Govt Revises Release Strategy for Public Sector Development Funds

The federal government has amended the release strategy of funds of the Public Sector Development Programme 2022-23 and reduced the percentage of development funds released for the first quarter from 20 percent to 10 percent (Rs. 80 billion of total Rs. 800 billion PSDP).

However, the percentage of funds released for the 4th quarter has been upward revised from earlier 20-40 percent. The release of fund percentage for the 2nd and 3rd quarter will remain the same at 20 percent and 30 percent respectively.

According to Finance Division notification No F. 3(I)FO/2022-23, available with ProPakistani, the Strategies for release of funds for the development budget/Public Sector Development Programme for current FY 2022-23 have been amended and made quarter-wise changes in the release of funds for the PSDP projects. As per the amended strategy:

1. The fund release strategy shall be applied to each Demand for Grant and Appropriation for Development Budget included in the Schedule of Authorized Expenditure for FY 2022-23. It shall not be applicable on individual Project or Cost Centre or Detailed Object Heads in a Demand for Grant and Appropriation.
2. Funds shall be released and uploaded on AGPR’s Server by the Ministry of Planning, Development, and Special Initiatives for each Demand for Grant and Appropriations at the maximum level of 10 percent for Quarter 1, 20 percent (Rs. 160 billion) for Quarter 2, 30 percent (Rs. 240 Billion) for Quarter 3 and 40 percent (Rs. 320 Billion) for Quarter 4 of the approved budget.
3. The release of funds for each approved project in a Demand for Grant and Appropriation shall be made by the PAO in each Quarter within the above limits. The PAO shall ensure the availability of sufficient funds for Employees Related Expenses for each project.
4. Quarter-wise budget allocation & release will be uploaded on the MoF & AGPR Servers by the Finance Division, within the above-stated release limits. No payment shall be made over and above the limits by any accounting organization/office except with the prior written approval of the Finance Division.

As per the earlier release strategy for PSDP 2021-22, the Planning Ministry was allowed to release Funds for Development Budget at the level of 20 percent for Quarter 1, 30 percent each for Quarter 2 and Quarter 3, and 20 percent for Quarter 4.