1355 1356 1361 (1359 Deleted)

13.6 13.6 13.7 13.7 13.7 13.7 13.8

26

PAKISTAN RAILWAYS GENERAL CODE CHAPTER XIII CONTINGENT CHARGES

C O N T ENT S

DESCRIPTION BILLS FOR CONTINGENT EXPENDITURE VOUCHERS OF CONTINGENT EXPENDITURE DUTIES OF THE DRAWING OFFICER DISBURSEMENT OF CONTINGENT CHARGES CONTROL OVER CONTINGENT EXPENDITURE

PAGE NO. 13.8 13.8 13.8 13.9 13.9 13.10

PARA NO. 1362 1363 1364 1365 1366 1367

27

PAKISTAN RAILWAYS GENERAL CODE CHAPTER XIII CONTINGENT CHARGES

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. 13.1

PAKISTAN RAILWAYS GENERAL CODE CHAPTER XIII CONTINGENT CHARGES

(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. 13.2

PAKISTAN RAILWAYS GENERAL CODE CHAPTER XIII CONTINGENT CHARGES

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 NonGazetted 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. 13.3

PAKISTAN RAILWAYS GENERAL CODE CHAPTER XIII CONTINGENT CHARGES

(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

PAKISTAN RAILWAYS GENERAL CODE CHAPTER XIII CONTINGENT CHARGES

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.

13.5

PAKISTAN RAILWAYS GENERAL CODE CHAPTER XIII CONTINGENT CHARGES

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. 13.6

PAKISTAN RAILWAYS GENERAL CODE CHAPTER XIII CONTINGENT CHARGES

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

PAKISTAN RAILWAYS GENERAL CODE CHAPTER XIII CONTINGENT CHARGES

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

PAKISTAN RAILWAYS GENERAL CODE CHAPTER XIII CONTINGENT CHARGES

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

PAKISTAN RAILWAYS GENERAL CODE CHAPTER XIII CONTINGENT CHARGES

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.

13.10

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

C O N T ENT S

DESCRIPTION GENERAL DEPARTMENTAL RECEIPTS TRANSMISSION OF DEPARTMENTAL RECEIPTS TO STATIONS REMITTANCE OF STATION EARNINGS UTILIZATION OF RECEIPTS FOR DEPARTMENTAL EXPENDITURE ACCEPTANCE OF LOCAL CHEQUES IN PAYMENT OF GOVERNMENT / PAKISTAN RAILWAYS DUES CASH IMPRESTS HANDLING OF CASH CASH BOOK RECEIPTS TRANSPORT OF CASH CUSTODY OF CASH CHEQUES CHEQUE BOOKS WRITING OF CHEQUES CROSSING OF CHEQUES CANCELLATION OF CHEQUES

PAGE NO. 14.1 14.1 14.1 14.2 14.3 14.3 14.3 14.4 14.4 14.5 14.5 14.5 14.5 14.5 14.5 14.6 14.6 14.6 14.6 14.7 14.7 14.8

PARA NO. 1401 1402 1403 1404 1405 (1406 Cancelled) 1407 1409 1410 1415 1416 1417 1419 1420 1421 1422 1424 1425 1426 1427 1428 1429 1434 (1431 Deleted) 1435 1437

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PAKISTAN RAILWAYS GENERAL CODE CHAPTER XIV CASH, CHEQUES AND VOUCHERS

C O N T ENT S

DESCRIPTION DATE OF PAYMENT BY CHEQUE, MONEY ORDER, OR POSTAL ORDER, ETC. VOUCHERS GENERAL PRINTED FORMS AMOUNTS IN WORDS CORRECTIONS ALLOCATION SIGNATURE SANCTION DATES OF PAYMENT DUPLICATES OR COPIES ERASURES RESPONSIBILITY FOR OVERCHARGES VOUCHERS EXEMPT FROM STAMP DUTY VOUCHERS REQUIRING STAMP DUTY ROUNDING OFF RUPEES IN ACCOUNTS

PAGE NO. 14.8 14.10 14.10 14.10 14.10 14.10 14.10 14.11 14.11 14.11 14.11 14.11 14.12 14.12 14.12 14.12

PARA NO. 1438 (1439 1450 Deleted) 1451 1452 1453 1454 1455 1456 1457 1458 1459 1460 1461 1462 1463 1464 1465 1466

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PAKISTAN RAILWAYS GENERAL CODE CHAPTER XIV CASH, CHEQUES AND VOUCHERS

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 No................. Dated..20___ To The Station Master, ....Station. Please forward to the Cashier the sum of Rupees ..... . sent herewith, and return me the annexed receipt duly signed, in duplicate. Rupees. as per particulars on (in figures) reverse. .. Designation. Second foil No................. Dated..20___ To The Station Master, ..Station. Please forward to the Cashier the sum of Rupees .... .. sent herewith, and return me the annexed receipt duly signed, in duplicate. Rupees. as per particulars on (in figures) reverse. Name. Designation. The Station Master will attach this to his Cash Remittance Note (T.2153) when remitting the money to the Cashier.

14.1

PAKISTAN RAILWAYS GENERAL CODE CHAPTER XIV CASH, CHEQUES AND VOUCHERS

Third foil (Original) No................. Dated...20__ ...Station. Received from the. ... the sum of Rupees. . on account of miscellaneous receipts to be remitted to the Cashier, as per his Transmit Note No. dated..Rupees.. (in figures) .. Station Master. To be returned to the Transmitting Officer and to be forwarded by him to the Financial Advisor & Chief Accounts Officer.

Fourth foil (Duplicate) No................. Dated...20__ ...Station. Received from the. ... the sum of Rupees. . on account of miscellaneous receipts to be remitted to the Cashier, as per his Transmit Note No. dated..Rupees.. (in figures) .. Station Master. To be returned to the Transmitting Officer and attached by him to his counterfoil.

REVERSE OF FIRST AND SECOND FOILS Date of realization as per entry in cash book or cash account Account to be credited

Particulars of items

Amount Rupees

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PAKISTAN RAILWAYS GENERAL CODE CHAPTER XIV CASH, CHEQUES AND VOUCHERS

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. 14.3

PAKISTAN RAILWAYS GENERAL CODE CHAPTER XIV CASH, CHEQUES AND VOUCHERS

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 officers 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. 14.4

PAKISTAN RAILWAYS GENERAL CODE CHAPTER XIV CASH, CHEQUES AND VOUCHERS

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 months 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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PAKISTAN RAILWAYS GENERAL CODE CHAPTER XIV CASH, CHEQUES AND VOUCHERS

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 persons 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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PAKISTAN RAILWAYS GENERAL CODE CHAPTER XIV CASH, CHEQUES AND VOUCHERS

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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PAKISTAN RAILWAYS GENERAL CODE CHAPTER XIV CASH, CHEQUES AND VOUCHERS

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 ofhas 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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PAKISTAN RAILWAYS GENERAL CODE CHAPTER XIV CASH, CHEQUES AND VOUCHERS

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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PAKISTAN RAILWAYS GENERAL CODE CHAPTER XIV CASH, CHEQUES AND VOUCHERS

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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PAKISTAN RAILWAYS GENERAL CODE CHAPTER XIV CASH, CHEQUES AND VOUCHERS

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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PAKISTAN RAILWAYS GENERAL CODE CHAPTER XIV CASH, CHEQUES AND VOUCHERS

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 Cooperative 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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PAKISTAN RAILWAYS GENERAL CODE CHAPTER XIV CASH, CHEQUES AND VOUCHERS

(i) Deleted. (ii) Deleted. (iii) Deleted. (iv) Deleted.

14.13

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 GENERAL PROPRIETY OF AN ADVANCE INTEREST ON ADVANCES CONDITIONS FOR REPAYMENT ADVANCES ON FIRST APPOINTMENT ADVANCES ON PROCEEDING ON TOUR ADVANCES ON DEPUTATION OUT OF PAKISTAN, OR ON RETURN FROM LEAVE ADVANCES ON TRANSFER ADVANCES UNDER SPECIAL CIRCUMSTANCES ADVANCES FOR LAW SUITS ADVANCES FOR ANTI-RABIC TREATMENT ADVANCES FOR PURCHASE OF CONVEYANCES ARREAR CLAIMS PAGE NO. 15.1 15.1 15.1 15.1 15.1 15.1 15.2 15.2 15.2 15.3 15.3 15.3 15.3 15.4 15.12 PARA NO. 1501 1502 1503 1504 1505 1506 1508 (1507 Deleted) 1509 1511 1512 1513 (1514 Deleted) 1515 1519 1519-A 1520 1521 (1522 1537 Deleted) 1538 1540

15.12 15.13 1541 1549 (1545, 1547, 1548 Deleted) 15.13 15.14 1550 1552

INTER DEPARTMENTAL CLAIMS

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PAKISTAN RAILWAYS GENERAL CODE CHAPTER XV ADVANCES AND ARREAR CLAIMS

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 servants return to headquarters or 30 June, whichever is earlier.
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PAKISTAN RAILWAYS GENERAL CODE CHAPTER XV ADVANCES AND ARREAR CLAIMS

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 servants travelling allowance bill.
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PAKISTAN RAILWAYS GENERAL CODE CHAPTER XV ADVANCES AND ARREAR CLAIMS

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 servants 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 months 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 antirabic 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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PAKISTAN RAILWAYS GENERAL CODE CHAPTER XV ADVANCES AND ARREAR CLAIMS

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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PAKISTAN RAILWAYS GENERAL CODE CHAPTER XV ADVANCES AND ARREAR CLAIMS

(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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PAKISTAN RAILWAYS GENERAL CODE CHAPTER XV ADVANCES AND ARREAR CLAIMS

(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) (ii) 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 in the event of the railway servant demise the balance will be recovered from the gratuity / pension or other dues payable to the heirs. 15.6

PAKISTAN RAILWAYS GENERAL CODE CHAPTER XV ADVANCES AND ARREAR CLAIMS

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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PAKISTAN RAILWAYS GENERAL CODE CHAPTER XV ADVANCES AND ARREAR CLAIMS

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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PAKISTAN RAILWAYS GENERAL CODE CHAPTER XV ADVANCES AND ARREAR CLAIMS

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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PAKISTAN RAILWAYS GENERAL CODE CHAPTER XV ADVANCES AND ARREAR CLAIMS

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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PAKISTAN RAILWAYS GENERAL CODE CHAPTER XV ADVANCES AND ARREAR CLAIMS

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 . . . . . . . . . . . . . . . . . . . . . . . . Date . . . . . . . . . . . . . . . . . . . . . . . . . Financial Adviser & Chief 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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PAKISTAN RAILWAYS GENERAL CODE CHAPTER XV ADVANCES AND ARREAR CLAIMS

(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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PAKISTAN RAILWAYS GENERAL CODE CHAPTER XV ADVANCES AND ARREAR CLAIMS

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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PAKISTAN RAILWAYS GENERAL CODE CHAPTER XV ADVANCES AND ARREAR CLAIMS

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) (ii) in the case of cash payment, from the date of payment, and 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.

15.14

PAKISTAN RAILWAYS

PAKISTAN RAILWAYS GENERAL CODE

Riaz Ahmad & Company


Chartered Accountants

CHAPTER XVI

20 October, 2011

9.1

PAKISTAN RAILWAYS GENERAL CODE CHAPTER XVI BILLS FOR PAY AND ALLOWANCES CONTENTS DESCRIPTION PAY BILLS FORM OF PAY BILLS PAY BILL UNITS FIXATION OF WAGE / SALARY PERIODS ASSUMED ATTENDANCE DUE DATES PAY FOR BROKEN PERIODS CLAIMS INCLUDED IN A PAY BILL PAY FOR THE DAY OF DEATH PAY FOR DATE OF RELIEF STATUTORY RESTRICTIONS PERMISSIBLE DEDUCTIONS INCOME TAX PAGE NO. 16.1 16.1 16.1 16.2 16.2 16.2 16.2 16.3 16.3 16.3 16.3 16.3 16.3 16.4 16.5 PARA NO. 1601 1602 1603 1604 1605 1606 1607 1608 1609 (1610 1611 Deleted) 1612 1613 1614 1615 1616 1617 1618 1618-A 1618-B 1618-C (1619 Deleted) 1620 1621 1622 (1623 1624 Deleted) 1625 (1626 Deleted)

BASIS OF CHARGE AND RESPONSIBILITY FOR RECOVERY 16.5 16.6 FREE MEDICAL FACILITY AND MEDICAL ALLOWANCE MARGINAL TAX RELIEF FRACTIONS EXCESS OR DEFICIENT DEDUCTIONS ANNUAL STATEMENT OF DEDUCTION OF INCOME TAX FROM SALARY 31 16.7 16.7 16.7 16.8 16.8

PAKISTAN RAILWAYS GENERAL CODE CHAPTER XVI BILLS FOR PAY AND ALLOWANCES CONTENTS DESCRIPTION RENT DEDUCTIONS ATTACHMENT OF PAY AND ALLOWANCES FOR DEBT SETTLEMENT BILLS ERASURES AND OVER WRITINGS PAYROLL COST CENTRE ACCOUNTING SUMMARY ALLOCATION OF PAY AND ALLOWANCES SINGING OF PAY BILLS STATEMENTS TO BE ATTACHED TO PAY BILLS MEMORANDUM OF DIFFERENCES INCREMENTS, PROMOTIONS, NEW APPOINTMENTS JOINING REPORT, HEALTH CERTIFICATE, ETC. DECLARATION OF TEMPORARY SERVICE RE-EMPLOYED PERSONNEL ATTENDANCE REPORT RECONCILIATION OF TOTALS OF PAY BILLS PAYMENT OF PAY AND ALLOWANCES - DUE DATE OF PAYMENT METHOD OF PAYMENT PAGE NO. 16.8 16.9 16.11 16.11 16.11 16.12 16.12 16.12 16.13 16.14 16.14 16.15 16.16 16.16 PARA NO. 1627 (1628 1629 Deleted) 1630 1634 (1635 1636 Deleted) 1637 1638 1639 1640 1641 1642 1643 1644 1645 1646 (1647 1648 Deleted) 1649 1650 1651

16.16 16.18 1652 1657 (1653 1654 Deleted) 16.18 16.18 1658 1659

16.18 16.19 1660 1661

32

PAKISTAN RAILWAYS GENERAL CODE CHAPTER XVI BILLS FOR PAY AND ALLOWANCES CONTENTS DESCRIPTION LIFE CERTIFICATE PAYMENT OF SALARY THROUGH BANK PAYMENT IN OFFICES NOT ATTACHED TO OPEN LINES PAYMENT OF PAY AND ALLOWANCES OF DECEASED RAILWAY SERVANTS LAST PAY CERTIFICATES TRAVELLING ALLOWANCE BILLS BILLS FOR FEES FOR WORK DONE FOR PRIVATE BODIES PAY ORDERS FOR MISCELLANEOUS CLAIMS WITNESSING OF PAYMENTS PAGE NO. 16.20 16.20 16.20 16.21 PARA NO. 1662 1663 (1664 1669 Deleted) 1670 (1671 Deleted) 1672

16.22 16.24 1673 1676 16.24 16.26 1677 1683 (1684 1685 Deleted) 16.25 16.26 16.28 1686 1687 1688 1689 1693

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PAKISTAN RAILWAYS GENERAL CODE CHAPTER XVI BILLS FOR PAY AND ALLOWANCES

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: EMPLOYEE NO: DEPARTMENT:

NAME: NAME: RATE: POST: STATUS:

ACCOUNTING UNIT: DESIGNATION: B-SCALE:

PAY AND ALLOWANCES CODE DAYS/ DESCRIPTION AMOUNT HOURS CODE

DEDUCTIONS DESCRIPTION AMOUNT UPTO DATE BALANCE CODE

RECOVERY OF LOANS DESCRIPTION AMOUNT 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 paybills 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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PAKISTAN RAILWAYS GENERAL CODE CHAPTER XVI BILLS FOR PAY AND ALLOWANCES

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 paybills 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) (ii) (iii) (iv) when a railway servant proceeds out of Pakistan on deputation or on leave; when a person is transferred to foreign service or to the jurisdiction of another accounts officer; when a railway servant finally quits service (i.e., when he dies, retires or resigns, or is discharged or dismissed); and 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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PAKISTAN RAILWAYS GENERAL CODE CHAPTER XVI BILLS FOR PAY AND ALLOWANCES

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:
16.3

PAKISTAN RAILWAYS GENERAL CODE CHAPTER XVI BILLS FOR PAY AND ALLOWANCES

(i) (ii) (iii) (iv)

Subscriptions to General Provident Fund. Refunds of advances taken from General Provident Fund. Income tax. House rent and connected charges, e.g., electricity, water, gas, etc. Station debits, Stores debits and Workshop debits. Charges for diet supplied to railway servants in railway dispensaries. Fees payable to railway medical officers on contract system. Contribution to Pakistan Railways Servant Welfare Fund. Fines imposed on railway servants. Pakistan Railways Institutes' fees and subscriptions. Amounts due to Railway Co-operative Stores and Cooperative Credit Societies. Deleted. Repayments of advances and loans taken from Government. Pakistan Railways school fees. Amounts due on Court Attachments. Amount of any overpayment which may have been made in the past.

(v) (vi)

(vii) (viii) (ix) (x) (xi)

(xii) (xiii) (xiv) (xv) (xvi)

(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
16.4

PAKISTAN RAILWAYS GENERAL CODE CHAPTER XVI BILLS FOR PAY AND ALLOWANCES

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 subsection (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 employees taxable income for that year; and B is the employees 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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PAKISTAN RAILWAYS GENERAL CODE CHAPTER XVI BILLS FOR PAY AND ALLOWANCES

(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 employees 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 persons agreement to enter into an employment relationship; (ii) as consideration for an employees agreement to any conditions of employment or any changes to the employees 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 employees 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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PAKISTAN RAILWAYS GENERAL CODE CHAPTER XVI BILLS FOR PAY AND ALLOWANCES

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.

16.7

PAKISTAN RAILWAYS GENERAL CODE CHAPTER XVI BILLS FOR PAY AND ALLOWANCES

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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PAKISTAN RAILWAYS GENERAL CODE CHAPTER XVI BILLS FOR PAY AND ALLOWANCES

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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PAKISTAN RAILWAYS GENERAL CODE CHAPTER XVI BILLS FOR PAY AND ALLOWANCES

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) (2) (3) All kinds of travelling allowance. All kinds of conveyance allowances. All allowances granted for meeting the cost of: (a) (b) (4) Uniforms ; and Rations.

All allowances granted as compensation for higher cost of living in localities considered by Government to be expensive localities including hill stations. All house rent allowances. All allowances granted to provide relief against the increase in the cost of living caused by war conditions.

(5) (6)

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 {(XY)/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
16.10

PAKISTAN RAILWAYS GENERAL CODE CHAPTER XVI BILLS FOR PAY AND ALLOWANCES

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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PAKISTAN RAILWAYS GENERAL CODE CHAPTER XVI BILLS FOR PAY AND ALLOWANCES

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. EMPLOYEE CATEGORY

C.C. NAME TOUR

ACCOUNTING UNIT DEPARTMENT

PERIOD ENDING NO.OF EMPLOYEES

PAY CODE AMOUNT ALLOCATION CODE

ALLOWANCES AMOUNT ALLOCATION CODE

DEDUCTIONS AMOUNT ALLOCATION

NET PAY TOTAL I CERTIFY THAT THE EMPLOYEES LISTED ON THE PAYROLL AND SUMMARIZED ABOVE WERE PAID IN MY PRESENCE AND WITNESSED BY ME EXCEPT THOSE NOTED AS UNPAID. DATE : SIGNATURE OF WITNESS AMOUNT OF D.P.M AMOUNT OF CHEQUES THROUGH BANKS AMOUNT OF CHEQUES BY NAME AMOUNT OF CHEQUES FOR PARTIES TOTAL

I CERTIFY THAT THE EMPLOYEES LISTED ON THE PAYROLL AND SUMMARIZED ABOVE WERE PAID 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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PAKISTAN RAILWAYS GENERAL CODE CHAPTER XVI BILLS FOR PAY AND ALLOWANCES

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) (iii) (iv) (v) (vi) (vii) Attendance Register / Time Sheet / Attendance Report / Summary of Time Sheet; Rent rolls for quarters occupied by railway servants; Bills for cost of electric current and gas supplied by the Pakistan Railways in residential buildings; Statements showing deductions on account of subscriptions and repayment of advances to General Provident Fund; Lists of Workshop debits, Stores debits and Station debits recovered through pay bill; 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; Deleted. Deleted. Deleted. Income tax schedule;

(ix) (x) (xi) (xii)

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PAKISTAN RAILWAYS GENERAL CODE CHAPTER XVI BILLS FOR PAY AND ALLOWANCES

(xiii)

Such other certificates as may be required by rules for the grant of any allowance; and Increment Statement.

(xiv)

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. DEPARTMENT COST CENTRE NAME ACCOUNTING UNIT

Employee Number

Employee Name

Previous Month Pay

Current Month Pay

Less

Excess

Remarks

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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PAKISTAN RAILWAYS GENERAL CODE CHAPTER XVI BILLS FOR PAY AND ALLOWANCES

FORM No. G. 1646 Statement of increments granted during the month of . . . . . . . . . . . 20 . .


No. 1 Name. 2 Designation 3 Station 4 Scale of Pay 5 Substantive or officiating 6 Present pay 7

Date of last increment* 8

Periods** not counting for increment 9

Date from which increment is to take effect 10

Proposed pay

Initials of dealing clerk 12

Remarks and orders of sanctioning authority 13

Initials of sanctioning officer 14

11

*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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PAKISTAN RAILWAYS GENERAL CODE CHAPTER XVI BILLS FOR PAY AND ALLOWANCES

(i) (ii) (iii) (iv)

Deleted. Deleted. Appointments or establishment. Deleted. promotion from class IV to superior

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 Establishment 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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PAKISTAN RAILWAYS GENERAL CODE CHAPTER XVI BILLS FOR PAY AND ALLOWANCES

FORM NO. G. 1652


ATTENDANCE REPORT
PAGE COST CENTRE NO. NAME NUMBER OF DAYS SR.N O. NAME EMPLOYEE WORKED NUMBER REST HOLIDAY CASUAL LEAVE ON MEDICAL CERTIFICATE LFP LHP WITHOUT LEAVE NOT MEDICAL DUE CERTIFICATE LHP LHP LFP LFP RECREATION LEAVE SPECIAL LEAVE MATERNITY LEAVE OPTIONAL LEAVE LEAVE EXPAKISTAN DISABILITY LEAVE LWP UDP SUSPENSION TOTAL ACCOUNT OF PROJECT/ EOTK OTRFRT NUMBER DESCRIPTION PERIOD : FROM TO OF

TOTAL ACCOUNTING UNIT NUMBER NAME A/C NO. BAL. FWD DAYS A/C NO. BAL. FWD DAYS A/C NO. BAL. FWD DAYS A/C NO. BAL. FWD

SUMMARY DAYS A/C NO. BAL. FWD DAYS A/C NO. BAL. FWD DAYS A/C NO. BAL. FWD DAYS A/C NO. BAL. FWD DAYS

PREPARED BY

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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PAKISTAN RAILWAYS GENERAL CODE CHAPTER XVI BILLS FOR PAY AND ALLOWANCES

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
16.18

PAKISTAN RAILWAYS GENERAL CODE CHAPTER XVI BILLS FOR PAY AND ALLOWANCES

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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PAKISTAN RAILWAYS GENERAL CODE CHAPTER XVI BILLS FOR PAY AND ALLOWANCES

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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PAKISTAN RAILWAYS GENERAL CODE CHAPTER XVI BILLS FOR PAY AND ALLOWANCES

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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PAKISTAN RAILWAYS GENERAL CODE CHAPTER XVI BILLS FOR PAY AND ALLOWANCES

(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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PAKISTAN RAILWAYS GENERAL CODE CHAPTER XVI BILLS FOR PAY AND ALLOWANCES

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 traveling allowances Rate Rupees Pay as .. ..
.. ..
House Rent Allowance . . Conveyance Allowance . .

Deductions Name of fund Rate Rupees .. ..

G.P. Fund 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 paybills, 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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PAKISTAN RAILWAYS GENERAL CODE CHAPTER XVI BILLS FOR PAY AND ALLOWANCES

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 NUMBER NAME PAY RATE NUMBER COST CENTRE NAME CHEQUE CASH NUMBER OF NIGHTS, DAYS OR MILES TRAVEL ALLOWANCE RATE Rupees OTHER ALLOWED EXPENSES ATTACH DETAILS TOTAL AMOUNT PAYABLE PAYMENT CHECK ON PERIOD ENDING

DAYS

DEPARTURE

ARRIVAL

DUTY

STATION

TRAIN TIME

STATION

TRAIN TIME

HEREBY CERTIFIED THAT THE ABOVE EMPLOYEE WAS ABSENT ON DUTY FROM HIS HEADQUARTER STATION AS RECORDED ABOVE. CONTROLLING OFFICE SIGNATURE COST CENTER SUPERVISOR SIGNATURE

TOTAL EMPLOYEE DEDUCTIONS ADVANCES NET PAYABLE 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.
16.24

PAKISTAN RAILWAYS GENERAL CODE CHAPTER XVI BILLS FOR PAY AND ALLOWANCES

FORM No. G. 1679


SUMMARY OF TRAVEL ALLOWANCE BILLS
Original Copy (White) First Copy (Green) Office Copy (Yellow) COST CENTER NO. NAME
CHEQUE NUMBER EMPLOYEE NUMBER NAME TRAVEL ALLOWANCE OTHER ALLOWED EXPENSE PAGE OF

PAYMENT BY CASH
GROSS AMOUNT PAYABLE DEDUCTION OR ADVANCE

CHEQUE

(CHECK ONE)
SIGNATURE OF EMPLOYEE

PERIOD ENDING
ACCOUNT DISTRIBUTION DR A/C DR AMT DR A/C DR AMT AMOUNT UNPAID

NET AMOUNT PAYABLE

TOTALS
PREPARED BY CERTIFIED THAT THE EMPLOYEES LISTED ABOVE WERE PAID BY ME / IN MY PRESENCE EXCEPT THOSE LISTED UNPAID DATE VERIFIED BY SIGNATURE SIGNATURE TOTAL TOTAL PAYMENT CLERK WITNESS ACCOUNT DISTRIBUTION SUMMARY

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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PAKISTAN RAILWAYS GENERAL CODE CHAPTER XVI BILLS FOR PAY AND ALLOWANCES

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.

16.26

PAKISTAN RAILWAYS GENERAL CODE CHAPTER XVI BILLS FOR PAY AND ALLOWANCES

FORM No. G. 1688 PAY ORDER No. . . . . To ...................... ...................... Pay to . . . . . . . . . . . . . . . . . . . . . . . . Dated. . . . . . . . . 20. . . (Counterfoil) No. . . . . To ...................... ...................... Pay to . . . . . . . . . . . . . . . . . . . . . . . . Dated. . . . . . . . . 20. . .

Rupees*. . . . . . . . . . . . . . . . . . . . . . . . Rupees*. . . . . . . . . . . . . . . . . . . . . . . . on account of. . . . . . . . . . . . . . . . . . . . on account of. . . . . . . . . . . . . . . . . . . . ............................... .............................. Rupees. . . . . . . . . . . . chargeable to . . . . . . . . . . . . . . . . . . . Signature. . . . . . . . . . Official Designation . . . . . . . . . Rupees. . . . . . . . . . . . . chargeable to . . . . . . . . . . . . . . . . . . . Signature . . . . . . . . . . Official Designation. . . . . . . . .

Received the sum of Rupees. . . . . . . . . . . . . . . . . . . . . . . . . as above in full of all demands. Dated . . . . .20. . Signature. . . . . . .

Witness . . . . . . . . . . . . . . Pay clerks initials . . . . . . . . . . . . . *Amount to be shown in words. *Amount to be shown in words.

16.27

PAKISTAN RAILWAYS GENERAL CODE CHAPTER XVI BILLS FOR PAY AND ALLOWANCES

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.

16.28

PAKISTAN RAILWAYS

PAKISTAN RAILWAYS GENERAL CODE

Riaz Ahmad & Company


Chartered Accountants

CHAPTER XVII

20 October, 2011

9.1

PAKISTAN RAILWAYS GENERAL CODE CHAPTER XVII DISALLOWANCES AND OBJECTIONS

CONTENTS

DESCRIPTION DISALLOWANCES OF PERSONAL CLAIMS PROVISIONAL PAYMENTS OBJECTIONS RELATING TO OTHER CLAIMS

PAGE NO. 17.1 17.1 17.3 17.3 17.4

PARA NO. 1701 1702 1703 1712 (1710 Deleted) 1713 1716

34

PAKISTAN RAILWAYS GENERAL CODE CHAPTER XVII DISALLOWANCES AND OBJECTIONS

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

PAKISTAN RAILWAYS GENERAL CODE CHAPTER XVII DISALLOWANCES AND OBJECTIONS

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

PAKISTAN RAILWAYS GENERAL CODE CHAPTER XVII DISALLOWANCES AND OBJECTIONS

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) (ii) (iii) (iv) (v) Want of sanctioned estimate, Excess over sanctioned estimate, Want of sanctioned appropriation, Excess over sanctioned appropriation, 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 17.3

PAKISTAN RAILWAYS GENERAL CODE CHAPTER XVII DISALLOWANCES AND OBJECTIONS

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.

17.4

PAKISTAN RAILWAYS

PAKISTAN RAILWAYS GENERAL CODE

Riaz Ahmad & Company


Chartered Accountants

CHAPTER XVIII

20 October, 2011

9.1

PAKISTAN RAILWAYS GENERAL CODE CHAPTER XVIII LOSSES, FRAUDS AND EMBEZZLEMENTS

CONTENTS

DESCRIPTION RESPONSIBILITY FOR LOSSES REPORT OF LOSSES LOSSES INVOLVING THE STATE BANK OF PAKISTAN INVESTIGATION OF LOSSES LEGAL ADVICE LAXITY OF CONTROL RECOVERIES OF LOSSES

PAGE NO. 18.1 18.1 18.2 18.2 18.2 18.3 18.3

PARA NO. 1801 1802 1802A 1803 1804 1805 1806 1807 1809 1810 1811 1812 1813 1814 1815 1816 1817 1818 1819 1820 1824

WITHHOLDING OF PENSION AND GENERAL PROVIDENT FUND 18.3 18.4 BALANCE POLICE INVESTIGATION PROSECUTION WITNESSES APPEAL AGAINST ACQUITTALS REPORTS TO THE GENERAL MANAGER DEPARTMENTAL INQUIRIES 18.4 18.4 18.5 18.5 18.5 18.5 18.6 18.6 18.7

35

PAKISTAN RAILWAYS GENERAL CODE CHAPTER XVIII LOSSES, FRAUDS AND EMBEZZLEMENTS

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. (a) (b) (c) (d) The General Manager's report should clearly bring out: the amount involved and recovered, the modus operandi of the fraud, the nature of checks which ought to have been exercised under any rule or order and which were omitted, thereby facilitating the fraud, whether the procedure in force is ineffective in preventing such frauds 18.1

PAKISTAN RAILWAYS GENERAL CODE CHAPTER XVIII LOSSES, FRAUDS AND EMBEZZLEMENTS

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, 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).

(f)

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 18.2

PAKISTAN RAILWAYS GENERAL CODE CHAPTER XVIII LOSSES, FRAUDS AND EMBEZZLEMENTS

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 servants 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 servants 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 servants 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 18.3

PAKISTAN RAILWAYS GENERAL CODE CHAPTER XVIII LOSSES, FRAUDS AND EMBEZZLEMENTS

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 servants 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.

18.4

PAKISTAN RAILWAYS GENERAL CODE CHAPTER XVIII LOSSES, FRAUDS AND EMBEZZLEMENTS

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) (b) (c) (d) (e) The commencement of a police investigation. The decision to prosecute in any particular case. The result of any prosecution. The decision to proceed further in revision or appeal in any case. The result of any proceedings in revision or appeal.

18.5

PAKISTAN RAILWAYS GENERAL CODE CHAPTER XVIII LOSSES, FRAUDS AND EMBEZZLEMENTS

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.

18.6

PAKISTAN RAILWAYS GENERAL CODE 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.

