Federal Government Orders Ministries to Return Unspent Budget Funds
The federal government has directed all ministries to surrender unspent budgetary allocations as the fiscal year approaches its close, a standard but consequential end-of-year exercise that carries heightened significance given Pakistan's ongoing IMF programme commitments.
The directive, issued through the Finance Division, requires ministries to identify undisbursed development and current expenditure and remit balances to the consolidated fund. Officials said the move is aimed at accurate fiscal consolidation reporting and preventing artificial inflation of spending figures.
Under Pakistan's Extended Fund Facility with the IMF, fiscal deficit targets are closely monitored and surrendered funds help the government manage its primary balance position. Finance Ministry sources indicated that compliance will be tracked ministry-by-ministry and lapses reported to the cabinet.
The instruction also reflects a broader push to tighten expenditure discipline within the federal bureaucracy, where end-of-year rush spending — a historically common practice to exhaust budgets and protect future allocations — has drawn repeated criticism from auditors and oversight bodies.
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