IThe Public Accounts Committee of the National Assembly ofPakistan: A Comparative Study of Its Functioning during periods;...
IITo my parents,
IIIAcknowledgementForemost, my sincere gratitude to my Supervisor, Dr. Usman Mustafa for his continuoussupport to my M Phi...
IVfor maximum number of times but my research just started to further investigate theoperations of PAC.
VTable of ContentsTable of Contents---------------------------------------------------------------------------------------...
VIList of FiguresFigure 3.1. Survey Population and Response Rate 23Figure 4.2. PAC Organogram 38Figure 4.3. Channels of su...
VIITable 6.4. Availability of Research Facility 101Table 6.5. Government Response to Committee Recommendations 102Table 6....
VIIIexpenditures of government Organizations receiving funds fromthe government and all state corporations 115Table 6.26. ...
IXTable 6.42. Advance preparation of members 126Table 6.43. PAC’s scrutiny speed of budget statements/appropriations/Accou...
Xrecommendations 137Table 6.59. Effective follow-up procedures to determine if action hasbeen taken to implement the commi...
XIList of AbbreviationsAGP Auditor-General of PakistanANP Awami National PartyAPAC Adhoc Public Accounts CommitteeCAA Civi...
XIIAbstractThe Public Accounts Committee of the National Assembly of Pakistan (PAC) is astanding committee of the National...
XIIIwhile keeping the Office of the Leader of the Opposition burying the best practice offinancial oversight process, a sa...
1Chapter 1Introduction1.1 BackgroundThe State is a major form of human political organisation that performs the criticalfu...
2Democracy approach1whereby the Executive-led government is accountable toParliament and the Parliament exercises oversigh...
3the PAC in a parliamentary environment. Apparently, it was not any ideal condition,however, being Parliament in abeyance,...
4backlog.4The big backlog diverted the focus of successive PACs towards violationsconcerning the previous government rathe...
5politicisation of civil servants and the institutions badly affected the good governance;hence, PAC remained ineffective ...
6Procedures of the National Assembly of Pakistan. The effort is to achieve this objectivethrough conducting a comparative ...
7Secondly, major findings and recommendations of this research will be helpful for theinstitutions specially governmental ...
81.9. Organisation of the studyChapter 1 is a Brief Background of the study. Chapter 2 is a Literature Review andprovide t...
9Chapter 2Literature Review2.1 IntroductionAlthough there is big accumulation of literature pertaining to the formation, f...
10like Public Accounts Committee to properly function in order to strengthen parliamentaryoversight of resources and the g...
11utilized for an activity with regard to appropriate quality, efficiency; is the ratio betweenoutputs and inputs, the max...
12descriptive nature compiled by practitioners and politicians engaged in the PAC process(McGee, 2002 and Watson, 2004) or...
132.5 Relationship of PAC and Auditor GeneralMcGee (2002) produced a very effective publication on financial oversight and...
14accommodating rapport between PAC and an Auditor General are indispensable. He saysthat this relationship might not over...
15countries like Canada and Australia main actors include PACs, AG, and the organizedaccounting professionals, all of whom...
16noted that government member chair have an effect of lack of independence of PAC fromexecutive, hence a lack of accounta...
17The institutions of PACs are the landmark of effective financial accountability andgovernance in the public sector. Publ...
18Jacobs et al, found that there were three categories on the result of their investigation of148 reports produced by PACs...
19structure, terms of proceedings and the operational models vary from one PAC to anotherand there is no set of unique pra...
20but was assigned with a big backlog of past 12 years; no attention was paid to oversightthese mega corruptions scandals....
21British but within no time its Pakistani successors forged an alliance with the army andactively undermined the democrat...
22Chapter 3Methodology and Theoretical Framework3.1 MethodologyThe present study deals with comparative functioning of the...
23The population and response of the members of 12thand 13thPAC is depicted at Figure3.1. The maximum response was receive...
245. Mr. Riaz Fatyana, MNA, Member PAC6. Mr. Saeed Ahmed Zafar, MNA, Member PAC7. Bagum Shahnaz Sheikh, MNA, Member PAC8. ...
253.1.5. Focal Discussions and PAC MeetingsPAC meetings were regularly attended during the course of this research to empi...
26discussed and tried to define a modern rationale for PACs which is necessitated by and isbased on the international dime...
27 Output level - the immediate visible results of work the committee does like: recommendations made, followed up and i...
28Chapter 4The Structure, Functioning and Role of PAC4.1 IntroductionThe present chapter the Structure, Functioning and Ro...
29“As soon as may be after the commencement of the first session of the Assembly, aCommittee on Public Accounts shall, sub...
30 Making sure the process of enquiry has greater focus on evaluatingfinancial management performance (rather than on pol...
31and other committees, then, there are Joint Secretaries, each one of them control the twomajor branches, Standing Commit...
32National Assembly can only give recommendations to National Assembly whichare not binding rather a set of suggestions.4....
334.8.2 Pending Audit ReportsA total of eight (08) audit reports are still pending. Three reports (1998-1999, 2002-2003,20...
34public accounts, the comments on the public accounts, and all reports drafted by theauditor general. The PAC has the pow...
35Pakistan either under the directions of the president or under the act of Parliament (NA,Rule 203(3)b).4.10.4 Annual Fin...
36i) Statement of Cash Receipts and PaymentsThis contains Total Receipts in Federal Consolidated Funds and PublicAccount a...
374.10.5 Presidential ObligationThe PAC also consider the report of the Auditor–General of Pakistan in case where thepresi...
38Committee will proceed from the stage where the previous Committee left theproceedings before the dissolution of the Ass...
394.10.10 Rule PositionGeneral rules of standing committees of the National Assembly along with the specificrules provided...
404.10.12 Constitutional Link-Reference to PACAnnual Audit Reports along with Accounts are submitted by the Auditor- Gener...
Functioning of teh Public Accounts Committee of teh National Assembly of Pakistan 2002-2011, Dissertation faisal hayat
Functioning of teh Public Accounts Committee of teh National Assembly of Pakistan 2002-2011, Dissertation faisal hayat
Functioning of teh Public Accounts Committee of teh National Assembly of Pakistan 2002-2011, Dissertation faisal hayat
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Functioning of teh Public Accounts Committee of teh National Assembly of Pakistan 2002-2011, Dissertation faisal hayat
Functioning of teh Public Accounts Committee of teh National Assembly of Pakistan 2002-2011, Dissertation faisal hayat
Functioning of teh Public Accounts Committee of teh National Assembly of Pakistan 2002-2011, Dissertation faisal hayat
Functioning of teh Public Accounts Committee of teh National Assembly of Pakistan 2002-2011, Dissertation faisal hayat
Functioning of teh Public Accounts Committee of teh National Assembly of Pakistan 2002-2011, Dissertation faisal hayat
Functioning of teh Public Accounts Committee of teh National Assembly of Pakistan 2002-2011, Dissertation faisal hayat
Functioning of teh Public Accounts Committee of teh National Assembly of Pakistan 2002-2011, Dissertation faisal hayat
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Functioning of teh Public Accounts Committee of teh National Assembly of Pakistan 2002-2011, Dissertation faisal hayat
Functioning of teh Public Accounts Committee of teh National Assembly of Pakistan 2002-2011, Dissertation faisal hayat
Functioning of teh Public Accounts Committee of teh National Assembly of Pakistan 2002-2011, Dissertation faisal hayat
Functioning of teh Public Accounts Committee of teh National Assembly of Pakistan 2002-2011, Dissertation faisal hayat
Functioning of teh Public Accounts Committee of teh National Assembly of Pakistan 2002-2011, Dissertation faisal hayat
Functioning of teh Public Accounts Committee of teh National Assembly of Pakistan 2002-2011, Dissertation faisal hayat
Functioning of teh Public Accounts Committee of teh National Assembly of Pakistan 2002-2011, Dissertation faisal hayat
Functioning of teh Public Accounts Committee of teh National Assembly of Pakistan 2002-2011, Dissertation faisal hayat
Functioning of teh Public Accounts Committee of teh National Assembly of Pakistan 2002-2011, Dissertation faisal hayat
Functioning of teh Public Accounts Committee of teh National Assembly of Pakistan 2002-2011, Dissertation faisal hayat
Functioning of teh Public Accounts Committee of teh National Assembly of Pakistan 2002-2011, Dissertation faisal hayat
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Functioning of teh Public Accounts Committee of teh National Assembly of Pakistan 2002-2011, Dissertation faisal hayat
Functioning of teh Public Accounts Committee of teh National Assembly of Pakistan 2002-2011, Dissertation faisal hayat
Functioning of teh Public Accounts Committee of teh National Assembly of Pakistan 2002-2011, Dissertation faisal hayat
Functioning of teh Public Accounts Committee of teh National Assembly of Pakistan 2002-2011, Dissertation faisal hayat
Functioning of teh Public Accounts Committee of teh National Assembly of Pakistan 2002-2011, Dissertation faisal hayat
Functioning of teh Public Accounts Committee of teh National Assembly of Pakistan 2002-2011, Dissertation faisal hayat
Functioning of teh Public Accounts Committee of teh National Assembly of Pakistan 2002-2011, Dissertation faisal hayat
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Functioning of teh Public Accounts Committee of teh National Assembly of Pakistan 2002-2011, Dissertation faisal hayat
Functioning of teh Public Accounts Committee of teh National Assembly of Pakistan 2002-2011, Dissertation faisal hayat
Functioning of teh Public Accounts Committee of teh National Assembly of Pakistan 2002-2011, Dissertation faisal hayat
Functioning of teh Public Accounts Committee of teh National Assembly of Pakistan 2002-2011, Dissertation faisal hayat
Functioning of teh Public Accounts Committee of teh National Assembly of Pakistan 2002-2011, Dissertation faisal hayat
Functioning of teh Public Accounts Committee of teh National Assembly of Pakistan 2002-2011, Dissertation faisal hayat
Functioning of teh Public Accounts Committee of teh National Assembly of Pakistan 2002-2011, Dissertation faisal hayat
Functioning of teh Public Accounts Committee of teh National Assembly of Pakistan 2002-2011, Dissertation faisal hayat
Functioning of teh Public Accounts Committee of teh National Assembly of Pakistan 2002-2011, Dissertation faisal hayat
Functioning of teh Public Accounts Committee of teh National Assembly of Pakistan 2002-2011, Dissertation faisal hayat
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Functioning of teh Public Accounts Committee of teh National Assembly of Pakistan 2002-2011, Dissertation faisal hayat
Functioning of teh Public Accounts Committee of teh National Assembly of Pakistan 2002-2011, Dissertation faisal hayat
Functioning of teh Public Accounts Committee of teh National Assembly of Pakistan 2002-2011, Dissertation faisal hayat
Functioning of teh Public Accounts Committee of teh National Assembly of Pakistan 2002-2011, Dissertation faisal hayat
Functioning of teh Public Accounts Committee of teh National Assembly of Pakistan 2002-2011, Dissertation faisal hayat
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Functioning of teh Public Accounts Committee of teh National Assembly of Pakistan 2002-2011, Dissertation faisal hayat
Functioning of teh Public Accounts Committee of teh National Assembly of Pakistan 2002-2011, Dissertation faisal hayat
Functioning of teh Public Accounts Committee of teh National Assembly of Pakistan 2002-2011, Dissertation faisal hayat
Functioning of teh Public Accounts Committee of teh National Assembly of Pakistan 2002-2011, Dissertation faisal hayat
Functioning of teh Public Accounts Committee of teh National Assembly of Pakistan 2002-2011, Dissertation faisal hayat
Functioning of teh Public Accounts Committee of teh National Assembly of Pakistan 2002-2011, Dissertation faisal hayat
Functioning of teh Public Accounts Committee of teh National Assembly of Pakistan 2002-2011, Dissertation faisal hayat
Functioning of teh Public Accounts Committee of teh National Assembly of Pakistan 2002-2011, Dissertation faisal hayat
Functioning of teh Public Accounts Committee of teh National Assembly of Pakistan 2002-2011, Dissertation faisal hayat
Functioning of teh Public Accounts Committee of teh National Assembly of Pakistan 2002-2011, Dissertation faisal hayat
Functioning of teh Public Accounts Committee of teh National Assembly of Pakistan 2002-2011, Dissertation faisal hayat
Functioning of teh Public Accounts Committee of teh National Assembly of Pakistan 2002-2011, Dissertation faisal hayat
Functioning of teh Public Accounts Committee of teh National Assembly of Pakistan 2002-2011, Dissertation faisal hayat
Functioning of teh Public Accounts Committee of teh National Assembly of Pakistan 2002-2011, Dissertation faisal hayat
Functioning of teh Public Accounts Committee of teh National Assembly of Pakistan 2002-2011, Dissertation faisal hayat
Functioning of teh Public Accounts Committee of teh National Assembly of Pakistan 2002-2011, Dissertation faisal hayat
