PFM and accountability to support service delivery PforR

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The development objective of Public Financial Management (PFM) and Accountability to Support Service Delivery Project for Pakistan is to improve public financial management and procurement systems for better management and accountability in service delivery for the health and education sectors. The government has developed a six- pillar PFM Reform Strategy (2018-2027) that has been jointly approved by the federal and provincial finance secretaries. Its purpose is to consolidate PFM progress and make incremental improvements to ensure that systems deliver to their full potential in an accountable and transparent manner. The Program supports the following five of the six pillars of the PFM Reform Strategy: Pillar 1: Fiscal Sustainability and Credibility of the Budget; Pillar 3: Service Delivery and Results Based Management; and Pillar 4: Public Investment Management and PPP; Pillar 5: Oversight, Transparency, and Accountability; and Pillar 6: Vertical PFM Coordination. This program does not support Pillar 2. The Program for Results (PforR) is the most suitable instrument for this operation which supports a coherent package of policy change, institutional strengthening accompanied by incentives for behavioral change, and re-engineering of business processes through a clearly articulated results chain. The PforR allows the government to use and strengthen its own systems, thereby ensuring longer term sustainability. It also creates a unique window of dialogue with other development partners. By contrast, a traditional investment project would add to existing coordination challenges and would risk duplication and a narrow focus on inputs and processing of transactions instead of on results.