ISLAMABAD: The Finance Division unveiled the strategy for release of funds for development and recurrent budget for fiscal year 2026-27, adding that all releases shall be subject to availability of fiscal space.
The Division issued an office memorandum which stated that in pursuance of the provisions of the Public Finance Management Act, 2019 and Financial Management & Powers of Principal Accounting Officers (PAOs) Regulations, 2021, the funds release strategy for Development Budget for FY 2026-27 is being issued for implementation with immediate effect and till further orders.
Funds for Development Budget shall be authorised by the Planning, Development & Special Initiatives (PD&SI) Division out of the Public Sector Development Programme (PSDP) allocation for FY 2026-27 for approved projects at 15 percent for Quarter 1, 20 percent for Quarter 2, 25 percent for Quarter 3, and 40 percent for Quarter 4.
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While executing development projects, PD&SI Division and PAOs concerned shall ensure adherence to provisions of the Public Finance Management Act, 2019.
PD&SI Division shall devise a quarterly sector/project/division-wise strategy for release of PSDP funds within the approved appropriation.
Any proposal for change to the quarterly limits shall be considered by Budget Wing, Finance Division on case-to-case basis and shall require prior approval of Finance Secretary.
Release of funds for approved projects in the Demand for Grants and Appropriations shall be made by PAOs in each quarter as authorised by the PD&SI Division within the above limits. PAOs shall ensure availability of sufficient funds for employee related expenses for each project.
PAOs/Heads of Attached Departments/Heads of Sub-ordinate Offices/Project Directors shall not re-appropriate funds from employee related expenditures to non-employee related expenditures (heads of account) except with prior concurrence of PD&SI Division.
Adequate budgetary allocations on account of foreign exchange component (rupee cover) shall be ensured by all PAOs and conveyed to PD&SI Division, Economic Affairs Division and Finance Division.
Funds for foreign exchange payments shall require prior approval of External Finance Wing, Finance Division.
All payments shall be made through the pre-audit system or through the Assignment Account Procedure, or any other procedure issued by Finance Division from time to time.
A separate Assignment Account shall be opened for each project.
Copyright Business Recorder, 2026