Functioning of teh Public Accounts Committee of teh National Assembly of Pakistan 2002-2011, Dissertation faisal hayat
Functioning of teh Public Accounts Committee of teh National Assembly of Pakistan 2002-2011, Dissertation faisal hayat
Functioning of teh Public Accounts Committee of teh National Assembly of Pakistan 2002-2011, Dissertation faisal hayat
Functioning of teh Public Accounts Committee of teh National Assembly of Pakistan 2002-2011, Dissertation faisal hayat
Functioning of teh Public Accounts Committee of teh National Assembly of Pakistan 2002-2011, Dissertation faisal hayat
Functioning of teh Public Accounts Committee of teh National Assembly of Pakistan 2002-2011, Dissertation faisal hayat
Functioning of teh Public Accounts Committee of teh National Assembly of Pakistan 2002-2011, Dissertation faisal hayat
Functioning of teh Public Accounts Committee of teh National Assembly of Pakistan 2002-2011, Dissertation faisal hayat
Functioning of teh Public Accounts Committee of teh National Assembly of Pakistan 2002-2011, Dissertation faisal hayat
Functioning of teh Public Accounts Committee of teh National Assembly of Pakistan 2002-2011, Dissertation faisal hayat
Functioning of teh Public Accounts Committee of teh National Assembly of Pakistan 2002-2011, Dissertation faisal hayat
Functioning of teh Public Accounts Committee of teh National Assembly of Pakistan 2002-2011, Dissertation faisal hayat
Functioning of teh Public Accounts Committee of teh National Assembly of Pakistan 2002-2011, Dissertation faisal hayat
Functioning of teh Public Accounts Committee of teh National Assembly of Pakistan 2002-2011, Dissertation faisal hayat
Functioning of teh Public Accounts Committee of teh National Assembly of Pakistan 2002-2011, Dissertation faisal hayat
Functioning of teh Public Accounts Committee of teh National Assembly of Pakistan 2002-2011, Dissertation faisal hayat
Functioning of teh Public Accounts Committee of teh National Assembly of Pakistan 2002-2011, Dissertation faisal hayat
Functioning of teh Public Accounts Committee of teh National Assembly of Pakistan 2002-2011, Dissertation faisal hayat
Functioning of teh Public Accounts Committee of teh National Assembly of Pakistan 2002-2011, Dissertation faisal hayat
Functioning of teh Public Accounts Committee of teh National Assembly of Pakistan 2002-2011, Dissertation faisal hayat
Functioning of teh Public Accounts Committee of teh National Assembly of Pakistan 2002-2011, Dissertation faisal hayat
Functioning of teh Public Accounts Committee of teh National Assembly of Pakistan 2002-2011, Dissertation faisal hayat
Functioning of teh Public Accounts Committee of teh National Assembly of Pakistan 2002-2011, Dissertation faisal hayat
Functioning of teh Public Accounts Committee of teh National Assembly of Pakistan 2002-2011, Dissertation faisal hayat
Functioning of teh Public Accounts Committee of teh National Assembly of Pakistan 2002-2011, Dissertation faisal hayat
Functioning of teh Public Accounts Committee of teh National Assembly of Pakistan 2002-2011, Dissertation faisal hayat
Functioning of teh Public Accounts Committee of teh National Assembly of Pakistan 2002-2011, Dissertation faisal hayat
Functioning of teh Public Accounts Committee of teh National Assembly of Pakistan 2002-2011, Dissertation faisal hayat
Functioning of teh Public Accounts Committee of teh National Assembly of Pakistan 2002-2011, Dissertation faisal hayat
Functioning of teh Public Accounts Committee of teh National Assembly of Pakistan 2002-2011, Dissertation faisal hayat
Functioning of teh Public Accounts Committee of teh National Assembly of Pakistan 2002-2011, Dissertation faisal hayat
Functioning of teh Public Accounts Committee of teh National Assembly of Pakistan 2002-2011, Dissertation faisal hayat
Functioning of teh Public Accounts Committee of teh National Assembly of Pakistan 2002-2011, Dissertation faisal hayat
Functioning of teh Public Accounts Committee of teh National Assembly of Pakistan 2002-2011, Dissertation faisal hayat
Functioning of teh Public Accounts Committee of teh National Assembly of Pakistan 2002-2011, Dissertation faisal hayat
Functioning of teh Public Accounts Committee of teh National Assembly of Pakistan 2002-2011, Dissertation faisal hayat
Functioning of teh Public Accounts Committee of teh National Assembly of Pakistan 2002-2011, Dissertation faisal hayat
Functioning of teh Public Accounts Committee of teh National Assembly of Pakistan 2002-2011, Dissertation faisal hayat
Functioning of teh Public Accounts Committee of teh National Assembly of Pakistan 2002-2011, Dissertation faisal hayat
Functioning of teh Public Accounts Committee of teh National Assembly of Pakistan 2002-2011, Dissertation faisal hayat
Functioning of teh Public Accounts Committee of teh National Assembly of Pakistan 2002-2011, Dissertation faisal hayat
Functioning of teh Public Accounts Committee of teh National Assembly of Pakistan 2002-2011, Dissertation faisal hayat
Functioning of teh Public Accounts Committee of teh National Assembly of Pakistan 2002-2011, Dissertation faisal hayat
Functioning of teh Public Accounts Committee of teh National Assembly of Pakistan 2002-2011, Dissertation faisal hayat
Functioning of teh Public Accounts Committee of teh National Assembly of Pakistan 2002-2011, Dissertation faisal hayat
Functioning of teh Public Accounts Committee of teh National Assembly of Pakistan 2002-2011, Dissertation faisal hayat
Functioning of teh Public Accounts Committee of teh National Assembly of Pakistan 2002-2011, Dissertation faisal hayat
Functioning of teh Public Accounts Committee of teh National Assembly of Pakistan 2002-2011, Dissertation faisal hayat
Functioning of teh Public Accounts Committee of teh National Assembly of Pakistan 2002-2011, Dissertation faisal hayat
Functioning of teh Public Accounts Committee of teh National Assembly of Pakistan 2002-2011, Dissertation faisal hayat
Functioning of teh Public Accounts Committee of teh National Assembly of Pakistan 2002-2011, Dissertation faisal hayat
Functioning of teh Public Accounts Committee of teh National Assembly of Pakistan 2002-2011, Dissertation faisal hayat
Functioning of teh Public Accounts Committee of teh National Assembly of Pakistan 2002-2011, Dissertation faisal hayat
Functioning of teh Public Accounts Committee of teh National Assembly of Pakistan 2002-2011, Dissertation faisal hayat
Functioning of teh Public Accounts Committee of teh National Assembly of Pakistan 2002-2011, Dissertation faisal hayat
Functioning of teh Public Accounts Committee of teh National Assembly of Pakistan 2002-2011, Dissertation faisal hayat
Functioning of teh Public Accounts Committee of teh National Assembly of Pakistan 2002-2011, Dissertation faisal hayat
Functioning of teh Public Accounts Committee of teh National Assembly of Pakistan 2002-2011, Dissertation faisal hayat
Functioning of teh Public Accounts Committee of teh National Assembly of Pakistan 2002-2011, Dissertation faisal hayat
Functioning of teh Public Accounts Committee of teh National Assembly of Pakistan 2002-2011, Dissertation faisal hayat
Functioning of teh Public Accounts Committee of teh National Assembly of Pakistan 2002-2011, Dissertation faisal hayat
Functioning of teh Public Accounts Committee of teh National Assembly of Pakistan 2002-2011, Dissertation faisal hayat
Functioning of teh Public Accounts Committee of teh National Assembly of Pakistan 2002-2011, Dissertation faisal hayat
Functioning of teh Public Accounts Committee of teh National Assembly of Pakistan 2002-2011, Dissertation faisal hayat
Functioning of teh Public Accounts Committee of teh National Assembly of Pakistan 2002-2011, Dissertation faisal hayat
Functioning of teh Public Accounts Committee of teh National Assembly of Pakistan 2002-2011, Dissertation faisal hayat
Functioning of teh Public Accounts Committee of teh National Assembly of Pakistan 2002-2011, Dissertation faisal hayat
Functioning of teh Public Accounts Committee of teh National Assembly of Pakistan 2002-2011, Dissertation faisal hayat
Functioning of teh Public Accounts Committee of teh National Assembly of Pakistan 2002-2011, Dissertation faisal hayat
Functioning of teh Public Accounts Committee of teh National Assembly of Pakistan 2002-2011, Dissertation faisal hayat
Functioning of teh Public Accounts Committee of teh National Assembly of Pakistan 2002-2011, Dissertation faisal hayat
Functioning of teh Public Accounts Committee of teh National Assembly of Pakistan 2002-2011, Dissertation faisal hayat
Functioning of teh Public Accounts Committee of teh National Assembly of Pakistan 2002-2011, Dissertation faisal hayat
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Functioning of teh Public Accounts Committee of teh National Assembly of Pakistan 2002-2011, Dissertation faisal hayat

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M.Phil thesis presenting a comparative study of the functioning of the Public Accounts Committee of Pakistan during 2002-2006 (when a Government member was Chair) and 2008-2011 (when the Opposition Leader was PAC Chair). Contains a good literature review including Pakistani academics, extensive questionnaires and interviews with "inside" stakeholders, and compares to frameworks previously presented by McGee and Stapenhurst on effective or ideal PACs. The Study contains some surprising information. eg:


. the financial statements of the government of Federal Government of Pakistan have been prepared by the Controller General of Accounts and audited by the Auditor General of Pakistan each year, but never scrutinized by a PAC "except perhaps once."

. Pakistan has had a number of periods of military rule during which there was no Parliament. At least 6 adhoc PACs were appointed to carry out the PAC function during such periods, and they were functional for just over 16 years (vs 22.5 years for elected PACs)

. It took over 500 days to form the 12th (government led) PAC, but only 150 to form the 13th

. Even when the PAC was led by a government member, 80% of respondents felt the PAC should be chaired by an opposition member.

. When the PAC was chaired by a government member, PAC recommendations were "seldom" or "never" implemented in 80% of cases, whereas when the opposition leader chaired the PAC, recommendations were "frequently" implemented. This is contrary to the argument generally advanced for having a government Chair.

. Many other interesting findings, some controversial observations about the Auditor General of Pakistan, and a Conclusions chapter with 40 recommendations for making the PAC in Pakistan more effective

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Functioning of teh Public Accounts Committee of teh National Assembly of Pakistan 2002-2011, Dissertation faisal hayat

  1. 1. IThe Public Accounts Committee of the National Assembly ofPakistan: A Comparative Study of Its Functioning during periods;2002-2006 and 2008-2011Submitted byFaisal HayatNDU-GPP/M.P-09/F-060Supervised byDr. Usman MustafaDepartment of Government & Public PolicyNational Defence University, Islamabad-Pakistan
  2. 2. IITo my parents,
  3. 3. IIIAcknowledgementForemost, my sincere gratitude to my Supervisor, Dr. Usman Mustafa for his continuoussupport to my M Phil research for his patience, motivation, enthusiasm and immenseknowledge. Defiantly, it was his guidance that helped me all the course of research andwriting of this Dissertation.My special gratitude also goes to Dr. Ilhan Niaz, for his unlimited support in reviewingmy initial chapters. My special thanks to Dr. Bashir Hussain, Dr. Sarfraz Hussain Ansariand Asif Shah for their technical support, encouragement and insightful comments.My sincere thanks to Honourable Nadeem Afzal Gondal, Chairman PAC, HonourableYasmeen Rehman, Member PAC and Honourable Riaz Fatyana, Member PAC for theirprecious time and continued support to my research. I am equally thankful to all othermembers for their interviews and response to my research questionnaires.My utmost gratitude to PAC Secretariat, especially Moosa Raza Afandi, AdditionalSecretary, Najma Saddiquee, Joint Secretary, Muhammad Mushtaq, DS Legislation,Roomana Kakar, Deputy Secretary, Khaleeq Ahmed, Deputy Secretary, Sharafat Ali,Section Officer, Salamat Ali, Section Officer and Shabbir Ahmed, Assistant, Haji HattarLibrarian-NA for facilitating my access to PAC, for their briefings and providing withnecessary data.I am so grateful to Mohammad Mohsin Khan former Controller General of Accounts andDeputy Auditor General Pakistan for his technical support and guidance. I found him thebest guide with technical knowledge about auditing, financial oversight and PACoperations among the persons I accessed for this study.I am so grateful to my friends Hassan Choukhia, Afzal Tarar, Muhammad Maqsood,Shahzad Rao, Bilal Maghrani, Asad Kamal, Iqbal Haider, Imran Haider and Sohail Ikramfor their encouragement and morale support.I importantly thank my family especially my parents, brothers, sisters, wife, nephews andnieces who missed my company most of the time and sometimes on very specialoccasions.In the end I cannot forget to acknowledge the contribution of Ahmed Bilal Mehboob andAasiya Riaz (PILDAT) who give me assignment to work for the most effectivecommittee of the National Assembly of Pakistan and I eventually got the idea to work onthe functioning of PAC. PILDAT assignment was done in a couple of weeks aftercounting number of meetings of the National Assembly and Senate standing committeesand declaring PAC the most effective committee of the National Assembly on meeting
  4. 4. IVfor maximum number of times but my research just started to further investigate theoperations of PAC.
