The NWFP was the first province to present the development budget for the financial year 2008-09 on the new format prescribed by the Auditor General under the PIFRA (Project to Improve Financial Reporting and Auditing) system.

Official sources told APP that PIFRA is a major development project to reform the financial management systems in the federal and provincial governments. NWFP had volunteered to be the pilot province for implementation of PIFRA reforms.

The on line systems based developmental budget will facilitate the Accountant Generals organization in maintaining proper and detailed accounting records of all the development projects executed by various government agencies.

It will also enabled the provincial and district governments to trace and trail the expenditure on development projects and programmes. It is expected to provide transparency in expenditure, accountability of the spending agencies and accurate and timely reporting.

The project teams have been striving hard for the past four years in persuading the authorities in the Finance Department to prepare the development budget on the new format.

Much to the dismay of some low level officials of the Finance Department, this year the PIFRA project succeeded in persuading the high ups in the Planning and Development Department and Finance Department to prepare the budget on new the format and systems.

The other three provinces have yet to implement province-wide online Integrated Financial Management Information System (IFMIS).

PIFRA is a joint venture of the Government and World Bank and its executing agencies are the Department of Auditor General of Pakistan, Controller General of Accounts, Federal Finance Division and Provincial Finance Departments.

The prime objectives of the PIFRA are to establish effective financial management systems consistent with international best practices, to strengthen internal controls and to modernize government audit procedures and adopt internationally accepted auditing standards.

The PIFRA components included Financial Accounting and Budgeting System (FABS), capacity building of the offices of the Auditor General, Controller General of Accounts and project management.

The PIFRA system is now fully operational in all the 24 districts of the frontier province, giving online data about the payroll of all federal, provincial and district government employees, disbursement of payroll and GPF deductions, balance sheets and generation of pension of payment order.