18.7

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 HISTORY OF SERVICES OF GAZETTED OFFICERS FORM AND DATE OF ISSUE CONTENTS COPY MAINTAINED BY ACCOUNTS OFFICE SCRUTINY BY OFFICERS TRANSFERS OF OFFICERS ARRANGEMENT OF NAMES HEADING AND INITIAL ENTRIES EVENTS DURING SERVICE POSTINGS AND PROMOTIONS OFFICERS PROMOTED FROM SUBORDINATE RANKS TEMPORARY OFFICERS OFFICERS BORROWED FROM OTHER CIVIL DEPARTMENTS LEAVE MISCELLANEOUS EVENTS PENSIONABLE OFFICERS OFFICERS TRANSFERRED TO FOREIGN SERVICE SERVICE BOOKS SERVICE ROLLS ATTESTATION OF ENTRIES

PAGE NO. 19.1 19.1 19.2 19.2 19.2 19.2 19.3 19.3 19.4 19.4 19.4 19.5 19.5 19.5 19.6 19.6 19.6 19.7 19.7 19.7 19.10 19.10

PARA NO. 1901 1902 1903 1904 1905 1906 1907 1908 1909 1914 (1911, 1913 Deleted) 1915 1916 1921 1922 1923 1924 (1925 Deleted) 1926 1927 1928 1929 1930 (1931 Deleted) 1932 (1933 Deleted) 1934 1935

36

PAKISTAN RAILWAYS GENERAL CODE CHAPTER XIX RECORDS OF SERVICE

CONTENTS

DESCRIPTION SUSPENSIONS AND INTERRUPTIONS PERSONAL CERTIFICATES ANNUAL VERIFICATION TRANSFERS SCRUTINY BY EMPLOYEES DELIVERY OF SERVICE BOOKS ON RETIREMENT

PAGE NO. 19.11 19.11 19.11 19.11 19.12 19.12 19.12

PARA NO. 1936 1937 1938 1939 1940 1941 1942 1943 1944

37

PAKISTAN RAILWAYS GENERAL CODE CHAPTER XIX RECORDS OF SERVICE

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. Station 1 Date 2 Substantive appointment 3 Officiating appointment 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.

19.1

PAKISTAN RAILWAYS GENERAL CODE CHAPTER XIX RECORDS OF SERVICE

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 officers history sheet corrected up to date, for the latters 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.

19.2

PAKISTAN RAILWAYS GENERAL CODE CHAPTER XIX RECORDS OF SERVICE

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 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .)
Station Substantive Officiating Date / Office appointment appointment 1 2 3 4 Monthly pay Date 5 Substantive pay 6 Officiating pay 7 Remarks 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. 19.3

PAKISTAN RAILWAYS GENERAL CODE CHAPTER XIX RECORDS OF SERVICE

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. 19.4

PAKISTAN RAILWAYS GENERAL CODE CHAPTER XIX RECORDS OF SERVICE

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 . . . . . . . . . . . . . . . . .

19.5

PAKISTAN RAILWAYS GENERAL CODE CHAPTER XIX RECORDS OF SERVICE

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) (ii) (iii) (iv) The passing of departmental examinations. Deleted. Deputation on special duty. Election for revised leave or pension rules, or for any terms affecting leave, pay, pension, etc., in respect of which option is allowed. Transfers to foreign service. Literary productions. Honours and decorations. Deleted. Deleted.

(v) (vi) (vii) (viii) (ix)

19.6

PAKISTAN RAILWAYS GENERAL CODE CHAPTER XIX RECORDS OF SERVICE

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.

19.7

PAKISTAN RAILWAYS GENERAL CODE CHAPTER XIX RECORDS OF SERVICE

FORM No. G. 1932 SERVICE BOOK (Opening page) 1. 2. 3. 4. 5. 6. 7. 8. Name. Employee No. Residence. Father's name and residence. Date of birth. Exact height by measurement. Personal mark for identification. Left hand thumb and finger impressions Little Finger. Middle Finger. Thumb. 9. 10. Signature of Government Servant. Signature and designation of the Head of the Office, or other Attesting Officer. Ring Finger. Fore Finger.

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. 2. 3. Name of post. Whether substantive or officiating, and whether permanent or temporary. If officiating state 19.8

PAKISTAN RAILWAYS GENERAL CODE CHAPTER XIX RECORDS OF SERVICE

(i) (ii)

Substantive appointment, or Whether service counts for pension under Articles 371, Civil Service Regulations.

4. 5. 6. 7. 8. 9.

Pay in substantive post. Additional pay for officiating. Other emoluments falling under the term Pay. Date of appointment. Signature of Government servant. Signature and designation of the head of the office or other Attesting Officer in attestation of columns 1 to 8. Date of termination of appointment. Reason of termination (such as promotion, transfer, dismissal, etc.) Signature of the head of office or other Attesting Officer. Leave (i) (ii) Nature and duration of leave taken. Allocation of periods of leave on average pay up to four months for which leave-salary is debitable to another Government: (a) (b) Period; Government to which debitable.

10. 11. 12. 13.

14. 15.

Signature of the head of the office or other Attesting Officer. Reference to any recorded punishment or censure or reward or praise of the Government servant.

19.9

PAKISTAN RAILWAYS GENERAL CODE CHAPTER XIX RECORDS OF SERVICE

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) (b) the date of his appointment; his date of birth, residence, height and marks of identification when enrolled; the rank which he from time to time holds, his promotions and his reductions and other punishments; his absences from duty, with or without leave; interruptions in his service; every other incident in his service which may involve forfeiture of a portion of it or may affect the amount of his pension.

(c)

(d) (e) (f)

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.

19.10

PAKISTAN RAILWAYS GENERAL CODE CHAPTER XIX RECORDS OF SERVICE

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.

19.11

PAKISTAN RAILWAYS GENERAL CODE CHAPTER XIX RECORDS OF SERVICE

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 servants 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.

19.12

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

C O N T ENT S

DESCRIPTION HOURS OF EMPLOYMENT SUPPLY OF PUBLICATIONS ON PROFESSIONAL SUBJECTS PRINTING EXPENSES OFFICIAL RECORDS, PROPERTY OF STATE DESTRUCTION OF RECORDS CORRESPONDENCE COMMUNICATION SENT THROUGH THE POST

PAGE NO. 20.1 20.1 20.1 20.1 20.1 20.2 20.2 20.4 20.4 20.5

PARA NO. 2001 2002 2003 2004 2005 2006 2007 2020 2021 2023 2024 2025 (2026 2029 Deleted) 2030 2031 2039 2040 2044 2045 2046 2047 2048 (2049 Deleted) 2050 2051 2052

COMMUNICATIONS SENT OTHERWISE THAN BY POST 20.5 SERVICE STAMPS AND STATIONERY REVISION OF ESTABLISHMENTS AND PROPOSITION STATEMENT SANCTIONS DATE OF EFFECT OF SANCTION LAPSE OF SANCTION REPORT OF DEATH OF RAILWAY SERVANTS PLACING OF ADVERTISEMENTS IN NEWS PAPERS EXECUTION OF CONTRACTS EXAMINATION OF QUESTIONED DOCUMENTS 20.6 20.6 20.9 20.9 20.10 20.10 20.11 20.11 20.12 20.12 20.12

38

PAKISTAN RAILWAYS GENERAL CODE CHAPTER XX MISCELLANEOUS

C O N T ENT S

DESCRIPTION SECURITY DEPOSITS FOR RAILWAY EMPLOYEES AND CONTRACTORS ANNUAL REPORT OF RAILWAY OBJECT AND SCOPE RESPONSIBILITY FOR PREPARATION SECTION IREPORT PROPER SECTION IIFINANCIAL STATEMENTS SECTION IIIANALYSIS OF WORKING SECTION IVAPPENDICES ESTABLISHMENT RULES

PAGE NO.

PARA NO.

20.12 20.14 2053 2061 20.14 20.14 20.14 20.15 20.15 20.15 20.15 2062 2063 2064 2065 2066 2067 2068 2069

39

PAKISTAN RAILWAYS GENERAL CODE CHAPTER XX MISCELLANEOUS

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: 20.1

PAKISTAN RAILWAYS GENERAL CODE CHAPTER XX MISCELLANEOUS

(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) (ii) (iii) (iv) (v) Records connected with expenditure which is within the statute of limitation. Records connected with expenditure on works not completed, although beyond the period of limitation. Records of experiments and observation. Records connected with claim to service and personal matters of persons in service. 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

PAKISTAN RAILWAYS GENERAL CODE CHAPTER XX MISCELLANEOUS

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: 20.3

PAKISTAN RAILWAYS GENERAL CODE CHAPTER XX MISCELLANEOUS

(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.

20.4

PAKISTAN RAILWAYS GENERAL CODE CHAPTER XX MISCELLANEOUS

(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.

20.5

PAKISTAN RAILWAYS GENERAL CODE CHAPTER XX MISCELLANEOUS

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) (ii) (iii) 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; the cost after revision; and 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:

20.6

PAKISTAN RAILWAYS GENERAL CODE CHAPTER XX MISCELLANEOUS

(i) (ii) (iii)

the present cost of all establishments concerned; the various increases of pay or the various percentages of increases proposed and the reasons justifying the proposals; in respect of each separate rate on increase proposed, as set in (ii): (a) (b) a list of the establishments or classes of officers to which it is to be applied and reasons for such differentiation; 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) (ii) (iii) cases of general revision of establishment ; proposals which can not be set out clearly without it ; or Schemes which require the sanction of the Chairman / Secretary Railways.

20.7

PAKISTAN RAILWAYS GENERAL CODE CHAPTER XX MISCELLANEOUS

FORM No. G.2035 Statement of proposition for Revision of Establishment


Nature of charges Present scale. Pay Average cost Proposed scale Pay Average cost Permanent Increase per month *Maximum Decrease per month Proposition Temporary Increase per month Decrease per month

Designation

Designation

*Maximum

*Increment

*Increment

*Minimum

*Minimum

*Amount

*Amount

*Amount

*Amount

Number

Number

Period

*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. 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. The rules as to detail set out in paragraphs. 2031 to 2033.

(ii)

(iii)

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:

20.8

Period

Remarks

PAKISTAN RAILWAYS GENERAL CODE CHAPTER XX MISCELLANEOUS

Service or Department Railway Service of Engineers, including Bridge Engineers. Transportation (Traffic and Commercial) Transportation (Power) and Mechanical Engineering (including Signal and Electrical Engineers).

Average monthly cost Junior scale Senior scale Rupees Rupees 28,000 35,000 28,000 28,000 35,000 35,000

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 Officers 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. 20.9

PAKISTAN RAILWAYS GENERAL CODE CHAPTER XX MISCELLANEOUS

(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. 20.10

PAKISTAN RAILWAYS GENERAL CODE CHAPTER XX MISCELLANEOUS

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) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) Name. Designation. Date of death. Place of death. Age at time of death. Place of birth. Particulars as to family connections. Address in foreign country of relatives (if known). Particulars as to property (if any). Length of service. Cause of death. 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

20.11

PAKISTAN RAILWAYS GENERAL CODE CHAPTER XX MISCELLANEOUS

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. 20.12

PAKISTAN RAILWAYS GENERAL CODE CHAPTER XX MISCELLANEOUS

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) (ii) (iii) (iv) (v) a deposit of cash; government securities at market value; guarantee bonds or deposit receipts of scheduled banks as defined in State Bank of Pakistan Act, 1956. a deposit in the Post Office Savings bank; or a deposit receipt of the Pakistan Railways Co-operative Credit Society.

2055. The security from contractors may be: (i) (ii) (iii) as provided in clauses (i) to (iv) of the preceding paragraph; a percentage deduction, ordinarily 10 per cent from the periodic payments made on account of work done or supply made; or 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 Banks 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:

20.13

PAKISTAN RAILWAYS GENERAL CODE CHAPTER XX MISCELLANEOUS

(i) (ii)

that the depositor has expressly desired this in writing, and 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 years 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 IReport 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) ; 20.14

PAKISTAN RAILWAYS GENERAL CODE CHAPTER XX MISCELLANEOUS

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 IIFinancial 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 IIIAnalysis 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 IVAppendices.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) (ii) (iii) the detailed sanctions of the number of posts in each category by departments and preferably by cost centre; 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). 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.

20.15

PAKISTAN RAILWAYS GENERAL CODE CHAPTER XX MISCELLANEOUS

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.

20.16

CHART OF ACCOUNTS APPENDIX I (See paragraph 329)

1) Entity Element Govt


F

Ministry Division
27 1

Attached Department Code


PR01 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 21 22 31 32 33 34 41 42 43 44

Department / Spending unit Description


General Manager, Operations FA & CAO, Pakistan Railways FA & CAO, Revenue Traffic Department Civil Engineering Department Electrical Department Signal Department Telecom Department Locomotive Department Wagon Department Carriage Department Stores Department MIS Department Law Department Police Department General Manager, Manufacturing & Services FA & CAO, Manufacturing & Services General Manager, Development Directorate of Schools Medical Department Research IRM Surveys Chief Internal Auditor Federal Government Inspector of Railways Marketing Department Railway Board

Code
000 001 002 003 004 005 006 007 008 009 010 011 012 013 014 015 016 017 018 019 020 021 022 023 024 025 026 027 028 029 030 031

Accounting Unit Description


Senior Accounts Office/GB HQ (Headquarters, Lahore) Divisional Accounts Office, Karachi Divisional Accounts Office, Sukkur Divisional Accounts Office, Multan Divisional Accounts Office, Lahore Divisional Accounts Office, Rawalpindi Divisional Accounts Office, Quetta Divisional Accounts Office/WAC/MGPR, (Workshops Accounts Moghalpura) Divisional Accounts Office, Peshawar Senior Accounts Office/Revenue, Lahore (Traffic Accounts, Lahore) SAO/Pension & Funds, Headquarters, Lahore SAO/Stores, Headquarters, Lahore AO/MIS/ HQ (IT Centre, HQ, Lahore) AO/Steel Shop/MGPR (Steel Shop, Moghalpura, Lahore) AO/CDL/ Rawalpindi (Central Diesel Locomotive Shop, Rawalpindi) AO/C&W/Hyderabad (Carriage and Wagon Shop, Hyderabad) S F&AO/TR Karachi (Track Rehabilitation Project, Karachi) S F&AO/EPZ Karachi (Export Processing Zone, Karachi) AO/Dry Port Karachi (Dry Port, Karachi) S F&AO/DOT (Doubling of Track, HQ, Lahore) S F&AO/MPS/Karachi (Mirpur Khas Project, Karachi) AO/ RBOD /K.C (Right Bank Outfall Drain, Karachi) S F&AO/M&S (Manufacturing & Services, Headquarters, Lahore) SAO/CF/Islamabad (Carriage Factory, Islamabad) SAO/LMF/Risalpur (Locomotive Factory, Risalpur) S F & AO/ CSF / HQ / LHR (Concrete Sleeper Factories, Lahore) S F & AO/ AVLB, MGPR/WAC (Moghalpura Workshops Lahore) S F&AO/ H.C.W/ MGPR (High Capacity Wagons, Moghalpura, Lahore) S F&AO/ RE (Rehabilitation, Moghalpura, Lahore) Deputy Director/Walton (Training Centre, Walton, Lahore) 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 Description

Minor Object
Code Description Code

Code

Detailed Object Description

A01

Employee Related Expenses

A011

Pay A01101 A01102 A01103 A01104 A01105 A01106 A01107 A01108 A01109 A01150 A01151 A01152 A01153 A01154 A01155 A01156 A01157 A01158 A01170

Pay of Officers (A01101 - A01150) Basic Pay Personal Pay Special Pay Technical Pay Qualification Pay Pay of Contract Staff Index Pay Pay of Shaheed Police Officers Command Pay Others Pay of Other Staff (A01151 - 99) Basic Pay Personal Pay Special Pay Good Conduct Pay Qualification Pay Pay of Contract Staff Index Pay Pay of Shaheed Police Officials Others Regular Allowances (A01201 - 10) Senior Post Allowance House Rent Allowance

A012

Allowances A01201 A01202

Page 2 of 100

CHART OF ACCOUNTS APPENDIX I (See paragraph 329)

Code

Major Object Description

Minor Object
Code Description Code A01203 A01204 A01205 A01206 A01207 A01208 A01209 A01210 A01211 A01212 A01213 A01214 A01215 A01216 A01217 A01218 A01219 A01220 A01221 A01222 A01223 A01224 A01225 A01226 A01227 A01228 A01229 A01230 A01231

Detailed Object Description Conveyance Allowance Sumptuary Allowance Dearness Allowance Local Compensatory Allowance Washing Allowance Dress Allowance Special Additional Allowance Risk Allowance Other Regular Allowances (A01211 - 70) Hill Allowance Telecommunication Allowance Expatriation Allowance Postal Operation Allowance Extra Departmental Employees Allowance Qualification Allowance Medical Allowance Fixed Contingent/Stationary Allowance Foreign Allowance Language Allowance Accreditation Allowance Hardship Allowance Exchange Compensation Allowance Entertainment Allowance Instructional Allowance Computer Allowance Project Allowance Orderly Allowance Special Compensation Allowance Dusting Allowance Drinking Water Allowance

Page 3 of 100

CHART OF ACCOUNTS APPENDIX I (See paragraph 329)

Code

Major Object Description

Minor Object
Code Description Code A01232 A01233 A01234 A01235 A01236 A01237 A01238 A01239 A01240 A01241 A01242 A01243 A01244 A01245 A01246 A01247 A01248 A01249 A01250 A01251 A01252 A01253 A01254 A01255 A01256 A01257 A01258 A01259 A01260 A01261

Detailed Object Description Performance Evaluation Allowance Unattractive Area Allowance Training Allowance Secretariat Allowance Deputation Allowance Design Allowance Charge Allowance Special Allowance Utility Allowance for Gas Utility Allowance For Electricity Consolidated Travelling Allowance Special Allowance Adhoc Relief Indexed House Rent Allowance Indexed Conveyance Allowance NAB Allowance Judicial Allowance Utility Allowance to Ministers/Ministers of State Incentive Allowance Mess Allowance Non Practicing Allowance Science Teaching Allowance Anaesthesia Allowance Hostel Superintendent Allowance Special Adhoc Relief Allowance RC Allowance President/Prime Minister/Parliament House Allowance Fuel Allowance Ration Allowance Constabulary Allowance

Page 4 of 100

CHART OF ACCOUNTS APPENDIX I (See paragraph 329)

Code

Major Object Description

Minor Object
Code Description Code A01262 A01263 A01264 A01265 A01266 A01267 A01268 A01269 A01270 A0120A A0120B A0120C A0120D A0120E A0120F A0120G A0120H A0120I A0120J A0120K A0120L A0120M A0120N A0120P A0120Q A0120R A0120S A0120T A01271

Detailed Object Description Special Relief Allowance Research Allowance Technical Allowance Cash Handling Allowance Disturbance Allowance Warden/Boarding Allowance Cost of Living Allowance Basic Science Allowance Others Special Message Allowance Servant Allowance Club Allowance Integrated Allowance Housing Subsidy Allowance to Government Servants Mobility Allowance Field Allowance Hair Cutting Allowance Remote Area Allowance ATS Allowance Special Judicial Allowance Hard Area Allowance @ 50% of running basic pay for Northern Areas Car Allowances Special Allowance @ 20% of Basic Pay for Secretariat Employees Adhoc Relief - 2009 Fixed Daily Allowance Prison Allowance Elite Force Allowance Education Allowance Other Regular (Allowances excluding TA) (A01271 - 99) Overtime Allowance

Page 5 of 100

CHART OF ACCOUNTS APPENDIX I (See paragraph 329)

Code

Major Object Description

Minor Object
Code Description Code A01272 A01273 A01274 A01275 A01276 A01277 A01278 A01279 A01280 A01281 A01282 A01283 A01284 A01285 A01286 A01287 A01288 A01289 A01290 A01291 A01292 A01293 A01294 A01295 A01299 A02101

Detailed Object Description Night Duty Allowance Honoraria Medical Charges Rest and Recreation Allowance Outfit Allowance Contingent Paid Staff Leave Salary Extra Duty Allowance Out Station Allowance Danger Money Allowance Session Allowance Field Allowance Firewood Allowance Motor Cycle Maintenance Allowance Suspension Allowance Land Revenue Collector's Allowance Contract Allowance Teaching Allowance President / Governor's House Allowance Special Allowance For Hiring Drivers to the Parliamentary Secretaries / Chairmen Standing Committees Screener Allowance Diet charges Ticketing Allowance Road Safety Education Allowance Others Feasibility Studies

A02

Project PreA021 investment Analysis

Feasibility Studies

A02102

Consultant based Feasibility Studies

Page 6 of 100

CHART OF ACCOUNTS APPENDIX I (See paragraph 329)

Code

Major Object Description

Minor Object
Code A022 Description Code Research and Surveys

Detailed Object Description

A03

Operating Expenses A030

Research, Surveys and A02201 Exploratory Operations A02202 A02203 A02204 Fuel and Power A03001 A03002 A03003 A03004 A03005 A03070 A03101 A03102 A03103 A03170 A03201 A03202 A03203 A03204 A03205 A03270 A03301 A03302 A03303 A03304 A03370 A03401

Exploratory Operation Consultant Based Research and Surveys Consultant Based Exploratory Operation High Speed Diesel (HSD) Oil- Operational High Speed Diesel (HSD) Oil - Non Operational Furnace Oil - Operational Furnace Oil - Non Operational Electric Traction Others Bank Fees Legal Fees License Fee Others Postage and Telegraph Telephone and Trunk Calls Telex,Teleprinter and Fax Electronic Communication Courier and Pilot Service Others Gas Water Electricity Hot and Cold Weather Charges Others Occupancy Cost (A03401 - A03470) Charges

A031

Fees

A032

Communication

A033

Utilities

A034

Occupancy Costs

Page 7 of 100

CHART OF ACCOUNTS APPENDIX I (See paragraph 329)

Code

Major Object Description

Minor Object
Code Description Code A03402 A03403 A03404 A03405 A03406 A03407 A03408 A03409 A03410 A03411 A03412 A03470 A035 Operating Leases A03501 A03502 A03503 A03504 A03506 A03570 A036 Motor Vehicles A03601 A03602 A03603 A03670 A037 Consultancy and Contractual Work A03701 A03702 A03703 A03770

Detailed Object Description Rent for Office Building Rent for Residential Building Rent for Other Buildings Rent other than on Building Royalties Rates and Taxes Rent of Machine and Equipment Insurance Security Rent of Hall for Council Meetings Sewerage Charges/Waste Charges Others Operating Leases (A03501 - A03570) Machinery and Equipment Building Motor Vehicles Computers Medical Machinery and Technical Equipment Others Motor Vehicles (A03601 - A03670) Fuel Insurance Registration Others Consultancy and Contractual Work (A03701 - A03770) Computer Management Government Departments Others

Page 8 of 100

CHART OF ACCOUNTS APPENDIX I (See paragraph 329)

Code

Major Object Description

Minor Object
Code A038 Description Travel & Transportation A03801 A03802 A03803 A03804 A03805 A03806 A03807 A03808 A03809 A03810 A03811 A03820 A038 Travel & Transportation A03821 A03822 A03823 A03824 A03825 A03826 A03827 A03828 A03829 A03840 A039 General A03901 A03902 A03903 Code

Detailed Object Description Government Servants (A03801 - A03820) Training - Domestic Training - International Other - Domestic Other - International Travelling Allowance Transportation of Goods P.O.L Charges, Aeroplanes, Helicopters, Staff Cars, Motor Cycles Conveyance Charges CNG Charges (Government) Tour Expenditure State Conveyance and Motor Cars Railway Concession Voucher Others Other than Government Servants (A03821 - 40) Training-Domestic Training - International Other - Domestic Other - International Travelling Allowance Transportation of Goods P.O.L Charges, Aeroplanes, Helicopters, Staff Cars, Motor Cycles Conveyance Charges CNG Charges (Non-Govt) Others General (A03901 - 3971) Stationery Printing and Publication Conferences / Seminars / Workshops / Symposia

Page 9 of 100

CHART OF ACCOUNTS APPENDIX I (See paragraph 329)

Code

Major Object Description

Minor Object
Code Description Code A03904 A03905 A03906 A03907 A03908 A03909 A03910 A03911 A03912 A03913 A03914 A03915 A03916 A03917 A03918 A03919 A03920 A03921 A03922 A03923 A03924 A03925 A03926 A03927 A03928 A03929 A03930 A03931 A03932 A03933

Detailed Object Description Hire of Vehicles News Papers, Periodicals and Books Uniforms and Protective Clothing Advertising & Publicity Discount Given Tax Refunds Commission Paid Loss on Exchange Expenditure on Pakistani Delegations to Foreign Countries Contribution & Subscription Secret Service Expenditure Payments to Government Department for Services Rendered Essay Writing and Copyrights Law Charges Exhibitions, Fairs and other National Celebrations Payment to Other for Services Rendered Relief and Repatriation of Civilian Internees Unforeseen Expenditures for Disaster Preparedness & Relief Reimbursement of interest to Bank Security of VIPs Expenditure on Refugees, Security, Prisoners & Detainees Subsistence Allowance to Detainees Allied Branch of the Provincial C.I.D Purchase of Drugs and Medicines Expenditures on Confiscated Goods Weight & Measures, Trade Marks and Patent Rights Vocational and Manpower Training Expenditure on Foreign Experts Assistance Received from Abroad Demarcation of Pakistan-India Boundary Services Charges

Page 10 of 100

CHART OF ACCOUNTS APPENDIX I (See paragraph 329)

Code

Major Object Description

Minor Object
Code Description Code A03934 A03935 A03936 A03937 A03938 A03939 A03940 A03941 A03942 A03943 A03944 A03945 A03946 A03947 A03948 A03949 A03950 A03951 A03952 A03953 A03954 A03955 A03956 A03957 A03958 A03959 A03960 A03961 A03962 A03970

Detailed Object Description Re-imbursement of T.T Charges to Banks for Home Remittances Depreciation Expenses Foreign/Inland Training Course Fee Refresher/Recurrent Courses of Pilot Insurance of Aircrafts and Pilots Landing/Parking Charges of Aircrafts Unforeseen Expenditure Expense against National Fund for Control of Drug Abuse Cost of Other Stores HIV/AIDS - Training Foreign HIV/AIDS - Local Training and Meetings HIV/AIDS - Technical Assistance HIV/AIDS - Surveillance HIV/AIDS - Monitoring, Research & Evaluation HIV/AIDS - Behaviour Change communication and Advocacy HIV/AIDS - Services for vulnerable Population HIV/AIDS - Drugs & Medical Supplies HIV/AIDS -Contingencies HIV/AIDS -Operational Cost of Old Surveillance Centres Investigation Cost Ordnance Store Other Store - Tear Gas/Computer , Stationary Losses to Local Government and Entities due to Abolition of Taxes Special Costs incurred in Performance of Government Functionaries Special Expenditures Incurred in Executives Directives Stipend, Incentives, Awards and Allied Expenditure Expenditures on Foreign Delegations Arriving in Pakistan Discount on Judicial Stamps Discount on Non Judicial Stamps Others

Page 11 of 100

CHART OF ACCOUNTS APPENDIX I (See paragraph 329)

Code

Major Object Description

Minor Object
Code Description Code A03971 A03972 A03973 A03974 A03975 A03976 A03977 A03978 A03979 A03980 A03981 A03982 A03983

Detailed Object Description Cost of State Trading Medicines Expenditure on Diet for Patients Monitoring/SEMIS School Rehabilitation Program/Terms of Partnership School Management Committee (SMC) Public Private Partnership Stipend to Girls Students Free Text Books Teachers/Managers Training Incremental Technical Assistance Staffing Learning Assessment/ PEACE Capacity Building Expenditure Tracking/Monitoring Pension (A04101 - 4170) Pension - Civil Commuted Value of Pension - Civil Gratuity - Civil Other Pension (e.g. Family Pension) Gratuities (e.g. Gratuity where Pension is not Mature) Reimbursement of Medical Charges to Pensioners Pension -Defence Commuted Value of Pension - Defence Gratuity - Defence Payment of Pension Contribution of Ex-Local Fund Employees Travelling Allowance for Retired Government Servants in Connection with Journey on Medical Grounds Grants to Civil-Defence Superannuation and Retirement Allowance Superannuation Encashment on L.P.R

A04

Employees Retirement Benefit

A041

Pension A04101 A04102 A04103 A04104 A04105 A04106 A04107 A04108 A04109 A04110 A04111 A04112 A04113 A04114

Page 12 of 100

CHART OF ACCOUNTS APPENDIX I (See paragraph 329)

Code

Major Object Description

Minor Object
Code Description Code A04115 A04116 A04170 A04201 A04202 A04203 A04220

Detailed Object Description 30% of Minimum Pay Scale as Social Security Benefit in Lieu of Pension to Contract Appointee Pension Contribution (LCS/ Non LCS) Others Employer's Contribution to Benevolent Fund Post Retirement Free Medical Facility Post Retirement Travel Facility Others Subsidy (A05101 - A05120)

A042

Others - Post Retirement Benefits

A05

Grants, Subsidies and Write offs of Loans / Advances / Others

A051

Subsidies

A05101 A05102 A05103 A05104 A05105 A05106 A05107 A05108 A05109 A05120 A052 Grants Domestic A05201 A05202 A05203 A05204 A05205 A05206

Wheat Food Edible oil Fertilizer Tubewell Cotton Freight Subsidy on imported cement Subsidy on Imported Whole Gram Black Mark-up Rate Subsidy for Spinning Industries Others Grants Domestic (A05201 - A05270) To Federal Government To Provincial Government To District Government To TMAs To Financial Institution To Non Financial Institution

Page 13 of 100

CHART OF ACCOUNTS APPENDIX I (See paragraph 329)

Code

Major Object Description

Minor Object
Code Description Code A05207 A05208 A05209 A05210 A05211 A05212 A05213 A05214 A05215 A05216 A05217 A05218 A05270 A053 Write off of Loans and Advances A05301 A05320 A05401 A05402 A05403 A05404 A05405 A05420

Detailed Object Description To Union Administration Local Bodies Share from Provincial Allocable Amount (District Government) Special Grants from Provincial Retained Amounts (District Government) Federal Funded Projects (District Government) Special Grants from Provincial Allocable Amounts (TMAs) Special Grants from Provincial Retained Amounts (TMAs) Federal Funded Projects/Schemes (TMAs) Grants to Union Administration Financial Assistance to the Families of Civil Servants Who Expire during Service Share from Provincial Allocable Amount (Cantonment Board) Special Grants from Provincial Retained Amount (Cantonment Board) To Others Write-off of Loans and Advances (A05301 - A05320) Government Servants Others Inventories Obsolescence / Slow Moving Charge Impairment of Property, Plant and Equipment Write off of Inventories Loss on Disposal of Property, Plant and Equipment Loss on Sale of Scrap Others Scholarships (A06101 - A06104)

A054

Write off / Loss of Assets

A06

Transfers

A061

Scholarships, Bonuses and Other Awards A06101 A06102 A06103

Merit Scholarships Other Scholarships Cash Awards

Page 14 of 100

CHART OF ACCOUNTS APPENDIX I (See paragraph 329)

Code

Major Object Description

Minor Object
Code Description Code A06104 A062 Technical Assistance A06201 A06202 A06270 A063 Entertainments and Gifts A06301 A064 Other Transfer Payments A06401 A06402 A06403 A06404 A06405 A06406 A06407 A06408 A06470 A06501 A06502 A06503 A06504 A06505 A06506 A06507 A06599 Bonuses

Detailed Object Description

Technical Assistance (A06201 - A06270) Expenditures on Foreign Trainees in Pakistan Contribution To International Agencies Others Entertainment & Gifts (A06301 - A06399) Entertainments and Gifts Other Transfer Payments (A06401 - A06470) To Foreign Governments Contributions/Transfers to Reserve Fund Renewal & Replacements Return To Government Investment To Sugar Cess Fund Premium under Group Term Insurance Schemes for employees of NH & MP Transfer to Staff Benefit Fund - Railways Premium for Railways Employees Group Insurance Others Grant In Aid to Sindh Education Foundation Fellowship Program 100 Community Supported Schools Early Learning Program Rural Based Community School Promotion of Private School in Rural Area Integrated education Learning Program Others Permanent Debt (A07101 - 10)

A065 Public Private Partnership

A07

Interest Payment

A071

Interest - Domestic Debts

Page 15 of 100

CHART OF ACCOUNTS APPENDIX I (See paragraph 329)

Code

Major Object Description

Minor Object
Code Description Code A07101 A07102 A07103 A07104 A07105 A07106 A07107 A07110 A07111 A07112 A07113 A07114 A07120 A07121 A07122 A07123 A07124 A07130 A072 Interest - Foreign A07201 A07202 A07203 A07204 A07205 A07210 A073 Others A07301 To Federal Government To Provincial Governments To District Governments To TMAs To Financial Institution To Non Financial Institutions Sukuk Others

Detailed Object Description

Floating Debt (A07111-20) To Federal Government To Provincial Governments To District Governments To TMAs Others Unfunded Debt (A07121 - 30) To Federal Government To Provincial Governments To District Governments To TMAs Others Permanent Debt (A07201 - 10) To Federal Government To Provincial Governments To Financial Institutions To Non Financial Institutions Suppliers' Credit Others Other Obligations (A07301 - A07399) 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)

Code

Major Object Description

Minor Object
Code Description Code A07302 A07303 A07401

Detailed Object Description Other payments ( e.g. Management of Loan, Interest of Commercial Banks, Loan on Food Account) On Loans Received by Post Office etc. Defence Savings Certificates

