Pakistan Economy - News & Updates

[ameer219]

WEEKLY REVIEW: Foreign buying, consensus on 18th Amend keep KSE in the green


KARACHI: The Karachi stock market witnessed a bullish trading week on account of consensus among all political parties of the country achieved on the 18th Amendment and registration of foreign buying at 30-week record high of $35.7 million.

The Karachi stock market (KSE) 100-share index was up by 289.49 points or 2.7 percent to close at 10,416.52 points as compared to 10,127.03 points of the previous week.

Analysts said that other major factors that supported the market included intense buying as international oil prices crossed $85 inviting foreign interest in oil and gas sector followed by blue chip fertilizer and bank scrips.

The turnover reached 205.62 million shares as against 211.33 million shares of the previous week, reflecting a decline of 2.70 percent.

Foreign buying registered a 30-week record high of $35.7 million, with Engro, OGDC and POL being the star performers,” said JS Sec analyst Rabia Tariq. “Status quo maintained under the latest monetary policy during the weekend failed to dampen the market’s sentiment.”

The immediate reaction of investors to the news of national consensus on the proposed constitutional reforms has positively impacted the markets; Pakistan’s CDS lowered by 87 basis points, the 100-share index rose by 2.3 percent on the last two trading days and the rupee exchange showed stability against the dollar, she said.

Status quo maintained under the latest monetary policy announced during the weekend did not dampen the market sentiments. The oil and gas and chemical sector outperformed the market with OGDC, POL and PPL gaining 4.6 percent, 4.2 percent and 2.3 percent, respectively on the back of rising international oil prices.

Mixed activity was observed in the cement sector, post the implementation of the inland freight subsidy.

Foreigners registered record buying of $35.7 million during this week, which was the highest in the preceding 30 weeks. On the contrary, individuals were net sellers of $14.1 million

“Intense buying was witnessed as international oil prices crossed $85 a barrel inviting foreign interest in oil and gas sector followed by blue chips- fertilizer and bank scrips,” said Shahzad Chamdia Sec analyst Ahsan Mehanti. “Ratings maintained by Moody’s at B3 with stable outlook on Pakistan, resolution of political conflicts in 18th Amendment of Pakistan Constitution and expectations of early resolution of circular debt issue as Ministry of Finance plans Rs 100 billion Sukuk issue and higher DAP offtake data from NDFC played a catalyst role in the positive activity.”

Daily Times - Leading News Resource of Pakistan

 

[ramu]

World Bank urges more economic reforms

ISLAMABAD: Pakistan's economy has made progress through tough reforms but still needs to boost tax revenues and increase power supplies to improve finances, the World Bank said on Friday.

During two days of meetings with officials, including Abdul Hafeez Sheikh, the new Finance Adviser to the prime minister, World Bank Vice President for South Asia Isabel Guerrero noted substantial economic progress since her last visit in 2008.

She noted Pakistan's reserves had rebounded, the World Bank said in a statement. But Guerrero said further action was needed.

“To become independent of foreign aid, Pakistan needs to strengthen its own revenue generation,” she said in a statement.

The government has pledged to keep the fiscal deficit at 4.9 per cent of gross domestic product (GDP) in the 2009/10 (July-June) fiscal year under its agreement with the International Monetary Fund, but it has said it could rise to 5.3 per cent.

GDP growth this fiscal year is forecast at 3.3 per cent but could go up to 3.4 percent, compared with 2 per cent last year, officials say.

But revenue collection is a chronic problem which successive governments have failed to come to grips with.

Pakistan's tax-to-GDP ratio of 9.2 per cent is one of the lowest in the world. The government aims to raise it to at least 15 per cent.

Shaikh, a former privatisation minister, will be put to the test as Pakistan's weak government attempts to energise a struggling economy battered by a Taliban militant insurgency and starved of foreign investment.

