MINISTRY OF FINANCE

Clarification on Force Majeure Clause regarding West Asia situation

By TEAM CIRCULAR EXPRESS • 29 Apr 2026
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The Ministry of Finance has issued a clarification regarding the invocation of the Force Majeure Clause in government contracts. It specifies that the ongoing West Asia situation should be treated as 'war' for the purpose of triggering Force Majeure. Procuring entities may grant extensions of two to four months for contractual obligations affected by this situation. This relief applies only to contracts where parties were not in default as of February 27, 2026. The circular reiterates existing guidelines from the Manuals for Procurement of Goods, Consultancy, and Works.
Issuing Authority
Department of Expenditure, Ministry of Finance
Circular Number
No.1/3/2026-PPD
Date of Issue
29.04.2026
Applicability Date
On or after 28th February 2026
Key Subject
Force Majeure Clause (FMC)
Extension Period
Two to four months
Reference Manuals
Manual for Procurement of Goods 2024, Manual for Procurement of Consultancy Services 2025, Manual for Procurement of Works 2025
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