A074 Interest / Profit on National Savings Schemes

A07402 A07403 A07404 A07430 A07431 A07432 A07433 A07434 A07460 A08 Loans and Advances A081 Advances to Government Servants A08101 A08102 A08103 A08104 A08170 A082 Provinces A08201 A08202 A08203 A08204 A08205 A08206

Special Savings Certificates Regular Income Certificates Behbood Savings Certificates Other Savings Certificates Pensioner Benefit Accounts Special Savings Accounts Savings Accounts Mahana Amdani Accounts Other Savings Accounts Advances To Government Servants (A08101 - A08170)

House Building Advance Motor Car Advance Motor Cycle/Scooter Advance Cycle Advance Others Loans To Provinces (A08201 - 08210) NWFP Punjab Sindh Balochistan Drought Emergency Relief Assistance Federal DERA Unit(See A08701and 02)

Page 17 of 100

CHART OF ACCOUNTS APPENDIX I (See paragraph 329)

Code

Major Object Description

Minor Object
Code A083 Description District Govt. / TMAs A08301 A08302 A08303 A08304 A08310 A084 Loans to Financial Institutions A08401 A08499 A085 Loans to NonFinancial Institutions A08501 A08599 A086 Loans to Others A08601 A08670 A087 Drought Emergency Relief Assistance A08701 A08702 A08703 A08704 A08705 A08706 A08707 NWFP Punjab Sindh Balochistan Others Code

Detailed Object Description Loans to Districts/TMAs Government (A08301 - A08310)

Loans to Financial Institutions (A08401 - A08499) Loans to Financial Institutions Others Loans to Financial Institutions (A08501 - A08599)

Loans to Non-Financial Institutions Other Loans to Private Sector (A08601 - A08670) Private Sector Others DERA Loans (A08701 - A08799) Federal DERA Unit Drought Emergency Relief Assistence (Provincial) - Blocked NWFP Punjab Sindh Balochistan Others (FATA, FANA, AJK) Purchase of Building and Structures (A09101 - A09170)

A09

Expenditures on Acquiring of Physical Assets

A091

Purchase of Building

Page 18 of 100

CHART OF ACCOUNTS APPENDIX I (See paragraph 329)

Code

Major Object Description

Minor Object
Code Description Code A09101 A09102 A09103 A09104 A09170 A092 Computer Equipment A09201 A09202 A09203 A093 Commodity Purchases (Cost of State Trading) A09301 A09302 A09303 A09304 A09305 A09306 A09307 A09370 A094 Other Stores and Stocks A09401 A09402 A09403 A09404 A09405 A09406 A09407 A09408

Detailed Object Description Land and Buildings Land and Buildings - Residential Buildings Land and Buildings - Office Buildings Buildings and Structures - Others Others Computer Equipment (A09201 - A09299) Hardware Software I.T. Equipment Commodity Purchases(A09301-A09370)

Food (Sugar) Fertilizer Coal Cost of State Trading-Food (Wheat) Cost of State Trading-Food (Rice) Cost of State Trading-Others Provincial Judicial Stamps Others Other Stores and Stocks (A09401-A09470) Medical Stores Newsprint Tractors Medical and Laboratory Equipment Workshop Equipment Storage and Carrying Receptacles Specific Consumables Generic Consumables

Page 19 of 100

CHART OF ACCOUNTS APPENDIX I (See paragraph 329)

Code

Major Object Description

Minor Object
Code Description Code A09409 A09410 A09411 A09412 A09413 A09414 A09470 A095 Purchase of Transport A09501 A09502 A09503 A096 Purchase of Plant & Machinery A09601 A09602 A09603 A09604 A097 Purchase of Furniture & Fixture A09701 A09702 A098 Purchase of Other Assets A09801 A09802 A09899

Detailed Object Description Medical Stock Life saving Medical Supplies General Utility Chemicals Specific Utility Chemicals Drapery, Fabrics, Clothing and allied material Insecticides Others Purchase of Transport (A09501-A09599) Purchase of Transport Diplomatic Cars Others Purchase of Plant and Machinery (A09601-A09699) Purchase of Plant and Machinery Cold Storage Equipment Signalling System Railways Rolling Stock Purchase of Furniture and Fixture (A09701-A09799) Purchase of Furniture & Fixture Unkept Furnishings Purchase of Other Assets (A09801-A09899) Purchase of Live stocks Others Others Principal Repayment (A10101-A10170)

A10

Principal Repayments of Loans

A101

Loans - Domestic

Page 20 of 100

CHART OF ACCOUNTS APPENDIX I (See paragraph 329)

Code

Major Object Description

Minor Object
Code Description Code A10101 A10102 A10103 A10104 A10105 A10106 A10107 A10108 A10109 A10110 A10111 A10112 A10113 A10114 A10170 A102 Principal Repayment of Loans - Foreign A10201 A10202 A10203 A10204 A10205 A10270 A103 Principal Repayment of Loans - Others (NES) A10301

Detailed Object Description Domestic Direct To Federal Government To Provincial Governments To District Governments To TMAs To Financial Institutions To Non Financial Institutions Federal Investment Bonds Foreign Exchange Bearer Certificates US Dollar Bearer Certificates Foreign Currency Bearer Certificates Special US Dollar Bonds Pakistan Investment Bonds Sukuk To Others Repayment Of Foreign Loans (A10201-A10270)

Foreign Direct To Federal Government To Financial Institutions To Non-Financial Institutions Suppliers' Credit To Others Other Repayments (A10301-A10399)

Other Repayments

Page 21 of 100

CHART OF ACCOUNTS APPENDIX I (See paragraph 329)

Code

Major Object Description

Minor Object
Code A104 Description Principal Repayment of Loans - Floating Debt A10401 A10402 A10403 A10404 Code

Detailed Object Description Repayment Of Floating Debts (A10401-A10499)

A11

Investments

A111

Investment - Domestic A11101 A11102 A11170

Prize Bonds Treasury Bills Ways and Means Advances Cash Credit Accommodation Domestic Investments (A11101-A11170) To Financial Institutions To Non-Financial Institutions To Others Foreign Investments (A11201-A11270) To Financial Institutions To Non Financial Institutions Contribution to International Financial Institution To Others Other Investments (A11301-A11399) Others Roads, Highways and Bridges (A12101-A12199) Highways Other Roads Bridges of National Importance Other Bridges Track Work and Infrastructure Irrigation works (A12201-A12270) Main Canals Feeder Canals

A112

Investment - Foreign A11201 A11202 A11203 A11270

A113 A12 Civil Works A121

Investment - Others A11301 Roads, Highways and Bridges A12101 A12102 A12103 A12104 A12106

A122

Irrigation Works A12201 A12202

Page 22 of 100

CHART OF ACCOUNTS APPENDIX I (See paragraph 329)

Code

Major Object Description

Minor Object
Code Description Code A12203 A12204 A12105 A12270 A123 Embankments and Drainage Works A12301 A12302 A12303 A12370 A124 Building and Structures A12401 A12402 A12403 A12404 A12405 A12470 A125 Other Works A12501 A12502 A126 Telecommunication Works A12601 A12602 A12603 A12604 A12605 A12606 A12607

Detailed Object Description Tertiary and Other Subsidiary Links Agricultural Produce Carrying Equipment Transport Stands and Terminals Others Embankments and Drainage Works (A12301-A12370) Main Embankment Miscellaneous Embankment Drainage Others Building and Structures (A12401-A12470) Office Buildings Residential Buildings Other Buildings Structures Electrification Plumbing and Other Infrastructure Others - Civil Works Construction of Building & Structure Other Works (A12501-A12599) Works - Urban Works - Rural Telecommunication Works (A12601-A12620) Lines And Wires Apparatus and Plants Share in Factories Stores Construction of Lines and Wires (Telegraph) Construction of Lines and Wires (Telephone) Construction of Lines and Wires (Radio)

Page 23 of 100

CHART OF ACCOUNTS APPENDIX I (See paragraph 329)

Code

Major Object Description

Minor Object
Code Description Code A12608 A12609 A12610 A12620 A127 Drought Emergency Relief Assistance A12701 A12702 A12703 A12704

Detailed Object Description Construction of Apparatus and Plants (Telegraph) Construction of Apparatus and Plants (Telephone) Construction of Apparatus and Plants (Radio) Others DERA Works (A12701-A12799) Works Goods & Commodities Consultant Services & Training Incremental Operational Cost (Establishment Charges) Transport (A13001 - A13099) Transport Locomotives Railways Coaches and Carriages Railways Wagons Machinery and Equipment (A13101 - A13199) Machinery and Equipment Repair & Maintenance of Others Furniture and Fixture (A13201 - A13299) Furniture and Fixture Building and Structures (A13301 - A13370)

A13

Repairs and Maintenance

A130

Transport A13001 A13002 A13003 A13004

A131

Machinery and Equipment A13101 A13199

A132

Furniture and Fixture A13201

A133

Building and Structures A13301 A13302 A13303 A13304 A13370

Office Buildings Residential Buildings Other Buildings Structures Others - Repair and Maintenance of Building and Structures

Page 24 of 100

CHART OF ACCOUNTS APPENDIX I (See paragraph 329)

Code

Major Object Description

Minor Object
Code A134 Description Irrigation A13401 A13402 A13403 A13470 A135 Embankments and Drainage A13501 A13502 A13503 A13570 A136 Roads, Highways and Bridges A13601 A13602 A13603 A13604 A13305 A13605 A13606 A137 Computer Equipment A13701 A13702 A13703 A138 A139 General A13801 Telecommunication Works A13901 Code

Detailed Object Description Irrigation (A13401-A13470) Main Canals Feeder Canals Tertiary and Other Subsidiary Links Others Embankments and Drainage (A13501-A13570) Main Embankment Miscellaneous Embankment Drainage Others Roads, Highways and Bridges (A13601 - A13699) Highways Other Roads Bridges of National Importance Other Bridges Works - Urban and Rural / Water Supply/ Electrification Transport Stands and Terminals Railways Track Computer Equipment (A13701 - A13799) Hardware Software IT Equipment General (A13801 - A13899) Maintenance of Gardens Telecommunication Works (A13901 - A13920) Lines And Wires - Repairs

Page 25 of 100

CHART OF ACCOUNTS APPENDIX I (See paragraph 329)

Code

Major Object Description

Minor Object
Code Description Code A13902 A13903 A13904 A13905 A13906 A13907 A13908 A13920

Detailed Object Description Apparatus and Plants Repairs and Maintenance of Lines and Wires (Telegraph) Repairs and Maintenance of Lines and Wires (Telephone) Repairs and Maintenance of Lines and Wires (Radio) Repairs and Maintenance of Apparatus & Plants (Telegraph) Repairs and Maintenance of Apparatus & Plants (Telephone) Repairs and Maintenance of Apparatus & Plants (Radio) Others - Repair Suspense And Clearing (A14101 - A14199) Recovery of Expenditure Suspense Suspense (Irrigation). Suspense (Highway). Suspense (Building). Suspense (P.H.E.). Citizen Community Board Current

A14

Suspense and Clearing

A141

Recovery of Expenditures A14101 A14201 A14201 A14201 A14201 A15101

A142 P.W. Suspense

A15

Miscellaneous Schemes

A151 Citizen Community Board (Check with District Govt)

A15102 A15103 A15104 A15105 A15106 A15199 Tax Receipts Non - Tax Receipts

On going Schemes Citizen Community Board On going Schemes ADP (Current year) On going Schemes ADP (Previous year) On going Schemes CM Grant On going Schemes (Office Complex) NB funds Others

Page 26 of 100

CHART OF ACCOUNTS APPENDIX I (See paragraph 329)

Code C01

Major Object Description Income from Property and Enterprise

Minor Object
Code C010 Description Profits Code C01001 Railway

Detailed Object Description

C01002 C01003 C01004 C01005 C01006 C01007 C01008 C01009 C01010 C01070 C011 State Trading Schemes C01101 C01102 C01103 C01104 C01105 C01111 C01112 C01113 C01114 C01115 C01121 C01122 C01123 C01124

Pakistan Post Office Irrigation Opium Salt Electricity State Trading Pakistan Telecommunication Authority Balochistan Mining Enterprise Trans Balochistan Enterprise Others State Trading Wheat (C01101 - 10) Sale Proceeds of Wheat Federal Subsidy on Wheat Provincial Subsidy on Wheat Recoveries of Incidentals Charges Wheat Receipts - Others State Trading Fertilizer (C01111 - 20) Sale Proceeds of Fertilizer Federal Subsidy on Fertilizer Provincial Subsidy on Fertilizer Recoveries of Incidentals Charges Other Receipts State Trading Medical Stores (C01121 - 40) Sale Proceeds of Medical Stores Federal Subsidy on Medical Stores Provincial Subsidy on Medical Stores Recoveries of Incidentals on Supply of Medical Stores to Federal Government

Page 27 of 100

CHART OF ACCOUNTS APPENDIX I (See paragraph 329)

Code

Major Object Description

Minor Object
Code Description Code C01125 C01141 C01142 C01143 C01144 C01145 C01161 C01170 C01171 C01172 C012 Interest on Loans and Advances to Provinces C01201 C01202 C01203 C01204 C01205 C01206 C01207 C01208 C01209 C01210 C01211 C01212

Detailed Object Description Medical Stores other Receipts State Trading Coal Stores (C01141 - 60) Sale Proceeds of Coal Federal Subsidy on Coal Provincial Subsidy on Coal Recoveries of Incidentals Charges Coal Receipts - Other State Trading Diplomatic Cars (C01161 - 70) Sale Proceeds of Diplomatic Cars Others State Trading Others (C01171 - 90) Sale Proceeds of Others Sale Proceeds of Others-Tractors Interest Domestic Loans (C01201 - 04)

Punjab Sindh NWFP Balochistan Interest Foreign Loans (C01205 - 08) Punjab Sindh NWFP Balochistan Interest US-Aid Local Currency Loans (C01209 -12) Punjab Sindh NWFP Balochistan

Page 28 of 100

CHART OF ACCOUNTS APPENDIX I (See paragraph 329)

Code

Major Object Description

Minor Object
Code Description Code

Detailed Object Description Interest German Loans (C01213 - C01299)

C01213 C01214 C01215 C01216 C013 Interest on Loans to District Government / TMAs C01301 C01302 C01303 C01304 C01305 C01306 C01307 C01308 C01309 C01310 C013aa C01311 C01312 C01313 C01314 C01315 C01316 C01317 C01318 C01319 C01320

Punjab Sindh NWFP Balochistan Interest Domestic Loan (C01301 - 10)

Karachi Shipyard and Engineering Works Limited Multan Hospital Multan Security Printing Corporation of Pakistan Ghee Corporation of Pakistan Rice Export Corporation of Pakistan Cotton Export Corporation Municipal Committees / Corporation / District Councils Mari Gas Company Interest on Cash Loans Sui Northern Gas Pipe Lines Ltd. Karachi Electricity Supply Corporation Interest Foreign Loan (C01311 - 30) Karachi Port Trust National Shipping Corporation Karachi Development Authority Karachi Electric Supply Corporation Suigas Transmission Company Ltd. Pakistan International Airline Karachi Shipyard & Engineering Works Ltd. Port Qasim Authority Oil And Gas Development Corporation Indus Gas

Page 29 of 100

CHART OF ACCOUNTS APPENDIX I (See paragraph 329)

Code

Major Object Description

Minor Object
Code Description Code C01321 C01322 C01323 C01324 C01325 C01326 C01327 C01328 C01329 C01330 C01399 C014 Interest on Loans & Advances to Financial Institutions C01401 C01402 C01403 C01404 C01405 C01410 C01411 C01412 C01413 C01414 C01415 C01420

Detailed Object Description Hyderabad Development Authority Sui Northern Gas Pipeline Ltd. Pakistan Television Corporation Pakistan Energy Commission Civil Aviation Authority Mari Gas Company Rice Export Corporation of Pakistan Interest 0n Foreign Loan Capital Development Authority National Highway Authority Others Interest Domestic Loan (C01401 - 10)

Industrial Development Bank of Pakistan Investment Corporation of Pakistan House Building Finance Corporation Cooperative Bank Gilgit Equity Participation Fund (EPF) Others Interest Foreign Loans (C01411 - 20) Agricultural Bank of Pakistan Pakistan Industrial Credit and Investment Corporation Industrial Development Bank of Pakistan National Development Finance Corporation Bankers Equity Others

Page 30 of 100

CHART OF ACCOUNTS APPENDIX I (See paragraph 329)

Code

Major Object Description

Minor Object
Code C015 Description Interest on Loans and Advances to NonFinancial Institutions C01501 C01502 C01503 C01504 C01505 C01506 C01507 C01508 C01509 C01510 C01511 C01512 C01513 C01514 C01515 C01516 C01517 C01516 C01517 C01518 C01519 C01520 C01521 C01522 C01523 Code

Detailed Object Description Interest Domestic Loan (C01501 - 15)

WAPDA Water Wing WAPDA Power Wing National Fertilizer Corporation of Pakistan Fauji Fertilizer Corporation State Cement Corporation of Pakistan Pakistan Industrial Development Corporation Pakistan Automobile Corporation State Engineering Corporation Federal Chemical and Ceramic Corporation POF WAH Pakistan Steel Pakistan Railway Pakistan Mineral Development Corporation National Press Trust Shaheen Foundation (PAF) Mechanized Construction Pakistan Limited Oil and Gas Regulatory Authority Interest Foreign Loan (C01516 - 99) WAPDA Water Wing WAPDA Power Wing National Fertilizer Corporation of Pakistan Fauji Fertilizer Corporation State Cement Corporation of Pakistan Pakistan Industrial Development Corporation Pakistan Automobile Corporation State Engineering Corporation

Page 31 of 100

CHART OF ACCOUNTS APPENDIX I (See paragraph 329)

Code

Major Object Description

Minor Object
Code Description Code C01524 C01525 C01526 C01527 C01528 C01551 C01599 C016 Interest on Loans & Advances to Government Servants C01601 C01602 C01603 C01604 C01605 C017 Interest on Loan & Advances - Others C01701 C01702 C01703 C01704 C01705 C01706 C01707 C01730 C01731 C01799

Detailed Object Description Federal Chemical and Ceramic Corporation POF WAH Pakistan Steel Pakistan Railway Pakistan Mineral Development Corporation Return Others Interest on Loans & Advances to Government Servants (C01601 - 10)

House Building Advance Motor Car Advance Motor Cycle/Scooter Advance Cycle Advance Others Interest on Loans & Advances - Others (C01701 -C01710) Domestic Loans to Azad Kashmir Government Foreign Loan to Azad Kashmir Government Interest Regimental Loan Interest Accrued on Retained Funds on Account of Sale Proceeds of Special US Dollar Bonds by Banks/NBFIs Taccavi Loan to Cultivators Land Improvement Act 1883 Loan to Agricultural Loan Act 1958 Interest Received from Commercial Department (C01730 - C01740) Interest on Cash Loans Interest on Foreign Loans Others

Page 32 of 100

CHART OF ACCOUNTS APPENDIX I (See paragraph 329)

Code

Major Object Description

Minor Object
Code C018 Description Interest on Loan Others C01801 C01802 C01803 C01804 C01805 C01806 C01807 C01808 C01809 C01810 C01811 C01812 C01813 C01814 C01815 C01816 C01817 C01818 C01819 C01820 C01821 C01822 C01823 C01824 C019 Dividends C01901 C01902 Code

Detailed Object Description Income on Loans - Others (C01801 - C01850) Interest -Pakistan Post Office Department Interest on Arrears of Revenue Interest realized on Investment of Cash Balances Return WAPDA Power Wing Interest German Counterpart Fund - WAPDA Power Wing Interest OPEC Special Loan -WAPDA Power Wing Interest on Loans and Advances - Others Penal Interest Recovered from Assesses of the Income Tax under Section 53 of Income Tax Ordinance 1979 Interest on UN Bonds Issue Interest on Late Payment of Government Dues Interest on Sale of Food Grains Interest on Sale of Fertilizer Percentage on Servicing of Foreign Loan and Credits Interest on undistributed Pension Paid by NBP Interest on Investment of GP Fund Interest - Pakistan T&T Department Interest - Taccavi Loans to Zamindars Taccavi Loans to Zamindars in Gilgit District Taccavi Loans to Zamindars in Balthistan District Interest on Debt recovered from Foreign Governments Interest German Counterpart Fund Interest - OPEC Special Loans Gains on Pakistan Investment Bonds Foreign Currency Bonds (SWAP) Dividends (C01901 - C01930) Dividends from Government Investments (Financial Institutions) Dividends from Government Investments (Non Financial Institutions)

Page 33 of 100

CHART OF ACCOUNTS APPENDIX I (See paragraph 329)

Code

Major Object Description

Minor Object
Code Description Code C01903 Others

Detailed Object Description

C02

Receipts from Civil C021 Administration and Other Functions

General Administration Receipts - Organs of State C02101 C02102 C02103 C02104 C02105 C02106 C02107 C02108 C02109 C02110 C02111 C02112 C02113 C02114 C02115 C02116 C02117 C02118 C02119 C02120 C02121 C02122

General Administration Receipts - Organs of State (C02101 - 2104)

Organs of State - Examination Fee Realized by Public Service Commission Organs of State - Receipt realized by Selection Divisional Boards for Recruitment in Secretariat Department Organs of State - Recoveries of Overpayments Organs of State - Collection of Payments for Services Rendered Organs of Merged State of Dir, Chitral, Swat (C02105 - 35) Industries Provincial Excise Stamps Forest Registration Motor Vehicle Act Other Taxes and Duties Tolls on Road Administration of Justice Jail and Convict Settlements Police Educational Institutes Health Agriculture Veterinary Cooperation Industries Mines, Oilfield & Minerals

Page 34 of 100

CHART OF ACCOUNTS APPENDIX I (See paragraph 329)

Code

Major Object Description

Minor Object
Code Description Code C02123 C02124 C02125 C02135 C021 General Administration Receipts - Organs of State C02136 C02137 C02138 C02139 C02140 C02141 C02142 C02143 C02144 C02145 C02146 C02147 C02148 C02149 C02150 C02151 C02152 C02153 C02154 C02155 C02156 C02157

Detailed Object Description Public Works Department Recoveries of Overpayments Collection of Payment for Services Rendered Others Organs of State - Frontier Regions (C02136 - 65)

Land Revenue Provincial Excise Stamps Forest Registration Motor Vehicle Act Other Taxes and Duties Toll Fees on Khyber Road Administration of Justice Jail and Convict Settlements Police Educational Institutes Health Agriculture Veterinary Cooperation Industries Public Works Department Taxes on Agricultural Income Recoveries of Overpayments Collection of Payment for Service Rendered Receipts of Chartered Flights

Page 35 of 100

CHART OF ACCOUNTS APPENDIX I (See paragraph 329)

Code

Major Object Description

Minor Object
Code Description Code C02199 C022 General Administration Receipts - Fiscal Administration C02201 C02202 C02203 C02204 C02205 C02206 C02211 C02212 C02213 C02214 C02215 C02216 C02217 C02218 C02219 C02220 C02221 C02222 C02223 C02224 C02225 C02226 Others

Detailed Object Description

Receipts of Fiscal Administration - Audit (C02201 - 10)

Private Organization Public Sector Organizations Government Organizations Recoveries of Overpayments Collection of Payment for Services Rendered Audit Other Receipts of Fiscal Administration - Currency (C02211 - 30) Share of Surplus Profits of the State Bank of Pakistan Dividends on Government Shares in State Bank of Pakistan Dividends on Government Shares in the Security Printing Corporation Royalty on Quaid-e-Azam Centenary - Gold and Silver Commemorative Coins Royalty on Allama Iqbal - Gold and Silver Commemorative Coins Royalty on Islamic Summit Minar Inauguration - Gold and Silver Commemorative Coins Royalty on Gold and Silver W.W.F Conservation Coins Value of Quaid-e-Azam Gold and Silver Commemorative Coins Value of Allama Iqbal Gold and Silver Commemorative coins Value of Islamic Summit Minar inauguration Gold and Silver Commemorative Coins Value of Gold and Silver W.W.F Conservation Coins Value of Allama Iqbal Centenary Commemorative Coins Value of Old Currency Notes Assumed to be no Longer in Circulation Value of Unclaimed Currency Notes Fines and Forfeitures under the Foreign Exchange Regulation Act Currency - Others

Page 36 of 100

CHART OF ACCOUNTS APPENDIX I (See paragraph 329)

Code

Major Object Description

Minor Object
Code Description Code C02227

Detailed Object Description 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) Fee for Mintage of Foreign Coins Act Profit from Circulation of Small Coins Assay Fees Others Receipts in Aid of Superannuation (C02241 - 50) Contribution of Pension and Gratuities Receipt under Federal Government (B1& 2) Provident Fund Rules Others Fiscal Administration-Receipts-in-Aid of Superannuation -Share of Pension Liability recovered from Local Bodies for Provincialised College / Schools Fiscal Administration-Receipts-in-Aid of Superannuation -Receipts of undisbursed Pension Deposited by National Bank of Pakistan Fiscal Administration - Receipts- In- Aid of Superannuation contribution of Pension & Gratuity -Defence Economic Regulation (C02301 - C02370)

C02231 C02232 C02233 C02234 C02241 C02242 C02243 C02244 C02245 C02251 C023 General Administration Receipts - Economic Regulation C02301 C02302 C02303 C02304 C02305 C02306 C02307 C02308

Fee for Deposits and Registration of Trade Marks Fee Realized under the Insurance Act, 1938 Patent Fees Receipts under the Companies Ordinance, 1984 Federal Fees for Weights and Measures Receipt under the Weights and Measures and Trade Employees Act Receipts under the Securities & Exchange Ordinance, 1969 Receipts under Anti-Dumping Duties Ordinance, 2000

Page 37 of 100

CHART OF ACCOUNTS APPENDIX I (See paragraph 329)

Code

Major Object Description

Minor Object
Code Description Code C02370 C024 General Administration Receipts - Statistics C02401 C02470 C025 Defence Services Receipts C02501 C02502 C02503 C02504 C02505 C02506 C02507 C02508 C02509 C02510 C02511 C02512 C02513 C02514 C02520 C02521 C02522 C02523 C02530 C026 Law and Order Receipts Others

Detailed Object Description

Statistics (C02401 - C02470)

Sale of Census Publication Others Defense Service Effective (C02501 - 20) Fighting Forces Administrative Services Military Farms General Headquarters Purchase & Sale of Stores Equipment and Animals Transportation, Conservancy, Hot Weather Establishment and Others Other Services of Armed Forces Military Engineering Services Auxiliary and Territorial Forces Air Force Pakistan Navy (including Stores and Works) Ordnance & Clothing Factories Procurement, Research & Product Development Receipts on Certain Measures of Inter-Services Nature Others Defense Service Non-Effective (C02521 - 30) Army Receipts Air Force Receipts Pakistan Navy Receipts Others Justice (C02601 - 20)

Page 38 of 100

CHART OF ACCOUNTS APPENDIX I (See paragraph 329)

Code

Major Object Description

Minor Object
Code Description Code C02601 C02602 C02603 C02604 C02605 C02606 C02607 C02608 C02609 C02610 C02611 C02612 C02613 C02621 C02622 C02623 C02624 C02625 C02631 C02632 C02633 C02634 C02635 C02636 C02637 C02638 C02639 C02640

Detailed Object Description Sale Proceeds of Unclaimed and Escheated Property Court Fees Realized in Cash General Fees Realized in Cash General Fees, Fines and Forfeitures Leadership and Mukhtarship Examination Fees Receipt of the Supreme Court Receipt of the Official Assignee Receipt of the Official Receiver Receipt of the Official Record room Recoveries of Overpayments Collection of the Payments Collection of the Payments of Services Rendered Others Frontier Watch and Ward (C02621 - 30) Frontier Constabulary and Militia Receipts Receipt in Northern Areas Federally Administered Tribal Areas Recoveries of Overpayments Others Police Department Receipts (C02631 - 45) Police Supplied to Railway Police Supplied to Federal Government Police Supplied to Municipalities, Cantonments Police Supplied to Public Departments, Private Companies and Persons Receipts Realised under the Arms Act Fees, Fines and Forfeitures Motor Driving License Traffic Fines Police Land Receipts Recoveries of Overpayments

Page 39 of 100

CHART OF ACCOUNTS APPENDIX I (See paragraph 329)

Code

Major Object Description

Minor Object
Code Description Code C02641 C02642 C02643 C02644 C02645 C02646 C02647 C02648 C02649 C02650 C02656 C02657 C02658 C02659 C02660 C02661 C02666 C02667 C02668 C02669 C02676 C02677 C027 Community Services Receipts C02701 C02702 C02703

Detailed Object Description Collection of Payments for Services Rendered Others Receipts of Provincial Public Safety Commission Receipts of District Public Safety Commission Provincial Police Complaint Authority Provincial Border Force (C02646 - 55) Cash Receipt under Arms Act Fees, Fines and Forfeitures Recoveries of Overpayments Collection of Payments for Services Rendered Others Jails (C02656 - 65) Sale Proceeds of Articles Manufactured in Jail Value of Supplies Made by Factory Department to Maintenance Department in Jail Income from Hired Convicts Recoveries of Overpayments Collection of Payments for Services Rendered Others Civil Defense (C02666 - 99) Ordinary Receipts Reimbursement by Federal Government Fines Realization Others Sale Proceeds of Unclaimed and Escheated Property Other Receipts Works - Building (C02701 - 10) Building Rent Receipts from Workshops and Rent of Equipment Recoveries of Expenditure

Page 40 of 100

CHART OF ACCOUNTS APPENDIX I (See paragraph 329)

Code

Major Object Description

Minor Object
Code Description Code C02704 C02705 C02706 C02711 C02712 C02713 C02714 C02715 C02716 C02717 C02718 C02719 C02721 C02722 C02723 C02724 C02725 C02726 C02731 C02732 C02733 C02734 C02735 C02741 C02742 C02743

Detailed Object Description Recoveries of Overpayments Collection of Payments for Services Rendered Others Works - Communications (C02711 - 20) Building Rent Tolls on Roads and Bridges Recoveries of Expenditure Recoveries of Overpayments Collection of Payments for Services Rendered Others Fee for use of Right of Way (ROW) for laying Cables/Pipelines etc. along the ROW of all Provincial Roads Taxes on Roads and Bridges Receipt from Workshops Public Health (C02721 - 30) Sale Proceeds of Sera and Vaccines Contributions Income from Endowments Recoveries of Overpayments Collection of Payments for Services Rendered Others Scientific Research and Survey (C02731 - 40) Survey of Pakistan Recoveries of Overpayments Collection of Payments for Services Rendered Others Receipts of Pakistan Technology Board (PTB) Receipt of Pakistan National Centre Fire Services Others-Citizen Community Board

Page 41 of 100

CHART OF ACCOUNTS APPENDIX I (See paragraph 329)

Code

Major Object Description

Minor Object
Code Description Code C02744 C028 Social Services C02801 C02802 C02803 C02804 C02805 C02806 C02807 C02808 C02809 C02810 C02811 C02812 C02813 C02814 C02815 C02816 C02817 C02818 C02819 C02820 C02821 C02822 C02823 C02824 C02851 C02852 C02853

Detailed Object Description Registration Fee of Citizen Community Court Education (C02801 - 20) Fees Government University Art Colleges Fees Government University Professional Art Colleges Fees Government Secondary (including Intermediate Classes) School Fees Government Primary School Fines under Sindh Primary Education Act 1947 Recoveries from Local Bodies for Primary Education Fees and Other Receipts, Government Special Schools Receipt of Technical and Commercial Institutes Contributions Education - General Income from Endowments Education - General Cess Fund Education - General Hostel Fees Education - General Admission Fees Education - General Recoveries of Overpayments Education - General Collection of Payments for Services rendered Archaeology Receipts from Museums Education - Others Receipts from Boys Secondary Schools Receipts from Girls Secondary Schools Receipts from Boys Primary Schools Receipts from Girls Primary Schools Receipts from Archives Receipts from Libraries Health (C02851 - 99) Health - Medical Colleges Health - Dental Colleges Health Schools

Page 42 of 100

CHART OF ACCOUNTS APPENDIX I (See paragraph 329)

Code

Major Object Description

Minor Object
Code Description Code C02854 C02855 C02856 C02857 C02858 C02859 C02860 C02861 C02862 C02863 C02864 C02865 C02866 C02867 C02868 C02869 C02870 C02871 C02872 C02873 C02874 C02875 C029 Social Services Miscellaneous C02901 C02902

Detailed Object Description Health - Medical Schools Health - Sale of Outdoor Tickets Health - Recoveries of Diet Charges Health - Rooms Rent Health - Government share of Fees realized by Doctors from Patients Health - Mental Hospital Receipts Sale of Medicines and Vaccines Health Contributions from Local Bodies on account of Salaries of District Medical Officers Health Contributions from Local Bodies for the maintenance of Health Centres Health Contributions by Federal Government for Fatima Jinnah Medical College for Women maintenance of Health Centres Health Contributions by Federal Government for reservation of beds in T.B. Sanatorium Samli Health other Contributions Health recoveries of Overpayments Health - Collection of Payments for Services rendered Health fees for Chemical Examination Health fees for Medical Examination Health Fees realized on account of Registration of Private, Clinics, Laboratories, X Ray Clinics Health other Receipts Fees realised on account of Birth and Death Certificates Fees realised on account of Anti-Rabic Treatment Income from Endowments Health - Hospital Receipts Manpower Management (C02901 - 30) Emigration Fees Fees for Registration of Trade Union under Act, 1926

