PMO ignores austerity policy, spends millions on employees' honorarium

The Prime Minister's Office ignored its austerity policy during the fiscal year 2022-2023 by spending money on its employees' honorarium and medicine, according to the report issued by the Auditor General Pakistan report (AGP).

The PM’s Office did not respond when the AGP asked about the irregular payments, sources said.

The report revealed that the amount was spent on the 'specific head of account'.

“The management of the Primer Office spent Rs108,904,510 on the account of payment honorarium to its officials during 2021-2023,” revealed the report.

However, the report said the Finance Division letter No.F.1 (1) Exp-II/ 2022, dated January 27/2022, stated that the Prime Minister directed that no forum will approve the grant of honorarium for any employee of the government until the fresh policy matters approved by the federal cabinet.

“The PMO employees received more than one honorarium in a year, which was a violation of power delegated to the Principle Account Officer (PAO),” it stated.

The report also said that the PM Office irregularly expended on procurements of drugs and medicine without open competition or it was given to ineligible people.

According to rule 12(1) of the Procurement Rules 2004, procurement of Rs50,000 to Rs3 million shall be advertised on the authority’s website or it could be advertised in print media as well.

Meanwhile, management spent Rs7,895,680 during 2020-2023 on account of medicine bills.

Apart from this, the AGP also expressed serious concerns over the deteriorating financial affairs in its report. 

It stated that during 2023-24 the federal government allocated unnecessary grants that led to blocking public funds.