Experts for managing public money effectively

Financial experts said that managing public money effectively can help all areas of government activities including effective resource allocation, policy-making, fight against corruption, better services and outcomes that would ultimately improve the lives of people.
They expressed these views, addressing the 3rd Public Finance Management conference held under the aegis of Institute of Chartered Accountants of Pakistan (ICAP) in conjunction with the CIPFA at a hotel, here on Friday.
More than 400 professionals from the fraternity of finance and business attended PFM conference on 'Good Governance - Helping Deliver Better Public Services. The PFM conference has emerged as a strong platform where professionals affiliated with businesses, public sector and industry meet to explore and confront challenges and thrash out solution.
The aim of the conference is to showcase how good governance and strong Public Financial Management can underpin all facets of public sector activity around the world and also in Pakistan
ICAP president Riaz Rehman Chamdia in his introductory remarks that to encourage and sustain the economic growth of any country, a well-designed public financial management system and PFM institutes are essentially required from the perspective of transparency, accountability, responsiveness, cost effectives, adaptability, and all because public financial management is the integral part of the governance.
"Sound PFM support, aggregate control, privatization, transparency, economic growth and efficiency in the management of public resources and delivery of services are very critical to achievement of public policy objectives of any government of country," he said, adding that good governance is about having national institutions that may take fair and appropriate decisions about how a country is governed and effective system is in place.
Chamdia further said a capable public service is essential for creating a favourable climate in any country to facilitate public-private participation in the service delivery. He said public delivery system has acquired a milestone in Pakistan with the support of the World Bank-funded project PIFRA. He said private-public partnerships are one of the most effective vehicles in the public service delivery which in turn increase the growth and create jobs leading to the reduction in poverty. In Pakistan, public-private partnerships in various projects are emerging and creating value addition to the national economy in most of the provinces.
PFM Conference committee chairman Rashid Ibrahim highlighted the theme and the recommendation emerged from that conference for the government. He said PFM is essential for better management, scrutiny of government, macroeconomic stability, effective use of available resources and reduction in poverty.
He said better PFM would present much-needed boost to the economy. He said partnerships are crucial. He urged auditor general, controller general, ministry of finance, parliamentarians and civil society organizations need to work in cohesion while important institutions need to improve their skills and capacities.
He called for strong political will for the development of effective public financial management.
CIPFA president Andrew Burns introduced his organization saying it is an international professional body for people working in public finance or members in training throughout the public services, national organizations, major accountancy firms, the local bodies where public money needs to be effectively managed and it began in 1885.
"The world governments have crucial role to play to implement fairness and peace in order to give services and to control public assets," he said, adding that all are focusing in well-being of their citizens, not just on generating profits. He urged they must fulfill a wide range of functions including political, economic, environment and socio challenges.
Burn appreciated ICAP's pivotal role to develop linkages and relationships between government and public sector bodies. He also delivered his key note speech on the topic of Good Governance - Helping Deliver Better Public Services for citizens.
First panel discussion was conducted by Asad Ali Shah, Senior Partner Deloitte. Public-Private Partnership in Pakistan was the topic of the panel discussion in which speakers shed light on role of provincial government in exploring the potential for private alliances to support public sector education, health and infrastructure, etc. Iftikhar Ali Sahoo, Secretary Planning and Development Punjab, Ali Subtain, PPP unit Sindh, Zahir Shah, Secretary Planning and Development KPK, Salman Amin, Executive Director, NEPRA and Burns were the panelists.
Former president of ICAP Asad Ali Shah said that the trend of privatization and now public-private partnership is growing and projects and services worth billions of dollars are being privatized or outsourced or done in participation, or in collaboration with private sector.
Although there have been some issues in some countries, there have been some mistakes that may be deemed normal in every venture, there can be mistakes, issues but overall concept of public-private partnership is really thriving everywhere, Shah said.
During second sessions, Muhammad Abdul Basir expressed his views on implementation of integrated-reporting in public sector. "We lack not only the intellect but we have very limited patience also," he said, noting that disagreement or different views are not tolerated. He said most of things are enforced until there is an ownership of a process; the desired impact does not occur.
He said he always recommended first to begin a pilot project and ponder upon its challenges before launching a full-fledged project.
He urged the participants to market the project's benefits too. He said this is very important that the people who are going to be the beneficiaries of project should know about it. He said planning team can do good job to take users into confidence. He said user prospective is very necessary and ultimately the citizen and public don't see what efforts and resources have gone into it.
At third session, Sardar Adnan Alam, Deputy Director NAB shared a paper on 'Fighting Fraud and Corruption in Public Services.' He noted that corruption is a big problem in developing countries as people begin fulfilling their own and family needs. He said without good governance and transparent public services that should have been equally accessible to all, people feel them under compulsion to grease palms of relevant authorities to obtain healthcare. He said corruption impedes good governance.
Federal government has taken actions to penalize corruption functionaries. Proper rules and laws have been framed. Such laws are manifested to maintain check and balance system, he said.
Third panel discussion was conducted by Rana M Usman Khan, ICAP's council member and Partner Deloitte Pakistan, on Fighting Fraud and Corruption in Public Services.
The speakers presented their views on leverage international resources to combat corruption and support and sustain good governance.
The panelists of the session were Asad Umar, MNA from PTI, Nasir Iqbal, Director General NAB, Mahfooz Ali Bhatti, Director General AGP and representative of CGA.
Asad Umer said Pakistan has world class public institutions in the public sector but it slowly and surely lost one of them one by one.
He said performance of public sector or in the non-private sphere remained poor due to high political infiltration otherwise they would have performed better than others.
Other speakers included Gillian Fawcett, Head of International Affair CIPFA, Syed Ali Shah, Akhram El Shorbaji of World Bank and Abdullah Yousaf.
The conference concluded on an appreciative note with the participants looking to the next PFM conference to enrich their experience.