Page 43 of 100

CHART OF ACCOUNTS APPENDIX I (See paragraph 329)

Code

Major Object Description

Minor Object
Code Description Code C02903 C02904 C02905 C02906 C02930 C02931 C02932 C02933 C02934 C02935 C02950 C02951 C02952 C02953 C02954 C02955 C02970 C02971

Detailed Object Description Receipts of the Manpower and Employment Organization Receipts under the Factories Act, 1940 Receipts under the West Pakistan Ordinance, 1969 Registration and other Fees from Pakistanis Working Abroad Others Housing and Physical Planning (C02931 - 50) Sale of Plots Sale of Building Income from Satellite Town Scheme Recoveries of Overpayments Collection of Payments for Services Rendered Others Social Security and Social Welfare Measures (C02951 - 70) Receipts under the Wild Birds & Wild Animals Protection Act Recoveries of Overpayments Fee for NOC to Wildlife Traders Penalties under NWFP Consumer Protection Act 1997 Penalties under Punjab Consumer Protection Act 2005 Others Refugees Relief Measures (C02971 - 90) Receipts of Afghan Refugees Food (C03101 - 15)

C03

Miscellaneous Receipts

C031

Economic Services Receipts - Food & Agriculture C03101 C03102 C03103 C03104 C03116

Receipts of the Federal Food Departments Recoveries of Overpayments Collection of Payments for Services Rendered Others Agriculture (C03116 - 50) Agriculture Receipts

Page 44 of 100

CHART OF ACCOUNTS APPENDIX I (See paragraph 329)

Code

Major Object Description

Minor Object
Code Description Code C03117 C03118 C03119 C03120 C03121 C03122 C03123 C03124 C03125 C03126 C03127 C03128 C03129 C03130 C03131 C03132 C03133 C03134 C03135 C03136 C03137 C03199 C032 Economic Services Receipts - Fisheries & Animal Husbandry C03201 C03202 C03203

Detailed Object Description Receipts from Experimental Farms Receipts from Agriculture / Seed Farms Receipts from District Farms Receipts from Agriculture/Engineering/Machinery Maintenance Farms Receipts from Boring Operation Receipts from Research Operation Receipts from Plant Protection Operation Receipts from Soil Conservation and Operation Receipt of Zoo Fees Other than Cotton Fee under Cotton Control Ordinance Agriculture College & School Fees Grants by the Agricultural Research Council and the Central Cotton Committee Receipt from Karkhana Alat-e-Zarae Agricultural Receipts from Government Gardens Agricultural Receipts from Station Gardens Agriculture-Receipts of Arrears from Ex-Commission Agents on Account of Sale of Cotton Seeds and Fertilizer Agriculture Receipts from on Farm Management Project Agriculture-Recoveries of Overpayments Collection of Payments for Services Rendered Agriculture Others Hire Charges of Tractors/Lower Land Levelling Equipment Others Fisheries (C03201 - 20)

Ordinary Receipts Grants made by the Agriculture Research Council Recoveries of Overpayments

Page 45 of 100

CHART OF ACCOUNTS APPENDIX I (See paragraph 329)

Code

Major Object Description

Minor Object
Code Description Code C03204 C03205 C03221 C03222 C03223 C03224 C03225 C03226 C03227 C03228 C03229 C03230 C03231 C033 Economic Services Receipts - Forests C03301 C03302 C03303 C03304 C03305 C03306 C03307

Detailed Object Description Collection of Payments for Services Rendered Others Animal Husbandry (C03221 - 50) Veterinary College and School Fees Grants Made by the Agriculture Research Council Receipts from Livestock Farms Receipts from Broiler Farms Receipts from Research Institute Receipts from Transferred Agricultural Farms Insemination Fees Receipts from Biological Section Recoveries of Overpayments Collection of Payments for Services Rendered Others Forests (C03301 - C03370) Timber and other Produce Removed from the Forest by Government Agencies -Timber Timber and other Produce Removed from the Forest by Government Agencies-Firewood and Charcoal Timber and other Produce removed from the Forest by Government -Brushwood, Chips and Stumps Timber and other Produce Removed from the Forest by Government-Rosin Timber and other Produce Removed from the Forest by Government-Planting Stump, Seeds, Mazri, Palm, Grass other than Fodder etc. Timber and other Produce Removed from the Forest by Government-Sericulture Receipts 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)

Code

Major Object Description

Minor Object
Code Description Code C03308 C03309 C03310 C03311 C03312 C03313 C03314 C03315 C03316 C03317 C03318 C03319 C03320 C03321 C03322 C03323 C03324 C03325 C03326 C03327 C03328 C03329 C03330

Detailed Object Description Timber and other Produce Removed from the Forest by Consumer or Purchasers-Firewood and Charcoal Timber and other Produce Removed from the Forest by Consumer or Purchasers-Brush wood, Chips and Stumps Timber and other Produce Removed from the Forest by Consumer or Purchasers-Grazing & Fodder Grass Timber and other Produce Removed from the Forest by Consumer or Purchasers-Honey, Herbs and Medicinal Plants Timber and other Produce Removed from the Forest by Consumer or Purchasers-For Plants ,Stumps ,Seeds Mazri, Palm, Grass other than Fodder etc. Drift and Waif Wood and Confiscated Forest Produce -Driftwood Drift and Waif Wood and Confiscated Forest Produce -Sale of Confiscated Forest Produce Revenue from Forests not Managed by Government Revenue from Forests not Managed by Government -Duty on Transport of Timber from Forest and Road Developments Jallo Rosin Factory - Sale of Rosin Jallo Rosin Factory - Sale of Turpentine Jallo Rosin Factory - Sale of Stores Jallo Rosin Factory - Other Factory Receipts Fines and Forfeitures (except Fines by Court) Compensation under Forest Act including Fines by Courts Lease Rent from Temporary Cultivation Hire Charges of Bulldozers and Other Machinery Recovery of Water Rates Rent of Buildings, Shops, Lands and Watermills Receipts under Wild Birds and Wild Animals Protection Act Recoveries of Overpayments Collection of Payments for Services Rendered Receipts on Account of Tree Cess

Page 47 of 100

CHART OF ACCOUNTS APPENDIX I (See paragraph 329)

Code

Major Object Description

Minor Object
Code Description Code C03370 C034 Economic Services Receipts Cooperation, Irrigation & Embankment Drainage - Works C03401 C03402 C03403 C03404 C03405 C03406 C03431 C03432 C03433 C03434 C03435 C03461 C03462 C03463 C03464 C03465 C03466 C03467 Other Receipts

Detailed Object Description

Cooperation (C03401 - 30)

Audit fees Income from Pak-German Demonstration Farm Recoveries from other Provincial Governments on Account of Training in Cooperative Training Institutes Recoveries of Overpayments Collection of Payments for Services Rendered Other Irrigation Works (C03431 - 60) Direct Receipts on Account of Water Rates Direct Receipts on Account of Sale of Water Recoveries of Expenditures Others Tolls on Barrages Embankments and Drainage Works (C03461 - 99) Direct Receipts on Account of Sale of Water Direct Receipts on Account of Sale of Hill Torrents Recoveries of Expenditures Collection of Payments for Services Rendered Other Receipts from Canal Side Plantations of the Forestry Wing of Irrigation and Power Department Timber & Other Produce Removed from Canal Side Plantation by Government Agency

Page 48 of 100

CHART OF ACCOUNTS APPENDIX I (See paragraph 329)

Code

Major Object Description

Minor Object
Code Description Code C03468 C03469 C03470 C03471 C03472 C03473 C03474 C03476 C03477 C03478 C03479 C03480 C03481 C03482 C035 Economic Services Receipts - Others C03501 C03502 C03503 C03504 C03506 C03507 C03508 C03509

Detailed Object Description Timber Removed by Government Agency Fire Wood & Charcoal Removed by Government Agency Brushwood, Chips & Stumps Removed by Government Planting Stumps, Seed, Mazri etc. Removed by Government Agency Timber & Other Produce Removed from Canal Side Plantation by Consumers & Purchasers Timber Removed by Consumers & Purchasers Fire Wood Removed by Consumers & Purchasers Grazing & Fodder Grass Removed by Consumers & Purchasers Others Minor Produce Removed by Consumers & Purchasers Others - Canal Side Plantations of Forestry Wing Fine & Forfeiture (Except Fines by Courts) Compensation under Forest Act including Fines Credited by Courts Other Miscellaneous Revenue Brushwood ,Chips & Stumps Removed by Consumers & Purchasers Fuel and Power (C03501 - 5) Fees for Petroleum Products Recoveries of Overpayments Others Commitment Fee for Gas Allocation Industrial and Mineral Resources (C03506 - 10) Industrial Safety - Explosives Department Receipts under Excise Duty on Minerals (Labour Welfare) Act 1967 Others Unspent Amounts Received from Oil & Gas Companies Needs for Social Welfare Programmes Printing (C03511 - 25) Sale of Gazette Sale of other Government Publications

C03511 C03512

Page 49 of 100

CHART OF ACCOUNTS APPENDIX I (See paragraph 329)

Code

Major Object Description

Minor Object
Code Description Code C03513 C03514 C03515 C03516 C03517 C03518 C03519 C03520 C03521 C03522 C03523 C03526 C03527 C03528 C03529 C03530 C03531 C03532 C03533 C03534 C03535 C03536 C03537 C03538 C03539 C03540

Detailed Object Description Pakistan Law Reports Civil List and Other Publications Sale of Forms and Registers Sale of Service Books Sale of Forms and Registers to Union Councils Sale of Other Forms Press Receipts Printing Charges for Work Done for Provincial Government Departments Recoveries of Overpayments Collection of Payments for Services Rendered Others Stationery (C03526 - 30) Stationery Receipts Sale of Stationery to Local Bodies etc. Sale of Stationery to Provincial Government Departments Sale of Plain Paper Used with Stamps Other Stationery Receipts Investment Promotion and Supplies (C03531 - 40) Fees on Account of Purchase of Stores Fees on Account of Inspection of Stores Purchased through the Department of Investment, Promotion and Supply Fees on Account of Inspection of Stores not Purchased through the Department of Investment, Promotion and Supply Receipts of Textile Commissioner Receipts of Coal Commissioner Receipts of Central Testing and Standard Laboratories Receipts of the Pakistan Standard Institutes Recoveries of Overpayments Collection of Payments for Services Rendered Others

Page 50 of 100

CHART OF ACCOUNTS APPENDIX I (See paragraph 329)

Code

Major Object Description

Minor Object
Code Description Code

Detailed Object Description Industries (C03541 - 50) Industries Receipts Cottage Industries Stores purchases Fees of Inspection of Boilers Fees under Partnership Act 1932 Recoveries of Overpayments Collection of Payments for Services Rendered Metal Research and Development Centre Others Technical Education Technical Education and Vocational Training Authority (TEVTA) Penalties under Compensatory Support Order-2008 Transport and Communication (C03551 - 55) Aviation Receipts Aviation - Recoveries of Overpayments Others Fork Lifter Fee Car Parking Fee Ports and Pilotage (C03556 - 70) Receipts from Management and Upkeep of Ports and Rivers Dues Receipts from Management and Upkeep of Ports & Pilotage-Pilotage Receipts Receipts from Management and upkeep of Ports of Landing Charges and Mooring Hire Survey Fees Fees for the Engagement and Discharges - Siemens Fees for the Registration of Vessels Sale Proceeds of Vessels and Stores Freight, Passage and Tonnage

C03541 C03542 C03543 C03544 C03545 C03546 C03547 C03548 C03549 C03550 C0350A C0350B C03551 C03552 C03553 C03554 C03555 C03556 C03557 C03558 C03559 C03560 C03561 C03562 C03563 C03564

Page 51 of 100

CHART OF ACCOUNTS APPENDIX I (See paragraph 329)

Code

Major Object Description

Minor Object
Code Description Code C03565 C03566 C03567 C03568 C03571 C03572 C03573 C03574 C03575 C03576 C03577 C03578 C03581 C03582 C03583 C03584 C03585 C03586 C03587 C03588 C03591 C03592 C036 Grants C03601 C03602 C03603

Detailed Object Description Registration and Other Fees Recoveries of Overpayments Others Purchase of Multidisciplinary Package Forms Lighthouses and Lightships (C03571 - 80) Light Dues Contributions Recoveries of Overpayments Others National Transport Research Centre - Consultancy Services Special Communication Organization - Receipt (blocked) Special Communication Organization - Other (blocked) Special Communication Organization - Deduct Share (blocked) Pakistan Post Office Department (C03581 - 90) Post Office Receipts Others Special Communication Organization - Receipt Special Communication Organization - Other Special Communication Organization - Deduct Share Payable to PTC Commission on Money Transfer Receipts from other Postal Administration Agency Receipts Railways (C03591 - 99) Railway Revenues Receipts Other Receipts Grants (C03601 - C03609) Foreign Grants - Development Grants from Foreign Governments Foreign Grants - Non-Development Grants from Foreign Governments Other Grants from Federal Government - Development Grants from Federal Government

Page 52 of 100

CHART OF ACCOUNTS APPENDIX I (See paragraph 329)

Code

Major Object Description

Minor Object
Code Description Code C03604 C03605 C03608 C03609 C03610 C03611 C03612 C03613 C03614 C03615 C03630 C03631 C03632 C03633 C03634 C03640 C03681 C03682 C03683 C03684 C03685 C03686 C037 Extraordinary Receipts C03701 C03702

Detailed Object Description Other Grants from Federal Government - Non Development Grants from Federal Government European Union Grant Others - Foreign Grants Others - Domestic Grants Grants from Provinces in District Government Account (C03610 - 30) Share out of Principal Allocable Amount Special Grants from Provinces (unconditional) Special Grants from Provinces (conditional) Grants for Khushal Pakistan Program (KPP) Grants for Population Welfare Grants for Other Federal Funded Projects Others Foreign Aided Project Grants (C03631-40) DERA Programme HIV/AIDS Prevention Program Grants for Global Alliance Foreign Aided Project Other Foreign Aid Grants To TMAs Grant from Federal Government Grant from Federal Government in Lieu of Octroi/ GST Grant from Provincial Government (PFC Share) Grant from Provincial Government (Performance/ Conditional Grant) Grant from Provincial Government (Unconditional Grant) Grant from District Government Extra Ordinary Receipts (C036701 - C03710) Sale of Land Sale of Land - Town Sites and Colonies

Page 53 of 100

CHART OF ACCOUNTS APPENDIX I (See paragraph 329)

Code

Major Object Description

Minor Object
Code Description Code C03703 C03704 C03705 C03706 C03707 C03708 C03709 C03710 C03711 C03712 C03713 C03720 C03721 C03722 C03723 C03724 C03725 C03726 C03741 C03742 C03743 C03744 C03745 C03746 C038 Others

Detailed Object Description Sale of Land - Sale of under-developed Agricultural Land by Auction or Private Treaty in Colonies Sale of Land - Sale of under-developed Agricultural Land by Auction or Private Treaty in other than Colonies Sale of Land - Sale of Proprietary Rights to Tenants in Colonies Sale of Other Government Assets Other Receipts - Fees, Fines and Forfeitures Sale of State Owned Assets Sale of Land by PPB / RPC Sale of Government Assets by PPB / RPC Sale of Agricultural Machinery (C03711 - 20) Sale of Tractor Sale of Threshers Sale of Machinery & Equipments Others Other Receipts (C03721 - 50) Sale Proceeds and Rent of Urban Evacuee Property and Rent of Mortgage Money of Agricultural Lands Interest on Deferred payments of Land Sold in Colonies Receipts from Sale of Plots in Industrial Estate Receipts of Bonus Shares from Lever Brothers Pakistan Others Sale of Mass Produced Roti Trading Receipts Receipts of Enercon Fee Collected by Staff Welfare Organizations Fee Collected by Pakistan National Accredition Council Receipts from Special Commercial Organizations Receipts from PAKSAT Project Other Receipts (Not Elsewhere Stated) (C03801 - C03899)

Page 54 of 100

CHART OF ACCOUNTS APPENDIX I (See paragraph 329)

Code

Major Object Description

Minor Object
Code Description Code C03801 C03802 C03803 C03804 C03805 C03806 C03807 C03808 C03809 C03810 C03811 C03812 C03813 C03814 C03815 C03816 C03817 C03818 C03819 C03820 C03821 C03822 C03823 C03824 C03825 C03826 C03827 C03828 C03829

Detailed Object Description Unclaimed Deposits Sale of Stores and Materials Sale of Land & Houses etc. Contributions Rent, Rates and Taxes Citizenship, Nationalization, Passport and Copyright Fees Realizations under the Monopolies & Restrictive Trade Practices Ordinances Receipts under the Mines - Oilfields and Mineral Development Act Receipts from levy of Excise Duty imposed under Section 30-A of the Mines Act Departmental Receipts form Fertilizers Sugarcane Development Cess Other Receipts - Gains by Exchange on Remittance Abroad Other Receipts - Fees realized under the Import & Export Act 1950 Other Receipts - Sale proceeds of Export Guides Other Receipts - Collection charges of Sugarcane Development Cess Other Receipts - Sale of Publicity Material and rent of Documentaries and Films Receipts of Federal Haj Organization Fees for Registration of Societies under the Registration Act Sale Proceeds of Refugee Adhesive Stamps Sale Proceeds of Highway Safety Codes Receipts of Tourist Department Receipts from Zoological Gardens Recoveries from Federal Government on account of Compulsory Film Screening Scheme Recoveries of Overpayments Collection of Payments for Services Rendered Subsidy Payments by I.M.F under Supplementary Financing Facility Remuneration Paid by I.M.F Leather Export Cess Other Receipts Fees, Fines and Forfeitures

Page 55 of 100

CHART OF ACCOUNTS APPENDIX I (See paragraph 329)

Code

Major Object Description

Minor Object
Code Description Code C03830 C03831 C03832 C03833 C03834 C03835 C03836 C03837 C03838 C03839 C03840 C03841 C03842 C03843 C03844 C03845 C03846 C03847 C03848 C03849 C03850 C03851 C03852 C03853 C03854 C03855

Detailed Object Description Fees for the issue of duplicate Identity Cards under the National Registration Act 1973 Fees and Subscription by Petition Writers and Traders in Katchery Compounds License Fees for Storage or Sale of Petroleum Fees under the Poisons Act Fees under the West Pakistan Ordinance 1960 Arms License Fees Under the Cattle Trespass Act 1939 Fees for all Allotment of Land and Gardens to Refugees Fees for the Screening of the Films (in the Punjab) Settlement Fees Fees for transfer and Issue of Duplicate Saving & Deposits Certificates, Pass Books and Withdrawal Slips Fees, Fines not Specified elsewhere Treasure Trove Act 1878 Sale Proceeds of Durbar and Other Presents Copying Agency Accounts Ferry Receipts under the Ferries Act of 1978 Receipts from the Deposit Account of the Chief Settlement Commissioner Sand and Quarry Fees Receipts from the Tolls Contractor Penalty Miscellaneous Recoveries made by NAB from defaulters Differential Amount between Exchange Rates Prevailing on the Date of Realization and Due Date of Export Bills Royalty, Pollution and Trekking Fee Sale of Publication of PPARC Certificate Fee of Environment Laboratories Initial Environmental Examination and Environmental Impact Assessment Review Fee

Page 56 of 100

CHART OF ACCOUNTS APPENDIX I (See paragraph 329)

Code

Major Object Description

Minor Object
Code Description Code C03856 C03857 C03858 C03859 C03860 C03861 C03862 C03863 C03864 C03865 C03866 C03867 C03870 C03871 C03872 C03873 C03874 C03875 C03876 C03877 C03878 C03879 C03880 C03881 C03882 C03883

Detailed Object Description Fee for Vehicles of Foreign Dignatories Visiting Afghanistan Registration Fee for Private Security Companies Fees on Transfer of Special US Dollar Bonds Collection of Registration/Work Permit Fee Fines Collected by National Highway & Motorway Police Transfer of Savings of Pakistan Banking and Finance Services Commission District Government - Receipts from Local Fund Recoveries Made by Ministry of Environment - Local Govt & Rural Development from Defaulters NGOs Staging Bungalow Fee Surcharges Fee for Issuance of Licences to Private Security Companies Fee for Renewal of Licences of Private Security Companies Others Hajj Arrangement - Recoveries of Electic and Similar Changes from Allotees of Government Buildings in the Hajj Camp Other Receipts - Recoveries of Claims Under the Ehtasab Act 1997 Fine Levied under Ordinance upon Printing Presses, Newspapers and News Agencies for Defaulting Receipts from Sports and Recreation Facilities 5% Collection Charges on Federal Tax Fee Imposed under Dramatic Performance Act 1876 Fee for Issuance Renewal of Licences for illicit use of Medicinal Opeum Powder Fee for Grant / Renewal of Licences for Registration / Fines of Internet Cafes Recoveries Made by Anti-Corruption Establishment Punjab TMA Other Non-tax Revenues Fines and Penalties Imposed by Textile Commissioner Deposit of Fee, under Power Generation Policy, 2006 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)

Code

Major Object Description

Minor Object
Code Description Code C03884 C03885 C03886 C03887 C03901

Detailed Object Description Marine Fee deposited by Exploration and Production Companies working under Ministry of Petroleum Fee payable for obtaining information and copies of public record. Fee for Issuance of NOC and Registration /Renewal Certificate for Publications Fines on Hoarding and High Price sale Petroleum Development Levy

C039

Development Surcharge & Royalties

C03902 C03903 C03904 C03905 C03906 C03907 C03908 C03909 C03910 C03911 C03912 C03912 C03914 C03915 Capital Receipts E01 Recoveries of Investments

Development Surcharge on Gas Net Proceeds from Development Surcharge on Petroleum assigned to Provinces Net Proceeds from Development Surcharge on Gas assigned to Provinces Royalty on Crude Oil Royalty on Natural Gas Net Proceeds of Royalty on Crude Oil assigned to Provinces Net Proceeds of Royalty on Natural Gas assigned to Provinces Mineral Royalties Discount Retained on Local Crude Price Mineral Royalties from Sandak Mineral Royalties from Chamalang Mineral Royalties from Reko Diq Mineral Royalties from Duddar Salsabil Condensate

E011

Irrigation Receipts E01101 E01102 E01103 E01104 Water Rates Water Supply to Towns Sale of Water Plantations

Irrigation (Productive) Receipts (E01101 - 25)

Page 58 of 100

CHART OF ACCOUNTS APPENDIX I (See paragraph 329)

Code

Major Object Description

Minor Object
Code Description Code E01105 E01106 E01107 E01108 E01109 E01110 E01111 E01126 E01127 E01128 E01129 E01130 E01131 E01132 E01133 E01134 E01135 E01136 E012 State Trading Schemes Receipts E01201 E01202 E01203 E01204 E01211 E01212 E01213

Detailed Object Description Other Canal produce Water Power Rents Fines Receipts from Workshops Recoveries of Expenditure Others Irrigation (Unproductive) Receipts (E01126 - 50) Water Rates Water Supply to Towns Sale of Water Plantations Other Canal produce Water Power Rents Fines Receipts from Workshops Recoveries of Expenditure Others Wheat (E01201 - 10) Federal Provincial Others Recoveries of Incidentals on Supply of Wheat to Federal Government Medical Stores (E01211 - 20) Federal Provincial Others Fertilizer (E01221 - 40)

Page 59 of 100

CHART OF ACCOUNTS APPENDIX I (See paragraph 329)

Code

Major Object Description

Minor Object
Code Description Code E01221 E01222 E01223 E01241 E01242 E01243 E01271 E01272 E01273 E01274 E01275 E013 Investment Receipts E01301 E01302 E01303 E01304 E014 E015 Works Receipts E01401 Privatization Receipts E01501 E01502 E016 Computed Value of Pension Receipts E01601 From Provinces Federal Provincial Others

Detailed Object Description

Coal (E01241 - 50) Federal Provincial Others Others (E01271 - 90) Sale Proceeds of Newsprint Newsprint Receipts - Other Sale Proceeds of Diplomatic Cars Other Diplomatic Cars Receipts Other State Trading Schemes Receipts Investment (E01301 - E01310) Federal/Provincial Investment (financial) Federal/Provincial Investment (non-financial) Federal Government Investment in Railway through Cash releases (non-financial) Receipt from Investment of Cash Balance by District Government Works Receipts (E01401 - E01410) Receipts and Recoveries of Investments Privatization Receipts (E01501 - E01510) Proceeds from Major Units Proceeds from Minor Units Computed Value of Pension - Receipt (E01601 - E01610) Recoveries of Computed Value of Pensions Domestic Loans (E02101 - 04)

E02

Recoveries of Loans E021 and Advances

E02101

Sindh

Page 60 of 100

CHART OF ACCOUNTS APPENDIX I (See paragraph 329)

Code

Major Object Description

Minor Object
Code Description Code E02102 E02103 E02104 E02105 E02106 E02107 E02108 E02109 E02110 E02111 E02112 E02113 E02114 E02115 E02116 E022 From District Government/TMAs E02201 E02202 E02203 E02204 E023 From Financial Institution E02301 E02302 E02320 Domestic Loans Foreign Loans Others Punjab Baluchistan Khyber Pukhtoonkhawa

Detailed Object Description

Foreign Loans (E02105 - 08) Sindh Punjab Balochistan Khyber Pukhtoonkhawa US - Aid Local Currency Loans (E02109 - 12) Sindh Punjab Balochistan Khyber Pukhtoonkhawa German Loans (E02113 - 16) Sindh Punjab Balochistan Khyber Pukhtoonkhawa Domestic Loans (E02201 -E02202) District Governments TMAs Foreign Loans (E02203 - 99) District Governments TMAs Financial Institutions (E02301 - 20)

Page 61 of 100

CHART OF ACCOUNTS APPENDIX I (See paragraph 329)

Code

Major Object Description

Minor Object
Code E024 Description From Non Financial Institution E02401 E02402 E02403 E02404 E02420 E025 From Government Servants E02501 E02502 E02503 E02504 E02520 E026 From Private Sector E02601 E02602 E02620 E027 From Others E02701 E02702 E02703 E02704 E02705 Taccavi Loans to Zamindars To Cultivators Others Code

Detailed Object Description Non Financial Institutions (E02401 - 20) Domestic Loans Foreign Loans Interest German Counterpart Fund - WAPDA Power Wing Interest OPEC Special Loan - WAPDA Power Wing Others Government Servants (E02501 -50) House Building Advance Motor Car Advance Motorcycle/Scooter Advance Cycle Advance Others Private Sector (E02601 -20)

Others (E02701 - 20) Domestic Loans Foreign Loans Regimental Loans Canteen Stores Loans Repayment Loans by Other Countries Domestic Permanent Debt (E03101 - 20) Permanent Debt - Direct Permanent Debt - received from Federal Government Domestic Debt (Permanent) - received from the Federal Government - SAP Federal Investment Bonds

E03

Debt

E031

Permanent Debt (Domestic) E03101 E03102 E03103 E03104

Page 62 of 100

CHART OF ACCOUNTS APPENDIX I (See paragraph 329)

Code

Major Object Description

Minor Object
Code Description Code E03105 E03106 E03107 E03108 E03109 E03120 E032 Floating Debt E03201 E03202 E03203 E03204 E03205 E03270 E033 Permanent Debt (Foreign) E03301 E03302 E03303 E03304 E03305 E03306 E03307 E03308 E03309

Detailed Object Description Pakistan Investment Bonds Foreign Currency Bearer Certificates Special US Dollar Bonds Received from Provincial Government Sukuk Others Floating Debt (E03201 - E03270) Treasury Bills Cash Credit Accommodation Ways and Means Advances Received from Provincial Government Government Commercial Papers Others Foreign Permanent Debt (E03301 - 20) Permanent Debt (Foreign) - Direct Permanent Debt (Foreign) - received from Federal Government Foreign Debt (permanent) - Drought Emergency Relief Assistance PIFRA Foreign Debt (permanent) received from the Federal Government - SAP Foreign Debt (permanent) - Drought Emergency Relief Assistance (DERA) Euro Bonds Foreign Debt (Permanent) for Earthquake Reconstruction and Rehabilitation Foreign Debt (Permanent) - IMF Budget Financing

F01

Cash and Bank Balances

F011

Balance with SBP

F01101 F01102 F01103

Non Food Account Food Account Railways Account

Page 63 of 100

CHART OF ACCOUNTS APPENDIX I (See paragraph 329)

Code

Major Object Description

Minor Object
Code Description Code F01104 F01105 F01106 F01107 F01108 F01109 F01110 F01111 F01112 F01113 F01114 F01115 F01116 F01117 F01118 F01119 2 Other Account F01201 F01202 F01203 F01204 F01205 F01206 F01207 F013 Adhoc Treasury Bills Created F01301 F01302 F01303 F01304

Detailed Object Description District Account Pakistan Railways Special Account Government Deposit Account No.XII (Escrow Account) National Debt Retirement Account Fertiliser Account TMAs Account Receipt Clearing Account (Food Account) SBP Receipt Clearing Account (Fertilizer Account) SBP Receipt Clearing Account (Government Deposit Account) SBP Receipt Clearing Account (National Debt Retirement Account) SBP Receipt Clearing Account (Non Food Account) SBP Receipt Clearing Account ( TMAs Account) SBP Receipt Clearing Account (Railways Account) SBP Receipt Clearing Account (District Account) SBP Receipt Clearing Account SBP National Bank Deposits Special Imprest Other Account (E01201 - 20) Held in Special Deposit Account under American Aid Programme Deposits under other Commodity Loan U.S. Disbursing Officer Account State Bank Deposits - Food Account State Bank Deposits - Non Food Account Blocked State Bank Deposits - District Governments State Bank Deposits - Railways Adhoc Treasury Bill Created (F01301 - 20) For Replenishment of Cash Balances Special Adhoc Treasury Bills Created for Loan to former East Pakistan Government Pakistan Railways IMF Account

Page 64 of 100

CHART OF ACCOUNTS APPENDIX I (See paragraph 329)

Code

Major Object Description

Minor Object
Code F014 Description Cash Balances F01401 F01402 F01403 F01404 F01405 F01406 F015 Civil Departmental Balances F01501 F01502 F01503 F01504 F01505 F01506 F01507 F01508 F01509 F01510 F01511 F01512 F01513 F01514 F01515 F016 Balance with NBP F01601 F01602 F01603 F01604 Code

Detailed Object Description Cash Balances (F01401 - 20) Cash Balances with Treasuries Remittances in Transit Petty Cash Cash Balances - Investment Cash at State Bank (District Governments) Cash at Other Bank (Local Governments ) Civil Balances - Departmental (F01501 - 30) Civil Public Works Forest Mint Customs Pakistan Missions Abroad National Savings Pakistan Post Office Defence Railways Foreign Affairs Pakistan PWD Food Wing GSP (Geological Survey of Pakistan) Others Balances with NBP (F01601 - 20) Food Account Non Food Account Receipt Clearing Account (Food Account) NBP Receipt Clearing Account (Non Food Account) NBP Loans and Advances (F02101 - 70)

F02

Receivables

F021

Loans and Advances

Page 65 of 100

CHART OF ACCOUNTS APPENDIX I (See paragraph 329)

Code

Major Object Description

Minor Object
Code Description Code F02101 F02102 F02103 F02104 F02105 F02106 F02107 F02108 F02109 F02110 F02111 F02112 F02113 F02114 F02115 F02116 F02117 F02118 F02119 F02120 F02121 F02122 F02123 F02124 F02125 F02126 F02127 F02128 F02129 F02130

Detailed Object Description Permanent Advances (Civil) Permanent Advances (Defence) Account of Pakistan Post Office Account of Railways Account with Government of Sindh Account with Government of Punjab Account with Government of Balochistan Account with Government of Khyber Pukhtoonkhawa Account of Other Departments Accounts of Other Entities Account with Financial Institutes Account with Non Financial Institutes Account with Government Servants Account with District Governments Account with TMAs Account with Private Sector Account with Foreign Governments Account with SBP Blocked OB Advances (Civil) Advances Recoverable (Defence) Special Advances Civil Advances for Purchase of Prize Bonds Payment for Fertilizer on behalf of PADSC, ADA Permanent Advances (Pakistan Post office) Permanent Advances (Railways) Blocked Permanent Advances (Pakistan PWD) Permanent Advances (Foreign Affairs) Permanent Advances (Food Wing) Permanent Advances (National Savings) Permanent Advances (Mint) Blocked

Page 66 of 100

CHART OF ACCOUNTS APPENDIX I (See paragraph 329)

