By Abdul Wajid Khan ISLAMABAD, March 22 (INP-WealthPK): The Ministry of Finance has demanded allocation of Rs30,542 million for seven projects of the Finance Division and 32 projects of the Revenue Division under the Public Sector Development Program (PSDP) for the next financial year (FY22-23). According to an official brief of the ministry about its budgetary proposals relating to PSDP for FY22-23, a copy of which is available with WealthPk, the total proposed allocation for seven projects of the Finance Division is Rs3,090.545 million out of which Rs1,878.254 million is required for completing the ongoing projects and Rs1,212.291 million for the new projects. The ministry has proposed allocation of Rs145 million for the ongoing Financial Inclusion and Infrastructure Project of the Finance Division for the upcoming financial year under the PSDP. The project aims to support the SBP to further strengthen its payment system infrastructure through the launch of a National Payment Gateway (NPG) and to enhance the capacity of the Central Directorate of National Savings (CDNS) to offer additional access points for digital transactions through upgrading its core system including narrow banking solution, data warehouse and ERP system. It also aims to disburse loans to unique borrowers, micro-enterprises and small and medium enterprises (SMEs). The total estimated cost of the project is $137 million out of which $17.5 million was allocated for direct support to the implementation of the National Financial Inclusion Strategy (NFIS) to promote financial inclusion in the country. Also, under the project, $9.4 million was earmarked for supporting expansion of access points for financial services, while $75 million was allocated for improving access to microfinance and to financial services for micro enterprises and $35.1 million was assigned for improving access to financial services for SMEs. So far, the project has disbursed $110 million or nearly 81% of the total allocation of $137 million. The progress of the project is around 56% at present. Under this project, the Line of Credit (LOC) for the microfinance sector, managed by the SBP, has been fully disbursed to the participating financial institutions (PFIs) with over 365,150 microfinance loans reaching 325,661 borrowers. Out of 325,661 borrowers, 72% were women though the set target of women borrowers was 60%. The project was started on April 17, 2018 with the cooperation of the World Bank and is likely to be completed by 31st December 2023. Under the PSDP, the ministry has also proposed allocation of Rs156 million for another project relating to the capacity building of the Finance Division for implementation of the public financial management (PFM) policy framework. The approved cost of the project is Rs320 million. The project aims to improve the PFM system and processes in the working of the federal government to strengthen management and accountability of the public fund and to achieve the related goals of improved service delivery to the citizens. Similarly, the Finance Division has demanded Rs171 million for a project relating to the construction of Federal Audit Complex in Islamabad while the approved cost of the project is Rs504 million. The main objective of the project is the provision of a permanent government owned office building facility for two field audit offices of the Auditor General of Pakistan (AGP). Likewise, the ministry has demanded Rs600 million for a project relating to the implementation and mainstreaming of audit management information system while the approved cost of the project is Rs1,003 million. The goal of the project is to improve quality, transparency and integrity of audit process. Also, the Finance Division has proposed an allocation of Rs781 million for modernisation and upgradation of Pakistan Mint. The approved cost of the project is Rs1,790 million. The project aims to modernise and upgrade Pakistan Mint for manufacturing up to one billion coins annually instead of current production of 300 million coins per annum to meet the demand of the SBP. The quality and quantity of non-coinage products will also be enhanced under this project. The finance ministry has proposed allocation of Rs1,212 million for a new project relating to the construction of the National Academy of Public Finance and Accountancy (NAPFA) in Islamabad. The estimated cost of the project is Rs3,605 million. The objective of the project is to build capacity development and professionalism strategy for the Supreme Audit Institutions (SAI) Pakistan because it is imperative that the competencies of human resources be developed to the highest ethical and professional standards. This would only be possible by implementing a systematic learning program for all employees of the office of the AGP and Controller General of Accounts (CGA). So, this requires that the capacity building process be strengthened and upgraded in the form of NAPFA. As for allocation under the PSDP for the Revenue Division, the Federal Board of Revenue (FBR) has demanded a total amount of Rs27,452 million including foreign exchange component (FEC) of Rs17,710 million for its 32 projects. The FBR has proposed a total allocation of Rs25,952 million which includes Rs17,710 million FEC for completion of 16 ongoing projects, while it has proposed an allocation of Rs1,499 million for 16 new projects. The finance ministry has already submitted its proposals for the upcoming financial year to the National Assembly Standing Committee on Finance. The committee will receive a detailed presentation on the major projects in its next meeting and give its recommendations.