  5. 5. VTable of ContentsTable of Contents---------------------------------------------------------------------------------------IVList of Figures------------------------------------------------------------------------------------------VIList of Abbreviations----------------------------------------------------------------------------------IXAbstract-------------------------------------------------------------------------------------------------XIChapter 1Introduction---------------------------------------------------------------------------------1Chapter 2Literature Review--------------------------------------------------------------------------9Chapter 3Methodology and Theoretical Framework-----------------------------------------22Chapter 4The Structure, Functioning and Role of PAC-------------------------------------28Chapter 5Colliding Facts------------------------------------------------------------------------61Chapter 6Challenging the Past-----------------------------------------------------------------101Chapter 7The culture of governance in Pakistan--------------------------------------------142Chapter 8Conclusion----------------------------------------------------------------------------160Chapter 9Making PAC Effective--------------------------------------------------------------161Cited References------------------------------------------------------------------------------167Annexure---------------------------------------------------------------------------------------176
  6. 6. VIList of FiguresFigure 3.1. Survey Population and Response Rate 23Figure 4.2. PAC Organogram 38Figure 4.3. Channels of supervision 39Figure. 4.3 Process MAP of PAC 46Figure 4.4. Sitting Arrangement of PAC Meeting 47Figure 4.5. Official Procedure for Approval of Actionable Points 49Figure 4.6. Official Procedure for Approval of Actionable Points 49Figure 4.7. AG relationship with PAC 54Figure 5.1. Comparative Delay 60Figure 5.2. Performance of MIC 64Figure 5.3. Details of the Audit Reports examined by Mr. Zahid Hamid, MNA 66Figure 5.4. Details of the Audit Reports examined byMr. Riaz Hussain Pirzada, MNA 68Figure 5.5. Backlog Status 69Figure 5.6. General Comparison of 12th & 13th PAC 70Figure 5.7. Excess budget Statements examined by 12th PAC 80Figure 5.8. Excess budget Statements examined by 13th PAC 84Figure 5.9. Audit Paras Discussed V/S Directives Passed 89Figure 5.10. Compliance Rate in Per centage 90Figure 5.11. Quality of Clearance 90Table 6.2. A perception of the respondent about the of the Best Chairof 12thand 13thPAC 100Table 6.3.Tthe perception of the Capacity of Committee Staff of12thand 13thPAC 101
  7. 7. VIITable 6.4. Availability of Research Facility 101Table 6.5. Government Response to Committee Recommendations 102Table 6.6. Government Implements Committee Recommendations 103Table 6.7. Institutionalization of practices 103Table 6.8. Improvements in the integrity of government information or data bases 104Table 6.9. Legal action was taken against officials who contravene laws 104Table 6.10. Disciplinary action was taken against officials who contraveneadministrative guidelines 105Table 6.11. Resistant to Political Pressure 106Table 6.12. PAOs found hiding facts 106Table 6.13. Adoption of latest Financial Oversight Developments 107Table 6.14. The Committee institutionalized certain guiding principlesrequired to meet its objective 107Table 6.15. Adherence to financial control of resources 108Table 6.16. The policy of waste prevention 109Table 6.17. The Committee promotes practices of economical use of resources 109Table 6.18. Representation of Political Parties 110Table 6.19. Ministerial Exclusion 111Table 6.20. PAC focus on holding the government accountable for itsspending of taxpayer’s money and its stewardship over public assets 112Table 6.21. Committee focus on administration of policy 112Table 6.22. Reference to examine the Public Accounts 113Table 6.23. Reference to examine all reports of the Legislative Auditor 114Table 6.24. Power to call independent witnesses 114Table 6.25. Power to investigate or review all past, current and committed
  8. 8. VIIIexpenditures of government Organizations receiving funds fromthe government and all state corporations 115Table 6.26. Power to request the legislative auditor to perform specificreviews or tasks 116Table 6.27. Power to compel officials to attend and be held accountablefor administrative, performance even after they have left office 117Table 6.28. Power to compel witnesses to answer questions 117Table 6.29. Power to make recommendations and Direct Actions 118Table 6.30. Power to hold press conferences and issue press releases 119Table 6.31. Power to hold in camera meetings, if dealing with sensitiveor national security issues 119Table 6.32. Power to review proposed legislation or amendments to theLegislative Auditor’s Act 120Table 6.33. Power to review the Legislative Auditor’s budget 121Table 6.34. Power to choose subjects for examination without governmentdirection and advice 121Table 6.35. Power to compel ministers to appear before the committee 122Table 6.36. Powers to take Suo-Moto actions 123Table 6.37. Powers to listen to Public Complaints and take action 123Table 6.38. Powers to take action on media review 124Table 6.39. Influence of PAC on the adequacy of the corporategovernance arrangements 124Table 6.40. Influence of PAC recommendations/Directives on institutions 125Table 6.41. Close working relationship between members fromdifferent political parties 126
  9. 9. IXTable 6.42. Advance preparation of members 126Table 6.43. PAC’s scrutiny speed of budget statements/appropriations/Accounts/Grants 127Table 6.44. Quick and in time decisions 128Table 6.45. Close working relationship with Auditor General 128Table 6.46. Provision of independent technical expertise and researchsupport for hearings 129Table 6.47. Formation of Sub-committees to deal with Backlog 129Table 6.48. Strategic prioritization of items for committee review,with time limits for stages of committee work like consideration ofdepartmental replies, reporting, implementation reports 130Table 6.49. Transcripts kept of all hearings and meetings 131Table 6.50. Committee appointed for the life of the Legislature or Parliamentand stays active between sessions 131Table 6.51. Televised public hearings 132Table 6.52. Report to the legislature annually, and ask for the report to be debated 133Table 6.53. Comprehensive response to recommendations from the government 133Table 6.54. Having committee members with at least 2 years of priorCommittee experience 134Table 6.55. Having committee members with prior administrative orbusiness experience 134Table 6.56. Extra pay or other incentives for members to participate inhearings outside the normal legislative session 135Table 6.57. Meeting place suitable for media and public access to hearings 136Table 6.58. Incentives to encourage administrative action on committee
  10. 10. Xrecommendations 137Table 6.59. Effective follow-up procedures to determine if action hasbeen taken to implement the committee’s recommendations 137Table 6.60. Good relations with other parliamentary oversight mechanismssuch as the budget committee 138
  11. 11. XIList of AbbreviationsAGP Auditor-General of PakistanANP Awami National PartyAPAC Adhoc Public Accounts CommitteeCAA Civil Aviation AuthorityCCAF-FCVI The Canadian Comprehensive Auditing Foundation-LaFondation canadienne pour la vérification integréeCEO Chief Executive OrderCDA Capital Development AuthorityCGA Controller General of AccountsCoD Charter of DemocracyCPA Commonwealth Parliamentary AssociationDG Director GeneralICG International Crisis GroupJCPA Australian parliament’s Joint Committee of PublicAccountsKPMG KPMG is a global network of professional services firmsproviding Audit, Tax and Advisory services.MIC Monitoring & Implementation CommitteeMMA Muthida Majlis-e-AmalMNA Member of National Assembly of PakistanMQM Mutihida Qaumi MovementNA National Assembly of PakistanPAC Public Accounts CommitteePAKPK Provincial Assembly of Khyber PukhtunkhawaPAO Principal Accounting OfficerPML Pakistan Muslim LeaguePML-N Pakistan Muslim League-NawazPPP Pakistan People’s PartyPTA Pakistan Telecommunication AuthorityUK United KingdomUSAID United States Aid for International DevelopmentWBI World Bank InstituteOECD Organisation for Economic Co-operation andDevelopment)INTOSAI International Organization of Supreme Audit InstitutionsRETA Regional Technical Assistance
  12. 12. XIIAbstractThe Public Accounts Committee of the National Assembly of Pakistan (PAC) is astanding committee of the National Assembly- a legislative oversight committee thatholds the government to account for its use of public funds and resources by examiningthe public accounts. Naturally a probing and regulating body, it performs financialoversight while, examining the effectiveness of government programmes in achievingtheir objectives. The PAC has an independent financial oversight role on NationalAssembly’s behalf of the government and the public services. In performance of this task,it is largely dependent on the information provided by the Auditor General in its auditreports that reach the PAC vide Article 171 of the Constitution. In addition PAC takessuo motu action on issues of public importance and also written public complaints.The overall objective of the study is to identify the major problems, discrepancies andfailures relating to the performance of PAC, while counting the successes of PAC. Inorder to achieve this objective a comparative study of functioning of the Public AccountsCommittee of the National Assembly of Pakistan during the periods: 2002-2006 and2008-2011 is being done through this studyThe study is largely based on McGee’s thought expressed in the Overseers and theframework as defined by World Bank working paper by Stapenhurst, et.al., “ScrutinizingPublic Expenditures: Assessing the Performance of Public Accounts Committees” toassess the performance of the PAC of the National Assembly of Pakistan.The study revealed that PAC operations were restricted to years of backlog, inefficientbureaucracy and political posturing. PAC is independent according to its mandate but stillleans heavily on the Auditor-General to prioritize areas of review. PAC has become aplatform to regulate the excess budget grants and to recommend settlement of paras. Thecompliance rate is as low as 12 per cent on an average while 88 per cent of actions werepending. (Monitoring and Implementation Committee 2012) The PAOs or the ministriesare continually violating the directives of PAC thus breaching the privilege of theparliamentary committee. Leader of the Opposition who was the Chairman of PACaccording to Charter of Democracy resigned (November 27, 2011) on personnel stakes
  13. 13. XIIIwhile keeping the Office of the Leader of the Opposition burying the best practice offinancial oversight process, a sacred trust put on the shoulders of Opposition under theCharter of Democracy.The study also revealed that the state was spending much more on the institutions of auditand financial oversight than their outputs the reported recoveries, financial managementand the impact on good governance. The study observed that certain audit practices likehighlighting of paras and audit sampling were quite ambiguous, and at the discretion ofthe Auditor General.
  14. 14. 1Chapter 1Introduction1.1 BackgroundThe State is a major form of human political organisation that performs the criticalfunctions of establishing and sustaining order and collecting taxes, which, if not carriedout effectively, can lead to anarchy. Although states were greatly developed in earlierperiods of history with defined political setups, courts, tax systems and administrations,democratic norms and constitutionalism are relatively recent phenomena (Niaz, 2010). InSouth Asia, for example, rulers had a free hand over the resources of the state and thepeople that resulted in chaotic conditions and wastage of taxes. In contrast, aftergenerations of political development, the British realised the importance of the properhandling of state funds in order to combat fraud and corruption and to get the most fromthe tax money. In 1857 a small group of the members of Parliament lead by Sir FrancisBearing, recommended the creation of a committee to oversee the government accountsto the parliament. William Gladstone, the then British Chancellor of the Exchequer,initiated reforms and Public Accounts Committee (PAC) was established through aresolution to structure and function in 1861 (Government of UK 2012). The practiceproved so effective that most of the commonwealth and other countries have adopted it(McGee 2002).In India, the Montague-Chelmsford Reform set the first PAC in 1921, chaired by theFinance Member of the Executive Council and assisted by the finance department torestrict the contradictory opinion and public criticism of the Executive (McIntyre, 1977).The system continued till 1949.In Pakistan, the first PAC was constituted on May 3, 1948 by Presidential approval toadopt the Pakistan Constituent Assembly (Legislature) Rules (May 3, 1948) under section38(3) of Government of India Act, 1935, read with the Pakistan ProvisionalConstitutional Order, 1947. However, its meeting never took place (NA, 1985). The PACof the National Assembly of Pakistan is based on the basic Westminster Model of
  15. 15. 2Democracy approach1whereby the Executive-led government is accountable toParliament and the Parliament exercises oversight over the Executive-led Government(USAID, 2009). The approach is largely based on learning lessons from the best practicesof tried and tested values among different democracies. In such a parliamentary system,various committees are formed to overcome the legislative burden.In addition to this, the institution of PAC in Pakistan existed even when parliamentremained dissolved, a minimum of six (6) adhoc PACs have functioned during militaryrule which accounts for about half of Pakistan’s history. The PAC was normally chairedby the Finance Minister till 1977 with the exception of Noor-ul-Amin, MNA,2whochaired 5thPAC and then 2ndadhoc PAC during Ayub Khan’s Marshal Law period (NA,1985). In UK, since the origin of PAC, it is a convention that a Treasury Minister sits inthe committee meeting but does not participate in the debate (Government of UK, 2012).Under General Zia, A.G.N. Kazi and Ghulam Ishaq Khan were the 4thand 5thChairmen ofthe adhoc PAC, respectively, Shahibzada M. Ali Shah, MNA, was appointed as theChairman PAC when General Zia established a democratic government during his rule(Saeed, 1998).Benazir Bhutto came into government in 1989 and appointed Hakim Ali Zardari, MNA,from government party as the Chairman PAC. During the Benazir-Nawaz governments,normally the PAC was chaired by the ruling party MNAs. On 25thAugust 2000,Musharraf formed 6thadhoc PAC and appointed H.U. Beg3as the chairman. While,Musharraf held elections to give people a democratic government in 2002. The regimeestablished a proto-PAC to carry out the functions that would otherwise be performed by1The Westminster system is a democratic parliamentary system of government modelled after the politics of theUnited Kingdom. This term comes from the Palace of Westminster, the seat of the Parliament of the United Kingdom.The term, ‘Westminster model of democracy’ was developed by political scientist Arend Lijphart. The termWestminster model interchangeably with majoritarian mode is used to refer to a general model of democracy. SeeArend Lijphart, Patterns of Democracy, New Haven, Yale University Press, 1999, p.9. This model of democracy isdefined as concentration of executive power in one party and bare majority cabinets, cabinets dominance, two-partysystem, majoritarian and disproportional systems of elections, interest groups pluralism, unitary and centralizedgovernment, concentration of legislative power in a unicameral legislature, constitutional flexibility, absence of judicialreview, a central bank controlled by the executive.2Noor-ul-Amin, MNA, was also from government party. He also has been Prime Minister of Pakistan from (December7, 1971 to December 20, 1971) and Vice President of Pakistan from (1970-72).3Mr.H.U.Beg had an illustrious career in the civil service, holding various key positions for about five decades. Heserved as secretary at several federal ministries and autonomous bodies and was the longest serving finance secretary.Mr. Beg was a long serving distinguished member of the FAST-NU BoG. He was also chairman of the KASB Bank.He passed away on December 9, 2009.
