2004年-世界发展银行全球_Public_Financial_Accountability_in_Pakistan___The_Impact_of_PIFRA_on_Capacity_4页_330kb

Capacity Enhancement Summary: PIFRA Project in Pakistan

Core Content

The World Bank-supported Pakistan Improvement of Financial Reporting and Auditing (PIFRA) project aims to enhance public financial management systems by improving accounting, reporting, and auditing processes across all levels of government. It is part of a broader financial management reform program initiated by the Government of Pakistan to strengthen public sector accountability and transparency.

PIFRA has been implemented since 1997 and has achieved a satisfactory level of progress, particularly in the automation of financial systems and the introduction of new accounting models. The project has also laid the groundwork for the PIFRA II, which is designed to build on the first phase and further consolidate the accountability framework through capacity building, automation, transparency, and devolution of power.

Main Objectives

• Improve public sector accounting and financial systems, including budgeting
• Enhance public sector accountability
• Support improved institutional capacity for economic policymaking and management

Key Components

1. Government Budgeting, Accounting, and Financial Reporting

• Implementation of a fully automated, integrated, and interfaced financial accounting and budgeting system under a new accounting model.
• Federal and provincial finance departments now prepare budgets using the new chart of accounts.
• PIFRA has implemented the accounting module in eight pilot sites, covering about 20% of government financial transactions.
• 80% of central government transactions are expected to be captured with full implementation.

2. Government Auditing

• Introduction of international auditing standards and modern auditing techniques.
• Development of audit manuals and provision of audit software for testing and analysis.
• Training of auditors in software use and audit planning.
• Transition from cash accounting to modified cash accounting to support accrual accounting.
• Some provinces have started performance audits, promoting "value for money" practices.

3. Institutional Development

• Improvement of training facilities for accountants and auditors.
• Development of human resource policies and recruitment of skilled personnel.
• Introduction of an automated management information system for the Office of the Auditor General.
• Division of audit and accounts functions, reducing conflicts of interest.

4. Policy Support for Economic Management

• Conducting studies on economic and financial issues to support reforms.
• Revising financial rules to align with the new accounting model.
• Designing a comprehensive reconciliation framework to interface PIFRA systems with banking and revenue departments.
• Enhancing the professional capacity of economic and financial departments.

Lessons Learned

• Address capacity constraints at all levels: Human resource, organizational, and institutional capacities must be strengthened simultaneously.
• Avoid addressing an entire large country in one project: Large-scale implementation should be phased and localized.
• Avoid introducing state-of-the-art technology in an unskilled environment: Gradual and realistic technological integration is more effective.
• Avoid too many project components: Complexity can hinder coordination and implementation.
• Ensure ownership and commitment by the project agency: Involving local institutions is crucial for sustainability.
• Ensure collaboration among donors: Early coordination with multiple donors increases project momentum and effectiveness.

Additional Initiatives

• Regional CGA conferences: Organized by the World Bank to promote the adoption of accrual accounting and international reporting standards in South Asia.
• South Asia Auditors General meetings: Aim to build capacities and share experiences in applying international auditing standards.
• Workshops and seminars: Conducted by World Bank staff to support Accountants General, Auditor General, and project financial officers in aligning with new policies and guidelines.
• Capacity enhancement for PPACs: Technical assistance and training for Parliamentary Public Accounts Committees at federal and provincial levels to improve their role in accountability.

Conclusion

PIFRA has made significant strides in improving Pakistan’s public financial accountability system through a structured approach to capacity building, automation, and institutional reform. PIFRA II is expected to further strengthen these efforts by addressing remaining gaps and promoting transparency and devolution. The project’s success is attributed to its phased implementation, stakeholder engagement, and donor collaboration, setting a precedent for similar initiatives in other countries.