2003年-世界发展银行全球_Islamic_Republic_of_Pakistan___Country_Financial_Accountability_Assessment_54页_4mb

Pakistan Country Financial Accountability Assessment Summary

Overview

The Pakistan Country Financial Accountability Assessment (CFAA), conducted in two phases from 2001 to 2003, aims to enhance understanding of public financial management (PFM) and accountability systems in the country. It supports the World Bank's fiduciary responsibilities by identifying risks in the use of public and Bank funds, and it also aids in the design of PFM capacity-building programs. The assessment was carried out in collaboration with the Government of Pakistan (GoP), provincial governments, and various development partners, including the IMF, DFID, and the Asian Development Bank.

Key Financial Management Strengths

• Institutional Framework: Pakistan has a well-developed institutional and regulatory framework for financial accountability, which provides a strong foundation for reform.
• Reforms Initiated: The GoP has launched several significant reforms, including privatization of public enterprises, devolution of power, rightsizing of government, judicial and police reform, and increased transparency in economic decision-making.
• Improved Budgeting: A Medium-Term Budget Framework (MTBF) has been established, along with a Debt Policy Coordination Office, enabling more rigorous budgeting.
• Fiscal Transparency: The Review of Standards and Codes (ROSC) for fiscal transparency was completed by the IMF.
• Poverty Reduction Strategy Paper (PRSP): An interim PRSP is in place, which includes institutional mechanisms for monitoring and evaluating poverty reduction expenditures.
• Tax Reforms: Initiatives have been launched to reform tax policy and administration, which are expected to increase revenues.
• PIFRA Implementation: The Project to Improve Financial Reporting and Auditing (PIFRA) is progressing, with the first computerized District Accounts Office now operational.
• Accounting and Reporting: The Controller General of Accounts (CGA) has improved the timeliness of financial reporting, and annual accounts are now prepared within six months of year-end.
• Audit Improvements: The Auditor General of Pakistan (AGP) has initiated a new methodology for audits, and audit reports are delivered on time, improving transparency.

Key Financial Management Risks

• Institutional Capacity: There is a lack of institutional and staff capacity, especially at the provincial and district levels, which affects the effectiveness of reforms.
• Implementation Gaps: Reforms are unevenly implemented, leading to delays in financial reporting and audit processes.
• Data Accuracy: Inaccurate and incomplete data at sub-federal levels hampers the reliability of financial reporting.
• Accounting Skills: Weak accounting skills and infrastructure across the public sector require urgent attention.
• Audit Infrastructure: External audit capacity is uneven, with a shortage of skilled personnel and outdated practices.
• Legislative Oversight: While Public Accounts Committees (PACs) have been effective when functional, long breaks in the accountability cycle have led to audit report backlogs.
• Fiduciary Risk: Despite improvements, there remains a need to transition fully to government-owned systems and reduce reliance on 'ring fencing'.

Recommendations

• Enhance PFM Capacity: The GoP should intensify collaboration with provincial governments and implement a comprehensive Financial Management Improvement Strategy.
• Strengthen Budget Processes: Improve the realism and accuracy of budget development and execution processes, emphasizing output-based planning and transparency.
• Modernize Accounting Systems: Align accounting and financial reporting with International Public Sector Accounting Standards (IPSAS) and enhance internal controls.
• Accelerate PIFRA Implementation: Continue and expedite the implementation of the New Accounting Model (NAM) across all tiers of government.
• Develop Audit Capacity: Strengthen the Auditor General's Department with training, certification, and institutional development plans.
• Improve Legislative Oversight: Enhance the effectiveness of PACs by increasing public access to audit findings, formalizing legislative debate, and ensuring timely responses from the government.
• Ensure Steady Implementation: The GoP should entrust the Steering Committee with primary responsibility for developing and implementing the action plan, with strong management support.

Expected Benefits

• Improved Financial Management: Enhanced tracking and reporting of actual fund usage will make the budget execution process more meaningful.
• Increased Productivity: Better accounting and auditing capabilities are expected to reduce waste and increase the availability of funds for poverty reduction.
• Better Investment Decisions: Improved information will allow managers to consider full costs and make more informed investment decisions.
• Enhanced Accountability: Greater oversight and public access will increase accountability among legislators, officials, and line managers, ensuring resources are used in the best interests of stakeholders.

Conclusion

The CFAA concludes that Pakistan has substantial opportunities to consolidate and expand current reforms. With sustained policy commitment and improved implementation, the country can significantly strengthen public financial accountability. The PIFRA program and other initiatives are on track to reduce fiduciary risks, although continued capacity building is essential to ensure full reliance on government systems. The assessment highlights the importance of maintaining a realistic and comprehensive approach to reform, given the limited budgetary resources and competing demands on government staff.