He must also try to strike a balance between policy demands by the IMF, which provides critical financial support for Pakistan, and the government's desire not to alienate voters who could be hurt by those policies.

“The World Bank will provide strong support to expand power supply in the coming years, and at the same time, work with the sector to continue to improve its financial health and quality of services,' said Guerrero.

Pakistan clinched an emergency loan package of $7.6 billion with the IMF in November 2008 to avert a balance of payments crisis and the Fund is likely to approve disbursement of the delayed fifth tranche next month.—Reuters

DAWN.COM | Business | World Bank urges more economic reforms

 

[Omar1984]

New projects push cement sales up​

KARACHI: The start of construction work on new small apartments’ projects and large scale renovation of houses have pushed up the local demand and sales of cement.

Around 35-40 new projects of small apartments have been launched in Karachi since Ramazan last year. Many people have started renovation of their houses as they think that it is the right time as steel prices are comparatively low this year along with fall in cement prices.

According to figures provided by All Pakistan Cement Manufactures Association (APCMA), total local sales in July-Feb 2009-10 surged to 14.596 million tons from 12.855 million tons in the same period of last fiscal.

The rate of cement bag in Northern Region ranges between Rs240-250 per 50 kg bag, while in Southern Region the price, hovers between Rs260-300 per bag, the association official said.

Local sales of cement in 2007-08 were 22 million tons as compared to 20.5 million tons in 2008-09, while the industry is expecting sale of 21.5 million tons at the end of current fiscal year.

However, the official said that the government is pocketing Rs68 per 50 kg bag in terms of taxes and duties (Rs35 as excise duty, Rs30 as sales tax and Rs3 as special excise duty).

The average freight charges now come to Rs40 per bag.

The coal price is now Rs$110 per ton, which translates into Rs85 per 50 kg bag for plants producing cement in Northern Areas and Rs75 per bag for plants in Southern region.

Four months back the coal rate was $75 per ton. The price of paper bag used in packing comes to Rs15.50 per bag.

He said that these figures reveal the cost of production of cement is high and as a result, some five to six units have already closed their production in the last 3-4 months.

The APCMA official said the exports were also likely to range between 11-12 million tons in 2009-10. He said due to economic slowdown, cement exporters are fetching $48-52 per ton on exports of bagged cement as compared to $60-70 per ton last year.

On loose cement, exporters are getting average price of $40 per ton as against $52 last year. The rate of cement in world markets has come down after financial crunch.

Besides, exports of cement went up in quantity to 7.328 million tons in July-Feb 2009-10 as compared to 6.686 million tons in the corresponding period of last year.

The official said the cement exports fetched around $800-850 million last fiscal but this fiscal, it may hover between $600-650 million.

Meanwhile, APCMA Chairman Brig (rtd) Asmatullah Khan Niazi said freight proposals have been approved by the government on association’s demand.

However, the proposals submitted to the commerce ministry suggested that freight subsidy should be given to all units irrespective of the fact whether they are located within 100 km of the port or not.

He said the subsidy was proposed to be given at a percentage of the cost of freight from the manufacturing unit to the port. The government suggestion to exclude factories within a 100 km of the port is, therefore, not in line with the proposals submitted by APCMA.

 

[Omar1984]

Foreign equity inflow at $113m in March​

Analysts attributed the huge inflows to renewed interest of foreign fund managers in frontier and emerging markets. The aggregate foreign portfolio investment of $2.1bn amounts to 23pc of the free float. - File photo


KARACHI: Including the net foreign purchase of shares in the phenomenal sum of $13.07 million on the last trading day of the month, the Pakistan capital market attracted $113 million during March.

Figures released by the State Bank of Pakistan showed that up until 20th of the month, aggregate foreign holding in the equity markets stood in the sum of $2.1 billion.

March marked the 10th successive month of a bull run by foreign funds. Share purchases (net) by offshore investors since June 2009 were recorded at $419 million. During the period, benchmark KSE-100 Index gained 38 per cent (33pc in US$).

