Shafaqna Pakistan: The Ministry of Finance has unveiled its budget fund release strategy for the 2026-27 fiscal year, detailing the mechanism for disbursing funds for development projects and current expenditures.
According to the ministry, the framework has been prepared under the Public Finance Management Act and the Financial Management and Powers of Principal Accounting Officers Rules to promote transparent and efficient implementation of the federal budget.
Under the new policy, funds allocated under the Public Sector Development Programme (PSDP) will be released on a quarterly basis. The strategy provides for the disbursement of 15 percent of the total development budget in the first quarter, 20 percent in the second, 25 percent in the third, and the remaining 40 percent during the final quarter of the fiscal year.
The ministry clarified that PSDP funds will only be released after the relevant development projects receive approval from the Planning Commission’s Development Working Party (DWP).
Current expenditure allocations will also follow a quarterly release schedule. Government departments will receive 20 percent of their allocated funds in the first quarter, while 25 percent will be released in both the second and third quarters.
A separate mechanism has been introduced for the payment of salaries and pensions. Under this arrangement, 25 percent of the allocated funds will be released every quarter to ensure the timely disbursement of salaries and pension payments throughout the fiscal year.
The Finance Ministry has further directed that all expenditures related to the rupee cover for foreign currency-funded projects must receive prior budget allocation from the Ministry of Economic Affairs and the Finance Division before funds are released.
Source: Dunya News
