The Economic Coordination Committee (ECC) of the Cabinet has approved Rs. 8.4 billion technical supplementary grant (TSG) in favor of the Ministry of Foreign Affairs to meet the shortfall at Pakistan Missions Abroad.
Finance Minister Ishaq Dar chaired the meeting of ECC today. The Ministry of Foreign Affairs informed the committee that the government provided Rs. 27.341 billion to the Ministry of Foreign Affairs in its budget for the current fiscal year (FY23) against the demand of Rs. 35.863 billion, resulting in a shortfall of Rs. 8.522 billion at the initial stage.
Apart from Foreign Affairs Division including Main Secretariat (HQ), CAO, State Guest House (Lahore and Karachi), SECDIV, IRS, ISSI, and FSA, this allocation includes budgets for 122 Diplomatic Missions, 53 OM Wings, 11 Group-A formations, and 04 establishments of Chief Accounts Office (CAO).
Approximately 91 percent of the budget is spent on Missions abroad in US dollars and other major international currencies. The budget estimates were based on an exchange rate of $1 = PKR 186. However, primarily due to the depreciation of the Pak Rupee versus the US Dollar during the current financial year, the Ministry has been facing a severe shortfall of funds.
The Ministry requested the Prime Minister’s office on 16 November 2022 for additional funds to the tune of Rs. 13.982 billion to meet the shortfall. After discussion with the Finance Division and keeping in view the austerity measures, the request was further rationalized to Rs. 10.7 billion.
An amount of Rs. 10.1 billion was requested to meet the shortfall at Pakistan Missions Abroad under Demand No. 49 and Rs. 536 million to meet the shortfall at Main Secretariat and allied departments under Demand No. 48.
The Finance Division has, however, conveyed its concurrence only to the amount of Rs. 8.4 billion under Demand No. 49, to meet the shortfall due to the devaluation of the Pak Rupee. The Ministry also needs Rs 536 million under Demand No. 48 to cater to a shortfall of funds at the main headquarters mainly on account of a shortfall in employee-related expenses including revision of Pay Scales, upgradation and time scale promotion staff, grant of disparity reduction allowance/executive allowance, and increase in price of fuel and utilities.
Source: Pro Pakistani