ISLAMABAD - The Ministry of Finance on Monday has unveiled the strategy to release the funds during current fiscal year directing the departments to make all the payments through pre-audit of Accountant General of Pakistan Revenues (AGPR).

The ministry of finance has directed the ministries and departments to restrict the current and development expenditures at the level of 20 percent each for the first and second quarter and the level of 30 percent each for the third and fourth quarter of current financial year. However, funds required for payment of salaries and pensions would be released at 25 percent of budget of each year.

Meanwhile, the cases relating to unavoidable, international and domestic contractual/obligatory payments beyond the above limits will be considered on cases to case basis and relaxation, if required, would be allowed by the Finance Secretary. “Cases in respect of current expenditure for releases exceeding Rs50 million may be referred to Budget Wing for ways and means clearance after completion of all procedural and codal requirements,” the office memorandum stated.

The ministry of finance has further directed that all releases and payments may be made through pre audit of AGPR or through Assignment Account Procedure.

Any direct payment through State Bank of Pakistan (SBP) may be made as a special case with the prior approval of the Finance Secretary.

Meanwhile, all proposals in respect of current and development expenditures for supplementary grant will be approved by the Finance Minister. Similarly, proposals for allocation of funds out of lump provisions in the budget may be referred to Budget Wing for comments and clearance.

The strategy for release of finds relating to Public Sector Development Programme will remain the same as above except following; (i) release for 1st quarter will be recommended by the Planning, Development and Reforms Division in consultation with concerned ministry/division without referring the same to Finance Division. (ii) Releases for 2nd quarter onward will be recommended by Planning Development and Reforms Division after due examination/scrutiny and thereafter it would forward the same to Finance Division.

The Finance Division will clear the same from way and means points of view and send back to the concerned ministry/division. (iii) Sanction for release of funds would be issued by concerned ministry/division addressed to AGPR duly endorsed by FA’s organisation as required under Section 51 (i) of GFR under intimation to Finance Division and Planning Development and Reforms division.