Code

Major Object Description

Minor Object
Code Description Code F02131 F02132 F02133 F02134 F02135 F02136 F02137 F02138 F02139 F02140 F02141 F02142 F02143 F02144 F02145 F02146 F02147 F02148 F02149 F02150 F02151 F02152 F02153 F022 Other Receivables F02201 F02202 F02203 F02204 F02205 F02206

Detailed Object Description Permanent Advances (Forest) Permanent Advances (GSP) OB Advances (Railways) OB Advances (Pakistan PWD) OB Advances (Foreign Affairs) OB Advances (Food Wing) OB Advances (National Savings) Blocked OB Advances (Mint) Blocked OB Advances (Forest) OB advances (GSP) Provident Fund Advance to Government Servants (BPS -1&2) Blocked Forest Advances Blocked Permanent Advances (Railways) Permanent Advances (Mint) OB Advances (National Savings) OB Advances (Mint) Provident Fund Advance to Government Servants (BPS -1&2) Forest Advances Recovery of Loan Paid out of Benevolent Fund Advances to Punjab (Sindh Agriculture Development) Suppliers Corporation O.B. Advances (Pakistan Post) Advances to Others by Railways Interest accrued on Advances to Government Servants Other Receivables (F02201 - F02250) Government of Straits Settlement, Singapore Government of Mauritius Her Majesty's Colonial Government, Hong Kong Government of Federated Malaya States Government of Srawak Her Majesty's Protectorate Government

Page 67 of 100

CHART OF ACCOUNTS APPENDIX I (See paragraph 329)

Code

Major Object Description

Minor Object
Code Description Code F02207 F02208 F02209 F02210 F02211 F02212 F02213 F02214 F02215 F02216 F02217 F02218 F02219 F02220 F02221 F02222 F02223 F02301 F02302 F03101 F03102 F03103 F03104 F03105 F03106 F03107 F03108 F03109 F03110

Detailed Object Description Account with Government of India (Civil) Account with Government of India (Defence) Account with Government of India (Bank Account Holder) Payments made to Indian Pensioners upto 1960 Payments made to Indian Pensioners after 1961 Payments to Refugee Government Servants from India Account with Government of Burma East Pakistan Suspense (Civil) East Pakistan Suspense (Defence) Account with the Bank-i-Milli Iran (Railways) East Pakistan Suspense (Post Office) East Pakistan Suspense (Railways) Account with the Government of India (Pakistan Post Office) Blocked Account with the Government of India (Pakistan Post Office) Account with Government of India (Railways) Federal Government Suspense (Railways) Interest Accrued on Funds Accrued Earnings of Pakistan Railways Provision against Accrued Earnings of Pakistan Railways Cost of Assets (F03101 - 50) Land and Buildings Vehicles Plant & Machinery Furniture & Fittings Livestock Roads, Highways and Bridges Office / Computer Equipment IT Equipments Railways Land Railways Buildings

F023 F03 Physical Assets F031

Accrued Earnings Cost of Assets

Page 68 of 100

CHART OF ACCOUNTS APPENDIX I (See paragraph 329)

Code

Major Object Description

Minor Object
Code Description Code

Detailed Object Description Railways Rolling Stock Railways Track work and Infrastructure Signalling System Work in Progress Reserve for Depreciation (F03201 - 50) Land and Buildings Vehicles Plant and Equipment Furniture & Fittings Livestock Office / Computer Equipment IT Equipments Railways Buildings Railways Rolling Stock Railways Track work and Infrastructure Signalling System Provision against Inventories Obsolescence / Slow Moving Provision against Impairment of Property, Plant and Equipment Stores, Spares and Loose Tools Stores in Transit Fuel Stock Fuel Stock in Transit Raw Materials Work in Process - Workshops Work in Process - Concrete Sleepers Factories (CSF) Work in Process - Others Finished Goods Investments (F04101 - 10) Deposits and Reserves

F032

F033

F04

Investments

F041

F03111 F03112 F03113 F03114 Reserve for Depreciation F03201 F03202 F03203 F03204 F03205 F03206 F03207 F03208 F03209 F03210 F03211 F03212 F03221 F03222 Inventories F03301 F03302 F03303 F03304 F03305 F03306 F03307 F03308 F03309 Investments F04101

Page 69 of 100

CHART OF ACCOUNTS APPENDIX I (See paragraph 329)

Code

Major Object Description

Minor Object
Code Description Code F04102 F04103 Investments Deposit Accounts Investments by Railways

Detailed Object Description

F05

Other Assets

F051

Other Assets F05101 F05102 F05103 F05104 F05105 F05106 F05107 F05108 F05109

F052

Control Account F05201 F05202 F05203 F05204 F05205 F05206 F05207 F05208 F05209 F05210 F05299 F05301 F05302 F05303 F05304 F05310

F053

Intangibles Assets

Other Assets (F05101 - 20) Other Current Assets Down Payments Account with State Bank of Pakistan Transactions on Behalf of State Bank of Pakistan Other Deposits Inventories/ Consumable Tools and Spare Parts Prepaid Expenses Security Deposits - Utilities Deferred Assets Control Account (F05201 - 20) Adjusting Account - Blocked Adjusting Account between Federal & Provincial Government - Blocked Inter Provincial Settlement Account - Blocked Miscellaneous Government Account - Blocked State Bank Suspense - Blocked District Accounts Office Suspense - Blocked Letter of Credit Suspense - Blocked Foreign Aid / Loan Suspense Account - Blocked Adjusting Account between Federal and District Government - Blocked Adjusting Account between Provincial and District Government - Blocked Suspense Account for Upload Computer Softwares Patents Copyrights License Others

Page 70 of 100

CHART OF ACCOUNTS APPENDIX I (See paragraph 329)

Code

Major Object Description

Minor Object
Code Description Code

Detailed Object Description

G01

Current Liabilities

G011 Cheque Clearing Account G01101 G01102 G01103 G01104 G01105 G01106 G01112 G01113 G01114 G01115 G01116 G01117 G01118 G01119 G01120 G01121 G01122 G01123 G01124 G01125 G01126 G01127 G01128 G01129 G01130 G01131 G01132

Cheque Clearing Account (G01101 - 99) Non Food Account Food Account Railways Account Fertiliser Account Government Deposit Account No.XII (Escrow Account) Social Action Programme Cheque Payment Clearing Account (Food Account) SBP Transfer Payment Clearing Account (Food Account) SBP Receipt Clearing Account (Food Account) SBP - Blocked Bank Charges Clearing Account (Food Account) SBP Bank Interest Clearing Account (Food Account) SBP Cheque Payment Clearing Account (Fertiliser Account) SBP Transfer Payment Clearing Account (Fertiliser Account) SBP Receipt Clearing Account (Fertiliser Account) SBP - Blocked Bank Charges Clearing Account (Fertiliser Account) SBP Bank Interest Clearing Account (Fertiliser Account) SBP Cheque Payment Clearing Account (Government Deposit Account) SBP Training Payment Clearing Account (Government Deposit Account) SBP Receipt Clearing Account (Government Deposit Account) SBP -Blocked Bank Charges Clearing Account (Government Deposit Account) SBP Bank Interest Clearing Account (Government Deposit Account) SBP Cheque Payment Clearing Account (National Debt Retirement Account) SBP Training Payment Clearing Account (National Debt Retirement Account) SBP Receipt Clearing Account (National Debt Retirement Account) SBP - Blocked Bank Charges Clearing Account (National Debt Retirement Account) SBP Bank Interest Clearing Account (National Debt Retirement Account) SBP Cheque Payment Clearing Account (Non Food Account) SBP

Page 71 of 100

CHART OF ACCOUNTS APPENDIX I (See paragraph 329)

Code

Major Object Description

Minor Object
Code Description Code G01133 G01134 G01135 G01136 G01137 G01138 G01139 G01140 G01141 G01142 G01143 G01144 G01145 G01146 G01147 G01148 G01149 G01150 G01151 G01152 G01153 G01154 G01155 G01156 G01157 G01158 G01159 G01160 G01161 G01162

Detailed Object Description Training Payment Clearing Account (Non Food Account) SBP Receipt Clearing Account (Non Food Account) SBP - Blocked Bank Charges Clearing Account (Non Food Account) SBP Bank Interest Clearing Account (Non Food Account) SBP Cheque Pay Clearing Account (TMAs Account) SBP Training Pay Clearing Account (TMAs Account) SBP Receipt Clearing Account (TMAs Account) SBP - Blocked Bank Charges Clearing Account (TMAs Account) SBP Bank Interest Clearing Account (TMAs Account) SBP Cheque Payment Clearing Account (Food Account) NBP Training Payment Clearing Account (Food Account) NBP Receipt Clearing Account (Food Account) NBP - Blocked Bank Charges Clearing Account (Food Account) NBP Bank Interest Clearing Account (Food Account) NBP Cheque Payment Clearing Account (Non Food Account) NBP Training Payment Clearing Account (Non Food Account) NBP Receipt Clearing Account (Non Food Account) NBP - Blocked Bank Charges Clearing Account (Non Food Account) NBP Bank Interest Clearing Account (Non Food Account) NBP Payment Suspense Account (Food Account) SBP Receipt Suspense Account (Food Account) SBP Payment Suspense Account (Fertiliser Account) SBP Receipt Suspense (Fertiliser Account) SBP Payment Suspense Account (Government Deposit Account) SBP Receipt Suspense (Government Deposit Account) SBP Payment Suspense Account (National Debt Retirement Account) SBP Receipt Suspense (National Debt Retirement Account) SBP Payment Suspense Account (Non Food Account) SBP Receipt Suspense Account (Non Food Account) SBP Payment Suspense Account (TMAs Account) SBP

Page 72 of 100

CHART OF ACCOUNTS APPENDIX I (See paragraph 329)

Code

Major Object Description

Minor Object
Code Description Code G01163 G01164 G01165 G01166 G01167 G01168 G01169 G01170 G01171 G01172 G01173 G01174 G01175 G01176 G01177 G01178 G01179 G01180 G01181 G01182 G01183 G01184 G01185 G01186 G01187 G01188 G01189 G01190 G01191 G01201

Detailed Object Description Receipt Suspense (TMAs Account) SBP Payment Suspense Account (Food Account) NBP Receipt Suspense Account (Food Account) NBP Payment Suspense Account (Non Food Account) NBP Receipt Suspense (Non Food Account) NBP Cheque Payment Clearing Account (Railways Account) SBP Training Payment Clearing Account (Railways Account) SBP Receipt Clearing Account (Railways Account) SBP - Blocked Bank Charges Clearing Account (Railways Account) SBP Bank Interest Clearing Account (Railways Account) SBP Payment Suspense Account (Railways Account) SBP Receipt Suspense (Railways Account) SBP Cheque Payment Clearing Account (District Account) SBP Training Payment Clearing Account (District Account) SBP Receipt Clearing Account (District Account) SBP - Blocked Bank Charges Clearing Account (District Account) SBP Bank Interest Clearing Account (District Account) SBP Payment Suspense Account (District Account) SBP Payment Suspense (District Account) SBP Cheque Payment Clearing Account (PR Special Account) SBP Training Payment Clearing Account (PR Special Account) SBP Receipt Clearing Account (PR Special Account) SBP - Blocked Bank Charges Clearing Account (PR Special Account) SBP Bank Interest Clearing Account (PR Special Account) SBP Payment Suspense Account (PR Special Account) SBP Receipt Suspense (PR Special Account) SBP Special Drawing Account Cheques (SDA) Special Drawing Account Cheques (SDA) Assignments Accounts Cheques Outstanding Commitments

G012 Others

Page 73 of 100

CHART OF ACCOUNTS APPENDIX I (See paragraph 329)

Code

Major Object Description

Minor Object
Code Description Code G01202

Detailed Object Description Fines and Penalties Levied by Local Government. Domestic Loans (G02101 - 20) Loans - Domestic (Permanent) Loans - Domestic (Floating) Loans - Domestic (Others) Others Foreign Loans (G02201 - 20) Loan Foreign Missing Deferred Liabilities (G03101 - 30) Provident Fund - Blocked Saving Accounts, Savings and Deposits Certificates Annuities and Other Funds Benevolent Fund - Blocked Mint Account - Blocked Deposits & Reserves - Interest Bearing Deposits & Reserves - Non Interest Bearing Group Insurance Postal Life Insurance Fund Other Liabilities (G04101 - 10) Pension Fund Liability Miscellaneous (G05101 - 30) Exchange Account - Blocked Adjusting Account Suspense Account HR Document Splitting Account Wages Clearing Account Inter Provincial Settlement Account Adjusting Account between Federal and Provincial Governments Miscellaneous Government Account - Blocked Remittances - Blocked

G02

Loans

G021 Domestic G02101 G02102 G02103 G02104 G022 Foreign G02201

G03

Deferred Liabilities

G031 Missing G03101 G03102 G03103 G03104 G03105 G03106 G03107 G03108 G03109

G04 G05

Other Liabilities Control Account

G041 Other Liabilities G04101 G051 Miscellaneous G05101 G05102 G05103 G05104 G05105 G05106 G05107 G05108 G05109

Page 74 of 100

CHART OF ACCOUNTS APPENDIX I (See paragraph 329)

Code

Major Object Description

Minor Object
Code Description Code G05110 G05111 G05112 G05113 G05114 G05115 G05116 G05117

Detailed Object Description State Bank Suspense District Accounts Office Suspense Letter of Credit Suspense Foreign Aid/Loan Suspense Account Adjusting Account between Federal and District Governments Adjusting Account between Provincial and District Governments Inter District Government Accounts Inter TMA Accounts Provident Fund (G06101 - 50) Indian Civil Service Provident Fund Indian Civil Service (NEM) Provident Fund General Provident Fund (Civil) General Provident Fund (Defence) General Provident Fund (Foreign Affairs) General Provident Fund (Forest) General Provident Fund (Food Wing) General Provident Fund (GSP) General Provident Fund (Mint) General Provident Fund (National Savings) General Provident Fund (Pakistan PWD) General Provident Fund (PPO) General Provident Fund (T&T) General Provident Fund Account (Railway) State Railway Provident Fund Institution Defence Savings Provident Fund (Railway) Contributory (Transferred) Railway (Personnel) Provident Fund Defence Services Officers Provident Fund Provident Fund (MES) Provident Fund (Armed Forces Personnel) Provident Fund (AKRF Officers)

G06

Trust Account - Fund G061 Provident Fund G06101 G06102 G06103 G06104 G06105 G06106 G06107 G06108 G06109 G06110 G06111 G06112 G06113 G06114 G06115 G06116 G06117 G06118 G06119 G06120 G06121

Page 75 of 100

CHART OF ACCOUNTS APPENDIX I (See paragraph 329)

Code

Major Object Description

Minor Object
Code Description Code G06122 G06123 G06124 G06125 G06126 G06127 G06128 G06129 G06130 G062 Benevolent Fund G06201 G06202 G06203 G06204 G06205 G06206 G06207 G06208 G06209 G06210 G06211 G06212 G06213 G06214 G06215 G06216 G06217 G063 Welfare Funds G06301 G06302

Detailed Object Description Provident Fund (AKRF Personnel) Contributory Provident Fund Other Miscellaneous Provident Fund Unclaimed Deposits in Defence Services Officer's Provident Fund Unclaimed Deposits in the General Provident Fund Unclaimed Deposits in the Contributory Provident Fund Unclaimed Deposits in other Miscellaneous Provident Funds Provident Fund Advance to Government Servants (B 1-2) -Blocked Provident Fund Bonds Benevolent Fund (G06201 - 50) Punjab Benevolent Fund Federal Government Employees Benevolent Fund (Civil) Federal Government Employees Benevolent Fund (Defence) Federal Government Employees Benevolent Fund (Telegraph and Telephone) Federal Government Employees Benevolent Fund (Pakistan Post Office) Federal Government Employees Benevolent Fund (Pakistan PWD) Federal Government Employees Benevolent Fund (Foreign Affairs) Federal Government Employees Benevolent Fund (Food Wing) Federal Government Employees Benevolent Fund (National Savings) Federal Government Employees Benevolent Fund (Mint) Federal Government Employees Benevolent Fund (Forest) Federal Government Employees Benevolent Fund (GSP) Railway Employees Benevolent Fund (Railways) Provincial Government Employees Benevolent Fund District Government Employees Benevolent Fund New: TMA Employees Benevolent Fund Government Employees Benevolent Fund working in TMAs Welfare Fund (G06301 - 30) Staff Welfare Fund (Customs and Excise) Staff Welfare Fund (Income Tax)

Page 76 of 100

CHART OF ACCOUNTS APPENDIX I (See paragraph 329)

Code

Major Object Description

Minor Object
Code Description Code G06303 G06304 G06305 G06306 G06307 G06308 G06309 G06310 G064 Insurance Fund G06401 G06402 G06403 G06404 G06405 G06406 G06407 G06408 G06409 G06410 G06411 G06412 G06413 G06414 G065 Relief Fund G06501 G06502 G06503

Detailed Object Description Staff Welfare Fund (FPSC) Workers Welfare Fund Mines Labour Housing General Welfare Fund Coal Mines Labour Welfare Fund Endowment Fund for Welfare of Men of Letters Staff Welfare Fund - Balochistan Police Punjab Police Welfare Fund Northern Areas Police Welfare Fund Insurance Fund (G06401 - 50) Federal Government Employees Group Insurance Fund (Pakistan Public Works Department) Federal Government Employees Group Insurance Fund (Foreign Affairs) Federal Government Employees Group Insurance Fund (Food Wing) Federal Government Employees Group Insurance Fund (National Savings) Federal Government Employees Group Insurance Fund (Mint) Federal Government Employees Group Insurance Fund (Forest) Federal Government Employees Group Insurance Fund (GSP) Provincial Government Employees Group Insurance Fund Federal Government Employees Group Insurance Fund (Civil) Federal Government Employees Group Insurance Fund (Defence) District Government Employees Insurance Fund Local Fund Govt. Employees GIF Group Insurance Fund for Government Employees working in TMAs Insurance Fund of Employees of Punjab Emergency Services Relief Funds (G06501 - 30) President's Mian Amiruddin Himayat-e-Islam Fund 1986 Deposits of Badshahi Mosque Cess Fund Tajweed-ul-Quran Trust Azad-Kashmir Pakistan Post Office (G07101-50)

G07

Trust Accounts Post Office

G071 Accounts of Pakistan Post Office

Page 77 of 100

CHART OF ACCOUNTS APPENDIX I (See paragraph 329)

Code

Major Object Description

Minor Object
Code Description Code

Detailed Object Description Post Office Renewal Reserve Fund Pakistan Post Office Welfare Fund Pakistan Post Office Improvement Fund Federal Government Employees Group Insurance Fund (Pakistan Post Office) Pakistan Post Office Trust Interest Accounts Pakistan Post Office Miscellaneous Pakistan Post Office Cheques Permanent Advances (Pakistan Post Office) - Blocked OB Advances (Pakistan Post Office) - Blocked Account with the Government of India (Pakistan Post Office) - locked B East Pakistan Suspense Post Office - Blocked Transfer between Post Office Officers In - Land Money Orders of Pakistan Post Office Postal Annuities Pakistan Post Office Cheques (CDNS Schemes) Foreign Loans / Credits on Capital Account (released by Federal Government) Railways Foreign Loans/Credits on Replacement Account Railways Railway Employees Group Insurance Fund (Railways) Account with the Bank-i-Milli Iran (Railways) - Blocked Suspense Account Railways State Railway Deposits Railway Divisional Paymaster Account Railways Wages Account Pre-Audit Cheques (Railways) Account with the Government of India (Railways) East Pakistan Suspense Railways - Blocked Transfer within the same Railways Railways Remittances into State Bank / National Bank of Pakistan State Bank Deposits - Railways - Blocked

G08

Trust Account Railways

G07101 G07102 G07103 G07104 G07105 G07106 G07107 G07108 G07109 G07110 G07111 G07112 G07113 G07114 G07115 G081 Accounts of Railways G08101 G08102 G08103 G08104 G08105 G08106 G08107 G08108 G08109 G08110 G08111 G08112 G08113 G08114

Page 78 of 100

CHART OF ACCOUNTS APPENDIX I (See paragraph 329)

Code

Major Object Description

Minor Object
Code Description Code G08115 G08116 G08117 G08118 G08119 G08120 G08121 G08122 G08123 G08124 G08125 G08126 G08127 G08128 G08201 G08202 G08203 G08204 G08205 G08206 G08207 G08208 G08209 G08210 G08211 G08212 G08213 G08220 G08301

Detailed Object Description OB Advances (Railways) - Blocked Permanent Advances (Railways) - Blocked Railways Reserve Fund Railways Improvement Fund Railways Pension Fund Staff Benefit Fund (Railways) Railways Depreciation Reserve Fund Deposit of Depreciation Reserve of Government Commercial Concerns Other Miscellaneous Remittance Freight Deposit Account Security Deposit of Employees Lease Key Money (Deposit against Finance Leases) Payable to Employees Cooperative Credit Society (ECCS) Subscription to Officer Club Expenses Payables Salaries and Wages Payable Lease Rentals Payables Accrued Mark-up/Interest - Domestic Loans Accrued Mark-up/Interest - Foreign Loans Accrued Management Fee - Foreign Loans Accrued Exchange Risk Fee - Foreign Loans Unpaid Salaries and Wages Unearned Revenue - Fare Unearned Revenue - Freight Unearned Lease Income - Operating Unearned Lease Income - Finance Sundry Creditors - Purchases Others Post Retirement Free Medical Facility

G082 Current Liabilities Railways

G083 Other Liabilities

Page 79 of 100

CHART OF ACCOUNTS APPENDIX I (See paragraph 329)

Code

Major Object Description

Minor Object
Code Description Code G08302 G08303

Detailed Object Description Post Retirement Travel Facility Leave Encashment Telegraph and Telephone (G09101 - 50)

G09

Trust Account - T & G091 Accounts of Telegraph T & Telephone G09101 G09102 G09103 G09104 G09105 G09106 G09107 G09108 G09109 G09110 G09111 G09112 G09113 G09114 G09115 G09116 G09117

G10

Trust Accounts Other

G101 Accounts of Other Departments G10101 G10102 G10103 G10104 G10105 G10106

Telegraph & Telephone Renewal Reserve Fund Pakistan Telegraph and Telephone Welfare Fund Pakistan Telegraph and Telephone Improvement Fund Pakistan Telegraph and Telephone Cash Fund Pakistan Telegraph and Telephone Depreciation Fund Federal Government Employees Group Insurance Fund (Telegraph and Telephone) Pakistan Telegraph and Telephone Trunk Call Deposits Pakistan Telegraph and Telephone - Miscellaneous Permanent Advances (Pakistan Telegraph and Telephone) -Blocked OB Advances (Pakistan Telegraph and Telephone) - Blocked Telegraph and Telephone Remittances into Bank Civil Departmental Balances - Pakistan Telegraph and Telephone - Blocked State Bank Deposits - Telegraph and Telephone - Blocked Transfer between Telegraph and Telephone Officers East Pakistan Suspense Telegraph and Telephone - Blocked Account with the Government of India (Pakistan Telegraph and Telephone) Pakistan Telegraph and Telephone Cheques Other Departments (G10101 - 99) Pakistan PWD Receipt and Collection Account Foreign Affairs Receipt and Collection Account Food Wing Receipt and Collection Account Mint Receipt and Collection Account Pakistan Public Works Department Cheques Deposit Works of Survey of Pakistan

Page 80 of 100

CHART OF ACCOUNTS APPENDIX I (See paragraph 329)

Code

Major Object Description

Minor Object
Code Description Code G10107 G10108 G10109 G10110 G10111 G10112 G10113 G10114 G10115 G10116 G10117 G10118 G10119 G10120 G10121 G10122 G10123 G10124 G10125 G10126 G10127 G10128 G10129 G10130 G10131 G10132 G10133 G10134 G10135 G10136

Detailed Object Description Deposits of Department of Mineral Development Deposits of Department of Petroleum and Minerals Deposits of Industries Department Deposits for the Department of Advertising Films and Publications Food Department Deposits Sanitary Board Fund Public Works/Pakistan PWD Deposits Supply and Development Department Deposits Permanent Advances (Pakistan PWD) - Blocked OB Advances (Pakistan PWD) - Blocked OB Advances (Foreign Affairs) - Blocked OB Advances (Food Wing) - Blocked OB Advances (National Savings) - Blocked OB Advances (Mint) - Blocked OB Advances (Forest) - Blocked OB Advances (GSP) - Blocked Transfer between Forest Officers Transfer between MES Officers Transfer between Public Works Officers PRTC Employees Pension Fund Foreign Affairs Cheques Food Wing Cheques National Savings Cheques Mint Cheques Forest Cheques GSP Cheques Other Departmental Cheques Pre-Audit Cheques - Civil (Others) Pre-Audit - Civil Cheques Blocked Reserve Fund for Punjab Irrigation & Drainage Authority

Page 81 of 100

CHART OF ACCOUNTS APPENDIX I (See paragraph 329)

Code

Major Object Description

Minor Object
Code Description Code G10137 G102 Accounts of Other Entities G10201 G10202 G10203 G10204 G10205 G10206 G10207 G10208 G103 Other Deposits and Reserves G10301 G10302 G10303 G10304 G10305 G10306 G10307 G104 Other Remittances G10401 G10402 G10403 G10404 G10405 G10406 G10407 G10408 G10409 G10410 Pre-Audit - Civil Cheques

Detailed Object Description

Other Entities (G10201 - 30) Permanent Advances (Foreign Affairs) - Blocked Permanent Advances (Food Wing) - Blocked Permanent Advances (National Savings) - Blocked Permanent Advances (Mint) - Blocked Permanent Advances (Forest) - Blocked Permanent Advances (GSP) - Blocked Suspense Account Mint Suspense Account Defence Other Deposits and Reserves (G10301 - 30) Reserve Fund for Lighthouses / Lightships and Depreciation thereof Sportsmen, Artists and Artisans Endowment Fund Political Agents Deposits Zakat Collection Account State Bank Deposits - District Government - Blocked Sinking Funds Other Appropriations Other Remittances (G10401 - 99) National Savings Remittances Forest Remittances Mint Remittances Central Excise and Land Custom Remittances GSP Remittances Sindh Food Department Remittances PWD Remittances Remittances into Treasuries Works Audit Suspense Other Miscellaneous Remittances

Page 82 of 100

CHART OF ACCOUNTS APPENDIX I (See paragraph 329)

Code

Major Object Description

Minor Object
Code Description Code G10411 G10412 G10413 G10414 G10415 G10416 G10417 G10418 G10419 G10420 G10421 G10422 G10423 G10425 G10426 G10427 G10428

Detailed Object Description Sea Customs Remittances Income Tax Remittances Sales Tax Remittances Cash Remittances between Treasuries SBP Remittances Foreign Remittances Exchange Account between Civil and Civil Exchange Account between civil and Pakistan Post Exchange Account between Civil and Defence (including Navy) Exchange Account between Posts and Defence Exchange Account between Defence and Defence Cheques Blocked Other Remittances Blocked Cheques Other Remittances Fund Remitted to District Government Pakistan Post Office Remittances (CDNS Schemes) Investment Deposit Accounts (G011101 - 50) Savings Bank Accounts National Deposit Account Khaas Deposit Accounts Mahana Amdani Accounts Special Savings Accounts Defence Savings Certificates Premium Savings Certificates National Deposit Certificates Khaas Deposit Certificates Special Savings Certificates (Bearer) Special Savings Certificates (Registered)

G11

Special Deposit Investment

G111 Investment Deposit Accounts G11101 G11102 G11103 G11104 G11105 G11106 G11107 G11108 G11109 G11110 G11111

Page 83 of 100

CHART OF ACCOUNTS APPENDIX I (See paragraph 329)

Code

Major Object Description

Minor Object
Code Description Code G11112 G11113 G11114 G11115 G11116 G11117 G11118 G11119 G11120 G11121 G11122 G11123 G11124 G11125 G11126 G11127 G11128 G11129 G112 Other Deposit Account G11201 G11202 G11203 G11204 G11205 G11206 G11207 G11208 G11209 G11210

Detailed Object Description Special Savings Accounts Regular Income Certificate Qarz-e-Hasna for Prime Minister's National Debt Retirement Programme Term Deposit Certificates for Prime Minister's National Debt Retirement Programme Ceased Savings and Deposit Certificates Ceased Savings and Deposit Certificates Bonus Fund National Deposit Certificates Bonus Fund Khaas Deposit Certificates Bonus Fund Defence Savings Certificates Bonus Fund Premium Savings Certificates Bonus Fund Pakistan Post Office unclaimed Saving Bank Deposits of less than Rs 2/Pakistan Post Office Dead Savings Bank Accounts Pakistan Post Office fixed Deposits Pakistan Post Office Postal Orders Pensionery Benefits Behbood Saving Certificate Punjab General Provident Investment Fund Short Term Saving Certificates (STSC) Other Deposit Account (G11201 - G11299) Special Deposit Fund for Army Supplies made to friendly Countries Deposit of Depreciation Reserve of Commercial concerns -Jallo Rosin Factory Deposit of Depreciation Reserve of Commercial Concerns -Motor Transport Deposits on Account of Foreign Mountaineering Expeditions Deposit Account of Grants and Donations for Educational Buildings Deposits of Cess on Oilseeds and Oils Deposits on Tea Cess Fund Deposits of Coconut Cess Fund Deposits of Tobacco Cess Fund Deposits of Agriculture Produce Cess Fund

Page 84 of 100

CHART OF ACCOUNTS APPENDIX I (See paragraph 329)

Code

Major Object Description

Minor Object
Code Description Code G11211 G11212 G11213 G11214 G11215 G11216 G11217 G11218 G11219 G11220 G11221 G11222 G11223 G11224 G11225 G11226 G11227 G11228 G11229 G11230 G11231 G11232 G11233 G11234 G11235 G11236 G11237 G11238

Detailed Object Description Deposits of Cotton Cess Fund Deposits of Sugarcane Development Cess Fund Deposits of Historical Mosque Fund Deposits of Jamia Mosque Fund Bahawalpur Revenue Deposits Civil and Criminal Courts Deposits Personal Deposits Forest Deposits Deposits on Account of Passage Money of the Pilgrims Deposits in connection with Elections Coal Deposits Deposits on Account of Evacuee Estates Deposits of Chief Controller of Imports and Exports Department made by the Exporters Deposit Account with Defence Deposit Account with AGPR Deposits in favour of the Chief Settlement Commissioner Unclaimed Deposits Deposits for Repatriation of Pakistani Nationals Abroad Deposits for Imports against the UK Loans Special Remittances Deposits Deposits on Account of Cost of Medical Treatment of Federal Government Employees Deposits of Pakistan Government Loans Deposits of Equalisation Fund for Iron and Steel Deposits on Account of Sugar supplied by Pakistan Government Local Fund Employees Pay and TA etc. Deposits Deposits on Account of Market Committee Employees Deposits made by Local Bodies to meet the Claims of Contractors Security Deposits of Supply Cell

Page 85 of 100

CHART OF ACCOUNTS APPENDIX I (See paragraph 329)

Code

Major Object Description

Minor Object
Code Description Code G11239 G11240 G11241 G11242 G11243 G11244 G11245 G11246 G11247 G11248 G11249 G11250 G11251 G11252 G11253 G11254 G11255 G11256

Detailed Object Description Deposits of Fees received by Government Servants for Work done for Private Bodies Security Deposit of Cashiers etc Deposit Account of Foreign Guaranteed Loans Deposit Account of Transactions connected with Standardisation of Foreign Loans and Credits Deposit Account of Grants made by the Federal Government for Social Uplift Schemes Deposit Account of Duties, Taxes etc. realised on purchases of Indus Basin Replacement Works Deposit Account of the Grant made by the Federal Government for the development of Agriculture Deposit Account of Grants for Economic Development and Improvement of Rural Areas Deposit Account of Grant made by the Agricultural Research Council of Pakistan Deposit Account of Special Grant by the Federal Government to the Punjab Government Deposit Account of Sale Proceeds of Agricultural Commodities against convertible local currency credit under PL480 Deposits on Account of Recovery from Pakistan Railway in respect of foreign Loans and Credits Deposits of Surcharge on Sales of confiscated custom goods for donation to Motamar Alam-eIslam Deposit Account under the Punjab Real Estate Agents and Motor Vehicles Dealers (Regulation of Business) Ordinance 1980 Deposit Account of Grant made by Federal Government for the Rehabilitation of Destitute from East Pakistan Deposit Account of the Grant made by the Pakistan Central Cotton Committee Defence Services Security Deposits Defence Services Miscellaneous Deposits

Page 86 of 100

CHART OF ACCOUNTS APPENDIX I (See paragraph 329)

Code

Major Object Description

Minor Object
Code Description Code G11257 G11258 G11259 G11260 G11261 G11262 G11263 G11264 G11265 G11266 G11267 G11268 G11269 G11270 G11271 G11272 G11273 G11274 G11275 G11276 G11277 G11278 G11279 G11280 G11281 G11282

