Pakistan Ministry of Finance mandates timely fund surrender

The Ministry of Finance in Pakistan has issued a directive for all government entities to surrender any unutilised funds by May 15, ahead of finalising the federal budget for 2024-25. This move is in accordance with the Public Finance Management Act (PFMA) of 2019, which mandates the surrender of surplus funds each year by May 31. However, the Accounting Policies and Procedures Manual (APPM) requires the surrender of unutilised funds by May 15 for greater clarity.

The surrender of funds is crucial for the approval and allocation of funds for the upcoming fiscal year, with allocations based on actual expenditures in the current year. The deadline for surrendering funds has been advanced to May 15 in preparation for negotiations with the International Monetary Fund (IMF) for a bailout programme.

Under the PFMA, all ministries, divisions, departments, and autonomous organisations are required to surrender anticipated savings in grant accounts. Failure to comply may result in the funds being returned to the Ministry of Finance. The APPM emphasizes proper budgetary control and prompt surrender of any savings to the government.

These regulations aim to prevent the holding of reserves, ensure funds are spent for intended purposes, and discourage unnecessary expenditure. The government's efforts to centralize funds in the treasury account align with constitutional provisions and the PFMA, which governs all matters related to public finances.

In conclusion, the strict financial regulations underscore the government's commitment to fiscal discipline and transparency in fund management. By enforcing timely surrender of unutilised funds, Pakistan aims to streamline budgetary processes and ensure efficient allocation of resources for national development.