Analysts at brokerage Topline Securities point to an interesting phenomenon: “In one month every year, overseas investors pour more than $100 million in the local markets. In 2008, month of February saw net overseas buying of $105 million; Sept 2009 witnessed net buying of $127 million and in the current year, March had kept up the tradition of attracting foreign portfolio investment of over $100 million.

Analysts attributed the huge inflows to renewed interest of foreign fund managers in frontier and emerging markets. The share of overseas investment in total volumes at the local bourses increased to 15 per cent in March, from an average of 9 per cent in 2009.

Topline Securities’ analysts point out that contrary to the previous trend, KSE index climbed by just 6 per cent during the outgoing month, regardless of its scaling the peak of 10,000 points after 18 months. The market had rallied by 8 per cent the last time it had posted $100 million plus net buying in Sept 2009.

Earlier still in Feb 2008 shares had gained 7 per cent. “The difference was attributable to aggressive profit taking during March by local investors amid liquidity crunch,” say the analysts.

The aggregate foreign portfolio investment of $2.1 billion amounts to 6 per cent of the aggregate market capitalisation. But in relation to free float it amounts to 23 per cent.

The offshore investors’ peak holding was recorded at $5.1 billion (27 per cent of free float) in April 2008, and lowest was seen at $1 billion (17 per cent of free float) in March 2009.

 

[ameer219]

'There will be no need of foreign aid after enforcing VAT'
RECORDER REPORT

MULTAN (April 05 2010): Member, Policy (Direct Tax), of Federal Board of Revenue, Israr Rauf, has said that there will be no need of foreign aid after imposition of value-added tax (VAT), and Pakistan would be 137th country where this tax would be introduced with approval of parliament.

Addressing a meeting of Multan Chamber of Commerce & Industry (MCCI) and PCGA, chaired by Asrar Ahmed Awan, MCCI president, he said that FBR had fixed the target of 3 million tax declarations for the year 2010-11 while 2.2 million declarations were filed in 2009-10. He said he was optimistic that FBR would achieve its revenue targets fixed for the current financial year.

He said that FBR would directly collect income tax from the ginners and textile millers, and the dispute between FBR and ginners, textile millers on the issue of cut in income tax would be resolved on top priority basis.

He said that value-added tax would be realised at the same rate that of general sales tax, and powers of tax collectors to grant any exemption had been abolished. However, the Parliament would be sovereign to grant any exemption to any sector and it would be realised at the uniform rate of 15 percent.

He said that all chambers, trade organisations, trade bodies, associations were being taken into confidence on this issue. He said that only 0.6 million, out of 3.1 million commercial consumers of electricity, were filing declarations. He said that 0.1 million property owners were inducted in the tax net under enforcement plan, while 10,000 owners of luxury vehicles had been asked to file their declarations.

"We have succeeded in taking 2,50,000 fresh tax payers in the net, while a similar number of people would be inducted in the list of tax payers by June 30, 2010. After introduction of VAT, refunds would be made directly from the bank. He claimed that economic condition had improved during last three months. He said that tax payers of Rs 5 million turnover would have to pay tax on Rs 7.5 million turnover from next financial year. "However, we are collecting taxes on the basis of respect and mutual understanding and we have no intention to create a state of harassment through arrests and confiscation of properties."

He admitted that Senate had asked to defer VAT for one year and reducing its rate from 15 percent to 12.5 percent.

He assured that issues like value-added tax, withholding tax, workers welfare fund and refunds raised by PCGA would be resolved on top priority basis and amount of refunds would be transferred to the bank account of the applicant. He said that Pakistan's rate of tax against GDP was less than other countries which is only 8.8 percent. It would be increased to 29 percent after levy of VAT.

