This study was carried out in association with an FAD technical assistance mission on public financial management issues. It focuses on transparency aspects of fiscal management reforms reviewed by that mission as well as implementation of key report on observance of standards and codes recommendations. A strong legal framework for coordinating fiscal and debt management policies and improving fiscal transparency by Fiscal Responsibility and Debt Limitation Law (FRDL) was also established. The update assesses the impact of these reforms that are under way and suggests priorities for further transparency improvements. Pakistan Improvement to Accounting and Auditing (PIFRA) has been implemented recently.
This paper presents an Update to the Report on the Observance of Standards and Codes on the Fiscal Transparency Module for Pakistan. Under the Project for Improvement of Financial Reporting and Auditing (PIFRA), key steps to enhance fiscal reporting and monitoring were taken recently. Accounting offices that process budget data are gradually being transformed to support the New Accounting Model and new information technology processes. Nineteen sites, including two core federal accounting offices, are now online. Data reconciliation issues are being addressed by fiscal monitoring committees operating both at the federal and provincial levels.
This paper discusses key findings of the Third Review Under the Stand-By Arrangement for Pakistan. Program implementation has been uneven but key reforms are moving forward. All end-September 2009 quantitative performance criteria were met, with the exception of the ceiling on the overall budget deficit. The tax revenue foregone in September was largely recovered in October, and the wage bill overrun was self-correcting. On these grounds, the authorities request a waiver of nonobservance for the related end-September 2009 performance criterion. IMF staff recommends the completion of the program review.