ISLAMABAD – European Union approved new grant for Pakistan under PublicFinancial Management Support Program.
The European Union approved a €13 million grant under the Public FinancialManagement Support Program (PFM-SP).
This program aims to improve public financial management, enhance theeffectiveness of government spending, and improve the delivery of publicservices for both the Federal Government of Pakistan, and the provincialgovernments of Sindh and Balochistan.
The project supports the design and implementation of PFM reform processesin Sindh and Balochistan provinces, and, at a federal level, helps toconsolidate the medium term budgetary framework process and the design ofan overarching PFM reform strategy.
The agreement was signed in Islamabad by Secretary Economic AffairsDivision, Syed Pervaiz Abbas, on behalf of Pakistan, while the EU’sambassador to Pakistan, Androulla Kaminara, signed it on behalf of theregional bloc. The Minister for Economic Affairs, Hammad Azhar was presentand highlighted the need to strengthen socio-economic partnerships with theEU as this would go a long way to stabilize the economy.
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“We have to make socioeconomic progress a reality in the country,” remarkedthe minister.
The announcement of the EU grant had been waiting for IMF’s agreement withthe Pakistan government after the completion of the second review of thereform program.
The International Monetary Fund (IMF) and Pakistan reached a staff-levelagreement “on policies and reforms needed to complete the second review ofthe authorities reform program supported under the EFF,” read a statementfrom Ernesto Ramirez Rigo, the IMF’s Mission Chief for Pakistan.
