The Pakistan is confronting many complex and difficult challenges that have posed serious economic existential risks to our economy. If these challenges remain unaddressed in systematic, coherent and innovative ways, the objective of economic prosperity and growth would remain an unrealised dream and people shall continue to live under abject economic conditions. Some of the major economic challenges among others include fiscal deficit, unfavorable exchange rate regime, trade imbalance, ballooned public debt, souring inflation, unemployment, poverty and unequal distribution of wealth. Our burgeoning fiscal deficit every year has compelled successive governments to resort to borrowing money both internally and externally resulting in a situation where all tax revenue of current financial year will be consumed on debt servicing. It is a proven fact that fiscal governance of any country is closely linked to an effective Public Financial Management (PFM) system, which focuses on principles of fiscal discipline, legitimacy, transparency and accountability of public finances.
PFM is framed around achieving an overall discipline which specifically includes resource…
