ISLAMABAD: The Ministry of Finance has waived conditions pertaining to the release of development funds for the last quarter (April-June) of the current fiscal year (FY20) so as to curtail the adverse effects of COVID-19 on the country’s development.
According to a letter available with this scribe, the MoF has issued an office memorandum regarding the revised strategy of funds allocation for the Public Sector Development Programme (PSDP) 2019-20.
“To ensure smooth flow of development funds and to curtail the adverse effects of COVID-19 on the development interventions, conditions/instructions regarding ways and means, clearance and endorsement of the same by the Finance Division for release of funds for the 4th quarter contained in the above referred letter have been relaxed/waived off,” said a statement issued by the Finance Division.
In addition, the ministry stated that other conditions contained in the above referred letters will remain intact. Furthermore, conditions regarding no formal release after 15th May, 2020 and due date of surrender of savings (April 30, 2020) will also remain enforced.
The latest data shows that the federal government released Rs467,146 million till March 27, 2020 for different development projects. The total PSDP of current fiscal year is Rs700 billion.
It is pertinent to mention that the MoF, under the approved policy, is bound to release 20pc funds for every project in the first quarter, 30pc for 2nd and 3rd quarters, while 20pc for the 4th quarter against budget allocation for FY20.
Besides, an approval of the finance ministry is required for the 4th quarter’s PSDP releases.