PFM & KPRA acts have strong commitment to consolidate PFM reforms in KP


he KP government developing drafts of PFM & KPRA Acts Government of Khyber-Pakhtunkhwa have strong commitment to consolidate and continue with Public Financial Management (PFM) reforms in the province.
These reforms include formulation of an overarching legal framework in the form of PFM Law with an objective to ensure fiscal discipline, improve financial sustainability, enhance efficiency for better service delivery, bring transparency and strengthen accountability in the PEM systems of the province.
The Sub National Governance (SNG) program has been providing technical support to the Finance Department Khyber Pakhtunkhwa in the formulation of the draft PFM Law, KPRA Act and Tax on Services Act.
A deliberation session on the draft PFM Law, developed by Finance Department with technical support of SNG, was held on 19th January 2021 with Mr. Taimur Khan Jhagra, Minister for Finance, in the Chair.
The deliberation was also attended by Secretary Finance and other senior officials of the Finance Department KP along with SNG team. A clause by clause review of draft KP PFM Act was done followed by detailed technical discussion in the context of the local needs of the province keeping in view the other provincial and national level legal statutes and global best practices.
The Minister for Finance proposed certain amendments to ensure appropriate customization of different clauses of the draft PFM Act in context of KP without compromising the objective, scope and quality of the legal draft.
The Minister for Finance also earmarked certain segments of the draft law for further deliberations with relevant stakeholders for wider consensus on the subject matters.
The Minister for Finance was also briefed about the draft KPRA Act which has developed with an aim to legally enable KPRA to function as an autonomous public corporate entity.
The Minister for Finance asked the Finance Department and SNG to finalize both the legal drafts on priority basis before end of the current fiscal year.
The Minister suggested having next round of discussion session in two-week times to further take up the highlighted issues/segments.