New Rules for Technical Sanction Above Administrative Approval Explained–P&D Punjab Notification

Cost Updation Rules Under TS Explained by P&D Punjab–Notification:

In another important development in Government Notifications, the Planning and Development Board Punjab has issued a comprehensive procedure for the provision of funds in cases where Technical Sanction (T.S.) exceeds Administrative Approval (A.A.). This move is aimed at ensuring accurate project costing and better transparency through the SMDP Portal. The notification references earlier communication dated 09.01.2025 and the updated Finance Department clarification issued on 14.04.2025.

Now, Administrative Departments are permitted to submit cost update requests for ADP schemes where the T.S. reflects only original work costs. However, strict compliance is mandatory. Detailed documents including the approved TS, design estimates, justifications, and reappropriation sources must accompany each request.

This update is critical for officials in charge of project planning, monitoring, and execution. At Vocal Pakistan, we keep you informed with verified Punjab government notifications, especially those affecting development and finance departments across the province. Please find notification:

No. 35(231) PO(Coord-II)/P&D/2025
GOVERNMENT OF THE PUNJAB
PLANNING AND DEVELOPMENT BOARD
Dated Lahore, the 19^th April, 2025

Date

To

1. The Senior Member, Board of Revenue, Punjab, Lahore

2. Additional Chief Secretary, South Punjab

3. All Administrative Secretaries to Government of the Punjab, Lahore

4. The Registrar Lahore High Court, Lahore

5. The Provincial Police Officer / I.G Police, Punjab, Lahore

6. All Commissioners in the Punjab

7. All Deputy Commissioners in the Punjab

SUBJECT:             PROCEDURE FOR PROVISION OF FUNDS AGAINST CUSHION OF TECHNICAL SANCTION ACCORDED ABOVE ADMINISTRATIVE APPROVAL UNDER DELEGATION OF FINANCIAL POWERS RULES, 2016.

                              In continuation to this office letter of Even No. dated 09.01.2025, whereby, it was informed that a separate procedure shall be devised for provision of funds for any Technical Sanction (T.S) granted beyond Administrative Approval (A.A), to ensure that actual project cost is accurately reflected in SMDP Portal. The updated clarification issued by the Finance Department on the matter vide letter No. FD(FR)II- 8/2025 dated 14.04.2025 is also enclosed.

02.                        Competent authority in P&D Board has been pleased to allow the processing of requests for cost updation of ADP schemes where the increase in cost is attributed to Technical Sanction (T.S.), accorded for award of original works only. Relevant Administrative Departments may submit such cases, on SMDP Portal of P&D, along with following documents:

1.            Copy of the Technical Sanction duly accorded by Authorized Officer.

2.            Justification for the increase in cost.

3.            Copies of the detailed report, design, and estimate, to support the claim.

4.            Letters/ documents along with data entry in relevant columns on SMDP Portal.

5.            Indication of required funds from Intra-sectoral reappropriation.

03.                        Furthermore, it is again reiterated that AD shall examine each case as per following guidelines.

i.             Technical Sanction (T.S) is accorded on original works only, before award of contract. Any subsequent TS is violation of Delegation of Financial Powers Rules 2016,

ii.            T.S. cushion is exercised solely to accommodate variations in quantities due to design changes, based on actual site requirements, as necessary to achieve scheme’s intended deliverables.

iii.           Any change in the approved scope of project through Technical Sanction (TS) is illegal.

04.                        These guidelines are issued with the approval of the competent authority and shall come into force with immediate effect.

SECRETARY P&D BOARD

CHIEF (COORD & MONT)

Strict Enforcement of Technical Sanction Guidelines Begins – Notification:

This Government Notification from the P&D Board Punjab carries significant implications for all departments involved in the execution and funding of ADP schemes. It has now been clearly stated that any Technical Sanction granted post-contract award, or for changes beyond original scope, is a violation of the Delegation of Financial Powers Rules, 2016.

Administrative Departments must strictly ensure that T.S. cushions are used only to account for quantity variations due to site conditions, not to alter the scheme’s scope. The SMDP Portal will serve as the primary platform for such submissions, improving audit trails and project accuracy.

This latest P&D Board Punjab Notification aims to plug loopholes, prevent cost overruns, and enforce budgetary discipline across all development projects. Vocal Pakistan continues to bring you first-hand updates on critical financial rules, planning board circulars, and TS vs AA notifications, helping public sector professionals stay ahead in compliance and delivery.

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