ISLAMABAD: The federal government has amended the Financial Management and Powers of Principal Accounting Officers Regulations, 2021, shifting a key oversight role from the Auditor General of Pakistan (AGP) to the Finance Division — a move seen as strengthening the Finance Division’s control over financial management procedures across ministries and divisions.

According to an official notification (S.R.O. (1)/2025) issued by the Finance Division under section 27 of the Public Finance Management Act, 2019, the words “in consultation with the Auditor General of Pakistan” in Regulation 31(c) of the said regulations have been substituted with “as recommended by the Finance Division.”

The change effectively means that the Finance Division, rather than the AGP, will now have the authority to recommend actions under this regulation — consolidating financial decision-making within the ministry responsible for budgetary control and fiscal policy.

Officials said the amendment is part of ongoing reforms under the Public Finance Management Reform (PFMR) framework aimed at streamlining financial powers of Principal Accounting Officers (PAOs) and ensuring a unified chain of fiscal accountability. However, sources familiar with the development noted that this change may also limit the AGP’s consultative role in administrative financial decisions.—TAHIR AMIN