He said that Pakistan would get debt of $ 11.3 billion from IMF under standby agreement. "We have so far received $6 billion till March 2010 while another tranche of $1.2 billion would be received in April. PCGA chairman Muhammad Akram said that VAT would directly hit the farmers who were playing a key role in strengthening the national economy while ginners entire investment would be dumped in the tax.

Business Recorder [Pakistan's First Financial Daily]

 

[Omar1984]

100%: A new women brand launched​

RAWALPINDI - Senior Vice President Rawalpindi Chamber of Commerce and Industry (RCCI), Syed Ali Raza Saeed Shah, has said that women entrepreneurs can play a vital role in boosting the national economy while RCCI always facilitates the women entrepreneurs of the region and provides them a platform to prove their talent.

He stated this while talking to the members of a newly introduced fashion brand during an expo at the Chamber here on Friday.

Ali Raza said that Pakistani women had enormous talent and if a better environment would be provided to the women entrepreneurs, they could bring revolutionary changes in country’s prevailing economic situation.

He said that RCCI constantly assisted and welcomed the new comer with new ideas. He praised the ideas carried out by the three young members of the “100%” in the field of fashion. While briefing about the brand, Sabahat Nawaz, the member of the 100% said that the prime goal is to introduce new ideas in the field to attract the local as well as the foreign customers.

She said that women could play a proactive role in the current economic scenario. She demanded of the government to take solid measures to promote the businesswomen.

She thanked RCCI to provide them a platform to exhibit their products. It is worth to be mentioned that the three entreneurs (Sabahat, Zara and Fatima) had done their graduation from the National College of Arts, Lahore and completed their Masters from a UK university.

 

[Omar1984]

Dollar loses ground vs rupee​

KARACHI: The dollar shed up strength versus the rupee in the interbank market, dealers said on Monday.

The dollar initiated the day’s trading at Rs 84.41 for buying after losing strength closed at Rs 84.22 for buying and at Rs 84.27 for selling. Therefore, the rupee incurred a gain of 19 paisas. The euro in line with dollar also remained low, as the euro started the day’s trading at Rs 114.38 for buying and after losing strength closed at Rs 113.48 for buying and at Rs 113.68 for selling.

The pound sterling depreciated against the rupee, as the pound started the day’s trading at Rs 128.78 for buying, after losing strength closed at Rs 128.29 for buying and at Rs 128.49 for selling.

Open market: The dollar appreciated versus the rupee in the interbank market, dealers said on Monday.

The dollar started the day’s trading at Rs 84.40 for buying after gaining 05 paisas was changing hands at Rs 84.45 for buying and at Rs 84.60 for selling. The euro recorded losses versus the rupee, as it was down by 35 paisas. It initiated the day’s trading at Rs 113.35 for buying after losing strength closed at Rs 113.00 for buying and at Rs 113.50 for selling.

The pound sterling remained low against the rupee, as it started the day’s trading at Rs 127.80 for buying depreciated by 05 paisas and was changing hands at Rs 127.75 for buying and at Rs 128.25 for selling. staff report

 

[Omar1984]

Revival of agri sector crucial for economic growth’​

ISLAMABAD: Banks provide only 4 percent credit to agriculture sectors while Agriculture contributes around 25 percent to the economy, said Shafqat Kakakhel, member of Board of Governors of SDPI adding the economic renaissance in Pakistan could only come from agriculture sector development.

Kakakhel said despite a lot of euphorbia regarding Kyoto Protocol, the US did not approve the treaty, as it did not ensure compulsory cuts. He said the House of Representatives adopted a law on climate change but the Senate could not do so under Obama administration.

He said Copenhagen summit on climate change failed last year for not addressing the issues. It spoke of commitment of countries to provide a package of aid without agreeing from where the money would come. He said Copenhagen Accord has no legal effect despite expression of support to the accord.

