WASHINGTON, Sept 7: The World Bank has approved a credit of $84 million to assist the continued reforms of Pakistan’s public financial management system. The objective of the second improvement to financial reporting and auditing project is to improve the efficiency and effectiveness of public expenditure and increase the potential for economic growth and poverty reduction, the bank said.

The primary focus of Pakistan’s poverty reduction strategy is economic growth, supported by improved governance, social indicators and programmes that focus on the poor and vulnerable.

“The government of Pakistan has recognised that weak governance is at the heart of Pakistan’s poverty and development challenges, and that public financial management reform is essential,” the bank said.

In addition to supporting the implementation of the existing reforms, the project will work with different tiers of government to introduce an automated system-wide implementation of medium term budgetary frameworks, assist in improving business processes and changes to government financial management.

The bank hoped that this would lead to the setting up of enhanced accountability systems for devolved levels of local government.