Case Study

Developing and implementing Public Finance Management Reform at federal and subnational level as part of the PFM support programme for Pakistan

Client: European Commission | Sectors: Public Sector Reform

This 5-year project (September 2014 – August 2019) supported Pakistan with developing and implementing Public Financial Management Reform at Federal Level (Federal Ministry of Finance in Islamabad) and in the Provinces of Sindh (Provincial Finance Department in Karachi) and Balochistan (Department of Finance Balochistan Province). 

The overall objective was to contribute to the improvement of public financial administration and to enhance the effectiveness and efficiency in the utilization of government budget resources in order to deliver better public services and to reduce the impact of poverty and social inequality. Key objectives are to support a comprehensive PFM reform process in Sindh province, including support to a Medium Term Budgetary Framework (MTBF) and at federal level, to support the reform process through the design of an overarching and comprehensive PFM reform strategy and the consolidation of the MTBF process, including through monitoring of budget execution and achieved results using bespoke software attached to SAP R3. A priority at federal level is to ensure wider and more consistent usage of available macroeconomic data when preparing budget submissions. The initial priorities identified by Balochistan are support for the development and adoption of a PFM Reform Strategy and drafting of Public Finance Administration Act.

The project has led to a significantly improved PFM outcomes in Sindh and Baluchistan as well as at federal level. This includes the adoption of a comprehensive PFM reform strategy and Action Plan, improved performance of PFM staff for the production of budgets, public accounts as well as improved quality in Macro-Economic forecasting and fiscal modelling. 

Key Experts

Ivo Gijsberts Director