50pc funds to be disbursed at once to speed up work on uplift schemes: Hafeez
ISLAMABAD: The Ministry of Finance has decided to immediately make “50 per cent funds” available to the Planning Division to speed up work on uplift schemes in line with Prime Minister Imran Khan’s vision, says Adviser to the PM on Finance and Revenue Dr Abdul Hafeez Shaikh.
Taking to Twitter on Thursday, he said: “To accelerate progress on development projects the Finance Ministry has decided to make 50% funds available immediately to the Planning Division and eliminated the requirements of “ways and means clearance” and “Finance Division’s endorsement.”
1/2) To accelerate progress on development projects the Finance Ministry has decided to make
50% funds available immediately to the Planning Division and eliminated the requirements of “ways and means clearance” and “Finance Division’s endorsement” (contd) pic.twitter.com/vDbdDYWW1e
— Dr. Abdul Hafeez Shaikh (@a_hafeezshaikh) November 7, 2019
“For the 1st three quarters to speed up the fund release process. Planning Division and the line Ministries can really speed up work on development in line with the PM’s vision,” he said.
According to a press release which the PM’s advisor also shared on his Twitter handle, the Finance Division has shortened the budget release process for Public Sector Development Programme (PSDP).
The step is aimed at easing funds flow and removing bottlenecks, and boosting economic development.
The steps include increased availability of funds, friendly processes and incentives for early and proper utilization of funds.
“Half of the budgetary allocations for approved PSDP projects have been made instantly available to Ministry of Planning & Development by revising Finance Division’s release strategy,” read the statement.
“Now 50% funds are available for the first two quarters, without any complication. The quarter wise release will be 20:30:30:20.
There shall be an incentive of advance releases to the executing agencies which will utilize funds appropriately within required time period. There shall be no ways and means clearance of Finance Division for the approved PSDP projects for the first 03 (three) quarters of the financial year.”
The statement said the whole process of authorization, releases and sanctioning of PSDP allocated funds shall be dealt between the Ministry of Planning, Development & Reforms and the Ministries / Divisions and PAOs concerned.
“An updated Revised Release strategy for approved PSDP projects, to formalize the above steps has been issued by Finance Division. The Ministry of Planning, Development & Reforms and other Ministries / Division have been amply enabled to speed up utilization of PSDP funds in accordance with the revised release strategy and Public Finance Management Act, 2019. These steps will ensure adequate money supply, less tier control and ease of operation in the development programme.”