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PD’s FY24 uplift projects: Rs50bn indicative budget ceilings approved

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ISLAMABAD: The Ministry of Planning, Development and Special Initiatives (MPD&SI) has approved Rs50 billion Indicative Budget Ceilings (IBC) for the Power Division’s development projects in FY 2023-24, advising the Division to adjust its prioritized projects, well-informed sources in the Planning Commission told republic policy.

The Power Division has been asked to finalize the budgetary proposals for PSDP 2023-24 by adhering to the following general policy guidelines and rationalization criteria:

  1. PAO concerned is required to fully comply with the provisions of the Public Finance Management (PFM) Act, 19 particularly Chapter-I on development projects, guidelines and procedures contained in Financial Management and Powers of PAOs Regulations 2021, Cash Management and Treasury Single Account (CM&TSA) Rules 2020, Budget Manual 2020, instructions contained in the Budget Call Circular by Finance Division on January 25, 2023.
  2. Guidelines contained in the PSDP call circular 2023-24 dated 9h February 2023 issued by M/o PD&SI and provisions in the Manual for Development Projects, December 2021,inter alia, may also be followed in letter and spirit.
  3. PSDP FY 2023-24 may especially focus on mitigating climate change (green budgeting), especially in the context of Pakistan’s C-PIMA and other initiatives, including gender budgeting.
  4. M/o PD&SI has submitted following priorities and guidelines to be followed while submitting project-wise budgetary proposals for PSDP 2023-24 within allotted IBC: (a) as per Chapter I (17) (1) Public Finance Management Act, 2019 no new project which has not been technically approved would be made part of the development budget;(b) to ensure scheduled completion of projects having 80% plus expenditure should be fully-funded which can be completed by June 2024;(c) ongoing core projects of national significance may be assigned top priority for funding as per approved phasing in PC’s in line with Chapter II (17 (2) of PFM Act 2019;(d) consolidation of federal projects should be given top priority over provincial nature projects; (e) Foreign funded fast-moving projects may be provided with required rupee cover to meet international obligations within allotted IBCs; (f) projects supporting CPEC initiative, productivity, exports, IT and S&T (R&D), under SEs and 4RF frameworks, better governance should be assigned importance;(g) PAO shall allocate adequate funds in the FY 2023-24 to clear the pending liabilities of ongoing budgeted projects on priority; (h) procedure to clear the pending liabilities of closed projects approved by Ecnec on April 6, 2023 and notified by this Ministry on May 10, 2023 may be complied with; and (i) projects on innovative financing basis (VGF and PPP) in terms of co-sharing of cost and responsibility for O&M may be considered.

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