Detailed Object Description Foreign Money Orders Assignment Account (Pak-PWD) Assignment Account (Foreign Affairs) Assignment Account (Food Wing) Assignment Account (Mint) Assignment Account (GSP) Assignment Account (IDA/IBRD) Assignment Account (ADB)) Assignment Account (Civil) Assignment Account (PM Secretariat) Recoveries of Loans granted by Cooperative Bank to AJK Government Employees Deposit Account of Unclaimed Dividends and Undistributed Assets under the Companies Liquidation Act Deposit Account of Fund for Welfare of Families of Disabled/Martyrs of Cargill Fighting Deposit Account of Share made by Citizen Community Board Security Deposits Ex-Local Fund Officers (Ex-MEL & Ex-Zila Council Securities ) Withholding Tax on Profit from Investments in National Savings SchemesBlocked Deposit Account of Fees realized by Pakistan National Accreditation Council Blocked Deductions on Account of Housing Loan Deposits Account for the Production of Balanced Feed at Government Livestock Farms. Security Deposit of Private Companies Deposit of Number Plates & Smart Registration Cards Contribution to Government Servant Housing Foundation from its members Deposit for Smart Driving Licence Cards Withholding Tax on Profit from Investments in National Savings Schemes Deposit Account of Fees realized by Pakistan National Accreditation Council Assignment Account (others)

Page 87 of 100

CHART OF ACCOUNTS APPENDIX I (See paragraph 329)

Code

Major Object Description

Minor Object
Code Description Code G11283 G11284 G11285 G11286 G11287 G11288 G11289 G11290 G11291 G11292 G11293

Detailed Object Description Assignment Account (IP Bureau) Assignment Account (IDB) Assignment Account (AFD) Deposit for Small Cause Courts Assignment Account (DFID) Deposits of PTA Assignment Account (Australian Centre for International Agriculture Research (ACIAR) Securities Deposits of Firms / Contractors Unclaimed Money Account Assignment Accounts - OFID Deposit Works for Private and Public Bodies Relief Funds (G12101 - G12150) Prime Minister's Disaster Relief Fund Prime Minister's Fund for Welfare and Relief for Kashmiris Prime Minister's Bangladesh Cyclone Relief Fund - Blocked Prime Minister's Bosnia Herzegovina Relief Fund - Blocked Kashmir Relief Fund for Rehabilitation of Kashmiri Refugees and Freedom Fighters President's Fund for Afghan Refugees President's Fund for Assistance to Palestine President's Fund for Flood Relief 1978 - Blocked Sindh Governor's War Victims Relief Fund President's Famine Relief Fund for Africa Bangladesh Cyclone Relief Fund Quaid-e-Azam Relief Fund Governor's Relief Fund Sindh Relief Fund Sindh Emergency Medical Relief Fund Rosalinda Relief Fund

G12

Special Deposit Fund

G121 Relief Funds G12101 G12102 G12103 G12104 G12105 G12106 G12107 G12108 G12109 G12110 G12111 G12112 G12113 G12114 G12115 G12116

Page 88 of 100

CHART OF ACCOUNTS APPENDIX I (See paragraph 329)

Code

Major Object Description

Minor Object
Code Description Code G12117 G12118 G12119 G12120 G12121 G12122 G12123 G12124 G12125 G12126 G12127 G12128 G12129 G12130 G12131 G12132 G12133 G12134 G12135 G12136 G12137 G122 Welfare Fund G12201 G12202 G12203 G12204 G12205 G12206 G12207 G12208

Detailed Object Description Bangladesh Flood Relief Fund 1988 Chief Minister Punjab Flood Relief Sindh, Chief Minister's Rain Relief Fund, 1992 Afghan Refugees Benefit Wrestling Bouts 1984 Account Afghan Refugees Wrestling Bouts Sponsor's Account 1984 Funds for Assistance to the Muslims of Kosovo 1999 Chief Executive Drought Relief Fund 2000 Sindh Governor's Relief Fund 2000 for Drought Affected Areas Governor Punjab Rain Affectees Relief Fund Prime Minister Flood Relief Fund 1992 - Blocked Pakistan Post Office Postal Orders - Blocked Provincial Flood Relief Fund Khyber Pukhtoonkhawa-2005 Khyber Pukhtoonkhawa Chief Ministers Fund for Internally Displaced Persons 2009 Presidents Relief Fund for the Earthquake Victims 2005 Chief Minister Earthquake Fund Khyber Pukhtoonkhawa 2005 Presidents Relief Fund for Flood Victims Chief Minister's Flood Relief Find Khyber Pukhtoonkhawa 2008 Chief Ministers Balochistan Relief and rehabilitation Fund Prime Minister Special Fund for Victims of Terrorism Punjab Chief Ministers Fund for Internally Displaced Persons of Khyber Pukhtoonkhawa Governors Support Programme for Internally Displaced Persons Welfare Fund (G12201 - 50) Prime Minister's Fund for Welfare of Widows and Orphans Fund for Remission of Advances made to Widows for House Building Special fund for welfare of prisoners of war and civil internees Special Fund for Welfare of Retarded and Handicapped Children Pakistan Minorities Welfare Fund Special Fund for Welfare and Uplift of Minorities Sindh Assembly (Members) Welfare Fund National Council Social Welfare Fund

Page 89 of 100

CHART OF ACCOUNTS APPENDIX I (See paragraph 329)

Code

Major Object Description

Minor Object
Code Description Code G12209 G12210 G12211 G12212 G12213 G12214 G12215 G12216 G12217 G12218 G12219 G12220 G12221 G12222 G12223 G12224 G123 Economic Fund G12301 G12302 G12303 G12304 G12305 G12306 G12307 G12308 G12309 G12310 G12311 G12312 G124 Development Fund

Detailed Object Description Fund for Scholarships to the Children of Government Servants B1 to 15 Fund for Scholarships to the Children of Government Servants (B16 and above) Population Welfare Programme Fund Subvention from Workers Welfare Fund Fund for Educational and Economic Uplift of Scheduled Castes Fund for Uplift Schemes Funds for Rehabilitation of War Displaced Persons 1965 Funds for Rehabilitation of War Displaced Persons 1971 Sindh Orphanages Fund (Sindh Darul Atfal Fund) Fund for Rehabilitation of Disabled Persons Subvention from the Fund for Rehabilitation of Displaced Persons Funds for Revenue Foundation Scheme of AJ&K Mines Labour General Welfare Fund Mines Labour Housing Fund Education employees Foundation NWFP Fund Balochistan Police Foundation Fund Economic Fund (G12301 - 50) Sugar Export Subsidy Fund Economic Fund Procurement of Edible Oil through Trading Corporation of Pakistan under FY 1982 Special Fund for Assistance to Export of Sugar Export Development Fund Technical Advisory Services received from USA Technical Advisory Services received from Australia Reserve Fund for Exchange Risk on Foreign Loans Convertible Currency Release Fund Procurement of Edible Oil through Trading Corporation of Pakistan under FY 1981 Education Employees Foundation NWFP Fund Blocked Education Employees Foundation NWFP Fund Development Fund (G12401 - 50)

Page 90 of 100

CHART OF ACCOUNTS APPENDIX I (See paragraph 329)

Code

Major Object Description

Minor Object
Code Description Code G12401 G12402 G12403 G12404 G12405 G12406 G12407 G12408 G12409 G12410 G12411 G12412 G12413 G12414 G12415 G12416 G12417 G125 Education and Training Fund G12501 G12502 G12503 G12504 G12505 G12506 G12507 G12508 G12509 G12510

Detailed Object Description Special Development Grant Fund Irrigation Works-Reserve for Renewal and Replacement of Irrigation Machinery Depreciation Reserve Fund Government Presses Buildings/Roads Works Reserve for Renewals and Replacement of Buildings/Roads Machinery Federal/Provincial Road Fund Federal Rehabilitation Fund National Mass Transit Authority Fund Population Planning Programme Special Development Fund Women's Development Programme Fund Rural Development Works Programme Fund Pakistan Oil Seeds Development Cess Fund Fund for Administrative Restructuring of Public Sector Special Fund for Construction of GHQ Complex, Islamabad Thar Uplift Development Fund Depreciation Reserve Fund Forestry Development Fund Education and Training Fund (G12501 - 30) Federal Education Fee Fund Fund for Grants to Universities Scholarship Fund for Training Abroad Worker's Children Education Fund National Training Board Fund Special Fund for Promotion of Science and Technology Education Special Development Fund Fund for Liaqat Memorial Library Pakistan Madrassah Education Fund Education Welfare Fund

Page 91 of 100

CHART OF ACCOUNTS APPENDIX I (See paragraph 329)

Code

Major Object Description

Minor Object
Code Description Code

Detailed Object Description Fund for Culture and Heritage (G12601 - 50)

G126 Fund for Culture and Heritage G12601 G12602 G12603 G12604 G12605 G12606 G12607 G12608 G12609 G12610 G12611 G127 Other Funds G12701 G12702 G12703 G12704 G12705 G12706 G12707 G12708 G12709 G12710 G12711 G12712 G12713 G12714 G12715

Fund for Development of Urdu Quaid-e-Azam Memorial Fund Alama Iqbal Memorial Fund Quad-e-Azam Centenary Fund National Fund for Cultural Heritage See Moenjodaro Fund Fund for Artists, Journalists, Men of Letters and their families Fund for promoting Pride of Performance Tarraqi-e-Urdu Fund Bazm-e-Iqbal Fund Arts and Literature Fund Other Funds (G12701 - 99) Jahez Fund Civil Defence Training Fund Riot and Civil Commotion Issuance Fund Police Fund Police Clothing and Equipment Fund Fund for Civil Defence Canal Clearance Fund Funds for Damages Deficiencies and Service Charges in respect of Houses on Estate Office pool Sindh Chief Minister's discretionary Grants Utilization Fund Central Rescue Station Fund Foreign Aid Counterpart Fund Trust Interest Fund (Charitable Endowment) Income Tax deduction from Salaries Income Tax deduction from Contractors/Suppliers War Risk Insurance Fund 1965

Page 92 of 100

CHART OF ACCOUNTS APPENDIX I (See paragraph 329)

Code

Major Object Description

Minor Object
Code Description Code G12716 G12717 G12718 G12719 G12720 G12721 G12722 G12723 G12724 G12725 G12726 G12727 G12728 G12729 G12730 G12731 G12732 G12733 G12734 G12735 G12736 G12737 G12738 G12739 G12740 G12741 G12742 G12743 G12744

Detailed Object Description War Risk Insurance Fund 1971 District Funds Municipal Funds Cantonment Funds Punjab Market Committee Fund Punjab Co-operative Board for Liquidation Other Miscellaneous Fund Prime Minister Fund for National Debt Retirement President's Hajj Fund Silver Jubilee Fund for Celebration of 50th Anniversary of Independence of Pakistan Sinking Funds for Loans granted to Local Bodies Advance Payment of Tax under Section 53 of the Income Tax Ordinance Sinking Fund Investment Account Fund for Social Services Olympic Stadium Fund Federal Fund for Agricultural Research Youth Development Fund Privatisation Fund Agriculture Prices Commission Fund National Defence Fund 1965 National Defence Fund 1971 National Reconstruction Fund National Fund for Control of Drug Abuse National Self Reliance Fund Pre-Partition Assets and Liabilities Federal Civil Servant's subscription to Services Book Club Fund for Education of Working Children and Rehabilitation of Freed Bounded Labourers Fund for Strengthening Judiciary Sindh Sustainable Development Fund

Page 93 of 100

CHART OF ACCOUNTS APPENDIX I (See paragraph 329)

Code

Major Object Description

Minor Object
Code Description Code G12745 G12746 G12747 G12748 G12749 G12750 G12751 G12752 G12753 G12754 G12755 G12756 G12757 G12758 G12759 G12760 G12761 G12762 G12763 G12764 G12765 G12766 G12767 G12768 G12769 G12770 G12771 G12772 G12773 G12774

Detailed Object Description Central Research Fund HR Development Fund National Commission Fund Funds for Lady Reading Hospital, Peshawar Blocked Funds for Khyber Teaching Hospital, Peshawar Blocked Funds for Khyber Medical College, Peshawar Blocked Funds for Khyber College of Dentistry, Peshawar Blocked Funds for Hayatabad Medical Complex, Peshawar Blocked Funds for Post Graduate Medical Institute, Peshawar Blocked Funds for Ayub Medical College, Abbottabad Blocked Funds for Ayub Teaching Hospital, Abbottabad Blocked

Fund for Women in Distress & Detention Deposit Account of Shares made by Citizen Community Board (CCB) Fund for Securities & Exchange Commission of Pakistan (SECP) Tameer-e-Karachi Fund Punjab Development Fund Access to Justice Development Fund President's Relief Fund for Tsunami Victims Funds for Lady Reading Hospital, Peshawar Funds for Khyber Teaching Hospital, Peshawar Funds for Khyber Medical College, Peshawar Funds for Khyber College of Dentistry, Peshawar Funds for Hayatabad Medical Complex, Peshawar Funds for Post Graduate Medical Institute, Peshawar Funds for Ayub Medical College, Abbottabad Funds for Ayub Teaching Hospital, Abbottabad National Disaster Management Fund

Page 94 of 100

CHART OF ACCOUNTS APPENDIX I (See paragraph 329)

Code

Major Object Description

Minor Object
Code Description Code G12775 G12776 G12777 G128 Pension Fund G131 Grant in Aid G12801

Detailed Object Description Funds for Accident and Emergency Department under Lady Reading Hospital Competition Commission Fund Sales Tax Deduction at source under sales tax special Procedure (Withholding) Rules, 2007 Punjab Pension Fund Grants and Aid (G13101 - 99)

G13

Special Deposit Grant

G13101 G13102 G13103 G13104 G13105 G13106 G13107 G13108 G13109 G13110 G13111 G13112 G13113 G13114 G13115 G13116 G13117 G13118 G13119 G13120 G13121 G13122

Cash Aid received from Ford Foundation Machinery, Equipment and Supplies received from West Germany Machinery, Equipment and Supplies received from Japan US Aid Local Currency Credit US Aid Fund for the projects of Federal and Provincial Governments UN Development Funding Norwegian Wheat German Wheat Sweden Wheat Australian Wheat Deposits on Account of Canadian Wheat Food Aid Convention Fertilizer from FAO Foreign Assistance for Afghan Refugees from United Nations High Commissioner for Refugees Deposit Account of the Japanese Grant for Coastal Fisheries Development Project Other Foreign Grants Grants and Technical Assistance from Australia Grants and Technical Assistance from Canada Grants and Technical Assistance from UNO Grants and Technical Assistance from US Aid Grants and Technical Assistance from Singapore Grants and Technical Assistance from Switzerland

Page 95 of 100

CHART OF ACCOUNTS APPENDIX I (See paragraph 329)

Code

Major Object Description

Minor Object
Code Description Code G13123 G13124 G13125 G13126 G13127 G13128 G13129 G13130 G13131 G13132 G13133 G13134 G13135 G13136 G13137 G13138 G13139 G13140 G13141 G13142 G13143 G13144 G13145 G13146 G13147 G13148 G13149 G13150 G13151 G13152

Detailed Object Description Grants and Technical Assistance from Ford Foundation Grants and Technical Assistance from UK Grants and Technical Assistance from Germany Grants and Technical Assistance from Netherlands Grants and Technical Assistance from US government Commodity Grants from Australia Commodity Grants from Canada Commodity Grants from Germany Commodity Grants from Norway Commodity Grants from Aid Convention Commodity Grants from World Food Programme Foreign Non-Project Commodity Aid-USA Finance agreed Project on account of Butter Oil Grant from EEC UK Grants Grants from Saudia Grants from Japan Commodity Grant from Italy GSP Receipt and Collection Account US Aid Programme for US US Aid Ace Programme for US Special Subsidiary Account Special PL-480 Title II Account US Aid Programme for US 1983 US Aid Programme for US 1984 US Aid ECE for US 1984 US Aid ECE for US 1985 US Aid ACE for US 1986 US Aid ACE for US 1987 US Aid ACE for US 1988 US Aid Programme for US FY 1989

Page 96 of 100

CHART OF ACCOUNTS APPENDIX I (See paragraph 329)

Code

Major Object Description

Minor Object
Code Description Code G13153 G13154 G13155 G13156 G13157 G13158 G13159 G13160 G13161 G13162 G13163 G13164 G13165 G13166 G13167 G13168

Detailed Object Description Special Subsidiary Account FY 1984 Special Subsidiary Account FY 1985 Special Subsidiary Account FY 1986 Special Subsidiary Account FY 1987 Special Subsidiary Account FY 1988 Special Subsidiary Account FY 1989 Special Subsidiary Account FY 1990 Special Subsidiary Account FY 1993 Special Subsidiary Account FY 1995 Special Subsidiary Account FY 1996 Special Subsidiary Account FY 1997 Canadian Debt Tameer-e-Watan Fund Foreign Grant for Enercon Foreign Commodity Grant for Gwadar Port Authority Rescheduling of Indonesian Debt 1965 Coinage Account (G14101 - G14150) Value of One Rupee Notes Issued Nickel Whole Rupee Balance Cupro Nickel Whole Rupee Balance Bronze and Copper Coining Account Nickel Coinage Account Cupro Nickel Coinage Account Aluminium Coinage Account Small Coin Depot Balance Purchase and Sale of Silver Profit from Circulation of Nickel - Coins Deficiency found in Coins Remitted to Mint Nickel Whole Rupee Remittances Cupro Nickel Whole Rupee Remittances

G14

Mint Account

G141 Coinage Account G14101 G14102 G14103 G14104 G14105 G14106 G14107 G14108 G14109 G14110 G14111 G14112 G14113

Page 97 of 100

CHART OF ACCOUNTS APPENDIX I (See paragraph 329)

Code

Major Object Description

Minor Object
Code Description Code G14114 G14115 G14116 G14117 G14118 G14119 G14120 G14121 G14122

Detailed Object Description Small Coin Depot Remittances One Rupee Coins Two Rupee Coins Five Rupee Coins Value of Ten Rupee Coins Value of Ten Rupee Commemorative Coin of Mohtarma Benazir Bhutto (Shaheed) Aluminium one Rupee Coins Aluminium two Rupee Coins Ten Rupee Commemorative Coin on 60th Anniversary of the Peoples Republic of China

H01

Equities

H011 Equities H01101 H01102 H01103 H01104 H01105 H01106 H01201 H01202

H012 Investment by Government

Equities (H01101 - 99) Residual Equity Suspense Loss Account Unrecovered Losses Gain and Loss on Foreign Exchange Retained Earnings / Accumulated Loss Miscellaneous Government Accounts Investment by Government Revaluation of Fixed Assets

Page 98 of 100

CHART OF ACCOUNTS (See paragraph 329)

APPENDIX I

3) Fund Element
No. Fund Description No. 1 Source Description Capital No. 1 2 3 4 5 6 1 2 3 4 5 6 1 2 Sub-Fund Description Voted Current Expenditure Voted Development Expenditure Voted Capital Expenditure Charged Current Expenditure Charged Development Expenditure Charged Capital Expenditure Voted Current Expenditure Voted Development Expenditure Voted Capital Expenditure Charged Current Expenditure Charged Development Expenditure Charged Capital Expenditure Trust Accounts Special Deposit Accounts No. Grant/Public Account Number Description

C Consolidated Fund

Not Applicable 186 Capital Outlay on Pakistan Railways Not Applicable Not Applicable Not Applicable Not Applicable 106 106 106 106 Pakistan Railways Pakistan Railways Pakistan Railways Pakistan Railways Not Applicable Not Applicable

Revenue

Public Account

Revenue

106 Pakistan Railways 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 (See paragraph 329)

APPENDIX I

4) Function Element
Major Function Code Description 04 Economic Affairs Code Minor Function Description Detailed Function Code Description 0454 Railway Transport Sub-Detailed Function Code Description 045401 Railway Transport Code Program Code Code

045 Construction and 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)

CODE 0005 0010 0015 0030 0035 0040 0045 0047 0050 0055 0060 0065 0070 0075 0097 0100 0105 0110 0115 0120 0133 0135 0140 0143 0144 0145 0150 0155 0160 0165 0170 0175 0180 0185 0190 0195 0200 0205 0210 0225 0227 0230 0255 0260 0265 0270 0275 0280 0285 0300

STATION NAME Kiamari Import Yard Karachi City Junction Karachi Bandar Hupm Yard Thole Produce Yard Reception Yard DCOS (Halt) Karachi Cant Chanesar (Halt) Departure Yard Karsaz Air Force (Halt) Drigh Road Junction Drigh Colony Air Ship (Halt) Air Port (Halt) Malir Colony Malir Landhi Junction Maddoki Jumma Goth Bin Qasim Badal Nala Marshalling Yard Pipri (Halt) Gaddar Debheji Gharo Ran Pethani Jung Shahi Saduro Braudabad Utram Jhimpir Latif Chang Meting Ongar Bholari Kotri Junction Gidu Latifabaad Hyderabad Junction Detha Khatian Road Allahdino Sand Palijani Oderolal Wahab Shah Tando Adam Junction Jalal Marri

CODE 001 002 003 004 005 006 007 008 009 010 011 012 013 014 015 016 017 018 019 020 021 022 023 024 025 026 027 028 029 030 033 034 037 038 039 040 041 042 045 046 101 102 103 104 105 106 107 108 109 110

TRAIN NAME Khyber Mail Khyber Mail Bolan Mail Bolan Mail Tezrao Tezrao Tezgam Tezgam Allama Iqbal Express Allama Iqbal Express Hazara Express Hazara Express Awam Express Awam Express Karachi Express Karachi Express Millat Express Millat Express Khushal Khan Khatak Express Khushal Khan Khatak Express Chiltan Express Chiltan Express Quetta Express Quetta Express Baha-ud-Din Zakria Express Baha-ud-Din Zakria Express Shalimar Express Shalimar Express Shah Rukne Alam Express Shah Rukne Alam Express Super Express Super Express Fareed Express Fareed Express Jaffar Express Jaffar Express Karakoram Express Karakoram Express Pakistan Express Pakistan Express Islamabad Express Islamabad Express Subak Kharam Subak Kharam Rawal Express Rawal Express Subak Raftar Subak Raftar Chenab Express Chenab Express

CODE 1

EARNING TYPE DESCRIPTION Coaching Earnings

SUB EARNING TYPE CODE DESCRIPTION 01 Passenger Fare

CODE 01

MAIN ACCOUNT DESCRIPTION Ordinary Full Fare

CODE 01 02 03 04 05 06 07 01 02 03 04 05 06 07 01 02 03 04 05 06 07 01 02 03 04 05 06 07 01 02 03 04 05 06 07 01 02 03 04 05 06 07 01 02 03 04 05 06 07 01

DETAILED ACCOUNT DESCRIPTION Air Conditioned Sleeper Air Conditioned Parlour Air Conditioned Standard Air Conditioned Business First Class Sleeper Economy Class Second Class Air Conditioned Sleeper Air Conditioned Parlour Air Conditioned Standard Air Conditioned Business First Class Sleeper Economy Class Second Class Air Conditioned Sleeper Air Conditioned Parlour Air Conditioned Standard Air Conditioned Business First Class Sleeper Economy Class Second Class Air Conditioned Sleeper Air Conditioned Parlour Air Conditioned Standard Air Conditioned Business First Class Sleeper Economy Class Second Class Air Conditioned Sleeper Air Conditioned Parlour Air Conditioned Standard Air Conditioned Business First Class Sleeper Economy Class Second Class Air Conditioned Sleeper Air Conditioned Parlour Air Conditioned Standard Air Conditioned Business First Class Sleeper Economy Class Second Class Air Conditioned Sleeper Air Conditioned Parlour Air Conditioned Standard Air Conditioned Business First Class Sleeper Economy Class Second Class Air Conditioned Sleeper

RUPEES

02

Ordinary Reduced Fare

03

Return Journey Tickets

04

Season and Zone Tickets

05

Other Concessional Tickets

06

Military

07

Pracs

08

Foreign

Page 1 of 24

Appendix II SUBSIDIARY CODING SCHEME FOR REVENUE (See paragraph 330)

CODE 0305 0310 0315 0320 0325 0350 0355 0357 0360 0365 0370 0375 0390 0395 0400 0405 0410 0425 0430 0435 0440 0445 0450 0455 0460 0465 0470 0475

STATION NAME Shahdabpur Lundo Sarhari Nawaz Dahri Nawabshah Junction Buchert Daur Balochpur Bandhi Mir Jat (Halt) Kot Laloo Pad Idan Junction Bhiria Road Ghulamabad (Halt) Lakha Road Sialabad (Halt) Mahrabpur Junction Deparja (Halt) Setharja Ranipur Riyasat Gambat Pirkatpar Tando Musti Khan Sahu Khairpur Raina Begmanji Rohri Junction

CODE 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140

TRAIN NAME Dachi Express Dachi Express Ghauri Express Ghauri Express Shah Shamas Express Shah Shamas Express Musa Pak Express Musa Pak Express Pakpattan Express Pakpattan Express Ravi Express Ravi Express Sargodha Express Sargodha Express Lasani Express Lasani Express Mehar Express Mehar Express Thal Express Thal Express Rohi Express Rohi Express Badar Express Badar Express Malakwal Express Malakwal Express Lala Musa Express Lala Musa Express Sandal Express Sandal Express Tipu Sultan Express Tipu Sultan Express Bahawalpur Express Bahawalpur Express Sukkur Express Sukkur Express Mari Indus Express Mari Indus Express Mehran Express Mehran Express Kotri Express Saman Sarkar Express Saman Sarkar Express Mirpur Khas Express

CODE

EARNING TYPE DESCRIPTION

SUB EARNING TYPE CODE DESCRIPTION

CODE

MAIN ACCOUNT DESCRIPTION

CODE 02 03 04 05 06 07 00 00 00 00 00 00 00 00 00 00 00 00 00 01 02 03 00 00 00 00 00 00 00 00 01 02 03 01 02 03 01 02 03 01 02 03 00 00

DETAILED ACCOUNT DESCRIPTION Air Conditioned Parlour Air Conditioned Standard Air Conditioned Business First Class Sleeper Economy Class Second Class

RUPEES

02

Special Trains and Reserved Carriages Luggage

01 02 01 02 03 04 05 01 02 03 04 05 05 06

Other Than Military Military Public Military Foreign Pracs Others Public Military Foreign Pracs Others Intra-Railway Parcels Dry Port

03

04

Parcels

Public Dry Port Military Parcels Dry Port Others Dry Port

05

Other Coaching Traffic

01 02 03 04 05 01 02 03

Rail Road Motor Vehicle & Carriage Live Stock by Passenger Trains Dining Car and Aerated Water Passenger Luggage Special Postal Trains Hire and Haulage of Postal Vans and Compartment Post Office Bags and Parcels by Weight Stations

06

Post Office Mails

0490 Mando Dairo 0495 Sangi 141 0500 0505 0510 0515 0520 0525 0530 0535 0540 0545 0550 0555 Hungoro Road (Halt) Pano Akil Mahesar Ali Nawaz Ghoto Ghotki Sarhad Mirpur Mathelo Daharki Kobar Reti Dhandi Chak Asmat Ullah 142 143 144 145 146 147 148 149 150 153 155 156 159 07 Demurrage, Wharfage and Storage Charges 01

Demurrage Wharfage Storage Charges Demurrage Wharfage Storage Charges Demurrage Wharfage Storage Charges Demurrage Wharfage Storage Charges

02

Dry Port

03

Foreign

04

others

08

0560 Walhar 0565 Machhi Goth

Miscellaneous Coaching Receipts

01 02

Platform Tickets Penalties for Irregular Travelling

Page 2 of 24

Appendix II SUBSIDIARY CODING SCHEME FOR REVENUE (See paragraph 330)

CODE 0570 0575 0580 0585 0590 0595 0600 0605 0610 0625 0630 0635 0640 0645 0650 0655 0660 0665 0670 0675 0680 0695 0700 0705 0710 0735 0740 0745 0750 0755 0760 0765 0770 0775 0780 0785 0790 0815 0820 0825 0830 0835 0840 0845 0850 0855 0860 0865 0870 0875

STATION NAME Sadikabad Chandrami (Halt) Adamsahaba Rahim Yar Khan Tarinda Dari Azim Khan Kot Samaba Sahja Khanpur Junction Jetha Bhutta Firoza Metla Liaquatpur Tanwari Chanigot Kulab Dera Nawab Sahib Tibbi Izzat Mubarakpur Kalanchwala Samasata Junction Bahawalpur Adamwahan Bridge Adam Wahan Lodhran Junction Shahidan Wala (Halt) Rukanpur Sirajwala Dunyapur Jafarwala Kutabpur Sukh Beas Jahania Pervezwala Jangal Mariala Mehar Shah Khanewal Junction Dera Taj Pirawala Rajput Nagar Kacha Khuh Waris Ali Shaheed Mohsinwal Musa Virk Mian Channun Sadiq Ali Shaheed Iqbal Nagar Kassowal Kotla Adib Shaheed Chichawatni Road

CODE 160 163 164 165 166 167 168 171 172 173 174 175 176 177 178 179 180 201 202 203 204 205 206 207 208 209 210 211 212 213 214 215 216 217 218 219 220 221 222 223 224 225 226 227 228 229 230 233 234 235

TRAIN NAME Mirpur Khas Express Hyderabad Express Hyderabad Express Qalander Express Qalander Express Rohri Express Rohri Express Sialkot Express Sialkot Express Multan Express Multan Express Mianwali Express Mianwali Express Faisal Express Faisal Express Badin Express Badin Express Attock Passenger Attock Passenger Jand Passenger Jand Passenger Babu Passenger Babu Passenger Waris shah Fast Waris shah Fast Faiz Ahmad Faiz Express Faiz Ahmad Faiz Express Khush Khuram Passenger Khush Khuram Passenger Hashim Shah Passenger Hashim Shah Passenger Mauj DaryaPassenger Mauj DaryaPassenger Shah Sarwar Passenger Shah Sarwar Passenger Narowal Express Narowal Express Sangla Shuttle Sangla Shuttle Okara Passenger Okara Passenger Shaheen Passenger Shaheen Passenger Marala Passenger Marala Passenger Sultan Bahu Passenger Sultan Bahu Passenger Passenger Passenger Fast

CODE

EARNING TYPE DESCRIPTION

SUB EARNING TYPE CODE DESCRIPTION

CODE 03 04

MAIN ACCOUNT DESCRIPTION Left Luggage Receipts Karachi Port Trust

CODE 00 01 02 03 00 00 00 01 02 03 04 05 01 02 03 04 05 01 02 03 04 05 01 02 03 04 00 00 00

DETAILED ACCOUNT DESCRIPTION

RUPEES

Karachi Port Trust Charges Lighterage Cranage

80

Refunds

05 06 07 01

Export Surcharge Import Surcharge Sundries Stations

02

Dry Port

03

Foreign

04

Others

Over Charges Demurrage Wharfage Storage Others Over Charges Demurrage Wharfage Storage Others Over Charges Demurrage Wharfage Storage Others Over Charges Demurrage Wharfage Storage

90

Discounts

01 02 03

Passenger Military Others

Page 3 of 24

Appendix II SUBSIDIARY CODING SCHEME FOR REVENUE (See paragraph 330)

CODE 0880 0885 0890 0895 0900 0905 0910 0915 0920 0925 0930 0935 0940 0945 0950 0955 0960 0965 0970 0975 0980 0985 0990 0995 1010 1015 1020 1025 1030 1035 1045 1075 1080 1105 1110 1115 1120 1125 1130 1135 1140 1150 1155 1160 1165 1170 1195 1200 1205 1210

STATION NAME Dad Fatihana Masud Akhtar Shahid Harappa Mirdad Muafi Sahiwal Noor Muhammad Mokal Yousfwala Qadirabad Okara Cant Tabruk Okara Hazrat Karmanwala Kissan Renala Khurd Akhtarabad Habibabad Sehjowal Pattoki Wan Adhan Changa Manga Bhoe Asal Kot Radha Kishan Prem Nagar Raiwind Junction Jia Bagga Halloki (Halt) Kana Kacha Kot Lakhpat Walton Lahore Cant Junction Lahore Junction Badami Bagh Shahdara Bagh Junction Kala Shah Kaku Koh-i-Noor Muridke Sadhoke Kamoke Eminabad Theri Snasi Gujranwala City Gujranwala Cant Ghakkar Mandi Dhaunkal Nizmabad Wazirabad Junction Haripur Band Kathala Gujrat Deona Juliani

CODE 236 239 240 241 242 243 244 245 246 249 250 251 252 253 254 255 256 257 258 259 260 261 262 263 264 265 266 267 268 301 302 305 306 309 310 313 314 315 316 317 318 319 320 321 322 325 326 327 328 331

TRAIN NAME Fast Passenger Passenger Kundian Passenger Kundian Passenger Passenger Passenger Passenger Passenger Passenger Passenger Passenger Passenger Passenger Passenger Passenger Passenger Bullahay Shah Bullahay Shah Passenger Passenger Passenger Passenger Sakhi Abbas Passenger Sakhi Abbas Passenger Shuttle Shuttle Rawalpindi Passenger Rawalpindi Passenger Sibi mixed Sibi mixed Chotiari Mixed Chotiari Mixed Kotri Mixed Kotri Mixed Larkana Mixed Larkana Mixed Lahore Mixed Lahore Mixed Amruka Mixed Amruka Mixed Multan Mixed Multan Mixed Kasur Mixed Kasur Mixed Noor Shah Mixed Noor Shah Mixed Peshawar Mixed Peshawar Mixed Wazirabad Mixed