He said a meeting would be held later this week regarding how to start negotiations. “Environmentalists are expecting a legally binding agreement in Mexico stint later this year but there are a lot of negative factors, like the bill Senate is considering has only 25 percent chance of adoption and for seeking this “acceptance,” the language of the bill was drastically changed” he added. He referred to a report that Himalayan glacier may disappear by 2035, which would provide critics of climate change with another source of criticism. Thus we are now having anti-euphoria on climate, he said. staff report

 

[Omar1984]

Educational system vital for economic growth​

ISLAMABAD: There is a need for establishing a strong partnership between the academia and the industry, which would help students better understand the applicability of theoretical studies in the real world. President Islamabad Chamber of Commerce & Industry (ICCI) Zahid Maqbool said the country was blessed with plenty of talented youths and universities could play a major role in transforming this huge critical mass into a highly valuable resource for the country by equipping it with latest knowledge and technical education. staff report

 

[Omar1984]

LSE witnesses bullish trend​

LAHORE: The Lahore stock market on Monday witnessed bullish trend as the LSE-25 Index gained 10.42 points to close at 3287.49 points as compared to 3277.07 points on Friday the last working day. Total turnover also increased to 14.905 million shares on the day as compared to 9.851 million shares on Friday showing a difference of 5.054 million shares. Of 115 active scrips traded on the day 40 moved up, 30 gone down while 45 others remained unchanged. Service Industries Limited emerged as major gainer of a the day with an increase of Rs 14.85 per share to close at Rs 311.90. Treet Corporation Limited remained major loser of the day by decreasing Rs 3.89 in its share value to close at Rs 73.87 per share. Lotte Pakistan PTA Ltd appeared as volume leader of the day with 5.344 million shares, followed by Arif Habib Sec Ltd with 1.483 million shares and Bank Al-Falah Ltd with 1.432 million shares. app

 

[Omar1984]

Support of foreign inflows puts KSE 100-share 31 points higher​

KARACHI: Bullish sentiments prevailed at the Karachi stock market Monday on support of foreign inflows and rising trend in international oil prices, traders said

Analysts said the benchmark KSE-100 index opened in the positive zone remained prevalent throughout the rest of the trading session during which higher volumes were traded reflecting growing confidence among investors. The Karachi Stock Exchange KSE-100 share index gained 31.32 points or 0.30 percent to close at 10,447.84 points compared to previous session’s 10,416.52 points.

The KSE-30 share index closed at 10,707.31 points with a gain of 26.33 points or 0.25 percent. The KMI-30 index closed at 15,867.50 points with a gain 6.97 points or 0.04 percent. The KSE-100 all share index closed at 7352.69 gaining 17.21 points or 0.23 percent. The market turnover went up by 8.21 percent and traded 222.51 million shares as compared to previous session’s 205.62 million shares. The overall market capitalisation was up by 0.16 percent and traded Rs 2.956 trillion compared to 2.951 trillion of previous session. Out of total 444 companies, 179 closed in the positive zone, 244 in negative while 21 remained unchanged.

Ahsan Mehanti, senior analyst at Shahzad Chamdia Sec said positive activity was witnessed on positive sentiment ahead of March quarter result announcement. Other major factors included higher banking sector spreads, expectation of early release of 5th IMF tranche of $1.2 billion and continuing foreign interest in Pakistan oil and gas sector. Banking and fertilizer scrips played a catalyst role in positive activity at KSE despite intraday correction on Peshawar blast announcement.

Trading activity was better as compared to the last trading session as the ready market volume stands at 222.521 million as compared to last trading session 205.629 million. Future market volume however stood at 7.410 million shares as compared to 9.847 million shares last trading session. Husnein Asghar Ali, analyst at Aziz Fida Husein and Co said low price stocks along with securities companies kept the turnover ticking thus keeping the day-traders active in the market.

