ISLAMABAD, Feb 5: The federal government has directed all provincial governments, federal ministries and autonomous bodies to submit their estimates of foreign exchange commitment and disbursements for the next fiscal year latest by March 5, 2004.

Finance ministry sources told Dawn that all the authorities concerned have been asked to provide estimates of forex commitments and disbursements, both for physical imports and invisibles, so that foreign exchange budget for the financial year 2004-05 could be prepared well in time.

This marks the start of budget preparations for the next fiscal year. However, a comprehensive proforma has now been made part of the budget-making exercise for close monitoring of the balance of payment position under the fiscal responsibility and debt limitation act.

A guideline issued to all the federal ministries, divisions, autonomous bodies of the federal government and the provincial governments said the development portion should be segregated from the current (non-development portion) expenditure.

They have been asked to provide estimates of disbursements as accurately as possible on the basis of schedules of disbursements against the letters of credit (LCs) already opened and likely to be opened because "any error in the calculations may distort the entire balance of payment projections".

Provisions for allocation from own resources could be included for those approved development schemes which have been included in the annual development programme and for which part financing from own resources was approved by the Executive Committee of the National Economic Council (Ecnec), the Central Development Working Party or any other appropriate sanctioning authority.

All the relevant authorities have been advised to make maximum efforts for full use of foreign project assistance or commodity aid.

The sources said that no lump sum provision of foreign exchange proposal would be entertained and details of all items would have to be supported by the relevant documentation.

Similarly, no provision for expenditure in foreign exchange will be entertained for import of items which are also manufactured within the country. Proposals for current expenditure (non-development) in foreign exchange shall be included in the estimates only after due consideration of the latest instructions on economy as well as regarding visits abroad.

The financial advisers of the agencies concerned have been asked to certify only those demands for foreign exchange which have corresponding rupee cover available in the budget 2004-05. Similarly, they will also certify that development budgets for which forex allocation have been proposed are included in the Annual Development Programme for 2004-05 recommended to the priorities committee.