Summary of Previous Lecture

CORRUPTION

SOCIAL MALADIES OF PAKISTAN

The army“The army appears unable to govern Pakistan itself, but will

not allow anyone else the opportunity to do so either.”

– Stephen Cohen, The Idea of Pakistan

ISSUES:• Recurring seizures of state power. The military is

Pakistan’s most powerful institution and

claims a role as

the nation’s almighty guardian; it

harbors an intense

mistrust for politicians and has

repeatedly seized control

of the state from elected officials, citing

their

incompetence and corruption• Monopolization of

state/bureaucratic affairs.

Military officials constitute an

overwhelming majority of

positions in civil sector jobs; Zia passed

legislation that

gives army personnel precedence over

civilians in

consideration for government posts,

which is still in effect

today. The military is also in ownership of

numerous

private enterprises.

Ineptitude of political parties

• Aside from PPP,

ethnonationalism divides

parties

• When conflict arises within

party, party breaks up

instead of resolving issues

• Chronic history of military

leaders vs. untapped long-

term potential of civilian

leaders

After former President Pervez Musharraf failed to step down

after order had been restored to the state, as he clearly promised, riots erupted throughout Pakistan.

ethnonationalismIssues:

• Punjabi dominance.

Given their higher accessibility to

education in comparison to the

other ethnolinguistic groups,

Pakhtun separatism.

Pakhtuns in Khyber Pakhtunkhwa

complain of underrepresentation in

government and a lack of

nstitutionalized Islamic law;

Baloch insurgency. Balochistan is

Pakistan’s most resource-

rich province, containing large

reserves of coal and natural gas

Foreign policy

• U.S. aid to Pakistan has fluctuated in last couple of decades

• Questions of Pakistani sovereignty and U.S. intervention

• Nuclear standoff with India, border issues with Afghanistan Anti-India protests in Azad Kashmir.

The continued conflict in Kashmir has radically politicized many

Pakistani youth and is deepening the already-great social divide

between Pakistanis and Indians.

Terrorism and religious/ethnic conflict

• Musharraf weary of

confronting militants

in FATA (Federally

Administered Tribal

Areas) and NWFP (now

Khyber

Pakhtunkhwa)

• General Ashfaq Kayani knew

how

important victory was to

ease tensions

with U.S. and win U.S. aid,

must prove

to Pakistani people that it is

Pakistan’s

war, not America’s

Militants in FATA.

Auditing and Accounting in Government

- Audit is performed on behalf of the legislature to ensure

public accountability.

- Correctness of the transaction

- The system is inherited from British India

- Audit and accounts order 1936

- Auditor General

Audit and Account…

- Audit and accounts order of 1973 of Pakistan

- It is mostly similar to that of 1936

- Auditor General of Pakistan is appointed by

president.

Functions of Audit Department

- To conduct the audit of sanctions issued by financial

authority

- To ensure no expenditure is incurred without a

specific budgetary provision.

- To ensure no rule is violated while spending money.

- Accountability for all public expenditure is sought to

be ensured by Auditor General.

Public Accounts Committee- Pakistan has borrowed system from Great Britain.

- What is approved by legislature adhered by the executive

- It looks into annual appropriations accounts.

- It also looks into report presented by AG

- AG forwards report to president in federal and governors

to provinces.

- These reports are referred to the PAC in the each

legislature.

PAC

- Any deviation detected are required to be

explained by the concerned head.

- A most impersonal method is employed.

- PAC if convinced can order for recovery

- Good practice to appoint opposition leader as

head of PAC.

Accounting

- In Pakistan it is too the responsibility of AG

- He prepares the accounts of all agencies with a few

exceptions.

- It is under the control of the federation.

- Secretary of each ministry is the principal account

officer

- Who maintains the accounts of the concerned

ministry.

Accounting - Accounting means, the art of recording, classifying and

summarizing transactions.

- Simply it means the keeping a systematic record of financial

transactions.

- Again the system is borrowed from the British India.

- It was enshrined in article 168 of Government India Act 1935.

- It confers on AG to keep the accounts and to prepare yearly

accounts of dominion and provinces.

Accounting---

- Similar provision were incorporated in three

constitutions of Pakistan in the audit and accounts

order.

- The AG responsibility for the maintenance of

accounts include;

- Monthly accounts: preparation and submission of

monthly receipts of expenditure of federal and

provincial government.

Accounting

- Annual Accounts: compilation and submission of annual

accounts of receipts and disbursements to the concerned

government.

- Appropriation Accounts: preparation of these accounts

indicating the expenditure incurred by the various

departments against the budget allocation.

Accounting - Finance Accounts: compilation of finance accounts of the

federal and provincial government showing their annual

receipts and disbursement under their respective heads.

- Combined Finance and Revenue Accounts: preparation

and submission to the president

- Combined finance and revenue accounts incorporating a

summary of the federal and provincial accounts including

their balances and outstanding liabilities.

Revenue and Tax administration in Pakistan - Levy and collection of federal taxes are the functions of FBR

Structure:

- It has a very long history

- it was created in 1924 by the CBR Act, 1924.

- In 1944 a full fledged division was created under the

ministry of finance

- These arrangements continued up to 1960