Toshakhana rules tightened as federal government introduces new regulations

The federal government has tightened the rules governing Toshakhana and introduced new regulations.

According to a notification issued by the Cabinet Division, all gifts received by Toshakhana will undergo a third-party audit every financial year, while all gifts will be sold through open public auctions.

However, gifts of cultural, historical or diplomatically sensitive importance will not be auctioned.

Auctions will preferably be held twice a year and at least once annually. Government officials and their family members will not be allowed to participate in the auctions. The proceeds from the auctions will be spent on girls’ education in underdeveloped areas.

According to the notification, gifts received as a set will not be sold separately, while the auctions will be covered directly by the media.

A committee headed by the Cabinet Secretary will be formed to decide the status of gifts. It will include additional secretaries from the finance, foreign affairs, law and culture divisions. The committee will determine which gifts should be auctioned and which qualify as historically significant.

The notification states that, except for the prime minister and president, receiving gifts will be discouraged. However, if accepting a gift is unavoidable due to diplomatic protocol, it must be deposited with Toshakhana within 30 days.

Gifts received during foreign visits must be deposited within 30 days of returning, while gifts arriving on a separate aircraft will have to be deposited within 60 days.

Employees in Grades 1 to 4 will be allowed to retain cash awards. Failure to deposit a gift within the prescribed period will result in a complaint being filed in court.

The market value of gifts will be determined by the Federal Board of Revenue (FBR) and private valuers.

If there is a difference of more than 25 per cent between the two valuations, the opinion of a third valuer will be considered final. Artificial intelligence may also be used to determine reference prices, while the Pakistan Ordnance Factories (POF) in Wah will determine the value of weapons.

The notification further states that the custody of the gifts will be entrusted to a Grade-20 officer. CCTV surveillance and proper locking arrangements will be mandatory in the storage room.

Records and photographs of all gifts will be published on a web portal, but the names of the person and country presenting the gifts will not be disclosed.