  16. 16. 3the PAC in a parliamentary environment. Apparently, it was not any ideal condition,however, being Parliament in abeyance, it is regarded a good practice in Internationalcommunity. McGee (2002) acknowledges the existing of proto-PAC during Musharrafregime saying the Government of Pakistan recognises the importance of PAC in goodgovernance and sound public sector accountability. However, the first Adhoc PAC wasfirst established in Pakistan in 1962 releasing the importance of public sectoraccountability by Gen. Ayub Khan (NA, 1985).The 12thPAC was thus formed on 3rd November 2003 and Malik Allah Yar Khan, MNA,from the government party was appointed chairman (National Assembly Secretariat,2007). Generally it is observed that having a Government member as a chair couldindicate a lack of independence on the part of PAC from executive and consequently lackof effective accountability and oversight. However, it is observed that in the Australiancontext that a chair from the government can advocate that the PAC’s recommendationsbe implemented by the government. Clearly this question of both the independence andthe implementation is empirical and can only be addressed by studying the actualactivities of the PACs (McGee, 2002).The 13thNational Assembly first met on 17 March, 2008 but the PAC was formed on 19September, 2008 with a delay of six (6) months and two (2) days. Ch. Nisar Ali, MNAand the Leader of Opposition in National Assembly of Pakistan, was asked to chair PACfor the first time in Pakistan as a Leader of the Opposition as is the practice in theWestminster democracies respecting the Charter of Democracy (NA, 2007:Charter ofDemocracy, Rule 15).The purpose of the PAC in the parliamentary system of Pakistan is to identify wastage ofnational wealth, tackling poor performance of departments and making the best use ofpublic funds, but the committee has become a probing body. Reports of the AuditorGeneral of Pakistan (AGP) and accounts of the Federal Government are referred to it fora review. The review was not conducted in a timely and efficient manner causing a big
  17. 17. 4backlog.4The big backlog diverted the focus of successive PACs towards violationsconcerning the previous government rather than focusing on the present one. The moderndemocracies benefit from PAC in over-sighting their on-going projects and policies toboost their delivery in a more efficient way but the case in Pakistan is different due to thebacklog and lopsided accountability meted out to the previous government’s projects. Asan example, the PAC of British Parliament has issued 62 reports in 2006-07 whichmainly include the work of government from major projects such as the Thames Gatewayand the preparations for the 2012 Olympics, administrative processes like helpingcompanies achieve their tax obligations and the implementation of child support reforms,social issues like legal aid and anti-social behaviour, as well as timeless value for moneyconcerns such as procurement and employment programmes. These democracies areworking on Value for Money and Audit Performance concepts with a 90% of compliancerate (Government of UK, 2012).In case of Pakistan, during every period of democratic government the political leaderspoliticised the civil servants for mostly ulterior motives. The original breaches in thefunctional divisions of the state were made by elected representatives during the earlyyears of Pakistan. Heedless, the politicians used and abused the apparatus to secure theirpersonal power and wealth and drew the higher bureaucracy and the armed forces intopolitics while punishing opposition leaders and dissenters through repressive legislation,ordinances and the repeated imposition of governor’s rule (Niaz, 2010).With theelevation of Ghulam Muhammad, a bureaucrat to cabinet post and the rise of Ayub Khan,to the post of army chief, the politicians opened the corridors of corruption, mal-practices, poor governance and the worse of all welcoming military to enter the politics(Bhutto, 1973).The three military takeovers, bureaucratic overstretch, introduction of local governmentsystem at the cost of civil administration and unstable political governments of 1990s,caused lasting harm to the state machinery. All these circumstances and the eventsundermined the purpose of creation of PAC to oversight the institutions. The4PAC had formed three sub committees to deal this backlog of the last PAC. When Ch. Nisar Ali resigned as aChairman of PAC, they were up-to 2008 in dealing with the AGP reports and paras. (Please check the exact date thatthey had cleared the back log to.
  18. 18. 5politicisation of civil servants and the institutions badly affected the good governance;hence, PAC remained ineffective across the history of Pakistan always struck with bigbacklogs, on the mercy of inefficient civil servants and political posturing. The Studywill, however, focus the functioning of the PAC during the governments from 2002 to2011.1.2. Statement of the ProblemIt is the responsibility of a state to provide its citizens with freedom from poverty,freedom from servitude and a quality of life free from injustice and tyranny. Corruption isthe worse obstacle in achieving these objectives. It hampers development process of acountry. Once in practice, corruption encircles all sectors of state into its sphere on thecost of citizen’s rights. Transparency International reported a loss of Rs. 8500 billion incorruption, tax evasion and bad governance during the first four (04) years of recent PPP-led coalition government (The Jang 2012). While, during the Musharraf period suchlosses reported were Rs. 2576 billion only in five scams of Privatization, Bank of Punjab,Petroleum, Stock Exchange and Sugar Scandal only (APSN 2009). These figures create aterrible impression of governments when state institutions like PAC, the legislativeoversight body, were functioning. Why were these losses not avoided or minimised? TheMusharraf regime formed adhoc PAC realising the importance of financial oversight overinstitution in time when National Assembly remained dissolved but does it meantanything. In a scenario, the functioning of PAC in both eras is important to be discussedunder this study.1.3. HypothesisThe hypothesis of this study is that under both governments, the Musharraf Regime andthe Pakistan People’s Party-led Coalition Government, the operations of the PAC wererestrained by years of backlog, bureaucratic inefficiency and political posturing.1.4. Objectives of the StudyThe overall objective is to identify the major problems, discrepancies and failures, whilelisting the successes of PAC keeping in mind its mandate according to the Rules and
  19. 19. 6Procedures of the National Assembly of Pakistan. The effort is to achieve this objectivethrough conducting a comparative study of functioning of the Public AccountsCommittee of the National Assembly of Pakistan during the periods: 2002-2006 and2008-2011. However the specific objectives are; To explore which one of the selected PAC remained most active/effective duringits respective periods based on quality of clearance provided its capacity To outline obstacles in review process of public spending and government controlof public funds which PAC performs in cases related to the use of public assets,resources and funds under two selected governments To study the process of enquiry on evaluating financial management performanceto identify wastes and poor governance To ascertain whether reports, recommendation and directives of PAC have anyinfluence in improving the performance of the institutions, strengthening internalcontrol and preventing re-occurrence (addressing of the weaknesses pointed outon the system by AGP, PAC, PAO) To formulate a set of policy recommendations on the basis of major findings, inthe end to help make the process of legislative oversight effective enhancingaccountability and transparency1.6. Significance of the studyAfter a thorough review of the relevant data, it is observed that there is little workavailable on the functioning of PAC of the National Assembly of Pakistan, while, it’sfunctioning is requisitely public, awareness of the performance of state organs concerningaccountability and oversight of state institutions can restore public confidence inGovernment. A thorough study of the comparative functioning of PAC in the selectedperiods is significant to this study. After the completion of this study, the research will beable to fill the gaps in the existing literature on functioning, especially comparativefunctioning, of PAC during two comparative/consecutive governments.
  20. 20. 7Secondly, major findings and recommendations of this research will be helpful for theinstitutions specially governmental and non-governmental organisations working andinterested in good governance and the operation of PAC in Pakistani jurisdictions.1.7. Justification of the StudyAlthough, PAC is working for the last 64 years, it has achieved few of the assignedobjectives given its mandate. The idea of good governance in the state has largely fadedaway; political institutions have weakened as a result of adversities and unethicalpractices of insincere and disloyal leaders across the history of Pakistan. Constitutionaldemocracy was never given a chance to flourish while the political leaders politicised thecivil servants to use them for illegal and abusive practices. On the other hand, stateresources and properties were competitively grabbed by one or the other among thecircles of politicians. Those in power had tried their best to get the most from theirposition and access to the state resources. The PAC, in the previous governmentsremained under government control5, so was its oversight over state finances. Under thepresent government, PAC only functioned to criticise the political rivals and policies ofthe previous government. The moment, it cleared the back log and was ready to starttaking up issues that arose during the tenure of the present government, the AGP waschanged and Ch. Nisar Ali Khan resigned as a Chairman PAC leaving the committee toits fate.1.8. Limitations of the studyAlthough PAC is working since 1948 but the main aim of this research is to compare andidentify the better functioning of one government over other during year 2002-2006 and2008- 2011. The study do not systematically examine the functioning of PAC during theother governments in different times other than selected for this study and terminateswith the resignation of Ch. Nisar Ali Khan as its Chairman on November 27, 2011.5PAC was mostly chaired by Finance Ministers or the Members of Parliament who belong to government party or thetrusted and obliged persons of the government (Bureaucrats etc.). While, in Commonwealth and other countries, it is apractice that PAC will be chaired by the Opposition Leader which happened for the first time during recent PPPP-ledgovernment, Who give a chance to Opposition Leader Ch. Nisar Ahmed, respecting international practices to chair theCommittee.
  21. 21. 81.9. Organisation of the studyChapter 1 is a Brief Background of the study. Chapter 2 is a Literature Review andprovide the sum of net practices related to the functioning of PAC. Chapter 3 isMethodology and the Theoretical Framework of the study. Chapter 4 discusses theStructure, Functioning and Role of PAC and is a brief guide for Members, Secretariat,Auditor General, PAOs and general public to know about the process of PAC operations.Chapter 5 & 6 examine and compare different traits of the PAC during two periods.Chapter 5 in detail consists of major observations of the study during selected periodwhile Chapter 6 is the discussion of the results of the survey conducted for this study andprovides the perception of the respondents. Chapter 7 is a discussion of the majorfindings bases on the theoretical framework set in the Methodology. Chapter 8 is aConclusion of the study and Chapter 9 is a set of Recommendations for making theprocess of legislative financial oversight effective while enhancing transparency andaccountability. The next chapter is a detailed review of the literature.
