ISLAMABAD: PTI government unveils new strategy for the Public SectorDevelopment Programme Funds allocation to the government departments.
The government on Thursday decided to release half of the funds earmarkedunder the Public Sector Development Programme (PSDP) in the first half of agiven fiscal year, in a bid to speed up uplift process.
As per the current scheme, 40 percent funds were being provided to PSDPprojects in the first six months with 20 percent in each of the first twoquarters, Pakistan Today has reported.
The finance division said it took the decision in line with the PrimeMinister Imran Khan’s directive to speed up the process of developmentprojects and schemes. The division shortened the budget release process fordevelopment funds following the World Bank’s call for proper utilisation ofdevelopment budget.
“The step is aimed at easing funds flow and removing bottlenecks, to boosteconomic development,” said the Ministry of Finance in a statement. Itclaimed the steps include increased availability of funds, friendlyprocesses and incentives for early and proper utilisation of funds.
“Half of the budgetary allocations for approved PSDP projects have beenmade instantly available to ministry of planning and development byrevising finance division’s release strategy,” the ministry said.
The ministry also said the existing “practice of endorsement by officers ofFinance Division on the PSDP funds releases sanctioned by the PrincipalAccounting Officers (secretaries of the various divisions) is also beingwithdrawn forthwith.”