CODE

EARNING TYPE DESCRIPTION

SUB EARNING TYPE CODE DESCRIPTION

CODE

MAIN ACCOUNT DESCRIPTION

CODE

DETAILED ACCOUNT DESCRIPTION

RUPEES

Page 4 of 24

Appendix II SUBSIDIARY CODING SCHEME FOR REVENUE (See paragraph 330)

CODE 1215 1230 1235 1240 1245 1250 1255 1260 1265 1270 1285 1290 1305 1310 1315 1320 1325 1330 1335 1340 1345 1350 1355 1370 1375 1380 1385 1390 1395 1400 1405 1410 1415 1420 1435 1440 1455 1460 1465 1470 1475 1480 1485 1490 1505 1510 1515 1520 1525 1530

STATION NAME Lala Musa Junction Lala Musa Goods Chak Pirana Kharian Cant Kharian Banni Bangla Choa Kariala Sarai Almagir Jhelum Kala Junction Kaluwal Dina Junction Ratial Domeli Bakrala Tarki Sohawa Tandoi Missa Keswal Pindora Gujar Khan Ghungrila Mandra Junction Banth Kaliamawan Mankiala Mughal Sihala Lohi Bhir Chak Lala Rawalpindi Nur Junction Madina-Tul-Hajjaj Golra Sharif Junction Sangjani Taxila Cant Junction Wah Cantt Budho Wah Hasan Abdal Burhan Faqeerabad Sanjwal Attock City Junction Rumian Attock Khurd Khairabad Kund Jahangira Road Akora Khattak Hayat Sher Pao Shaheed

CODE 332 333 334 335 336 341 342 343 344 345 346 349 350 351 352 353 354 355 356 357 358 359 360 361 362 401 402 403 404 405 406 KL-1 LK-2 KM-1 MK-2

TRAIN NAME Wazirabad Mixed Koh-i-Noor Passenger Koh-i-Noor Passenger Marvi Mixed Marvi Mixed Gharibwal Mixed Gharibwal Mixed Khewra Mixed Khewra Mixed Kohat Mixed Kohat Mixed Chaman Mixed Chaman Mixed Mixed Mixed Mixed Mixed Mixed Mixed Mixed Mixed Mixed Mixed Mixed Mixed Samjhota Express Samjhota Express Zahidan Mixed Passenger Zahidan Mixed Passenger Thar Express Thar Express Landhi Shuttle Landhi Shuttle Malir Shuttle Malir Shuttle

CODE

EARNING TYPE DESCRIPTION

SUB EARNING TYPE CODE DESCRIPTION

CODE

MAIN ACCOUNT DESCRIPTION

CODE

DETAILED ACCOUNT DESCRIPTION

RUPEES

Page 5 of 24

Appendix II SUBSIDIARY CODING SCHEME FOR REVENUE (See paragraph 330)

CODE 1535 1550 1555 1560 1565 1570 1575 1580 1585 1590 1595 1600 1620 1625 1630 1635 1640 1645 1650 1655 1660 1665 1687 1690

STATION NAME Nowshera Junction Khushhal Kot Pir Piai Pabbi Taru Jabba Nasarpur Peshawar City Peshawar Cantt Hasham Killi Isalamia College Kacha Garhi Jamrud Junction Baghiari Medanak Changai Shahgai Kata Kushta Zintara Sultan Khel Landi Kotal Torra Tigga Landi Khana Mihran (Halt) Model Colony (Halt)

CODE

TRAIN NAME

CODE

EARNING TYPE DESCRIPTION

SUB EARNING TYPE CODE DESCRIPTION

CODE

MAIN ACCOUNT DESCRIPTION

CODE

DETAILED ACCOUNT DESCRIPTION

RUPEES

301 302 305 306 309 310 313 314 315 316 317 318

Sibi mixed Sibi mixed Chotiari Mixed Chotiari Mixed Kotri Mixed Kotri Mixed Larkana Mixed Larkana Mixed Lahore Mixed Lahore Mixed Amruka Mixed Amruka Mixed Multan Mixed Multan Mixed Kasur Mixed Kasur Mixed Noor Shah Mixed Noor Shah Mixed Peshawar Mixed Wazirabad Mixed Wazirabad Mixed Koh-i-Noor Passenger Koh-i-Noor Passenger Marvi Mixed Marvi Mixed Gharibwal Mixed Gharibwal Mixed Khewra Mixed Khewra Mixed Kohat Mixed Kohat Mixed

Goods Earnings

01

Fuel

02 03 04 05 06

General Merchandise Military Traffic Foreign Livestock Intra-Railway Transactions

01 02 03 04 04 01 02 01 00 01 01 02

Coal and Coke Furnace Oil Diesel Oil Fire Wood Other Hydrocarbons Dry Port Other Than Dry Port Military Traffic Livestock Coal, Coke and Patent Fuel for Home Line Other Railway Materials and Stores for Home Line Siding Charges Shunting Charges Left Empty Charges Local Movement Charges Stations

01 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 01 02 03 04 01 02 03 04 01 02 03 04 01 02 03

Public

1695 Matapar 1700 Malir Cant 319 1720 1722 1725 1730 1735 1740 1745 1750 1755 1760 1765 1770 1775 1780 1785 1790 1795 1800 1805 Sind University Akhundabad Cedet College Petaro Unarpur Budapur Khanot Gopang Manjhand Khuman Sann Amri Laki Shah Sadar Bagatora Sehwan Sharif Chana (Halt) Bubak Road Bhan Sayadabad Khudabad Yar Muhammad Kalhoro 320 321 322 325 326 328 331 332 333 334 335 336 341 342 343 344 345 346 07 Other Charges Recovered 01 02 03 04 01

08

Demurrage, Wharfage and Storage

Demurrage Wharfage Storage Charges Others Demurrage Wharfage Storage Charges Others Demurrage Wharfage Storage Charges Others Demurrage Wharfage Storage Charges

02

Dry Port

03

Foreign

04

Others

Page 6 of 24

Appendix II SUBSIDIARY CODING SCHEME FOR REVENUE (See paragraph 330)

CODE

STATION NAME

CODE 349

TRAIN NAME Chaman Mixed Chaman Mixed Mixed Mixed Mixed Mixed Mixed Mixed Mixed Mixed Mixed Mixed Mixed Mixed Samjhota Express Samjhota Express Zahidan Mixed Passenger Zahidan Mixed Passenger Thar Express Thar Express Freight Train Freight Train Freight Train Freight Train Freight Train Freight Train Freight Train Freight Train Freight Train Freight Train Freight Train Freight Train Freight Train Freight Train Freight Train

CODE

EARNING TYPE DESCRIPTION

SUB EARNING TYPE CODE DESCRIPTION 09 Miscellaneous Goods Earnings

CODE 01 02 03 04 05 06 01

MAIN ACCOUNT DESCRIPTION Rail Road Collection and Delivery Sundry Dry Port Sundry Others Karachi Port Trust Dry Port Others Stations

CODE 00 00 01 02 01 01 00 01 02 03 04 05 01 02 03 04 05 01 02 03 04 05 01 02 03 04 00 00

DETAILED ACCOUNT DESCRIPTION

RUPEES

1810 1815 1820 1825 1830 1835 1840 1845 1850 1855 1860 1865 1870 1875 1880 1885 1890 1895 1900 1915 1920 1925 1930 1935 1940 1945 1980 1985 1990 1995 2000 2005 2010 2015 2020 2025 2030 2035 2040 2045 2055 2060 2065 2070 2075 2080 2083 2085 2090

Dadu Makhdum Sahib (Halt) Phulji Ibrahim Kachhi (Halt) Piaro Goth Rahuja (Halt) Rehmani-Nagar Shah Murtaza (Halt) Balishah Shah Panjo (Halt) Radhan Sihar Badah Moenjo Daro Bakhsh Jatoi Haider Jatoi Bakrani Road Mashori Sharif (Halt) Larkana Junction Mahiota Shah Nawaz Bhutto Nasrat Madeji Road Allahadani Ruk Habib Kot Junction Zeal Pak Ganja Takkar Husri Khattar Norai Sharif Tando Muhammad Khan Nizam Sama (Halt) Malti Hakimani Syed Halt Palh Talhar Peeru Lishari Yusaf Shah (Halt) Badin Khokhropar Vasar Bah Jalo-Jo-Cauhnro Parche-Ji-Veri New Chhor Chhor Sumrasar (Halt) Hasisar Sardar (Halt)

350 351 352 353 354 355 356 357 358 359 360 361 362 401 402 403 404 405 406 501 502 503 504 505 506 Oil-1 Oil-2 Oil-3 Oil-4 PGB Phos PSC (G)-1 PSC (G)-2 DC-1 DC-2

Import Surcharge Export Surcharge Wharfage Entry & Storare Cranage Dry Port Overcharges Demurrage Wharfage Storage Charges Others Overcharges Demurrage Wharfage Storage Charges Others Overcharges Demurrage Wharfage Storage Charges Others Overcharges Demurrage Wharfage Storage Charges

80

Refunds

02

Dry Port

03

Foreign

04

Others

90

Discounts

01 02

Military Others

Page 7 of 24

Appendix II SUBSIDIARY CODING SCHEME FOR REVENUE (See paragraph 330)

CODE 2095 2100 2105 2120 2125 2130 2135 2140 2155 2160 2165 2180 2185 2190 2195 2200 2205 2210 2215 2220 2225 2230 2270 2275 2280 2285 2290 2295 2300 2305 2307 2310 2315 2320 2325 2330 2335 2340

STATION NAME Dhoro Naro Hiral Pithoro Junction Saindad Shadipalli Abdullahabad (Halt) Balochabad (Halt) Jamrao Junction Sugar Mills MirPur Khas Goods Mirpur Khas Junction Ratanabad Sultanabad Sultanabad Colony (Halt) Kamaro Sharif Tando Allahyar Tajpur Nasarpur Road Tando Jam College Tando Jam Rahuki Detha (M.G) Mirrani Salih Bhambro Muhammad Rahim Kalru Samaro Road

CODE

TRAIN NAME

CODE

EARNING TYPE DESCRIPTION

SUB EARNING TYPE CODE DESCRIPTION

CODE

MAIN ACCOUNT DESCRIPTION

CODE

DETAILED ACCOUNT DESCRIPTION

RUPEES

000 Kinjhejhi Kunri Hasan Rind Nabisar Road Talhi Nafees Nagar Fazl Bhambro Naukot Roshanabad Jhudo Tando Jan Muhammad Sufiabad Digri

Sundry Earnings

01

Electric Telegraph Earnings Rent and Tolls

01 02 01

Electric Telegraph Earning Gauge of Microwave Land

00 00 01 02 03 04 01 02 03 04 05 00 01 00 00 00

02

Agricultural Land Open Land Land for Building Purposes Lease for Commercial Purposes Residential Buildings Commercial Buildings Other Buildings and Rooms Other Railway Institutions Outsiders Tolls of Bridges

02

Buildings

03 2345 Kachelo 2350 Kot Ghulam Muhammad 04 2355 2360 2365 2405 2410 Mir Allahdad Talpur Jhuluri Khatlani Shaheed Shafiabad Minhan Khan Rind

Receipts from Catering Department Charges Recovered on Work Done for Outside Parties Profit on Sale of Assets

03 04 01 02 01

Other Assets Toll Catering Services Other Services Work Done in Workshops

05

06

Revenue from Sale

01 02 03 01

Capital Assets Other Fixed Assets Sale of Stores Coal and Ashes

00 00 00 00

Page 8 of 24

Appendix II SUBSIDIARY CODING SCHEME FOR REVENUE (See paragraph 330)

CODE 2415 2420 2425 2430 2435 2440 2445 2450 2455 2460 2465 2470 2475 2480 2485 2520 2525 2530 2535 2540 2545 2550 2555 2560

STATION NAME Gul Beg Marri Jam Sahib Tando Sarwar Sarwar Nagar Shahpur Chakar Khadro Rajar Sinjhoro Jhol Bobi Road Nao-Abad Patoyun Nazikabad Khan Ali Muhammad Mihr Mulla Makhan Bhitshah Hala Barocho Bagh New Saidabad Allahdad Rahu (Halt) Sabu Rahu Khair Muhammad Laghari Sakrand Junction

CODE

TRAIN NAME

CODE

EARNING TYPE DESCRIPTION

SUB EARNING TYPE CODE DESCRIPTION

CODE 02 03 04 01 02 03 04 05 01 02 01 02 01 02 01 02 01 02 03 04 05 06 07 08

MAIN ACCOUNT DESCRIPTION Grass and Trees Unserviceable Scrap Unclaimed and Damaged Goods Station Buildings Other Buildings Bridges Land Others Land Buildings Pracs Railcop Stations Others Foreign Loans Others Excess Cash Income from Pre-qualification Maintenance Charges Sundry Marketing Earnings Fee Collected from Schools Fee Collected from Hospitals Profit on Running Power Other Income Sundry

CODE 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 00 01 02 00 00 00 00 01 02 03 04 05

DETAILED ACCOUNT DESCRIPTION

RUPEES

07

Advertisement Fees

08

Income from Investment Property Dividends Franchising Exchange Gain Miscellaneous Receipts

09 10 11 12

Saloons Other than Saloons

Sale Proceeds of Indemnity Bonds Cost of Tender Forms Charges for Printing Work Done In Railway Press Cost of Store Bulletin Commission Received for Audit of Warrants and Credit Notes Diet Charges Recovered from Railway Employees Commission for Cess Collection Amounts Recovered from Vendors Oil and Electric Charges Recovered from Rest Houses Occupants Water Charges Recovered from Employees Forfeited Deposits Amounts Forfeited from Railway Servants

2575 Sukhio Manahejo 2580 Kazi Ahmed 2585 Nawab Wali Muhammad Khan 2590 Daulatpur Safan

2595 Shahpur Jahania 06 2600 Moro 07 2605 Faiz Muhammad Manahi 08 2610 Jatoi 09 2615 Sumer Chandio (Halt) 10 2620 Mithinai 2625 Dalipota 2630 Tharushah Junction 2665 Sukhpur 11 12 80 Refunds 01 Over Charges 00

Page 9 of 24

Appendix II SUBSIDIARY CODING SCHEME FOR REVENUE (See paragraph 330)

CODE 2700 2705 2710 2715 2735 2740 2745 2780 2785 2790 2795 2800 2820 2825 2830 2835 2840 2845 2850 2855 2880 2885 2890 2895 2900 2905 2910 2915 2920 2925 2930 2935 2940 2945 2950 2955 2960 2975 2980 2985 2990 2995 3000 3005 3010 3015 3020 3025 3030 3035

STATION NAME Pir Sadiq Shah (Halt) Kalhora Naushahero Feroze Machur Darbelo Kandiaro Aqil Shah Sukkur Arain Road Gosarji Pir Bahkir Lakhi Ghulam Shah Haji Muhammad Ihsan Shikarpur Shaheed Allah Bakhsh Sultan Kot Humayun Abad Adam Khan Jacobabad Junction Dera Allah Yar Mangoli Dera Murad jamali Shori Nuttal Wazirani Chukhra Moghari (Closed) Bakhtairabad Domki Damboli Lashari Lindsay Dingra Mithri Perak Bolan Sibi Junction Nari West Nari Bank Mushkaf Pehro Kunri Ocepur Gadalar Panir Kohsar Peshi Laleji Chidarzai Ab-i-Gum Bohar

CODE

TRAIN NAME

CODE

EARNING TYPE DESCRIPTION

SUB EARNING TYPE CODE DESCRIPTION

CODE 02

MAIN ACCOUNT DESCRIPTION Other Refunds

CODE 00

DETAILED ACCOUNT DESCRIPTION

RUPEES

Page 10 of 24

Appendix II SUBSIDIARY CODING SCHEME FOR REVENUE (See paragraph 330)

CODE 3040 3045 3050 3055 3060 3065 3070 3085 3090 3095 3100 3105 3110 3115 3120 3125 3130 3135 3150 3155 3160 3165 3170 3175 3180 3185 3187 3190 3195 3200 3220 3225 3230 3235 3240 3245 3250 3255 3260 3265 3270 3275 3280 3325 3330 3335 3340 3345 3350 3355

STATION NAME Mach Sar-i-Bolan Hirok Dozan Kolpur Kiridhor Spezand Junction Mian Ghundi Sar-i-ab Kechi Beg Quetta Samungli Road Sheikh Mandah Beleli Ammunition Siding Kuch Lak Mohat Bostan Junction Yaru Saranan Saiyid Hamid Gulistan Spin Ghundi Kila Abdullah Zozlan Shela Bagh Khojak Sanzala Signal Chaman Bero Chandia Pir Muhammad Metlo Kambar Ali Khan Bahram Hathiun Gulam Muhammad Kario Silra Shahdadkot Bhurgari Umid Ali Junejo Garhir Khairo Usta Muhammad Chachar Chang Mauladad Dil Murad Odhano Thul Nau Mir Hasan Khoso Unhar Wah Haibat Shahid Kandhkot

CODE

TRAIN NAME

CODE

EARNING TYPE DESCRIPTION

SUB EARNING TYPE CODE DESCRIPTION

CODE

MAIN ACCOUNT DESCRIPTION

CODE

DETAILED ACCOUNT DESCRIPTION

RUPEES

Page 11 of 24

Appendix II SUBSIDIARY CODING SCHEME FOR REVENUE (See paragraph 330)

CODE 3360 3365 3370 3375 3400 3405 3410 3415 3420 3425 3430 3435 3440 3445 3450 3455 3475 3480 3485 3490 3495 3500 3505 3510 3515 3520 3525 3530 3535 3540 3545 3550 3555 3560 3565 3570 3575 3580 3585 3590 3595 3600 3605 3610 3615 3620 3625 3630 3635 3640

STATION NAME Zongarh Bakhshapur Mir Dost Ali Kashmor Junction Nari Tarduri Babar Kachh Kochali Dalujal Spintangi Sunari Harnai Nakus Sharigh Khost Zardalu Doctor Chah Wali Khan Kanak Sheikh Wasil Barag Khund Kirdagap Galangur Kotal Galangur Kishingi Ablak Nushki Zangiabad Ahmedwal Sarmall Pain Mall Bilas Padag Road Yadgar Nok Chah Pishok Brickfield Dalbandin Taloo Ismaili Yakmach Noli Gat Azad Isatahir Nok-Kundi Alam Reg Tozghi Warechah (Halt) Reg-I-Malik

CODE

TRAIN NAME

CODE

EARNING TYPE DESCRIPTION

SUB EARNING TYPE CODE DESCRIPTION

CODE

MAIN ACCOUNT DESCRIPTION

CODE

DETAILED ACCOUNT DESCRIPTION

RUPEES

Page 12 of 24

Appendix II SUBSIDIARY CODING SCHEME FOR REVENUE (See paragraph 330)

CODE 3645 3655 3660 3665 3670 3675 3680 3700 3705 3710 3715 3720 3725 3730 3735 3740 3745 3750 3755 3760 3765 3770 3775 3780 3785 3790 3795 3800 3805 3810 3815 3820 3845 3850 3855 3870 3875 3880 3885 3890 3895 3910 3915 3920 3925 3930 3935 3940 3945 3950

STATION NAME Kuhi-Taftan Mirjawa Bug Khan Muhammad Chah Kacha Road Lar Zahidan Khanai Gwal Zarghun Khanozai Toraaghbargi Churmian Kan Mehtarzai Rahmgul Seratangi Muslimbagh Chorme (Halt) Shina Khewra Nasai Kila Saifullah Alozai Shinkai Tang Haiderzai Simzai Mina Bazar Badizai Zhob Chachran Zahir Pir Jajja Abbasian Kotla Pathan Hindumalkote Qasimwal Mandi Sadiq Ganj Junction Chet Singhwala Minchinabad Chabiana Chaweka Road Mitti Roya Bahawalnagar Junction Girdhariwal Takht Mahal Madrisa Chak Abdulla Sakhi Shauk Illahi Chistian Sadiqpur Bakhshan Khan Khanqah Muhd Panah

CODE

TRAIN NAME

CODE

EARNING TYPE DESCRIPTION

SUB EARNING TYPE CODE DESCRIPTION

CODE

MAIN ACCOUNT DESCRIPTION

CODE

DETAILED ACCOUNT DESCRIPTION

RUPEES

Page 13 of 24

Appendix II SUBSIDIARY CODING SCHEME FOR REVENUE (See paragraph 330)

CODE 3955 3960 3965 3970 3975 3980 3985 3990 3995 4000 4005 4010 4035 4040 4075 4080 4085 4090 4095 4100 4105 4110 4115 4120 4125 4130 4155 4160 4165 4170 4175 4180 4185 4190 4195 4200 4205 4210 4215 4220 4225 4230 4235 4240 4245 4250 4255 4260 4265 4270

STATION NAME Hasilpur Qaimpur Shikhwahan goolpur Talbani Temewal Asrani Goth Shah Muhammad Lalsuhanra Abbasnagar Dara Bakha Baghdad Kut-Al-Imara Amruka Sobhawalla Dhab Sanateka Sawai Wala Daunga Bunga Khatan Harunabad Mubarakabad Faqirwali Rafiqabad Khaichiwala Shahbazwala Tibba Alamgir (Halt) Fort Abbas Mujaldiwala (Halt) jamrani Wah Pir Jewan Sultan Kahror Pakka Amirpur (Halt) Sardar Jhandir Ashraf Shah Mailsi Farm Nur Muhammad Nur Shah Zafar Iqbal Vihari Kussam Sar Machhianwala Zahirnagar Mandi Burewala Rehmanpura Gaggoo Faridnagar Muhammad Nagar Arif Wala Kot Pir Abdul Aziz Murad Chisthi Pakka Sidhar

CODE

TRAIN NAME

CODE

EARNING TYPE DESCRIPTION

SUB EARNING TYPE CODE DESCRIPTION

CODE

MAIN ACCOUNT DESCRIPTION

CODE

DETAILED ACCOUNT DESCRIPTION

RUPEES

Page 14 of 24

Appendix II SUBSIDIARY CODING SCHEME FOR REVENUE (See paragraph 330)

CODE 4275 4280 4285 4290 4295 4300 4305 4310 4313 4315 4320 4325 4330 4335 4340 4345 4350 4353 4355 4360 4400 4405 4420 4450 4455 4460 4500 4505 4510 4515 4520 4525 4530 4535 4540 4545 4550 4565 4570 4575 4580 4585 4590 4595 4600 4605 4610 4650 4655 4660

STATION NAME Pakpattan Chah Nur Muhammad Maulviwala Chak Kambo Haveli Wasawewala Kila Dewa Singh Basirpur Gul Sher Rasulpur Mandi Ahmadabad Haji Chand Kanganpur Basti Qutab Shah Kul Mokal Usmanwala Dholan Khudian Khas Dostpura Bhila Hithar Kasur Junction Kasur Tehsil Khem Karn Ganda Singh Wala Athilpur Raokhanwal Raja Jang Shah Nal Mujahidabad Gilawala Noori Lal (Halt) Zrif Shaheed Basti Dad Shujabad Chak Buch Pir Mukhtiarwala Sher Shah Junction Muzaffarabad Qila-I-Nau (Halt) Multan Cant Multan City Mumtazabad (Halt) Piran Ghaib Tatipur Riazabad Kot Abbas Shaeed Shamkote Chenab West Bank Muzaffargarh Kotal Laghari

CODE

TRAIN NAME

CODE

EARNING TYPE DESCRIPTION

SUB EARNING TYPE CODE DESCRIPTION

CODE

MAIN ACCOUNT DESCRIPTION

CODE

DETAILED ACCOUNT DESCRIPTION

RUPEES

Page 15 of 24

Appendix II SUBSIDIARY CODING SCHEME FOR REVENUE (See paragraph 330)

CODE 4665 4670 4675 4677 4680 4685 4690 4695 4700 4715 4720 4725 4730 4732 4735 4740 4745 4750 4755 4760 4765 4770 4775 4780 4785 4790 4795 4800 4805 4810 4815 4820 4825 4830 4835 4840 4845 4850 4865 4870 4875 4880 4885 4890 4895 4900 4905 4920 4925 4930

STATION NAME Budh Pir Barkhudar (Halt) Hamdaniwala (Halt) Lal Pir Mahmud Kot Gurmani Sanawan Lal Mir (Halt) Kot Adu Junction Dera Dinpanah Ahsanpur Paharpur Thal Kot Sultan Kharal Azim Jaman Shah Leiah Kotla Haji Shah (Halt) Dorata Rajan Shah Karor Samtiah Sadan Sawaya Behal Notak Sultan Karori (Halt) Bhakkar Kotla Jam Darya Khan Panj Girain Shah Alam Maibal Kallur Kot Tibba Meharban Shah Piplan Bhumb Alluwali Khanqah Sirajia Kundian Junction Sabzazar Wanbhachran Shadia Bandial Qaidabad Mitha Tiwana Hadali Jauharabad Khushab Junction Sandral Rakh Rajar Dhak

CODE

TRAIN NAME

CODE

EARNING TYPE DESCRIPTION

SUB EARNING TYPE CODE DESCRIPTION

CODE

MAIN ACCOUNT DESCRIPTION

CODE

DETAILED ACCOUNT DESCRIPTION

RUPEES

Page 16 of 24

Appendix II SUBSIDIARY CODING SCHEME FOR REVENUE (See paragraph 330)

CODE 4935 4940 4945 4950 4955 4960 4965 4970 4985 5000 5005 5030 5035 5040 5045 5050 5055 5060 5062 5065 5070 5073 5075 5077 5095 5100 5105 5110 5130 5135 5155 5160 5165 5170 5175 5215 5220 5225 5230 5235 5240 5245 5260 5265 5270 5275 5277 5280 5285 5290

STATION NAME Kandwal (Halt) Lilla Lilla Town Tobah Saroba Golpur Pind Dadan Khan Chalisa Junction Haranpur Junction Chak Nizam Malakwal Junction Fateh Shahpur Hariah Ala Shah Taj Mandi Baha-Ud-Din Lakhnewala (Halt) Chilianwala Chak Sher Mahammad Dinga Jafarabad (Halt) Pir jand (Halt) Jaurah Karanana Akhtar Karnana Dandot Khewra Khewra Chemical Work Gujjar Gharibwal Rafiqwal Bhera Hazurpur Miani Nazirabad (Halt) Chak Saida (Halt) Sumbal Hamid Mianwali Biruli Sammandwala Pail Khel Dher Umid Ali Daud Khel Junction Massan Sohan Bridge Makhad Road Injra Khattakabad Chhab Jhamat Uchhri

CODE

TRAIN NAME

CODE

EARNING TYPE DESCRIPTION

SUB EARNING TYPE CODE DESCRIPTION

CODE

MAIN ACCOUNT DESCRIPTION

CODE

DETAILED ACCOUNT DESCRIPTION

RUPEES

Page 17 of 24

Appendix II SUBSIDIARY CODING SCHEME FOR REVENUE (See paragraph 330)

CODE 5295 5310 5315 5320 5325 5330 5345 5350 5355 5390 5395 5400 5405 5410 5415 5420 5425 5430 5435 5440 5455 5460 5465 5470 5475 5480 5500 5505 5510 5515 5520 5525 5530 5550 5555 5560 5565 5570 5575 5580 5585 5590 5595 5600 5605 5610 5615 5620 5625 5630

STATION NAME Jand Junction Lanagar Chura Sharif (Halt) Nammal Domel Basal Junction Sulaimanabad Jhalar Kanjur Cement Factory Siding Mari Indus KalaBagh Khudozai Kaman Mashani Trag Isa Khel Kurram Bridge Thanedarwala Arsala Khan Laki Marwat Junction Gambila Serat Gandi Khan Khel Naurang Serai Naurang Serai Sugar Mills Ghoriwal Bannu Aba Khel Shahbaz Khel (Halt) Pezu Drakki Gul Imam Sidki Tank Junction Boltonabad Kaur Manzai Thal Darsmand Doaba Kahi Togh Hangu Hangu Camp Ibrahimzai(Closed) Raisan Ustarzai Chikarkot Nasrat Khel(Closed) Kohat Tehsil Kohat Cant

CODE

TRAIN NAME

CODE

EARNING TYPE DESCRIPTION

SUB EARNING TYPE CODE DESCRIPTION

CODE

MAIN ACCOUNT DESCRIPTION

CODE

DETAILED ACCOUNT DESCRIPTION

RUPEES

Page 18 of 24

Appendix II SUBSIDIARY CODING SCHEME FOR REVENUE (See paragraph 330)

CODE 5635 5640 5645 5650 5655 5660 5665 5705 5710 5715 5720 5725 5730 5735 5740 5765 5770 5775 5780 5785 5790 5795 5800 5805 5810 5815 5820 5825 5830 5835 5840 5845 5850 5855 5860 5865 5880 5885 5890 5905 5910 5915 5920 5925 5930 5935 5940 5945 5950 5955

STATION NAME Cadat College Kohat Babari Banda Seni Gamabat Ghurzai Tilkan Faqir Hussain Shahed Khushalgarh Mian Shmir Makhdumpur Pahoran Jan Muhammedwala Abbdul Hakim Daira Mehram Darkhana Jarala Shorkot Cant Junction Sattarwala (Halt) Chutiana Alisar (Halt) Dabanwala Toba Tek Singh Seowal (Halt) Janiwala Noorpur Gojra Kot Saleem Shaheed Kot Abadan (Halt) Pakka Anna Sar Shmair Road Abbaspur Risalewala Samanabad Faisalabad Nishatabad Gatti (FSLD Dry Port) Sultan Nagar Chak Jhumra Junction Sahinawala Dar-Ul-Ihsan Sangla Hill Junction Marh Balochan Rattian Sukheke Nautheh Kaleke Madhrarianwala Hafizabad Shori Chatta (Halt) Gajargola Alipur Chatta Manchar Chatta

CODE

TRAIN NAME

CODE

EARNING TYPE DESCRIPTION

SUB EARNING TYPE CODE DESCRIPTION

CODE

MAIN ACCOUNT DESCRIPTION

CODE

DETAILED ACCOUNT DESCRIPTION

RUPEES

Page 19 of 24

Appendix II SUBSIDIARY CODING SCHEME FOR REVENUE (See paragraph 330)

CODE 5960 5965 5970 5975 6005 6010 6015 6020 6025 6030 6035 6050 6055 6075 6080 6085 6090 6115 6120 6125 6130 6135 6140 6145 6150 6155 6160 6165 6170 6175 6180 6185 6190 6195 6197 6200 6205 6210 6215 6230 6235 6240 6245 6250 6265 6270 6275 6280 6285 6290

STATION NAME Jamke Chatta Dharowal Kang (Halt) Mansurwali Wadala Cheema (Halt) Ghakha Mittar Sodhra Kopra Begowala Sambrial Sahowala Ugoke Sialkot Junction Sialkot Cant Suchetgarh Junction Ranbirsinghpura Miran Sahib Jammu Cantt Jammu(Tawi) Khanora Waryam Rustam Sargana Gilmala Mudduki Jhang Sadar Jhang City Thatta Mahla Rivaz East Bank Rivaz West Bank Chund Shah Jewana Shah Nikdur Panj Pir (Halt) Sobhage Hafeezabad (Halt) Haryanwal Khalidabad Sillanwali Manguana Aldana Shahinabad Junction Pindi Rasul Charnali Bajwa (Halt) Tariqabad Sargodha Junction Mitha Lak Chak Waraichanwala Ajnala Qudratabad Bhalwal Wilsonpur

CODE

TRAIN NAME

CODE

EARNING TYPE DESCRIPTION

SUB EARNING TYPE CODE DESCRIPTION

CODE

MAIN ACCOUNT DESCRIPTION

CODE

DETAILED ACCOUNT DESCRIPTION

RUPEES

Page 20 of 24

Appendix II SUBSIDIARY CODING SCHEME FOR REVENUE (See paragraph 330)

CODE 6295 6300 6305 6310 6315 6320 6325 6365 6370 6375 6380 6385 6390 6395 6400 6435 6440 6445 6450 6455 6485 6490 6495 6500 6505 6510 6515 6520 6525 6530 6535 6540 6545 6550 6555 6560 6565 6570 6575 6580 6585 6590 6595 6600 6605 6610 6615 6620 6625 6630

