Pakistan Federal Government

Abstract

This document reports on a Public
 Financial Management and Accountability Assessment (PFMAA)
 for the Federal Government of Pakistan (GoP). Measured
 against the six core Public Financial Management (PFM)
 objectives examined by the assessment, the assessment
 indicates that there have been improvements in some areas in
 recent years, which have served to improve general public
 financial management. The last PEFAA for the Federal
 Government was published in June 2009. Overall, the maximum
 number of indicators remained unchanged. As PFM concerns the
 efficiency and effectiveness of the use of public resources,
 the interdependence of the components of the budget cycle
 means that weaknesses in one part can adversely affect other
 parts thereby constraining the achievement of better
 budgetary outcomes; conversely, improvements in one area
 which are not matched by corresponding changes in other
 areas can undermine the initial reforms. The strengths and
 weaknesses of Pakistan's public financial management
 system found in the assessment have an impact on the three
 measures of budget effectiveness-aggregate fiscal
 discipline, allocates efficiency and efficient service
 delivery. The GoP has a continuing agenda of PFM reform.
 Current programs are focused on areas of weaknesses in PFM
 administration that have been identified by the GoP and
 development partners. Pakistan's prospects for reform
 implementation should be regarded as positive considering
 the impact of the reform programs so far which have made
 visible contributions in improving budgeting, reporting and
 external audit. The PEFA framework focuses on operational
 performance of the key elements of the PFM system based on
 evidence rather than on the inputs that enable the PFM
 system to reach a certain level of performance. The PFMAA
 assesses the extent to which the PFM system is an enabling
 factor for achieving budgetary outcomes at the three levels
 of aggregate fiscal discipline, strategic allocation of
 resources and efficient service delivery.