The Planning Commission will release 20 percent of development funds (Rs. 160 billion) during the first quarter (July-Sept) of the current fiscal year (FY) 2022–23.
Parliament approved Rs. 800 billion for development projects under the Public Sector Development Programme (PSDP) for the current fiscal year, of which Rs. 160 billion will be released during the first quarter of FY23.
The Finance Ministry has issued guidelines to the Planning Commission for the release of development funds for the current financial year.
According to the guidelines, the Planning Commission will release 20 percent of the total allocated PSDP during the first quarter (July-Sept), 25 percent in the second quarter (Oct-Dec), 30 percent in the third quarter (Jan-March), and 25 percent in the last quarter (April-June) of the current budget year.
The Finance Ministry further directed that the Ministry of Planning and the Principal Accounting Officers (PAOs) concerned while executing the development projects shall ensure implementation of the provisions contained under Chapter III of the Public Finance Management Act, 2019.
The Ministry of Planning, Development and Special Initiatives shall devise a quarterly sector-wise/project-wise/division-wise strategy for the release of funds for the PSDP within the appropriations approved by the National Assembly and included in the Schedule of Authorized Expenditure, as stated by the finance minister.
All payments shall be made through the pre-audit system by all the accounting organizations and offices or through the Assignment Account Procedure or any other procedure issued by the Finance Division. A separate Assignment Account shall be opened for each project.
Moreover, the guidelines state that no direct payment through the State Bank of Pakistan (SBP) shall be made by any office, except with the prior approval of the Finance Secretary. No authority shall incur or commit any expenditure from the “Federal Consolidated Fund” until the same has been sanctioned by the National Assembly.
Any proposal for change to the above-prescribed limits shall be considered by the Budget Wing, Finance Division on a case-to-case basis and shall require prior approval of the Finance Secretary.
Adequate budgetary allocations on account of the Foreign Exchange Component (Rupee Cover) shall be ensured by all relevant PAOs and conveyed to the Economic Affairs Division and Finance Division.
All the provisions of the Public Finance Management Act 2019, the Financial Management and Powers of Principal Accounting Officers Regulations 2021, and instructions issued by the Planning Commission shall be strictly adhered to by all the PAOs and the Accounting Offices.
The instructions concerning supplementary grants shall be issued by the Budget Wing, Finance Division, separately.
The Development Wing of the Finance Division shall coordinate and oversee all matters relating to the release of funds for the development budget and other ancillary matters.
There shall be no requirement of ways and means clearance from the Budget Wing of the Finance Division for the release of the development budget.
