The signing of MoU between Pakistan Institute of Public Finance Accountants (PIPFA) and Chartered Institute of Public Finance Accountancy (CIPFA) of United Kingdom is a new milestone in the history of accountancy in Pakistan and this initiative is expected to bring Public Finance Management Reforms in Pakistan and enhance the capacity of our National Institutions engaged in Public Finance Management (PFM).
The reforming of PFM helps to improve the Governance in a country. However, the traditional PFM reforms such as the strengthening of national audit offices and the introduction of IT-assisted financial management systems - are,in these days, not seen as a separate area of activity, but frequently from the narrow angle of improving technical efficiency. For PFM reforms to succeed, however, it is vital that their effects on governance are taken into account.
While PFM reform is a central element of governance reforms in many developing countries, addressing corruption is rarely an explicit objective of such reforms. Experience in this range of countries shows that the impact of PFM reform on anti-corruption parameters is difficult to separate from other factors that may have led to positive anti-corruption outcomes. Countries that have seen substantial improvements in the performance of their PFM systems and have been able to reduce corruption, have achieved these positive results within the framework of broader governance reform which were backed by strong political commitment by the national governments.
In Pakistan, while governance structure is considered to be weak and corruption level is perceived to be quite higher, the current government seems to have high commitment for strong PFM and addressing the much publically criticised corruption issue. I am confident that this PFM conference, being sponsored by AGPin collaboration with PIPFA and CIPFA will not only focus on the ways to bring effective PFM reforms for improvement of Governance in Pakistan but will alsohighlight the measures needed to address the issue of corruption.
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