On Overview of PFM in the Pacific

S Joshi

IMF/PFTAC PFM Advisor

Suva, Fiji

Pacific Financial Technical Assistance Center (PFTAC)

• Started in 1993 to provide TA in the Pacific

• Managed and operated by the IMF

• Other donors-NZAID, AUSAID, Japan, Korea and ADB

• Covers PFM, Banking Supervision, Taxation and Statistics

Countries covered

• 15 countries in the Pacific• Marshall Islands, Palau, Federated States

of Micronesia, Kiribati, Tonga, Tuvalu, Tokelau, Nauru, Fiji, Papua New Guinea, Niue, Cook Islands, Samoa, Tonga, Vanuatu

• Great diversity in size- PNG- 6.5 million peopleNiue- 1600 people.

3 forms of assistance• Direct TA – areas like cash planning,

commitment control, MTEF

• Diagnostic studies- areas like IFMIS, Internal Audit, PFM needs assessment

• Trainings and attachments- in-country, region–wide seminars, in PFTAC

New initiatives since last SBO

• 2 week training on PFM for middle level executives in India

• More IFMIS studies in Marshall Islands, Kiribati & Tonga• In Fiji-Developed accounting policies in line with cash based

IPSAS-Developed an Instruction manual to use these accounting

polices to improve cash accounting in Fiji-Attachment of 5 FS to Australian Treasury later in

February

PFM Road Map

2009 Forum Economic Ministers meeting directed the development of a Pacific PFM Road Map to further:

• Expenditure & revenue management

• Accountability and monitoring systems

• Procurement

to enhance delivery of development resources

3 main elements of the road map

1. Identify the characteristics of well functioning PFM systems to be targeted over the next 5-10 years

2. Outline processes and practices that countries and development partners can adopt to develop action plans

3. Summarize broad & relevant themes in terms of strengths and weaknesses from PEFA assessments

What the road map will not do

• Not propose rigid frameworks for country or developmental partner interactions

• Not seek a detailed stock take of current state of PFM systems

• Nor develop reform plans in individual Pacific Island countries

But it will

• Propose simple coordination mechanisms to promote regular and independent assessment of PFM systems

What next ?

• We seek ideas and experience in the development of the road map

• Further attachments at FS level to study and learn from your experiences

THANK YOU

SUHAS JOSHIPFM Advisor,

Pacific Financial Technical Assistance Center (PFTAC)

Reserve Bank Building, Pratt Street,7th Floor, GPO Box 14877

Suva, FijiTel. (679) 3304866 (679) 9426115

Email: sjoshi@imf.org