European Union approved new grant for Pakistan under Public Financial Management Support Program

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European Union approved new grant for Pakistan under Public Financial Management Support Program

ISLAMABAD - European Union approved new grant for Pakistan under Public Financial Management Support Program.

The European Union approved a €13 million grant under the Public Financial Management Support Program (PFM-SP).

This program aims to improve public financial management, enhance the effectiveness of government spending, and improve the delivery of public services for both the Federal Government of Pakistan, and the provincial governments of Sindh and Balochistan.

The project supports the design and implementation of PFM reform processes in Sindh and Balochistan provinces, and, at a federal level, helps to consolidate the medium term budgetary framework process and the design of an overarching PFM reform strategy.

The agreement was signed in Islamabad by Secretary Economic Affairs Division, Syed Pervaiz Abbas, on behalf of Pakistan, while the EU's ambassador to Pakistan, Androulla Kaminara, signed it on behalf of the regional bloc. The Minister for Economic Affairs, Hammad Azhar was present and highlighted the need to strengthen socio-economic partnerships with the EU as this would go a long way to stabilize the economy.

“We have to make socioeconomic progress a reality in the country," remarked the minister.

The announcement of the EU grant had been waiting for IMF's agreement with the Pakistan government after the completion of the second review of the reform program.

The International Monetary Fund (IMF) and Pakistan reached a staff-level agreement “on policies and reforms needed to complete the second review of the authorities reform program supported under the EFF," read a statement from Ernesto Ramirez Rigo, the IMF's Mission Chief for Pakistan.