ISLAMABAD (Ishtiaq Ahmed):- The Planning Commission will release 20 percent development funds (Rs160 billion) during the first quarter (July-Sept) of the current fiscal year 2022-23.

The Parliament has approved Rs800 billion for the development projects under the PSDP for the current fiscal year.

The Finance Ministry has issued guidelines to the Planning Commission for releasing of development funds for the current fiscal year.

According to the new guidelines of Ministry of Finance, the Planning Commission will release 20 percent of total allocated PSDP during the first quarter (July-Sept) of the current fiscal year. The PC will release 25 percent in second quarter (Oct-Dec), 30 percent in third quarter (Jan-March) and 25 percent in last quarter (April-June) during the current fiscal year.

The Finance Ministry further directed that the Ministry of Planning and the Principle Accounting Officers concerned while executing the development projects shall ensure implementation of the provisions contained under Chapter-lll of the Public Finance Management Act, 2019.

 Ministry of Planning, Development and Special Initiatives shall devise quarterly Sector wise/Project-wise/Division-wise strategy for release of funds for the PSDP within the appropriations approved by the National Assembly and included in the Schedule of Authorized Expenditure, stated by the Finance Minister.

All payments shall be made through the pre-audit system by all the Accounting Organizations and Offices or through Assignment Account Procedure or any other procedure issued by the Finance Division.

Separate Assignment Account shall be opened for each project.

 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 case to case basis and shall require prior approval of the Finance Secretary.

Adequate budgetary allocations on account of Foreign Exchange Component (Rupee Cover) shall be ensured by all relevant PAOs and conveyed to Economic Affairs Division and Finance Division.

The provisions of Public Finance Management Act 2019, the Financial Management and Powers of Principal Accounting Officers Regulations 2021 and instructions issued by Planning Commission shall be strictly adhered to by all the PAOs and the Accounting Offices.

The instructions with regard to Supplementary Grants shall be issued by the Budget Wing, Finance Division, separately.  

The Development Wing of Finance Division shall coordinate and oversee the matters relating to release of funds for development budget and other ancillary matters.  

There shall be no requirement of ways and means clearance from Budget Wing of Finance Division for the release of development budget.

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