The Economic Coordination Committee (ECC) of the Cabinet granted Rs. 8.4 billion technical supplemental grant (TSG) for the Ministry of Foreign Affairs to cover Pakistan Missions Abroad shortfalls.
ECC met today under Finance Minister Ishaq Dar. The Ministry of Foreign Affairs informed the committee that the government granted Rs. 27.341 billion to the ministry in its FY23 budget against the demand of Rs. 35.863 billion, resulting in an initial gap of Rs. 8.522 billion.
This allocation contains budgets for 122 Diplomatic Missions, 53 OM Wings, 11 Group-A formations, and 04 CAO institutions.
Missions abroad consume 91% of the budget. Budget estimates used $1 = PKR 186. However, the Ministry has had a major funding gap due to the depreciation of the Pak Rupee vs the US Dollar during the current financial year.
The Ministry requested Rs. 13.982 billion from the Prime Minister’s office on 16 November 2022 to cover the shortfall. The Finance Division and austerity measures reduced the proposal to Rs. 10.7 billion.
Demand No. 49 sought Rs. 10.1 billion for Pakistan Missions Abroad and Demand No. 48 demanded Rs. 536 million for Main Secretariat and affiliated ministries.
However, the Finance Division has only agreed to Rs. 8.4 billion under Demand No. 49 to cover the Pak Rupee devaluation deficiency. Under Demand No. 48, the Ministry needs Rs 536 million to cover a shortfall at the main headquarters due to employee-related expenses like pay scale revision, upgradation and time scale promotion staff, disparity reduction allowance/executive allowance, and fuel and utility price increases.