Khyber Pakhtunkhwa cabinet approves financial reform strategy based on OPM support
Oxford Policy Management supported significant financial reform in Pakistan.
Technical support from the OPM-led Sub-National Governance (SNG) programme has enabled the Provincial Government of Khyber Pakhtunkhwa (KP) to prepare and adopt a Public Financial Management reform strategy. The three-year strategy runs from 2017-2020, and outlines a comprehensive roadmap for reforms focusing on budget transparency and improved financial management systems.
The objectives in the new strategy prioritise budgeting that is policy-driven and transparent, makes the most of resources and assets, and is more predictable in its execution, resulting in greater accountability for the results of spending.
The approval of this strategy is an important and far-reaching step towards improving revenue efficiency in KP, and enabling the Government of KP to deliver services and benefits to the 30 million population of the province as effectively as possible.
“One major area highlighted as a result of the technical support,” notes Stephen Akroyd, Oxford Policy Management Director and project lead for the SNG programme, “was the high percentage of provincial revenue – 80% – which is transferred from the federal government. This high level of dependency can be reduced by measures to increase the KP Government’s own revenues; the policy notes that the need to mobilise provincial resources has never been more paramount.”
The SNG programme is a DFID-funded, multi-year project that aims to improve public services in Pakistan’s Punjab and Khyber Pakhtunkhwa provinces. It does this by working with government, local partners and civil society organisations to build capacity and encourage innovation in service delivery.
The programme was established in 2013 as a response to the challenge of weak governance in these provinces, and supports the move towards a stable democracy by improving and strengthening district-level service delivery within the provinces. To date, our support has led to an additional £700 million being allocated to health and education spending over the last three years.
DFID has recently awarded the SNG programme an A+ rating for the second year in a row - and, for every £1 invested by DFID in SNG to date, the programme has achieved £3.57 worth of increased allocations to health and education in Punjab and KP.