The Ministry of Finance Pakistan has directed all ministries, divisions, and government bodies to surrender unspent funds within 10 days as part of efforts to finalize revised estimates for FY2025–26 and prepare the upcoming budget.
In an official directive, principal accounting officers have been instructed to return all anticipated savings by May 10 and report the surrendered amounts to the Finance Division’s Budget Section for system entry.
Under the Public Finance Management Act 2019, ministries are typically required to surrender unspent funds by May 31. However, the deadline has been brought forward on the recommendation of the Public Accounts Committee to enhance fiscal discipline and enable timely reallocation of resources.
The directive covers all major expenditure heads, including:
- Civil government operational expenses
- Grants and subsidies
- Development spending under the Public Sector Development Programme (PSDP
The move comes as the PSDP faces significant constraints. The development budget has already been reduced by Rs. 173 billion around 20% of its original allocation to fund subsidies aimed at offsetting rising fuel prices.
Despite the cuts, utilization of development funds has remained relatively low. During July–March, only Rs. 415 billion about 41.5% of the Rs. 1 trillion allocation was spent, according to the Ministry of Planning Development and Special Initiatives.
While overall spending has lagged, projects linked to lawmakers saw higher utilization. Nearly 70% of funds allocated under the Sustainable Development Goals Achievement Programme were used within the first nine months.
By March 31, ministries had authorized Rs. 589 billion, with actual spending reaching Rs. 414.96 billion—about 45.6% of total allocations.
The Public Accounts Committee has also called for stricter oversight, directing authorities to hold departments accountable if they fail to utilize allocated funds yet later seek additional resources.
Officials say the early surrender of unused funds will help improve budget efficiency and ensure better allocation of resources in the upcoming fiscal year.