  22. 22. 9Chapter 2Literature Review2.1 IntroductionAlthough there is big accumulation of literature pertaining to the formation, functioningand operations of Public Accounts Committees (PACs) across commonwealth and non-commonwealth (McGee 2002; Wehner 2003, Gay and Winetrobe 2003, Stapenhurst,Sahgal, Woodley and Pelizzo 2005; Pelizzo and Stapenhurst 2007; Jacobs, Jones andSmith 2007; Jacobs and Jones 2009), very little investigation is made of the comparativefunctioning of PAC in Pakistan. The study observes the comparative functioning of 12th(2002-2006) and 13th(2008-11) PACs of the National Assembly of Pakistan realizing thegap existing in the entire literature. PAC, primarily being a financial oversight committeeof any Parliament, plays a vital role in implementing Public Sector Accountability beinga significant component of the parliamentary machine ensuring governments functions,their working practices, policies, actions, course of execution and use of public monies(McGee 2002:31). No democratic government can properly function unless anappropriate accountability is not carry out (Funnell and Cooper 1998; Watson 2004).However, Jones and Stewart (2008).deemed accountability could be an outcome of theallocation of praise or blame.PAC in Pakistan has always been an important standing committee of the legislature (NA1885), realizing the importance of financial oversight of public monies, adhoc PACswere constituted when National Assembly remained dissolved in Pakistan. However, theoperations of PACs across the history of Pakistan were only formalities (NA 1885). Areview of literature (ICG 2010, 2004; Shafqat 2010; Niaz 2010; Chaudry 2011 and Altaf2011) holds that arbitrary transfers of state servants, bureaucratic inefficiency andpolitical posturing were major restrictions in the way of good governance in Pakistan.This weak structure of governance never allowed oversight and accountability institutions
  23. 23. 10like Public Accounts Committee to properly function in order to strengthen parliamentaryoversight of resources and the governance.2.2 PAC Role as an InstitutionAldons (1985); and Griffiths (2006) described PAC, naturally a standing committee ofthe parliament, is regarded as a key financial legislative oversight committee assigned thejob of compliance of its directives and maintaining efficiency and good governance ofdepartments and agencies under its ambit. PAC’s major responsibility has been toinvestigate the financial oversight of the resources allocated to a programme at budgetproposal level. Whereas the PAC plays an ex post facto oversight process at a secondarylevel to check the regularity in spending of allocated monies as Wehner (2003) describes.During the early nineteenth, the PACs were associated entirely with the public finances;to examine government expenditures, mainly based on the information provided in theAuditor General Reports, naturally working in close relationship with the AuditorGeneral, making certain that public money sectioned by the legislature had beenappropriately, economically and efficiently spent on defined projects and programmes.PAC had another obligation of the non-enforcement limitations of PAC especially inPakistan due to absence of supportive financial legislation under Article 79 of theConstitution, like the Financial Management Practices Act that exists in South Africawhere a government agency can be fined or an official jailed for violation for financialrules. The audit courts in Europe and African countries are good examples ofenforcement of financial oversight.2.3 Modern Methods of Accountability- Audit Performance and Value forMoneyMulgan (2001) and Guthrie and Parker (1999), have introduced the development ofperformance auditing for the purpose of getting rid of old technical accounting methods,while focusing on its prospective of resistance to political influences. They startedundertaking performance auditing work, while, other are exercising powers to examinebudget estimates, described as an ex-ante facto. Now, they better spotlight modernconcepts like value for money which is economy; the minimizing of costs of resources
  24. 24. 11utilized for an activity with regard to appropriate quality, efficiency; is the ratio betweenoutputs and inputs, the maximum outputs from minimum inputs, and effectiveness; is therelationship between the intended impact and the actual impact of an activity or product(Johnson, 2010 and The House of Commons, 2005). However, the concept ofparliamentary accountability somehow remained a controversy and debate. Among theconventional forms of accountability, was the concept of ministerial responsibility, whereministers were directly accountable to parliamentary inquiries. Walter (2006).holds thatthe concept remained under political test as governments re-defined and to a largerdegree abated the ministerial responsibility. The reason for lack of appropriate focus onperformance audit is the AGP’s concentration on compliance with authority audits thathave to be done in absence of an effective internal audit structure in the Governance setup in Pakistan.2.4 Conventional AccountabilityThe findings reported by CCAF-FCVI are consistent to the finding of Simon McInnesresearch during the mid-1970s. In his research, McInnes examined the provincialexperience regarding legislative scrutiny of public expenditures. His study focused on thestandard functioning and proceeding of PAC, the role of AG in accountability processand the relationship between PAC and AG, while discussing external factors whichinfluence PAC in performing its activities. McInnes (1977:39) significantly found thatPAC of one province was varying from the PAC of other province in many ways.McInnes added that most of the PACs were functioning on conventional methods in 1975and there was not any established system of proceedings.Mulgan (1997) also challenged this concept, according to him, this is a pluralistic modelof accountability where accountability is a multi-dimensional phenomenon starting withthe new public management theory during the late 20thcentury. However, regardless ofboth the value of financial oversight committees to public sector accountability and thevarying political and administrative atmosphere that facilitates its function andstrengthens governance, there is a big gap in academic research on the functioning ofPACs in this prospective, including both common wealth and non-common wealthcountries, particularly in Pakistan. Normally, the existing works available are of a
  25. 25. 12descriptive nature compiled by practitioners and politicians engaged in the PAC process(McGee, 2002 and Watson, 2004) or by surveys conducted in the fields (KPMG, 2006and Stapenhurst et al., 2005).In a broader sense, a very significant academic study was by Degeling, Anderson andGuthrie (1996) who carried out a content analysis of reports of the Australianparliament’s Joint Committee of Public Accounts (JCPA) between the period 1914 and1932 to study the activities involved in constituting the status and focus of a PAC. Theyestablished that it was difficult to understand activities and outcomes of a PAC simplywith regard to purposes of its progenitors. They concluded that future studies are buildinga link among accountability, accounting practices and PACs may be studied in ananalytical context of the concerned social and political environments (Degeling et al.,1996: 47 and Jacobs and Jones 2009). While comprehending the earlier analysis of JCPAinto a study of demise in the early 1930s of JCPA and Victorian PAC, the study groupholds that both functionaries glided significantly from their deliberated job of financialoversight to a legitimizing role.Wehner (2003) and Newberry and Pallot (2005), in their studies highlighted the effects ofexternal factor on the functioning of PACs. Wehner (2003) arguments that regardless ofbeing a significant part of parliamentary structure and scrutiny process, the PACs arelargely dependent on external factors like political environment and resource provided.The work of Newberry and Pallot (2005) recommended a pessimistic liaison amongPACs, accounting practice, and issues of parliamentary accountability. They furtherargue that the introduction of the Public Finance Bill in New Zealand dilutedparliamentary oversight and control of spending in New Zealand. It highlighted asignificant question on the nature and independence of parliamentary finances and thefunctions of PAC. A WBI survey of 51 PACs conducted by Pelizzo et. al., (2006)resulted that broader mandate and freedom to set agenda were the successive factors of aPAC. They also reported that 90% of Chairs acknowledged the authority of self-initiationof agenda and choosing issues without any government meddling, was a successive factorin PAC practices.
  26. 26. 132.5 Relationship of PAC and Auditor GeneralMcGee (2002) produced a very effective publication on financial oversight andaccountability discussing the role of PAC and Auditor General with support ofCommonwealth Parliamentary Association. He worked to come-up with possible ways toimprove upshots through an effective use of PACs, while strengthening Auditor General.His core identifications include; capacity building, independence, and informationexchange. Realizing the significance of the departmental capacity of the overseers for aneffective financial oversight of the government expenses, He upholds that the ability ofthe three prime oversight institutions including the Parliament, the PAC and the AuditorGeneral to accomplish their oversight functions should be strengthened to the maximum.He further says that it is also under the procedural ambit of PAC to work on thestrengthening of AG office to ensure effective accountability. AG office is regarded asthe main source of information for PAC working was also endorsed by Wehner (2003).McGee (2002:31) also described that initially, PACs were constituted to ensure theparliamentary follow up of Audit reports and compliance of its own Directives because ofa more common remit of PAC legal jurisdictions with Auditor General. He furtherendorsed, while identifying the weakness of all three institutions involved in the financialoversight process that better results can be achieved with the provision of requiredstaffing, resources, trainings and in time information. McGee also emphasizes that theindependent role of Auditors General from partisan and political influence is a successivefactor in its business. In order to perform its duties impartially, independence is the corevalue for the Auditor General. McGee focused that availability of information and itsexchange among stakeholders was a successive factor in carrying out the business of aPAC, he further stresses on the need of information exchange and sharing ideas whilekeeping PAC fashioned with latest developments, changing standards and best practices.The PAC and the Auditor General have a critical relationship in the course of publicsector accountability (Coghill, 2004; Jones and Jacobs, 2006; McGee, 2002; Stapenhurstet al., 2005). Across the common wealth and non-common wealth jurisdictions PAC andthe Auditor General operate in coincidence and both are critical to financial oversight andaccountability holds (Jacobs and Jones 2006). Coghill (2004) argued that while
  27. 27. 14accommodating rapport between PAC and an Auditor General are indispensable. He saysthat this relationship might not overlap, necessarily transpiring effective governance as aresult when AG listen the views of PAC but never claim a caption of such views.However, the point of significance is the trust of both Auditor General and PAC inimplementing and upholding a nonpartisan behaviour in their mutual trades. PAC shouldbe independent of the AGP in so far as the process of determining the nature of reviewprocess prioritization. PAC can seek advice but decide on its own criteria rather thanAGPs irrespective of agreement or disagreement. In fact PAC should dictate the criteriaof prioritization. An effective decision support MIS is required in this case.2.6 Agenda Setting-Who are the main ActorsThis study also profited from the studies of Kingdon (1984 and 2003). He describes thatsetting of policy agenda can leave critical inferences on the successive policy debatersand the out springs. It is of significant that the agenda setter or the resource provider orthe source of inquiry to PAC has a greater role in shaping its role and it behaves as a toolof governance and accountability of that political set up. It is very important to reason outits focus of sources of inquiry necessarily in time. Despite a big resurgence in PACfunctioning in Pakistan since the late 2000, such activities have a limited scope becauseof restraint resource supply or local political culture.A central point of investigation in the PAC is how and by whom the agenda of PACproceedings is set and managed. It is also equally important to be aware of how differentinstitutional actors took part in the operations of efficient and effective public sectorgovernance and accountability, the roles of individual actors and their effects onoutcomes (Kingdon 2003; Ryan 1998). Kingdon (2003) describes that there are twoimportant factors which facilitate agendas to be set; the actors themselves, and theprocesses involved in agenda setting. Deepening Kingdon’s (1984) work, Ryan(1998:520) differentiate between the political agenda and the policy agenda, while,defining political agenda as comprising on the broad issues which comes under thejurisdictions of government functionaries and which are the basis of their functions, thepolicy agenda relates to matters concerning policy formulation. In the Pakistani financialreporting ambit, the main actors are PAC and the Auditor-General, while in developed
  28. 28. 15countries like Canada and Australia main actors include PACs, AG, and the organizedaccounting professionals, all of whom seek to influence the Australian or Canadianpolitical agenda, describes Ryan (1998). Political agenda is one of the significant areasbecause PACs rarely address matters of policy overtly although; their activities arepatiently impinged on public policies.An important question raised in this study is of the key actors that influence the politicalagenda ‘who sets the agenda with respect to public sector accountability?’ The scope andmandate of the PAC has a prospective that the agenda might be set by a number ofdissimilar sources. KPMG (2006) reported that other than a routine role of following upof Auditor General’s Reports and the matters sometimes referred by the parliament ,certain PACs took suo-moto actions on major issues of public importance, publiccomplaints, media reviews, showing powers to initiate self-enquiries. However Jacobs etal. (2007) observed the relationship between AG and PAC largely depends on thejurisdiction of that democratic setup. He also observed that PACs have the powers ofparliamentary review of audit reports but nearly half of the PACs are given the right torefer matters to AG. While only few democracies give PAC the right to have a say in theappointment of AG.Jacobs et al. (2006) concluded that significant insights of the political and institutionalinfluences on PAC can be observed from its enquiries and operations and the judgmentthat had control on its agenda. Jacobs et al. raised their apprehension on taking seriousthe degree of independence to the functioning of PAC and the need for transparentoversight, governance and accountability work of the PACs.2.7 Independence of the PACsThere are other fundamental points of concerns about the independence of the PACs incommonwealth countries. Jacobs et al. (2007) found that the government chairs inAustralian and New Zealand were 80%, while 70 % of the PACs in their study have agovernment party majority. Another big number of PACs were found with ministerialmembership. However, McGee (2002) observed that a more than two third PACs of thecommonwealth countries were chaired by opposition party members. McGee (2002) also
  29. 29. 16noted that government member chair have an effect of lack of independence of PAC fromexecutive, hence a lack of accountability and efficient oversight. McGee (2002: 66)however, examined that a government member chair can better influence on theimplementation of PAC recommendation. Obviously, this is a critical question of bothimplementation and independence that require a deep study of the activities of aparticular PAC. It might also be constructive to discuss the careers of PAC chairs as is itoften recommended being the chair of a PAC is a facilitating thing to the ministry. Thispossibility remained the cornerstone of PAC history in Pakistan, from 1951 to 2000; thePAC was chaired by Finance Ministers or the Finance Ministers for State. Mr H.U Beg,Chairman 6thadhoc PAC was a former Finance Secretary.2.8 Relationship between Accountability and GovernanceAnother study of Canadian PACs was carried out by CCAF-FCVI initially in 2004, whileits final research report published in 2006. The report investigated accountability andgovernance relationships among public oversight committees, legislative auditors, andsenior government managers, with particular focus on the functioning of PACs in relationwith these institutions. The report comes up with a structure of core powers and practicesto help strengthen the effectiveness of PACs. The report identified four significant factorsin Canadian PACs: i) each PAC is unique; ii) PACs must try to avoid partisanship to beeffective; iii) PACs should operate independently of government and should be curiousenough to ask probing questions; and iv) PAC proceedings can play a meaningful public-education role. However, the report does not investigate any specific differences at PAClevel leaving it ambiguous that what are the powers of PACs in specific jurisdiction.Hence, the comparison of individual PACs looks impossible. The report also detects thatthere found no single model PAC because of the variances in structures and democraticcultures of the legislatures and administrations of the diverse jurisdictions. However,CCAF-FCVI reported a substantial disparity among the relationships between thelegislative auditor and PAC and between Principal Accounting Officers and PAC, in themandates of the committee, in the conduct of business, in reporting to the legislatures, infollow-up of committee’s recommendations and in the rate of compliance.
