PTI government unveils new strategy for the PSDP Funds allocation
ISLAMABAD: PTI government unveils new strategy for the Public Sector Development Programme Funds allocation to the government departments.
The government on Thursday decided to release half of the funds earmarked under the Public Sector Development Programme (PSDP) in the first half of a given fiscal year, in a bid to speed up uplift process.
As per the current scheme, 40 percent funds were being provided to PSDP projects in the first six months with 20 percent in each of the first two quarters, Pakistan Today has reported.
The finance division said it took the decision in line with the Prime Minister Imran Khan’s directive to speed up the process of development projects and schemes. The division shortened the budget release process for development funds following the World Bank’s call for proper utilisation of development budget.
“The step is aimed at easing funds flow and removing bottlenecks, to boost economic development,” said the Ministry of Finance in a statement. It claimed the steps include increased availability of funds, friendly processes and incentives for early and proper utilisation of funds.
“Half of the budgetary allocations for approved PSDP projects have been made instantly available to ministry of planning and development by revising finance division’s release strategy,” the ministry said.
The ministry also said the existing “practice of endorsement by officers of Finance Division on the PSDP funds releases sanctioned by the Principal Accounting Officers (secretaries of the various divisions) is also being withdrawn forthwith.”