Across the board gains attained through the activity of local corporate however failed to sustain, due to absence of follow-up support, thereby allowing stagnation to re-surface, likely re-promulgation of CCOP ordinance kept the main board cement stocks under pressure, while renewed buying by the local participants and respective groups invited buying interest in the fertilizer stocks on dips. The banking and fertilizer frontline stocks continued to invite snap rallies, mainly initiated due to fresh interest and swaps, thus keeping the day traders glued to the screens despite range bound activity in the latter half.

Lotte Pakistan was the volume leader in share market with 65.79 million shares as it closed at Rs 12.12 after opening at Rs 11.17 gaining paisas 95. Azgard Nine traded 13.83 million shares as it closed at Rs 12.88 after opening at Rs 13.66 shedding paisas 78. TRG Pakistan Ltd traded 12.69 million shares as it closed at Rs 4.22 after opening at Rs 4.21 gaining 01 paisa. Arif Habib Sec traded 10.63 million shares as it closed at Rs 46.39 after opening at Rs 44.21 gaining paisas 18. staff report

 

[Omar1984]

US top buyer of Pakistani products​

KARACHI: Despite the high duty structure on Pakistan exports to United States of America (USA), it is still the top buyer of Pakistani products with almost 19 percent share in the total exports of Pakistan.

Recently concluded Pak-USA strategic dialogue also shed light on the bilateral economic ties besides the other issues between the two countries and the major thrust on the economic front remained on the greater market access of Pakistani exportable products to the huge and lucrative USA market.

Pakistani business community though appreciated the comprehensive strategic dialogue between the two countries, however they are skeptical about the greater market access to the American market, which if granted would boost the countries’ exports manifold.

“Pakistan, being the front ally state in the war on terror by sacrificing heavily in terms of human lives and economic losses, deservers the market access to boost the exports,” a representative of the country’s powerful trade association All Pakistan Textile Mills Association (APTMA) Yasin Siddik told Daily Times.

At a time when businessmen are suspicious about the intentions of USA to give greater market access to Pakistani exportable goods, USA is still the largest importer of Pakistani goods and the first quarter’s figures of current fiscal suggested that goods exported to the USA market were almost 19 percent of the total export volume of the country.

“Having a large population with strong buying power, USA market always remained a lucrative one for Pakistani goods and consumed major part of products originating from Pakistan,” Yasin pointed out.

The zero-rated export to USA is being enjoyed by various countries like Bangladesh, Jordan, Israel etc. “Pakistan should be treated at par with these countries for contributing immensely against the American war against terrorism,” an exporter of value-added goods remarked.

About Bilateral Investment Treaty (BIT) with USA, the business community is a bit skeptical about the signing of this treaty and its utility in the current scenario.

“BIT means the investment of USA investors in Pakistan and vice versa, which at the moment seems something impossible in the present security situation,” they said and suggested that for the time being, Pakistan should focus only on greater market access as part of its trade diplomacy.

About the government’s efforts to diversify the market, they said that it is very hard to grab a new market in the present scenario when they are finding it difficult to even keep hold on traditional markets. “The country has to rely on its traditional markets like USA and European countries in foreseeable future because of the present situation,” they added.

 

[Omar1984]

WB lauds Pakistan’s initiatives to reform economy​

ISLAMABAD, Apr 1 (APP): The World Bank’s Vice President for the South Asia Region, Ms Isabel M. Guerrero, here on Thursday appreciated Pakistani government’s initiatives to reform the national economy.

Ms Isabel was leading a World Bank delegation that called on Advisor to Prime Minister on Finance, Dr. Abdul Hafeez Shaikh, according to press release issued by the Ministry of Finance.

She said that the World Bank attaches great importance to its linkages with Pakistan and assured the government of the WB’s continued cooperation in its economic development.

Earlier, the delegation was briefed about the state of Pakistan’s economy, challenges faced by it and the government’s economic initiatives.

Speaking on the occasion, Hafeez Shaikh appreciated the positive role of the WB in economic development of Pakistan.

He said that Pakistan and WB have excellent relations and expressed the hope that the bank would continue assisting Pakistan in the national economic development process in future.

