The Ministry of Finance has announced that the release of development funds during the current fiscal year will be strictly aligned with the government’s financial capacity, aiming to ensure disciplined public spending and effective management of development resources.
According to an official notification issued by the ministry, funds allocated under the Public Sector Development Programme (PSDP) will be released in four quarterly installments instead of being made available all at once. The move is intended to improve budget management, maintain fiscal stability, and ensure that development expenditures remain within the government’s available financial resources.
Under the new mechanism, 15 percent of the total development allocation will be released during the first quarter of the fiscal year. The second quarter will receive 20 percent of the allocated funds, while 25 percent will be released in the third quarter. The remaining 40 percent will be disbursed during the final quarter, subject to the government’s financial position and budgetary requirements.
The notification states that Rs1 trillion has been earmarked for development projects under the PSDP for the current financial year. The Planning Division will be responsible for authorizing the release of funds for projects that have already received formal approval.
Officials said that all allocations and disbursements will remain within the limits approved in the federal budget, and ministries and executing agencies will not be allowed to exceed their sanctioned allocations without prior authorization.
The Finance Ministry has also tightened financial controls on foreign payments related to development projects. Any payment involving foreign exchange will require prior approval from the Ministry of Finance, while expenditures exceeding the approved project allocation will not be processed unless special permission is granted by the ministry.
To improve transparency and strengthen financial oversight, the government has directed that a separate assignment account be established for every development project. The measure is expected to enhance monitoring of public funds and ensure greater accountability in the execution of federally funded projects.
The latest policy reflects the government’s broader strategy to maintain fiscal discipline while ensuring that priority development schemes continue to receive funding in a structured and financially sustainable manner throughout the fiscal year.
