ISLAMABAD: Despite protests from Ministry of Planning, Ministry of Finance decided to keep lid on federal financing of development and recurrent expenditures through back-loaded releases of funds to meet IMF's primary surplus targets at any cost.

According to fresh notifications from Ministry of Finance, Ministry of Planning, Development and Special Initiatives shall authorise only 15 per cent of funds for approved development projects in first quarter (July-September) of current fiscal year.This will be followed by 20 percent in second quarter (October-December), 25 percent in third quarter (January-March), and 40pc in fourth quarter (April-June). Under $ 7 billion new bailout package approved, government has promised IMF that it would ensure "Underlying general government primary surplus of 1 percent of GDP (2pc in headline terms)", according to an IMF announcement.  Before PTI, practice was to release 40 percent of development funds in first six months-20 percent each in first and second quarters and remaining 60 percent in second half of fiscal year, at rate of 30 percent in each quarter. It is generally viewed in planning division that back-loaded disbursements affect pace of project implementation and smaller releases slow down development schemes in first part of year and lead to cost overruns.