  30. 30. 17The institutions of PACs are the landmark of effective financial accountability andgovernance in the public sector. Public accounts committee is the oldest and the mostsignificant standing committee in any parliamentary committee system due to itsresponsibility and the set of powers it exercise, hence, it has a critical role in ensuringpublic sector accountability and effective governance.2.9 Assessment of PAC PerformanceIn the recent studies include Stapenhurst et al (2005), a working paper on the assessmentof PAC performance, thus deepening McGee’s (2002) analysis of PACs. The reportexplores PAC success and identifies factors affecting its performance. The study wasbased on data collected by WBI in 2002, where a survey questionnaire was sent to 51parliaments in Commonwealth countries in Asia, Australasia, Canada and the UnitedKingdom. The WBI report observed that availability of information and non-partisanwere critical success factors of the PACs as ascribed by McGee. The survey also resultedthat two other factors were equally important including the institutional design of thePAC, and the PAC’s operational model. The report observed the extant ofinstitutionalization and the nature of powers and mandate of a PAC directly contribute toits effectiveness. The results of the survey reached to the conclusion that a greater focusof PACs on government’s financial activity and accountability were important rather onthe assessment of the content of the government’s policies. The study holds that the PACempowered to probe all past and present government expenses was at a best practice,however, PAC better benefit from examining ongoing projects. PACs should also beempowered to making departments and government implement its directives. Mostimportantly, the report pays greater focus on close working relationship of AuditorGeneral with PAC. The report further proves that the behaviour of PAC members and thefunctioning of the committee are successive factor other than the institutional design of aPAC. The practices identified by Stapenhurst et al, further include, a non-partisan fashionand consensus among members, preparation of Members prior to a meetings, keeping ofthe transcripts of meetings by PAC secretariats and publishing of Committee conclusionsand recommendations on PAC website and in press and involving the public and themedia. The paper also gives in its end the 17 aspects of an ideal committee.
  31. 31. 18Jacobs et al, found that there were three categories on the result of their investigation of148 reports produced by PACs in around nine Australian Jurisdictions over a period offour years’ time. The categories comprising firstly, those PACs for which the primeagenda was the follow-up of Auditor-General reports, secondly, the PACs for which self-initiated inquiries was the principal activity and thirdly the PACs who pay equalconcentrations to Auditor General reports and the self-initiated inquiries. The thirdcategory being an interesting and exceptional case with a balance between follow-upenquiries and self-initiated enquiries was regarded the best practice. He concluded thatthe inclination of interpreting a balance of activity between both the PAC and the AG is apositive sign of independence constitutionally provided.A need assessment report of the USAID (2009) observed that the operations of PAC ofthe National Assembly of Pakistan were restricted by a backlog of nine (09) years.However, the 12thPAC, previous to the recent one inherited a backlog of twelve (12)years. The USAID assessed that this “backlog” issue is the mountain which makes thereal forward journey of the PAC difficult to embark upon. The report argued that itsignificantly impedes with the committee functioning and absorbs its attention from morecurrent issues and is likely to continue to do so for some time. The report also added thatthe situation causes an overall workload which far exceeds the PAC’s work capacity. TheAGP has expressed concern that this could lead to PAC fatigue, the report described. Thereport also found that the use of sub-committees was the best tool to deal with thebacklog. The report also recommended that backlog could also be dealt with by attendingonly to those matters which could lead to recovery of monies for the State and byengaging extra staff to clear the backlog.2.10 Classification of the range of structures, responsibilities and workingpractices of a PACA report was published by KPMG jointly with La Trobe University, on PACs ofAustralia and New Zealand in 2006. The purpose of the report was to classify the rangeof structures, responsibilities and working practices, and is regarded by Rick Stapenhurstand Cindy Kroon as the first exhaustively comparative work of PACs in all Australianand New Zealand jurisdictions. Premise of the study is that “one size does not fit all”; the
  32. 32. 19structure, terms of proceedings and the operational models vary from one PAC to anotherand there is no set of unique practices to follow in constituting an effective PAC.However, a number of operations and working practices adopted or developed byindividual jurisdictions can be matching and beneficial to other jurisdictions. The studygroup observed a variance in rules, practices, and outcomes, differentiating each PACfrom other.Stapenhurst and Kroon (2008) conclude after observing various studies that no ideal PACexists, but there are a number of good practices of PACs that can be adopted by otherPACs to improve and to be more effective. They also believed that the existing literaturediscusses numerous practices, but none of them identifies working practices of individualPACs. They resulted that there was no study that investigated data of individual PAC andpractices adopted to be unique.2.11 Governance and Accountability Crisis in PakistanInternational Crisis Group-ICG, in 2004 reported the state of devolution of power inPakistan during Musharraf regime. The study reported the political tactics, a militaryruler adopted to enhance his military rule on the cost of state institutions. The overt aimof the Devolution of Power Plan was to empower the impoverished but in practice, theplan undercut the established political parties and provincial powers were drained away,doing no effort for corruption or accountability at local level. The report noted that apartfrom strengthening democracy, the reforms, strengthened military rule, raising risks ofinternal conflict and institutional clash. The core objective of regime legitimacy andsurvival was enriched utilizing the Local governments to; i) depoliticize governance; ii)create a new political elite to challenge and undermine the political opposition; iii)demonstrate the democratic credentials of a regime to domestic and external audiences;iv) undermine federalism by circumventing constitutional provisions for provincialpolitical, administrative, and fiscal autonomy. ICG also reported that District Nazismpoured public funds and other state resources to boost pro-Musharraf rallies during thepresidential referendum in April 2002 and to support the PML-Q’s parliamentarycandidates in the 2002 national elections. By that time, PAC was somehow functional,
  33. 33. 20but was assigned with a big backlog of past 12 years; no attention was paid to oversightthese mega corruptions scandals.A recent study from a Pakistani author Ileana Niaz, appeared in 2010. The study is basedon fabulous amount of original sources and a strongly argued analysis of the sixty yearsof Pakistan’s governance. The study attempts to enlighten Governance crisis in Pakistanin historical and philosophical requisites. Niaz argues that the exercise of power hasreasserted and produced deterioration among the attitudes of ruling elites because ofSouth Asia’s native orientation. He further his argument that during the past sixty yearsof independence from British rule the mind set and attitude of state functionaries andpolitical Jirga’s has been turning out to be more arbitrary, proprietorial and delusional.Niaz fears the consequential corrosion in the intellectual and ethical superiority of thestate machinery has become a moral hazard to Pakistan. A decline is noticed, author says,in the capacity of state to prosperous and uphold good governance according to itsdescribed constitutional mandates. The study reported the worse political andbureaucratic behaviour towards Pakistani state saying that rulers are treating state as theirpersonal estate while the servants of the state are tuned to be personal servants of thepowerful members of the executive. He concludes that this arbitrary exercise of powerhas been materialized as an overriding rule and discouraging the institutional andpsychological moralities and practices originally inherited from British Empire.Another recent study ‘Political Administrators’ is a story of the civil service of Pakistan,written by Aminullah Chaudry in 2010. The author, describing the politicization of civilservants says since everything is possible in Pakistan, it didn’t surprise him, being DGCAA and Secretary Aviation, performing superhuman feat of hijacking an airborneaircraft carrying the chief of army staff, on the orders of the then Prime Minister.Chaudry describes that out of sixty five years since independence, for the thirty-threeyears, the country has been ruled by military dictators. For the remaining thirty years, it isobserved that the politicians ranging from the autocratic to the corrupt; from the inept tothe clueless. He augmented that these fluctuations between dictatorship and democracycould have been absorbed by a country with a functional and reasonably neutral civilservice. He added that Pakistan inherited well-oiled machinery called bureaucracy from
  34. 34. 21British but within no time its Pakistani successors forged an alliance with the army andactively undermined the democratic process. Chaudry goes ahead saying that after breakup of Pakistan in 1971, the bureaucracy aligned with Zulfqar Ali Bhutto and on the eventof the coup of 1977, putting all its weight behind General Ziaulhaq. He further arguesthat this flip-flop continued through the so called democratic regimes of Benazir Bhuttoand Nawaz Sharif, and the military regime of General Pervaiz Musharraf. He concludesthat the institutional decays occasioned by these shenanigans did incalculable andpossibly irreversible damage to the civil service in Pakistan resulting bad governance atlarge.Another story of Pakistan’s dismal governance is written by Saima Iltaf (2011). In herstudy, she uncovers the bureaucratic inefficiencies. Her study is about the forces of acountry which are set in motion when huge monies flow into the coffers of countries likePakistan whose decision makers never consider themselves accountable to their people.The story is a routine of government offices, the bureaucrats and their decision making.She discusses the attitudes of these decision makers towards good governance anddevelopment.The literature discusses the different traits of different PACs in common wealth and non-commonwealth jurisdictions but there found a very little work on the functioning of PACof the National Assembly especially during the recent government. However, the presentstudy assessed the comparative performance of PAC during Musharraf regime and thePPP-led Coalition government. The next chapter is a Methodology and TheoreticalFramework of the study.
  35. 35. 22Chapter 3Methodology and Theoretical Framework3.1 MethodologyThe present study deals with comparative functioning of the PAC in the selected period(2002-2011). The Study is based on Qualitative Research and as it is a study of twoconsecutive periods, the research design is a Penal Study. Consequently, the approachadopted was primarily analytical and chronological with an element of interpretation. Inan effort to compare the functioning of 12thand 13thPAC to their mandates as set in theRules of Procedure and Conduct of Business in National Assembly, 1992, and the Rulesof Procedure and Conduct of Business in National Assembly, 2007, respectively(National Assembly of Pakistan, 1992 and 2007). The study orients towards explaininghow PAC is working as a probing body rather an accountability institution holdingexecutive authorities/spending ministries and revenue earning agencies of theGovernment accountable for performance in terms of its mandate.3.1.2. Survey ResearchA survey was conducted to articulate comparative views of the parliamentarians of 12thand 13thNational Assembly adopting World Bank Institute’s instrument used in itsappraisal of 51 democracies in 2002 (Stapenhurst et. al., 2005.) with certain changessuitable to local parliamentary ambiance. Naturally, the present study being comparativeone, same indictors were chosen for assessing both 12thand 13thPAC of the NationalAssembly of Pakistan. Hence two Questionnaires were used having same indicators butdifferent time period; one for 12thPAC and the other for 13thPAC. A total of 75Questionnaires were sent to the whole population consisting Members of PAC, PACStaffers, AG Office, Media persons and other stakeholders for this study. However,greater importance was given to those members who served both PACs, staffer whoserved both PACs and media persons who observed the operations of both PACs. TheQuestionnaires were personally distributed with the request to fill and return to the wholepopulation of the 12thand the 13thPAC. However the response rate remained 57 per cent.
  36. 36. 23The population and response of the members of 12thand 13thPAC is depicted at Figure3.1. The maximum response was received from the 13thPAC which was 54 per cent as of30 per cent of 12thPAC.Figure 3.4. Survey Population and Response RateA total population of 75 persons was selected for this study that include 41 MNAs, 10PAC Secretariat Staff Members, 12 from Auditor General Office, 8 media persons and 4others. The total response for the whole population remained 57 per cent making a totalof 32 respondents out of which include 13 MNAs, 6 PAC Secretariat Staff, 5 from AGoffice, 6 media persons and 2 other.3.1.3. InterviewsBesides, the questionnaires were distributed to the concerned stakeholders of PAC;twenty one semi-structured interviews were also conducted from the members of thePAC, staffers of the PAC, AGP and media persons. The details of the personsinterviewed are as under;1. Mr. Nadeem Afzal Chan, Chairman PAC2. Mrs. Yaseem Rehman, MNA, Member PAC3. Syed Haider Abbas Rizvi, MNA, Member PAC4. Sardar Ayaz Sadiq, MNA, Member PAC01020304050607080TotalPopulation12th PACResponse of12th PACTotalPopulation13th PACResponse of13th PACTotalPopulation ofBothTotalresponse ofBoth183231041134 26 4106626 31254 2 4 48 62 1 2 1 4 234104122753230% 54% 57%MNA Staff AG Media Others total % of Total Response rate
  37. 37. 245. Mr. Riaz Fatyana, MNA, Member PAC6. Mr. Saeed Ahmed Zafar, MNA, Member PAC7. Bagum Shahnaz Sheikh, MNA, Member PAC8. Mr. Moosa Raza Afandi, Additional Secretary, PAC9. Ms. Najama Saddiqui, Joint Secretary, PAC10. Mr. Muhammad Mushtaq, Deputy Secretary-Legislation11. Mr. Muhammad Khaleeq Ahmed, Deputy Secretary, PAC12. Sayed Fayyaz Hussain Shah, Deputy Secretary, National Assembly13. Mr. Muhammad Mohsin Khan Former Controller General of Accounts,Government of Pakistan and former Advisor to PAC.14. Mr. Sharafat Ali, Section Officer, PAC15. Mr. Salamat Ali, Section Officer, PAC16. Mr. Inamulhaq, Section Officer, PAC17. Agha Muhammad Asif, Superiendent/ Section Officer, PAC18. Mr. Muhmamd Shbbir, Assistant, Main PAC Branch19. Mr. Haji Hattar, Librarian, NA Library20. Mr.Muhammad Arshad, Audit Officer-PAC Auditor General of Pakistan21. Mr. Rouf Kalasra, Anchor Person22. Mr. Tahir Khalil, Media Person23. Mr. Saddique Sajjid, Media Person3.1.4. Documentary Sources of InformationThe basic sources used for this study are declassified PAC records held by the PACSecretariat, private papers, audit report issued by AGP, PAC reports. The study benefitedfrom a number of reports produced by International Institutions such as WBI, CPA andUSAID on the subject. A number of laws, books, papers, reports, newspapers and otherdocuments were also surfed and examined to compare the performance of PAC duringselected governments.
