ISLAMABAD: The government on Thursday announced to change in budget release process in a bid to increase the execution speed of development projects and schemes.
The government, under these reforms, has decided to release 50% of the total annual allocations for development projects in the first half of this fiscal year. Previously, 40% of funds were authorised to Public Sector Development Programme (PSDP) projects in the first six months with 20% funds allocated in the first two quarters.
The decision came days after the International Monetary Fund (IMF) advised the federal and provincial governments to ensure maximum utilisation of development funds to aid the ailing economic growth which per an estimate stands at 2.4% for the current year.
“The step is aimed at easing funds flow and removing bottlenecks, to boost economic development,” said the Ministry of Finance in a statement.
The revised mechanism would also enable the planning and other line ministries and divisions to effectively utilise PSDP funds.
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