 

[Omar1984]

Pak exporters must avail opportunities of access to EU : president SCCI​

SIALKOT,April 5 (APP)- President Sialkot Chamber of Commerce and Industry (SCCI) Muhammad Ishaq Butt has appreciated the endeavour of the Turkish President to promote bilateral trade between Pakistan and Turkey.Talking to APP here,he said that Turkish President while addressing the business delegation in Lahore expressed his eagerness to enhance economic ties with Pakistan as both countries have great potential for greater economic cooperation. He also appreciated that the Turkish President assured help in overcoming the power crisis in Pakistan.

He hoped that Pak-Turkish CEOs meetings would lead to direct investment and joint ventures between the two countries for taking bilateral trade much beyond the current volume of US 700 million.

SCCI President urged Pakistani exporters and investors to avail the opportunity of access to European Union (EU) markets from Turkey by exporting products and establishing businesses in Turkey.

Ishaq Butt also stressed upon the Turkish investors that they should avail investment friendly opportunities in Pakistan by enhancing investment and entering joint ventures in Pakistan.

He stressed that the two countries should assign pivotal role to their entrepreneurs for utilising “untapped trade and economic potential” between the two friendly countries.

He said that commercial sections of Embassies of Pakistan and Turkey should play their instrumental role for enhancing cooperation between private sectors and boosting bilateral trade.

 

[Omar1984]

Finance Ministry issues instructions for fiscal discipline​

ISLAMABAD, Apr 4 (APP): With a view to improve financial discipline and streamline the management of public accounts, the Ministry of Finance has decided to restrict the validity of cheques up to three months or 30th June whichever is earlier.As per the Ministry’s decision, if the currency of the cheque expired, owing to its not being presented at the treasury or bank within the specified period, it may be received back by the drawer who should then destroy it and issue a new cheque in lieu of it provided that the validity of the fresh cheque shall expire on 30th June.

According to a press release issued here, necessary amendments in the relevant Federal Treasury Rules have been affected and notified by the Finance Division vide Notification No. F.5 (3) Exp.III/2009, dated 31st March.

Accordingly, the Ministry of Finance has asked all ministries, divisions and departments to ensure observance of financial discipline by strictly adhering to the following instructions:-

i. That the budgetary allocations placed at their disposal are expended uniformly as far as possible during the financial year. They should further ensure that all validly accrued liabilities are promptly cleared and are not postponed towards the end of the financial year.

ii. All releases of funds for development/non-development expenditure be completed by Ministries/Divisions by 15th May. Releases of inevitable nature, if any after the said date, would only be made by the Finance Division, after ensuring that the funds are likely to be expended well before the close of the financial year.

iii. There should be no re-appropriation/supplementary grant after 15th May to ensure timely processing of claim by the Ministries/Division/Departments.

iv. All Ministries/Divisions/Departments should submit and draw their claims from A.G. Office for all validly accrued liabilities against the Government on or before 10th June of that financial year.

v.In case of requirement of any additional information by the Accounts Officer (Accountant General’s Office/District Accounts Office/Agency Accounts Office), Account Office shall return the un-passed bill urgently and the concerned departments shall respond promptly and resubmit the bill/claim not later than 15th June.

vi.In order to adhere to the aforesaid schedule, all the concerned authorities shall ensure the issuance of sanctions, completion of codal formalities and procurement of stores well in time so that the claims can be presented for pre-audit to the respective Accounts Office timely.

vii. All PLAs/Assignment Accounts holders should make necessary arrangements as detailed above to ensure encashment of their cheque well in time. All cheques drawn against PLAs /Assignment Accounts shall be cleared up to 30th June.

viii. The PIFRA shall generate regular reports for information of all Principal Accounting Officers, apprising them of the latest funding positions in respective heads. This would facilitate PAOs to take timely action for making good of the shortfall.