Finance Division Orders Ministries to Surrender Excess Development Funds

The Ministry of Finance has directed all federal ministries and divisions to surrender excess development funds allocated under the Public Sector Development Program (PSDP) for the fiscal year 2024-25, Finance Division sources informed ProPakistani. This will help prevent potential audit objections ahead of the upcoming federal budget. Sources said surrender orders are being sought for development funds exceeding the revised PSDP ceiling of Rs. 1,100 billion. Initially, the federal development budget was approved at Rs. 1,400 billion for the current fiscal year, and ministries had submitted their demand orders and grant requests based on that figure. However, the government later revised the PSDP down to Rs. 1,100 billion. To reconcile this gap, the Finance Ministry has now issued formal instructions to all federal entities to surrender or adjust the additional funds. A letter has been sent to the relevant ministries and divisions, asking them to prioritize the issuance of surrender orders in favor of the Ministry of Finance. Officials said this adjustment is necessary to align the budgetary record with the revised allocation and to avoid discrepancies that could trigger audit objections for the fiscal year 2024-25.