  38. 38. 253.1.5. Focal Discussions and PAC MeetingsPAC meetings were regularly attended during the course of this research to empiricallyobserve the functioning and operations of PAC and to observe the participation of PAOsand the AG. Internal Meetings of PAC (Pre-PAC) and its meetings with differentdelegations like USAID etc were also attended to better understand its operations. In thisconnection, the department of GPP requested the Joint Secretary PAC for a permission toobserve the operations of PAC and to attend its meetings which was permitted by PACSecretariat. Later On, Nadeem Afzal Chan, the new Chairman, facilitated a lot in researchactivities and made easy access to data and practical activities of PAC during hisChairmanship.3.2. Theoretical FrameworkThe theoretical framework of this study is mainly based on two recent and importantworks; McGee’s (2002), ‘the Overseers’ and the World Bank Policy Research WorkingPaper ‘Scrutinizing Public Expenditures: Assessing the Performance of Public AccountsCommittees’ written by Stapenhurst et al., (2005). McGee dealt with the two veryimportant aspects of financial oversight namely the Auditor General and the PublicAccounts Committee, while the World Bank paper further deepened McGee’s analysis ofPAC.3.2.1 The Overseers- by McGee DavidMcGee’s work was based on the views of a study group organized by CommonwealthParliamentarians Associations (CPA) that investigated practices across thecommonwealth concerning roles and functions of PAC and AG and their relationship.The Study assessed the working practices of PACs and whether they are delivering asimportant guarantors of good governance (McGee, 2002). The main individualconclusions and recommendations of the Study are annexed (See Annex-I)The study group tried to distil the practices into checklists of deliberations forParliaments, recognizing that there is no one organizational form that a PAC will takeconsidering social, economic and political factors across countries. The group also
  39. 39. 26discussed and tried to define a modern rationale for PACs which is necessitated by and isbased on the international dimension that results from a greater inter-dependability ofnations that has brought in its wake greater challenges to good government (Stapenhurstet. al, 2005).McGee (2002) identified potential courses of action to improve outcomes through moreeffective use of PACs. Three major finding of the study include: Capacity Building: the need to improve the ability of Parliaments andtheir PACs to carry out their functions by being provided with adequateresources, training and access to relevant expertise Independence: that they be free from political or legal constraints thatcould inhibit them from carrying out their duties diligently Information Exchange: that PACs have the means to exchangeinformation and ideas so as to keep them up-to-date with importantdevelopments, changing standards and best practices as they emerge3.2.2 Scrutinizing Public Expenditures: Assessing the Performance of PublicAccounts Committees by World Bank InstituteWorld Bank working paper by Stapenhurst, et.al., While, defining the greater successesof PAC, identifies impending factors effecting PAC performance based on the datacollected by World Bank Institute in 2002 on a Survey Questionnaire sent to 51 PACs ofCommonwealth including UK, Canada, Asia and Australia. The paper identifiedimminent factor for a PAC was focus on government’s financial activity rather than itspractices, the power to investigate all past and present government expenditures, thepower to follow up on government actions in response to its recommendations, and itsrelationship with the Auditor General. They give a comprehensive framework forassessment of PAC performance, consisting of very important three dimensions; Activity level - the measurement of events and input resources used such as: keeping up to date with legislative auditor’s reports, costs and time of staff, members, witnesses and others involved.
  40. 40. 27 Output level - the immediate visible results of work the committee does like: recommendations made, followed up and implemented Outcomes level - durable improvements in public administration such as: increased economy, efficiency or effectiveness of government programs better compliance with laws or regulations, improvements in financial and control structures, such as prosecution ofwrongdoers, stronger powers for legislative auditor more accurate, timely government information enhanced public awareness of government programs enhanced legislative knowledge about the state of the management ofprogramsAlong with these indicators the study also discussed, whether PAC infect dealt with theissues of importance reaching to its root cause or it generally investigate the symptoms ofthe problems such as corruption. The study also gages the deterrence effect of PAC onthe attitude of PAOs or the departments. They argued this an aspect of performance“relevance”. They also described an “Ideal Committee” (See Annex-II).The present study incorporated both these works by McGee and the WBI to check theperformance of 12thPAC (2002-2006) and 13thPAC (2008-2011) of the NationalAssembly of Pakistan. The study focuses on the comparative functioning of both PACsduring the governments, the Musharraf Regime and the Pakistan People’s Party-ledCoalition Government. The study finds some winning points on the basis of a comparisonon equal indicators and sees whether any of two PACs institutionalized thosedevelopments. The next chapter is the Structure, Functioning and Role of PAC, a guidefor Members PAC, PAC Secretariat, Auditor General, PAOs and other stakeholders.
  41. 41. 28Chapter 4The Structure, Functioning and Role of PAC4.1 IntroductionThe present chapter the Structure, Functioning and Role of PAC, is a guide for Membersof PAC, PAC Secretariat, Auditor General, PAOs and other stakeholders The PublicAccounts Committee of the National Assembly of Pakistan (PAC) is an institution thatoversight financial matters of state on parliament’s behalf. PAC carries out examinationof the accounts of the Federal Government, complied by the Controller General ofAccounts (CGA) and the Auditor General of Pakistan (AGP). The present PAC is the 13thPublic Accounts Committee of Pakistan since its formation on 14thApril, 1948 (PAKPK,2011).The structure and functioning practices of PAC are primarily patterned after Westminsterapproach. In the recent decade, it seemed, the PAC has adopted a number ofinternationally recognized best practices to make its working effective. The efficiency ofthe current PAC is credited to the practice of the appointment of the Leader of theOpposition as its Chairman, for the first time in the history of Pakistan, under charter ofdemocracy signed by the leaders of the two major political parties of Pakistan; BenazirBhutto and Nawaz Sharif (Charter of Democracy, Rule 15).The 18thamendment have widened the scope of PAC oversight over state corporations,trading and manufacturing concerns, development schemes and projects, autonomous andsemi-autonomous bodies, putting under the ambit of Auditor- General (Rehman 2012).4.2 BackgroundPAC is a standing committee of the lower house, the National Assembly of Pakistan likemany other countries. PAC was established to exercise under rules 51 and 52 of theManual of Business in the Legislative Assembly of undivided India adopted as verbatimin the constitution Assembly (Legislature) Rules with some minor variations in 1948(NA, 1985). The Rules 51(1) stated;
  42. 42. 29“As soon as may be after the commencement of the first session of the Assembly, aCommittee on Public Accounts shall, subject to the provisions of this rule beconstituted for duration of the Assembly for the purpose of dealing with theappropriation accounts of the Government of Pakistan and the reports of theAuditor General thereon and such other matters as the Finance Ministry mayrefer to the Committee”. (NA, 1985, P.76)4.5 Oversight PerspectivesParliamentary Control over public monies in Pakistan is exercised at two levels (NationalAssembly Secretariat, 200?), first is the proposal stage, where government on the end ofevery fiscal year comes forth with a budget proposal to get through the financial jiggle ofthe public representatives in order to implement its programmes and policies forupcoming year by overseeing the policy preparation. Second is the control over theexpenditure of public money. Here, PAC plays a watchdog role of oversight andexamines the accounts of the Federal Government compiled by the CGA and audited bythe AGP. The process assigns responsibility to the public representatives to keep a checkon public expenditures by overseeing the execution and implementation of a givenpolicy. This is an ex post facto responsibility.In order to assess Parliamentary control over public monies, two inter-related universallyaccepted background oversight perspectives of PAC are vital (USAID, 2009).4.5.1 The nature and extents of the PAC oversight rolesGenerally determined a predominant oversight committee in Westminster democracies,the PAC provides a critical oversight function in the legislative process within its definedLegislative Oversight ambit to improve the efficiency and effectiveness of allgovernment and public agencies. Key functions include; Providing a plausible and autonomous review process of public spendingand governments control of public funds through the examination of appropriationaccounts and audit reports Investigating the use of public assets, resources and funds
  43. 43. 30 Making sure the process of enquiry has greater focus on evaluatingfinancial management performance (rather than on policy) Ensuring its reports, recommendation and directives are influential, usingits powers and authority Challenging the adequacy of the corporate governance arrangements.4.6 The Committee System in the Parliament of PakistanThe best practice around the world is that the legislative oversees the performance of theexecutive through a mechanism of Standing Committees. A great number of moderndemocracies have provision in their constitutions and parliamentary rules and proceduresfor setting up Standing Committees to review the financial and administrative operationsof the executive departments and agencies.The Committee System in the Parliament of Pakistan is based on the basic structure ofWestminster and the lessons learned from the best practices of committee systems of thedeveloped democracies (NA, 1985). A good effort remained always there to copy theAmerican committee system (Hussain 2012). Across the parliamentary democracies,different committee systems are in practice to lessen the legislative burden of the houseand to provide technical support based on a detailed discussion at committee level. InPakistan, the system of Standing Committees is governed by the Rules and procedure andConduct of Business in the National Assembly, 2007. The Public Accounts Committee isa Standing Committee which plays a vital role in financial oversight and accountability ofthe executive.The Committee System in the Parliament of Pakistan consist of thirty five (35) Senatestanding committees and forty six (46) National Assembly standing committees includingPAC, one (01) Select Committees of the National Assembly, nine (09) parliamentarycommittees and eleven (11) Special Committees consisting of members both from theSenate and the National Assembly (NA, n.d) . The number of committee in theParliament of Pakistan varies from time to time depending on the need and requirementof the parliamentary process. The Secretary National Assembly controls all the Standing
  44. 44. 31and other committees, then, there are Joint Secretaries, each one of them control the twomajor branches, Standing Committees Branch-I and Standing Committees Branch-II,sharing the assignment of half of the standing committees of the house.Legislative committees in the parliamentary system of Pakistan are regarded as the corefunctionaries and are contributing a lot in the legislative business.4.6.1 Difference among PAC and Other Standing CommitteesConstitutionally, the Public Accounts Committee is a standing committee like otherstanding committees of National Assembly but it has certain powers and responsibilitieswhich distinguish this committee on other standing committees of the National Assemblyof Pakistan. The major points of distinction include; All standing committees of National Assembly deal with the affairs oftheir respective ministry, while the PAC ambit all ministries/departments/agenciesworking under Federal Government. Further, review of performance ofgovernment agencies under the standing committees other than PAC isdiscretionary whereas PAC has to look into each audit observation that maypertain to all the Ministries. The PAC had a responsibility of legislative oversight of public monies toregulate spending of ministries/departments/agencies while other standingcommittees are concerned with general affairs of ministries. The control overpublic monies gives PAC a pre-eminent position in the committee system of theNational Assembly of Pakistan. The main purpose of the creation of PAC was to ensure the parliamentaryfollow up on Auditor General’s reports to regulate public spending (McGee,2002). The jurisdictions of PAC are more in common with Auditor- General’sambit than does that of the other committees (McGee, 2002). PAC recommendations are regarded its Directives which are binding onministries, departments and agencies, while other Standing Committees of
  45. 45. 32National Assembly can only give recommendations to National Assembly whichare not binding rather a set of suggestions.4.7 PACs in PakistanSince its formation in 1948, the recent PAC is the 13thone. While, six (06) adhoc PACshave also functioned in Pakistan. The adoption of adhoc PAC shows the importance offinancial oversight in the country. A brief detail of the PAC background is given in theintroduction. The list of Chairs of PAC is annexed (Se Annex-III). PAC have functionedfor a total period of twenty two (22) years, six (06) months and two (02) days, while, theadhoc PAC remained functional for a total of sixteen (16) years and seven (07) days.6Although PAC existed across the history of Pakistan, sometimes it remained lesseffective. Its development is associated with time and changing circumstances. PAC islargely transforming its role from a probing body to its supervisory role increasingefficiency and effectiveness of programs to achieve her defined objectives (Rehman,2012). Being a standing committee, the PAC has the power to investigate and examine allthe issues referred to it by the legislature and the issues of public importance (Rehman,2012).4.8 Audit Reports of PACPAC after a complete scrutiny of audit paras prepared by AG and referred to PAC byNational Assembly is laid back to National Assembly in a form of annual audit report ofPAC. Such reports contain directives of PAC for compliance.4.8.1 Audit Reports completed and laid before the NATill to date, PACs and the APACs together have completed and laid before the NationalAssembly thirty (30) Audit Reports. The report of the Year 1993-1994 is ready forprinting. The report of monitoring and Implementation Committee of PAC for the years2011 is sent for approval to the main PAC. (See Annex-III)6The information is obtained from termination letters of different governments found in the file containingletters of Assemblies Termination available at Library of the National Assembly of Pakistan and the PACreports also available at NA library.
