Finance Ministry directs ministries to return excess PSDP funds

April 11, 2025 (MLN): The Ministry of Finance has instructed all federal ministries and divisions to return surplus development funds allocated under the Public Sector Development Program (PSDP) for the fiscal year 2024-25.

This move comes in an effort to prevent potential audit concerns ahead of the upcoming federal budget.

The Finance Ministry has requested the surrender of funds exceeding the revised PSDP ceiling of Rs1.1 trillion.

Initially, the federal development budget for this fiscal year was approved at Rs1.4tr, and ministries had submitted their demands based on this higher figure.

However, the government later revised the PSDP allocation down to Rs1.1tr.

In order to reconcile the discrepancy, the Ministry of Finance has formally directed all relevant ministries and divisions to either return or adjust the excess funds.

A letter has been sent to ensure the priority issuance of surrender orders in favor of the Ministry of Finance, as per the press release.

Officials emphasized that this adjustment is necessary to ensure the budget aligns with the revised allocation and to avoid any discrepancies that could trigger audit objections for the fiscal year 2024-25.

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