Ministry issues plan for release of uplift funds in FY25

ISLAMABAD: The finance ministry has issued a strategy for releasing development funds during the current fiscal year 2024-25.

Funds for foreign exchange payments shall require prior approval of the External Finance Division Wing of the Finance Division.

According to an office memorandum (OM), issued by the finance ministry, in pursuance of the provisions of the Public Finance Management Act, 2019, and Financial Management and Powers of Principal Accounting Officers Regulations, 2021, the funds release strategy for development budget for financial year 2024-25 was being issued for implementation with immediate effect and until further orders:

Funds for development budget should be authorised by Planning, Development and Special Initiatives (PD&Sl) Division out of the Public Sector Development Program (PSDP) allocation for CFY for approved projects at 15 per cent for quarter 1, 20pc for quarter 2, 20pc for quarter 3, and 40pc for quarter 4.

While executing development projects, the PD&Sl Division and the Principal Accounting Officers (POAs) concerned should ensure implementation of the provisions contained under Chapter-III of the Public Finance Management Act, 2019.

The PD&Sl Division should devise quarterly sector-wise/ project wise/ Division-wise strategy for release of funds for the PSDP within the approved appropriations.

Any proposal for change to the limits prescribed earlier should be considered by the Budget Wing, Finance Division on case-to-case basis and should require prior approval of the finance secretary.

Release of funds for approved projects in a demand for grant and appropriation should be made by the PAOs in each quarter as authorised by the PD&Sl Division, within above limits. The PAOs should ensure availability of sufficient funds for employees related expenses for each project.

The PAOs/ heads of attached department/ heads of sub-ordinate office or project director shall not make any re-appropriation of funds from employees related expenses (ERE) to Non-ERE heads of account except with the prior concurrence of PD&Sl Division.

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.

All payments shall be made through the pre-audit system by all the accounting 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 Finance Secretary as per Rules 3(9) & (10) of the Cash Management & Treasury Single Account Rules, 2024.

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 PAOs and accounting offices.

The instructions with regard to Supplementary Grants, Technical Supplementary Grants and Re-appropriations shall be issued by the Budget Wing, Finance Division, separately.

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

No payment shall be made over and above the limits by any accounting office except with the prior written approval of the Finance Division.

The Development Wing of Finance Division shall coordinate and oversee the matters relating to release of funds for development budget and other ancillary matters. The PAOs may approach PD&SI Division for any issues related to authorization as well as distribution of funds between the approved projects/schemes.