STATION NAME Phularwan Mansurabad Mona Pind Mukko (Halt) Pakhowal Banh Mianwali (Halt) Chak Saida (Halt) Sathoiwala Burj Munianwala Chiniot Chenab Nagar Lalian Tinoka Nishtarabad Ludewala Dherma Wegowal Shahpur Sadar Shahpur City Qila Sheikhupura Junction Bahrianwala Bahuman Mahmunwali Warburton Vakilwala Nanakana Sahab Zafarwal Buchiana Panj Pulla (Halt) Kot Daya Kishan Jaranwala Tufail Shahid (Halt) Patla Pithu Rana (Halt) Rurala Road Sarwar Shaheed (Halt) Jhok Ditta Chak Turan Tandianwala Chak Ibrahim Bhatti Mandi Rahme Shah Kanjwani Kot Khair Din (Halt) Manjhla Bagh Mamu Kanjan Kot Darya Bal Kamalia Magneja Pir Mahal

CODE

TRAIN NAME

CODE

EARNING TYPE DESCRIPTION

SUB EARNING TYPE CODE DESCRIPTION

CODE

MAIN ACCOUNT DESCRIPTION

CODE

DETAILED ACCOUNT DESCRIPTION

RUPEES

Page 21 of 24

Appendix II SUBSIDIARY CODING SCHEME FOR REVENUE (See paragraph 330)

CODE 6635 6680 6685 6690 6695 6700 6720 6725 6730 6735 6740 6745 6750 6755 6760 6800 6805 6810 6815 6820 6825 6830 6835 6840 6845 6847 6850 6855 6860 6865 6870 6900 6925 6930 6935 6940 6945 6950 6955 6975 6980 6985 6990 6995 7000 7005 7010 7045 7050 7055

STATION NAME Naim Ishfaq Shaheed Imamia Colony Missan Kalar Shakirabad Qila Sattar Shah Chichoki Mallian Machhike Farooqabad Sachca Sauda Bahalike Nawan Pind Safdarabad Abdullahpur Kolar Moman langowal Baruhi(Halt Kot Mul Chand Babakwal Srirampura Chah Sayidanwala Kala Khatai Shah Sultan (Halt) Narang Khunda Ladheke Mehta Suja Baddomalhi Alamgir Town Raya Khas Daud (Halt) Pejowali Kalas Goraya (Halt) Narowal Junction Jassar Junction Hazrat Shams Ghous Darbar Sahib Kartarp Bustan Afghanan NurKot Tehsil Shakargarh Mariyal Chak Amru Tasirabad Gunna Kalan Alhar Chawinda Pasrur Qila Sobha Sinagh Alipur Sayadan Domala Hanapur Rehana Hastedpur

CODE

TRAIN NAME

CODE

EARNING TYPE DESCRIPTION

SUB EARNING TYPE CODE DESCRIPTION

CODE

MAIN ACCOUNT DESCRIPTION

CODE

DETAILED ACCOUNT DESCRIPTION

RUPEES

Page 22 of 24

Appendix II SUBSIDIARY CODING SCHEME FOR REVENUE (See paragraph 330)

CODE 7090 7095 7100 7105 7110 7115 7120 7125 7130 7135 7140 7145 7165 7170 7175 7180 7185 7190 7195 7230 7235 7240 7245 7250 7253 7255 7260 7265 7267 7270 7290 7295 7300 7305 7325 7330 7335 7340 7345 7350 7355 7375 7380 7385 7390 7395 7405 7410 7415 7420

STATION NAME Harnal (Halt) Taragarh Sukho Muradi Janjil Daulatala Sood Bhidana Sayyad Kasran Dhudial Chak Naurang Behkari (Halt) Cakwal Bhaun Kahal Chauntra Mirjal Gagan Fateh Jhang Kutbal Nawgazi Mohra Shahwali Usman Khattar Farooqia Hattar Kot Najib Ullah Fertilizer Factory S Haripur Hazara Serai Saleh Baldher Sultanpur Havelian Kabul Seen Pul Kabul River Risalpur Cant Rashkai Gujar Garhi Kalpani Takht-i-Bhai Parkhoo Dheri Hathiyan Skhakot Durgai Qudrat Manga Qala-I-Nasir Sar Dheri Charsadda Wagah Taqipur Jallo Gullarpir (Halt)

CODE

TRAIN NAME

CODE

EARNING TYPE DESCRIPTION

SUB EARNING TYPE CODE DESCRIPTION

CODE

MAIN ACCOUNT DESCRIPTION

CODE

DETAILED ACCOUNT DESCRIPTION

RUPEES

Page 23 of 24

Appendix II SUBSIDIARY CODING SCHEME FOR REVENUE (See paragraph 330)

CODE 7425 7430 7435 7480 7485 7490 7495 7500 7505 7510 7515 7520 7525 7530 7535 7540 7545 7580 7585 7590 7595 7600 7605 7610 7615 7620 7625 7630 7635 7640 7645 7650 7655 7660 7665 7670 7675 7680 7685 7690 7695 7700 7705 7710 7715 7745 7758 7785 7790

STATION NAME Harbanspura Muslimabad (Halt) Moghalpura Junction Depot Hill Karachi University Urdu College (Halt) Karachi Central Liaqatabad North Nazimabad Orangi Manghopir Site Shah Abdul Latif Baldia Lyari Wazir Mansion Karachi Port Trust Taunsa Barrage Colony Taunsa Barrage Shadan Lund Basti Rahman Basti Darwash Lashar Dost Muhammad Abad Yaru Khosa Dera Ghazi Khan Paigah Kot Chhutta Basti Fauja Jampur Azmatwala Muhammadpur Diwan Hamunwala Fazilpur Dhandi Kotla Ihsan Rajanpur Kotla Nasir Mithan Kot Murghai Kot Behram Badli Mazari Rojhan Wali Mazari Basti Abdullah Halt Shah Wali Kashmor Colony Korangi Lahore Dry Port Margala (Islamabad Dry Port) Islamabad

CODE

TRAIN NAME

CODE

EARNING TYPE DESCRIPTION

SUB EARNING TYPE CODE DESCRIPTION

CODE

MAIN ACCOUNT DESCRIPTION

CODE

DETAILED ACCOUNT DESCRIPTION

RUPEES

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) S. Name of Powers No.
1 1 2 Creation of Temporary posts

Powers Delegated to the Ministries / Divisions


3 The creation of new posts in the Current Expenditure shall require the approval of the Finance Division, even when these are included in the current budget. The Secretaries of the Ministries / Divisions shall have full powers to create new post(s) in the Development Expenditure / PSDP, included in PC-I or PC-II after the approval of the project by the relevant forum subject to availability of development budget against Employees Related Expenses. These posts shall be continued on year to year basis till the completion of the project. Such posts(s) will cease to exist on the closure / completion of the project. After completion of the project and submission of PC-IV, the barest minimum and essential post(s) shall be converted from Development Expenditure to Current Expenditure with the approval of the Financial Adviser.

Powers Delegated to the Heads of Departments


4 Pakistan Diplomat (i) may create a temporary post for a maximum period of 5 days for enabling the transferred official to brief the incoming official and to hand over to him accountable documents etc.

Remarks
5 A post in any office or department which has remained vacant for a period of three years or more shall be deemed to have been abolished. The powers for revival of that post shall not be exercised without obtaining prior approval of the Financial Adviser. Advisers concurrence for continuance of temporary posts in the next financial year may be sought well before the beginning of that year so that the posts not agreed to by the Financial Adviser are not continued in the next financial year even for a day.

(ii) Financial

(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 the Heads of Departments
4

S. Name of Powers No.


1 2

Powers Delegated to the Ministries / Divisions


3

Remarks
5 Division for clearance. Details of temporary posts converted into permanent during the course of a financial year, which are proposed to be transferred from Part-II to Part-I of the budget for the next year, should invariably be reported to the Financial Adviser before the 1st October, every year.

Conversion of a temporary post into a permanent post

Full powers, subject following conditions:

to

the

As in column 3.

Posts which have been in existence continuously for five years or more, and have been created for work of a permanent nature, and are likely to continue for an indefinite period.

3 4

Abolition of posts Reimbursement of Medical Charges Re-appropriation of funds

Full Powers. Full powers subject to availability of budget. Full powers, subject to the 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 reappropriation 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 reappropriation may be made: (i) from one grant to another; (ii) after the expiry of the financial year;

As in column 3. As in column 3.

As in column 3.

Page 2 of 24

APPENDIX III
Powers Delegated to the Heads of Departments
4

S. Name of Powers No.


1 2

Powers Delegated to the Ministries / Divisions


3 (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 not provided for in the budget estimates authorized for the year; and (iii) expenditure for a purpose the allotment for which was specifically reduced or refused by the National Assembly. (a) All powers of appropriation and re-appropriation conferred upon Administrative Ministries / Divisions/ Departments/Subordinate 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 reappropriated; (b) No re-appropriation may be made: (i) from Development to Current Expenditure and vice-versa;

Remarks
5

If funds to meet a new service are available under the relevant grant, re-appropriation for such new service may be made after a token sum has been allocated through a Supplementary Grant.

Page 3 of 24

APPENDIX III
Powers Delegated to the Heads of Departments
4

S. Name of Powers No.


1 2

Powers Delegated to the Ministries / Divisions


3 (ii) from to, or within the Employees Related Expenses, from Operating ExpensesCommunication-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 / Department / Subordinate Office (including any autonomous body) shall be authorized to reappropriate funds from one development scheme to another development scheme. In exceptional cases, however, reappropriation 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 schemes controlled/ executed by the Planning and Development Division themselves, approval for re-appropriation of funds from one development scheme to another, if necessary, shall be made with the prior approval of the Financial Adviser to that Division.

Remarks
5

In the case of expenditure on works, the conditions laid down in paragraphs 31 and 32 of Appendix 6 to the Central Public Works Account Code shall also apply.

Appropriation or reappropriation in accordance with provisions of S.No. 5(I), (II) and (III) in Column 3 by a competent authority will, if that authority is authorized to sanction the expenditure in question, operate as sanction to such expenditure.

Page 4 of 24

APPENDIX III
Powers Delegated to the Heads of Departments
4 As in column 3.

S. Name of Powers No.


1 6 2 Power to declare stores surplus or unserviceable.

Powers Delegated to the Ministries / Divisions


3 Full powers, subject to prescribed conditions.

Remarks
5 Heads of Pakistan Missions abroad may exercise these powers in accordance with approved scales, in respect of the residences of officers subordinate to them. Heads of Pakistan Missions abroad may exercise these powers in accordance with approved scales, in respect of the residences of officers subordinate to them.

Powers to sell surplus or unserviceable stores and stock by auction.

Full powers, subject prescribed conditions.

to

the

As in column 3.

Write off of irrecoverable value of stores or public money due to losses on account of fraud, theft, etc.

Upto Rupees 5,000,000 (Rupees Five Million) in each case, provided that : (a) the loss does not disclose a defect of system the amendment of which requires the orders of higher authority; and (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 to a limit of Rupees 200,000 (Rupees Two Hundred Thousand) to cover deficiencies on account of breakage, shortage in transit, wastage, spoilage and bottling, dryness in storage and depreciation on account of wear and tear fluctuation in market prices and obsolescence.

Upto to Rupees 100,000 (Rupees One hundred thousand) subject to observance of conditions mentioned in Column 3.

Subordinate authorities already enjoying the power in (ii) of Column 3 beyond this limit may continue to exercise those powers.

Page 5 of 24

APPENDIX III
Powers Delegated to the Heads of Departments
4

S. Name of Powers No.


1 9 2 Expenditure against provisions in the budget shall be sanctioned in the following manners: Project PreInvestment Analysis (1) Feasibility Studies, Research and Surveys and Exploratory Operations Operating Expenses (2) Travelling Allowance. (3) Transportatio n of goods. (4) POL Charges and CNG Charges. (5) Conveyance charges. (6) Postage (7) Telephone and Trunk Calls (8) Telex and Teleprinter and FAX (9) Electronic Communication.

Powers Delegated to the Ministries / Divisions


3

Remarks
5

Full powers, subject prescribed conditions.

to

the

As in column 3.

Full powers, subject prescribed conditions. Full powers.

to

the

As in column 3.

As in column 3.

Full powers, subject to observance of ceilings where applicable.

As in column 3.

Full powers, subject prescribed conditions. Full Powers.

to

the

As in column 3.

As in column 3. As in column 3.

Full powers, subject to observance of prescribed ceilings where applicable. Full powers, subject to observance of prescribed ceilings where applicable. Full powers, subject to observance of prescribed ceilings where applicable.

As in column 3.

As in column 3.

Page 6 of 24

APPENDIX III
Powers Delegated to the Heads of Departments
4 As in column 3.

S. Name of Powers No.


1 2 (10) Courier and Pilot Services (11) Utilities (Gas, Water, Electricity) Hot & Cold Weather Charges, Others. (12) Office Stationery. (13) Printing & Publications.

Powers Delegated to the Ministries / Divisions


3 Full Powers.

Remarks
5

Full powers, subject to observance of prescribed ceilings where applicable.

As in column 3.

Full Powers.

As in column 3.

Full powers, provided that printing at a press other than a press of the Printing Corporation of Pakistan, should be undertaken only if the Principal Accounting Officer is satisfied that it is in public interest to do so and records a certificate to that effect.

As in column 3.

The job of printing material of sensitive and classified nature shall continue to be performed by Printing Corporation of Pakistan. The Principal Accounting Officer shall determine the nature of such printing material.

(14) Newspapers Periodicals and Books. (15) Uniform and Liveries.

Full Powers.

As in column 3.

Full Powers, provided that the purchase of uniforms and liveries shall be made subject to the prescribed scales and prices. (i) Works Division & Defence Division. Full powers. (ii) Ministry of Foreign Affairs. Full powers in respect of Pakistan Missions abroad. (iii) Other Ministries/Divisions: (a) Upto Rupees 100,000 (Rupees One Hundred Thousand) per month for Islamabad / Rawalpindi / Lahore / Karachi / Peshawar / Quetta. (b) Upto Rupees 50,000 (Rupees Fifty thousand) per month for other place or as approved from time to time.

As in column 3.

(16) Rent of nonresidential buildings.

The powers to incur expenditure on rent of non-residential and residential buildings shall be subject to the approved rates and scales. In sanctioning rents, merits and local conditions in each case will be kept in mind.

Page 7 of 24

APPENDIX III
Powers Delegated to the Heads of Departments
4 As in column 3.

S. Name of Powers No.


1 2 (17) Rent of Residential Buildings.

Powers Delegated to the Ministries / Divisions


3 (i) Full powers to incur expenditure from within the sanctioned budget grant as per prescribed rental ceiling and grant one year advance payment of rent during the lease period and subject to availability of funds. (ii) Ministry of Foreign Affairs: Full powers in respect of Pakistan Missions Abroad.

Remarks
5 (1)In sanctioning rent, merits and local conditions in each case will be kept in mind. (2) Powers at (i) and (ii) in Column 3 may be exercised only in the case of government servants who are entitled to provision of residential accommodation under any general or specific orders.

(18) Consultancy and Contractual Work. (19) Royalties, Rates and Taxes, Rent of Machine and Equipment. (20) Training Domestic. (21) Payment to Government Departments for services rendered (22) Essay writing and Copy Rights (23) Law Charges.

Full Powers subject to observance of prescribed conditions.

As in column 3.

Full powers.

As in column 3.

Full powers.

As in column 3.

Full powers.

As in column 3.

Full powers.

As in column 3.

Full powers, in consultation with Law Division. Full powers, in consultation with Law Division. Full powers.

As in column 3.

(24) Fees to Law Officers (25) Exhibitions, Fairs and Other National Celebrations

As in column 3.

As in column 3.

Page 8 of 24

APPENDIX III
Powers Delegated to the Heads of Departments
4 As in column 3.

S. Name of Powers No.


1 2 (26) Advertising and Publicity. (27) Payments to Others for services rendered. (28) Purchase of drugs and medicines. (29) Contribution & Subscription. (30) Expenditure on Pakistani delegations to Foreign Countries. (31) Loss on Exchange (32) Secret Service Expenditure (33) Conferences / Seminars / workshops / Symposia (34) Unforeseen Expenditure. Employees Retirement Benefits (35) Reimbursem ent of Medical Charges to Pensioners. Grants (36) Grants domestic.

Powers Delegated to the Ministries / Divisions


3 Full powers, subject to prescribed conditions. Full powers, subject to observance of prescribed conditions.

Remarks
5

As in column 3.

Full powers.

As in column 3.

Full powers.

As in column 3.

Full powers, in accordance with prescribed conditions.

As in Column 3.

Full powers, in accordance with prescribed conditions. Full powers, in accordance with prescribed conditions. Full powers, in accordance with prescribed conditions.

As in column 3.

As in column 3.

As in column 3.

Rupees 100,000 (One Hundred Rupees Thousand) (Rupees Thousand)

50,000 Fifty

Full powers subject to availability of budget.

As in column 3.

(i) Institutions wholly financed by As in clause (i) and (ii) the government:(a) of column 3. Full powers, to release the amount

Page 9 of 24

APPENDIX III
Powers Delegated to the Heads of Departments
4

S. Name of Powers No.


1 2

Powers Delegated to the Ministries / Divisions


3 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.

Remarks
5

Transfers (37) Scholarships, Bonuses and Other Awards. (38) Entertainmen t. Full powers in accordance with the approved rates for scales. As in column 3.

(i) For light refreshment not exceeding Rupees 30 (Rupees Thirty) per head at meetings convened for official business. Decision to incur such expenditure will be taken only by officers of and above the status of Joint Secretary. (ii) For receptions, lunches and dinners: up to Rupees 40,000 (Rupees Forty Thousand) in each case for Ministries / Divisions subject to the condition that per head expenditure including taxes and soft drinks etc should not in any case exceed Rupees 1200 (Rupees Twelve Hundred). (iii) For serving lunch boxes not exceeding Rupees 200 (Rupees Two Hundred) per head in meeting which are prolonged

As in (i) of column 3.

Welcome or farewell receptions, lunches and dinners to Government functionaries should not be arranged at the expense of public exchequer. (a Notwithstanding the provisions of para 8 (c) of this O.M. the power at (ii) and (iii) above shall not be delegated by the Secretaries of administrative Ministries / Divisions to the officers subordinate to them in the Ministries / Divisions and elsewhere. (b) The expenditure involved shall be subject

Page 10 of 24

APPENDIX III
Powers Delegated to the Heads of Departments
4

S. Name of Powers No.


1 2

Powers Delegated to the Ministries / Divisions


3 beyond office hours without break in the interest of Government work.

Remarks
5 to availability of budget. No proposals for 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. (a) For presentation to the foreign dignitaries only. (b) Subject to the conditions mentioned under Sl.No. 9(38) (b) column 5 above.

(39) Gifts

Upto Rupees 10,000 (Rupees Ten Thousand) in one year subject to availability of budget.

Expenditure on Acquiring of Physical Assets. (40) Purchase of Building, Computer Equipment, 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 on Roads, Highways & Bridges, Irrigation Works, Approved Development schemesFull powers, subject to release of funds with the prior approval of Financial Adviser as provided under Para 13 (vii) of this O.M. Includes powers for purchase of land for Pakistan missions abroad and construction of building thereon. Full powers, subject to observance of prescribed conditions & instructions of Cabinet Division, regarding purchase of transport. As in column 3.

Page 11 of 24

APPENDIX III
Powers Delegated to the Heads of Departments
4

S. Name of Powers No.


1 2 Embankment and Drainage Works, Building & Structures, Other Works and Telecommunicati on Works and Drought Emergency Relief Assistance (DERA) works. Repair & Maintenance (42) Transport

Powers Delegated to the Ministries / Divisions


3 Non-Development Works upto Rupees 1,000,000 (Rupees One Million).

Remarks
5

Rupees 100,000 (Rupees One Hundred Thousand) at any one time to one or any number of vehicles used by the Ministry / Division.

As in column 3.

US $2000 ($ Two thousand) at any one time to one or any number of vehicles used by the Pakistan Missions Abroad. (i) Heads of Missions abroad may exercise these powers in accordance with approved scales in 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.

(43) Machinery & Equipment, Furniture & Fixtures and Computer Equipment.

Full powers subject prescribed conditions.

to

the

As in column 3.

(44) Buildings & Structure of Pakistan Missions abroad owned by the Government of Pakistan.

Ministry of Foreign Affairs; per financial year upto 10% of annual standard rent.

As in column 3.

Page 12 of 24

APPENDIX III
Powers Delegated to the Heads of Departments
4

S. Name of Powers No.


1 2 (45) Building & Structures (hired and the requisitioned)

Powers Delegated to the Ministries / Divisions


3 Accommodation for office and residential purposes: upto two months rent as the land lords liability limited to the lease period of not less than three years.

Remarks
5 Heads of Missions: Upto $200 ($ Two hundred) per annum within the financial year. No liability shall be incurred for government on this account.

(46) Powers to give administrative approval to works in respect of nonresidential buildings. 10 Powers to order refund in accordance with the rules or in pursuance of decisions of courts in respect of which no appeal is proposed to be filed. Compensation payable to any individual under law, rules, or judgement of courts. Charges for remittance of pay and or allowances of establishment by money order or by bank drafts, other than leave salary.

Works Division upto Rupees 2,000,000 (Rupees Two Million) Other Ministries and Divisions upto Rupees 500,000 (Rupees Five Hundred thousand).

Full powers.

As in column 3.

11

Full powers.

As in column 3.

12

Full powers.

As in column 3.

Page 13 of 24

APPENDIX III
Powers Delegated to the Heads of Departments
4 As in column 3.

S. Name of Powers No.


1 13 2 Powers to sanction investigation of claims of government servants to arrears of pay, allowances, etc.

Powers Delegated to the Ministries / Divisions


3 Full powers subject to restrictions under paras 125 and 126 of GFR Volume I.

Remarks
5 Claims of government servants to arrears of pay and allowances or increments, or in respect of any underpayments, which have been allowed to remain in 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. Six advance increments can also be allowed to those nominees of the FPSC who are already in government service over and above minimum of the respective pay scale to which they are appointed and not over and above their protected pay under FR. 22.

14

Fixation of initial pay by grant of premature increments in cases of first appointment under government of persons not already in the service of the Federal, or a Provincial Government.

Powers to grant not more than six premature increments for the initial fixation of pay subject to the following conditions: (a) In cases of persons appointed through the FPSC, premature increments should be granted, on the recommendations of the FPSC, and in consideration of the fact that suitable persons of requisite qualifications are not available in the minimum pay of the post. (b) No premature increments should be granted in cases of adhoc appointments in anticipation of FPSCs 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.

As in column 3.

Page 14 of 24

APPENDIX III
Powers Delegated to the Heads of Departments
4 As in column 3.

S. Name of Powers No.


1 15 2 Fixation of initial pay of an officiating government servant on appointment to another post in a time scale of pay.

Powers Delegated to the Ministries / Divisions


3 Power to fix the initial pay in the time scale of the new post at the stage at which it would have been fixed under the rules if the officiating pay in respect of the old post was the substantive pay, of the government servant provided that:(a) the government servant concerned has held that (post for a period of three years continuously (including period of leave) or would have held it for that period if 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.

Remarks
5 In case where the initial pay in the time scale of a new post is fixed in exercise of these powers, the government servant will, for the purposes of subsequent drawls of pay in that post (and for these purposes only), be treated as if the government servant were holding a lien on the old post.

16

Fixation of scales/rates of pay and allowances of posts in Pakistan Missions abroad to which recruitment is made locally.

Full powers to the heads of Pakistan Missions abroad concerned to sanction increase in scales / rates of pay corresponding to the increase allowed by the local government subject to the availability of budget provision. Full powers upto the level of Section Officer and equivalent. The amount should not exceed one months pay of the government servant concerned on each occasion. In the case of recurring honoraria, this limit applies to the total of recurring payments made As in column 3. The power will be exercised subject to the condition that the relevant rules and policy instructions issued by the Finance Division from time to time are duly observed and that the

17

Sanction to the undertaking of work for which an honorarium is offered and the grant of acceptance of an honorarium.

Page 15 of 24

APPENDIX III
Powers Delegated to the Heads of Departments
4

S. Name of Powers No.


1 2

Powers Delegated to the Ministries / Divisions


3 to an individual in a financial year.

Remarks
5 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 honoraria to government servants in connection with departmental examinations in accordance with the rules.

Full powers, in accordance with approved rates or scales.

As in column 3.

19

Power to sanction

Full powers.

As in column 3.

Page 16 of 24

APPENDIX III
Powers Delegated to the Heads of Departments
4

S. Name of Powers No.


1 2 the undertaking of work for which a fee is offered and acceptance of fee. Exemption from crediting portion of fees to government.

Powers Delegated to the Ministries / Divisions


3

Remarks
5

20

Full powers in respect of fees paid to government servants for services rendered in Pakistan.

As in column 3.

One third of any fee in excess of $1000 ($ One thousand) or equivalent received by a civil servant for a foreign Consultancy outside Pakistan shall be credited to general revenues.

21

Relaxation of the prescribed time limit for submission of TA Bill.

(i) Where no TA advance was drawn: Full powers. (ii) Where T.A advance was drawn: 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. Full powers, subject to the following conditions: (i) Instructions contained in Government Decision No. 15 under S.R. 116 are duly observed. (ii) Where advance of TA had been drawn in respect of the family members and the family did not accompany the government servant, the advance would be refunded within one year.

As in column 3.

22

Relaxation of the prescribed time limit where the family of transferred government servant could not join within one year due to shortage of accommodation, education of children or on medical or compassionate grounds. Relaxation of the prescribed time limit in respect of a member of the family of a

As in column 3.

23

Full powers provided that the family performed the journey after the transfer orders for the government servant were issued.

As in column 3.

Page 17 of 24

APPENDIX III
Powers Delegated to the Heads of Departments
4

S. Name of Powers No.


1 2 transferred government servant preceding him. Power to decide the amount of Permanent travelling allowance to be drawn by a government servant holding more than one post to which Permanent travelling allowance is attached.

Powers Delegated to the Ministries / Divisions


3

Remarks
5

24

Full powers, provided that the limit laid down in SR 24 is not exceeded.

25

Full powers, subject to the Relaxation of adjustment of TA advance within prescribed time twelve months. limit where the 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. Grant of permission for the family to precede a government servant granted leave travel concession. Grant of TA concession during leave where leave is combined with Full Power, subject to the condition that the family precedes the government servant after the formal sanction of leave.

As in column 3.

26

27

Full powers.

As in Column 3.

Page 18 of 24

APPENDIX III
Powers Delegated to the Heads of Departments
4

S. Name of Powers No.


1 2 extraordinary leave due to circumstances beyond the control of government servant. Permission to travel by air on transfer to a Pakistan Mission abroad in cases where air route is not the approved route. Grant of travelling and daily allowance to nonofficial members of Commissions / Committees etc. set up by the government and to foreign experts. Grant of daily allowance for compulsory halt due to dislocation of communications. Grant of extraordinary leave to temporary government servants upto one year for reasons beyond their control. Grant of leave terms to employees

Powers Delegated to the Ministries / Divisions


3

Remarks
5

28

Full powers to send an official by air. The decision shall be taken at the level of Secretary.

29

30

Daily allowance upto the maximum rates admissible to government servants, and in addition, where the person concerned has, of necessity, to stay in a hotel, reimbursement of actual single room-rent, subject to the production of hotel receipts / vouchers, upto the maximum rate admissible to government servants. Full powers.

As in column 3.

31

Full powers.

As in column 3.

As prescribed Revised Leave 1980.

under Rules,

32

Full powers to the extent covered by model rules laid down in Appendix-10 to FR & SR Volume

As in column 3.

In terms of Item No. 8 of the standard terms and conditions laid down

Page 19 of 24

APPENDIX III
Powers Delegated to the Heads of Departments
4

S. Name of Powers No.


1 2 appointed on contract. II.

Powers Delegated to the Ministries / Divisions


3

Remarks
5 vide Establishment Divisions O.M. No. 10/52/95-R-2, dated 187-1996.

33

Grant of special disability leave.

34

Grant of advance to government servants from various provident funds. Permission to postpone recovery of advance drawn from the GP Fund for a specified period. Grant of advance for the purchase of Motor Car/Motor Cycle to temporary government servants. Relaxation of the time limit of one month within which purchase of conveyance should be completed. Authorization of the final payment of the dues of a deceased government servant to the members of family, dispensing

Full powers provided that the disability manifests itself within three months after the occurrence of its cause. Full Powers, subject to the condition that advances will be allowed in a manner that only one advance will remain outstanding at one time. Power to postpone recovery of advance for a period not exceeding two years.

As in column 3.

As in column 3.

35

As in column 3.

36

Full powers subject to the production of surety bond and fulfilment of other conditions prescribed by the rules.

As in column 3.

37

Full powers to raise the limit upto six months.

As in column 3.

38

Full powers subject to the production of indemnity bond or provided that the amount or balance standing to the credit of a deceased subscriber in the fund is to the extent of Rupees 20,000 (Rupees Twenty thousand).

The amount is paid in accordance with the provisions of Clause (I) of sub-rule (I) of rule 234 of the Federal Treasury Rules Volume I.

Page 20 of 24

APPENDIX III
Powers Delegated to the Heads of Departments
4

S. Name of Powers No.


1 2 with the production of succession certificate and guardianship certificate in the case of minor heir (s). 39 Question of deciding the real legal heir (s) in case where there is no nomination or the nomination is incorrect or invalid. Condonation of interruption of service.

Powers Delegated to the Ministries / Divisions


3

Remarks
5

Full powers in consultation with the Law Division.

40

Full powers provided each spell of service is qualifying but not in the case of voluntary retirement, or on resignation from public service. Upto any period, less than a year if both the conditions mentioned below are satisfied: (i) If a government servant dies while in service or retires under 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).

Subject to fulfilment of conditions given under Civil Service Regulations (CSR) 420. The powers shall not be exercised in the case of government servants who have rendered less than 5 years continuous service.

41

Condonation of deficiency in qualifying service for pension.

42

Grant of conveyance allowance

Power to sanction conveyance allowance to government servants whose ordinary duties involve extensive travelling at or within a short distance from the headquarters in terms of SR 25, provided that:

Subject to rates approved by the Finance Division.

Page 21 of 24

APPENDIX III
Powers Delegated to the Heads of Departments
4

S. Name of Powers No.


1 2

Powers Delegated to the Ministries / Divisions


3 (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;

Remarks
5

43

Power to sanction deputation of government servants.

I. Temporary Duty Abroad Full powers subject to the following conditions and the 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 wifes passage are borne by the

Page 22 of 24

APPENDIX III
Powers Delegated to the Heads of Departments
4

S. Name of Powers No.


1 2

Powers Delegated to the Ministries / Divisions


3 host government / agency, provided that no additional foreign exchange is involved and that the wife travels exclusively by a Pakistan carrier, like PIA etc.

Remarks
5

II Training - International Full powers subject 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 government servant to take his wife with him on training abroad in the following cases: (a) where the period of training is more than one year; (b) Where the period of training is one year or less and the cost of wifes passage is borne by the donor government/agency; and (c) where the period of training is to the

In both the cases mentioned at (vi) (a) and (b), the government servant will draw his full pay and allowances (excluding compensatory allowances) in foreign exchange for the period of stay of his wife abroad. The permission shall be granted by the Secretary or the Additional/Joint

Page 23 of 24

APPENDIX III
Powers Delegated to the Heads of Departments
4

S. Name of Powers No.


1 2

Powers Delegated to the Ministries / Divisions


3 more than six months but not more than one year and the government servant concerned bears cost of wifes passage etc. provided that no additional foreign exchange is involved, the wife travels exclusively by a Pakistani carrier like PIA etc, and the government servant concerned shall draw, in foreign currency, 50% of pay as admissible under the normal rules.

Remarks
5 Secretary Incharge of a Division, who will certify that it would be desirable for the government servant to take his wife alongwith him. The Secretary / Additional lncharge shall also satisfy that the salary, subsistence allowance 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.

Page 24 of 24

APPENDIX IV

(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.

Page 1 of 9

APPENDIX IV

(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 subsection (2) of section 71D shall apply; (d) prescribing the authorities by whom exemptions under sub-section (3) of

Page 2 of 9

APPENDIX IV

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.

Page 3 of 9

APPENDIX IV

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) (ii) supervisory staff; certain sections of the staff of the Health and Medical Departments such as Assistant Surgeons, Sub-Assistant Surgeons, Matrons and Sisters-incharge; persons employed in confidential capacity; saloon attendants; 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; 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; armed guards or other police personnel subject to military or police discipline, as the case may be;

(iii) (iv) (v)

(vi)

(vii)

(viii) staff of the Railway schools imparting technical training or academic

Page 4 of 9

APPENDIX IV

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) (ii) (iii) (iv) intensive; essentially intermittent; includes staff; 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) (ii) intensive and continuous workers a minimum of 30 consecutive hours; 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 days 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.

Page 6 of 9

APPENDIX IV

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 employees place of residence and his place of work (or the employees 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 staffsuch as pay clerkswhen 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 worke.g., the dispatch of a trainand 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: (a) (b) (1) where a worker..

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 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.

Page 8 of 9

APPENDIX IV

(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. ii. iii. iv. the value of any house accommodation, supply of light, water, medical attendance or other amenity; any contribution paid by the employer to any pension fund or provident fund; or any travelling allowance or the value of travelling concession; or 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.

Page 9 of 9