  46. 46. 334.8.2 Pending Audit ReportsA total of eight (08) audit reports are still pending. Three reports (1998-1999, 2002-2003,2003-2004) were assigned to Special Committee II, chaired by Mr. Zahid Hamid, MNA.While, three reports (2004-2005, 2006-2007 and 2007-2008) were assigned to SpecialCommittee III chaired by Mrs. Yasmeen Rehman, MNA. The audit reports of the years2009-2010 and 2010-2011 were being examined by the main PAC. (See Annex-IV)However, another four (04) reports (1981-1982, 1982-1983, 1983-1984 and 1985-1986)were still in backlog list.4.9 Role of Adhoc PACs (APAC)When National Assembly remained dissolved in Pakistan, the Chief Executives, whilerealizing the importance of financial oversight of the public monies, introduced proto-PACs (APAC). Consequently, Adhoc PACs were invariably set up, during the interimgovernments to examine the Federal Accounts and the Auditor General Reports (NA,1985). The First APAC was introduced by Yahya Khan, the then Chief Marshal LawAdminister, on 3rdmarch, 1960 (NA, 1985). A minimum of six (06) APAC havefunctioned in Pakistan (PAKPK, 2011). The sixth and the last APAC was constituted on25thaugust, 2000 (Finance Division, 2000). It was validated by the Chief Executive(CEO, 2001). So for APACs have produced four (04) Reports.4.10 Functions of PACPAC performs its functions under powers as given by the Rules of Procedure andConduct of Business in the National Assembly (2007) and the Constitution of the IslamicRepublic of Pakistan.4.10.1 Powers of PACThe PAC scrutinizes the Appropriation Accounts of the Government provided in thereports of the Auditor General of Pakistan. It is the duty of the committee to satisfy itselfwhile doing so according to the current mandate of the PAC under the Rules of Procedureand Conduct of Business in the National Assembly (2007) ( See Annex-IV). PAC hasadditional and more specific powers to perform its tasks, such as power to examine the
  47. 47. 34public accounts, the comments on the public accounts, and all reports drafted by theauditor general. The PAC has the power to conduct, directly or indirectly, investigations;to receive all documentation it considers necessary to adequately perform its functions; toinvite government members to attend its meetings and to respond to PAC members’questions; to publicize its own conclusions; to report to the legislature; and to suggest togovernment how to modify its course of action when necessary.4.10.2 Basis of PAC FunctioningThe PAC is designed to better examines the accounts for the appropriation of sumsgranted by the National Assembly for the expenditure of the government policies andprogrammes for the annual finance accounts, the report of the Auditor-General ofPakistan and other matters of public importance referred by the Minister for Finance(NA, Rule 203(1)). The PAC scrutinizes the appropriation accounts of the governmentand the reports of the Auditor-General of Pakistan to its best satisfaction that the moneysdisbursed in the accounts were legally available and applicable to the service or purposeto which they have been applied or charged (NA, Rule 203(2)a). The PAC also confirmsthat the appropriate authority is governing the expenditure (NA, Rule 203(2)b). The PACensures while its oversight process that every re-appropriation has been made inaccordance with the provisions made in this behalf under rules framed by Ministry ofFinance (NA, Rule 203(2)c).4.10.3 Examining the Statement of the AccountsThe PAC is mandated to examine the statement of the accounts showing the income andexpenditure of state corporation, trading and manufacturing schemes, concerns andprojects together with the balance sheets and the statements of the profit and lossaccounts which the president may have required to be prepared or are prepared under theprovision of the statutory rules regulating the financing of a particular corporation tradingor manufacturing scheme or concern or projects under the report of the Auditor-Generalof Pakistan (NA, Rule 203(3)a). It is also under its constitutional mandate to examine thestatement of accounts showing the income and expenditure of autonomous and semi-autonomous bodies, the audit of which may be conducted by the Auditor-General of
  48. 48. 35Pakistan either under the directions of the president or under the act of Parliament (NA,Rule 203(3)b).4.10.4 Annual Financial Statements (Finance Accounts of the Federal Government)Finance Accounts are required to be reviewed by PAC (NA Rule 203) now called AnnualFinancial Statements of the Federal Government. The two key accounts prepared by theController General of Accounts, certified by the Auditor-General and submitted to thePresident are (The Constitution of the Islamic Republic of Pakistan, Article 171):1. Appropriation Accounts2. Annual Financial Statements of the Federal Government (former FinanceAccounts).These accounts are certified by the Auditor-General. The AGP gives an Opinion on boththe accounts. The opinion on the Finance Accounts/Annual Financial Statements has alsoto be reviewed by PAC conforming to international best practice. The AGP can give thefollowing types of opinion on both the accounts.a) Unqualified Opinion: The accounts present a true and fair picture of thegovernment account balances shown in these accounts.b) Qualified Opinion: The accounts present a true and fair picture subject to thefollowing observations: (These are stated)c) Adverse Opinion: The accounts do not present a true and fair picture and assuch cannot be relied upon.d) Disclaimer: AGP is unable to give an opinion because (various reasonsgiven) e.g. non-production of record or other inabilities. This is a serioussituation that PAC needs to look into like the previous one.Important points to note regarding Finance Accounts/Annual Financial Statements are:a) They are prepared every year by Controller General of Accounts and submitted bythe Auditor-General every year under Article 171 to the President and laid beforethe Parliament.b) They are forwarded to PAC by AGP for review under Article 203 of the PACRules.c) They have to be examined by the PAC but have not been examined so far exceptperhaps once. There is no reason for this although PAC has been verbally advisedin the past that these must be reviewed.d) The Annual Financial Statements, as against the Appropriation Accounts thatcontain only an account of the expenditure under various grants contain thefollowing information:
  49. 49. 36i) Statement of Cash Receipts and PaymentsThis contains Total Receipts in Federal Consolidated Funds and PublicAccount as well as Payments out of both Federal Consolidated Fund andPublic Account. It contains the opening cash balance of the Government plusreceipts minus disbursements and the closing cash balance.ii) Statement of Cash Flows (during the financial year)This contains:a) Cash Flows from Operating Activitiesb) Cash Flows from Investing Activitiesc) Cash Flow from Financing Activitiesd) Net increase/decrease in cashiii)Statement of Comparison of Budgeted and Actual amounts of Receipts(Revenue and capital) and payments by the Functions ( General PublicService, Defence Affairs, Economic Affairs, Public Order & Safety Affairs,Education Affairs and Services, Health affairs and Services, Housing andCommunity Amenities, Recreation Culture and Religion, Social Protection,Environmental Protection).iv)Statement of Comparison of Budget & Actual Expenditure by Divisions ofthe Federal Ministries.v) Statement of Appropriation of grants by OBJECT DIVISION-WISE (Payand allowances, operating expenses, purchase of assets, repairs/maintenance,loans write-off, retirement benefits etc.)vi)Statement of Appropriation of Grants by OBJECT on accounts of expenditurecharged upon the Federal Consolidated Fund.vii) A Balance Sheet of the Federal Government is also available in the AnnualFinancial Statements.viii) In note 30 of the Annual Financial Statements the Auditor-General has statedthat these are one of the principal accounts certified by him and submittedunder Article 171 of the Constitution to the President.
  50. 50. 374.10.5 Presidential ObligationThe PAC also consider the report of the Auditor–General of Pakistan in case where thepresident may have required him to conduct the audit of any receipt or to examine theaccounts of stores and stocks (NA, Rule 203(3)c).4.10.6 Excess SpendingIn a case when any amount of money is spent on any service during a financial yeargreater than the actual amount granted by the National Assembly for that purpose, PACexamine and scrutinize such matters on the basis of related facts according tocircumstances of that excess and issue its recommendations (NA, Rule 203(4)). PACwork on zero saving, zero excess basis which means appropriate money should beallocated to policies and programmes (PAC Officer, 2011). The practice of wrongestimates given by ministries at proposal level and excess allocation to supplementarygrants that is not spent to the concerned program in due time is regarded as an aspect ofbad governance.4.10.7 Time period for submission of ReportsThe PAC is obligatory to submit its reports to the Parliament within a period of one yearfrom the date of its reference to the committee by the same house (NA, Rule 203(5). Thecommittee can also seek its extension from the National Assembly up to certain periodand if granted then to submit on the extended date specified in the motion. However,PAC will request for an extension in the time for the presentation of the report to beasked for before the expiry of the time allowed under the rule. In practice, it happens veryrare. A general condemnation may be given is by the house on submission of delayedreport (PAC Officer, 2011).4.10.8 Continuity of the ProceedingsIn case of dissolution of the assembly, any report, memorandum or note that theCommittee may have prepared, or any evidence that the Committee may have takenbefore dissolution, shall be liable to be made available to the new Committee (NA, Rule204). However, other than anything contained in mandate, the public Accounts
  51. 51. 38Committee will proceed from the stage where the previous Committee left theproceedings before the dissolution of the Assembly (NA, Rule 205).4.10.9 Magisterial Powers of PACIn general provision of the standing committees of the National Assembly, PAC hascertain magisterial powers: Powers to take evidence or call for papers, records or documents;PAC have power to require the attendance of persons, production of documents orrecords if it is considered necessary for the discharge of its duties considering ithas no harm to national security. In case of a question of the relevancy of adocument or a person, the final authority is speaker of NA to decide (NA, Rule227(1)). Summoning a Witness; PAC have the power to summon a witness by anorder signed by Secretary to appear before the committee (NA, Rule 227(2)). Invitation or Summon to a member or Person; PAC have power toinvite any member or person relevant or who has an interest in relation to anymatter under consideration in PAC and to hear expert evidence and to hold publichearing (NA, Rule 227(3). Power of Civil Court; PAC have powers, subject to clause (3) of Article66, vested in civil court under Code of Civil Procedure, 1998 (Act V of 1908) forenforcing the attendance of any person and compelling the production ofdocument (NA, Rule 227(4).These powers enable PAC to fix responsibility on any person or department to producewitness or to appear before PAC. In case of non-implementation, PAC has certain powersto refer such cases to NAB, FIA or police or to write displeasure against concerneddepartment/PAO to Prime Minister.
  52. 52. 394.10.10 Rule PositionGeneral rules of standing committees of the National Assembly along with the specificrules provided to PAC are practiced for its functioning given in the Rules of Procedureand Conduct of business in the National assembly, 2007 and the Constitution of theIslamic Republic of Pakistan 1973 as amended time by time.4.10.11 Status of PACIdeally, PAC is regarded as an important standing committee of parliament as it has theresponsibility of financial and audit oversight; therefore, it plays an effective role incurbing corruption and recovering amounts wrongly spent by the Ministry/Division. Theimportance of PAC has grown over the time due to the responsibility assigned to it beinghighly technical, specialized and sensitive in nature.Figure 4.5. PAC OrganogramSource: PAC Organogram as discussed with PAC OfficersSecretaryNational AssemblyAddl. Secretary( Committees)Addl. Secretary(PAC)Joint Secretary(PAC )ImplementationCellDSSO SOBranchPAC(Main Branch)DSSO SOBranchSpecial CommitteeIIDSSOBranchSpecial CommitteeIIIDSSOBranchAddl. Secretary(Admin)Addl. Secretary(Ligeslature)Addl. Wings of PACAddl. Wings of PAC
  53. 53. 404.10.12 Constitutional Link-Reference to PACAnnual Audit Reports along with Accounts are submitted by the Auditor- General ofPakistan to the President under Article 171 of the Constitution. X The Federal Ministerfor Law, Justice and Parliamentary Affairs then presents the report to the NationalAssembly (NA, Rule 171). The Speaker of the National Assembly refers them for adetailed scrutiny to the PAC (NA, Rule 177). The AGP refers such reports to thePresident on an annual basis.4.11 Sub-Committees of PACThe PAC is empowered to appoint one or more Sub-Committees, each having the powersof the whole committee, to examine any matter referred to it (NA, Rule 224).Subsequently, the report of sub-committee after approval by the whole committee will beconsidered to be the report of PAC.Sub-committees of PAC are sometimes assigned a whole report to review, while, manysub-committees are constituted to review only few paras who meet once or twice. Sub-committees of PAC have been useful tools to update its business. The culture ofinheritance of big backlog to every committee has been a practice in Pakistan. The use ofcommittees and especially the sub-committees in parliamentary system of Pakistan isgaining importance.Although the 12thPAC constituted many sub-committees but their role remained lesseffective. They were expected to be the major tools in clearing the backlog of twelveyears but the sub-committees of the 12thPAC produced only one report for the year 1995-1996.4.11.1 Constitutions of Sub CommitteesThe sub-committees of the PAC work on the same Rules of NA and the Constitution ofPakistan which provide for functioning of PAC.

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