Public sector entities: $6 trillion a year lost in corruption, subsidies: ex-FBR chief Pakistan is losing almost $6 trillion a year in terms of losses and subsidies to public sector organisations due to poor governance and corruption. Former chairman of Federal Board of Revenue Abdullah Yousuf said this while addressing a two-day conference on public financial management organised by the Institute of Chartered Accountants of Pakistan in collaboration with World Bank and USAID. The government policies are good only on papers, but when it comes to implementation and enforcement, things become clear how serious the rulers are, he said. He suggested that the government should strengthen the public sector companies boards by appointing independent and capable persons. The conference brought together international and national experts on the subject, parliamentarians, regulatory agencies, professional accountants, donor agencies and others and emphasised the need to promote better understanding, urgency and co-operation between all these stakeholders for effective implementation of Public Financial Management in Pakistan and the region. Ian Ball, Chairman CIPFA International said the only solution to Pakistan is implementation of public financial management to improve the standard of living, economic development and bring prosperity. He illustrated that the poor financial management would create environment ripe for corruption and fraud, put growth of global economy at risk and consequently the welfare of citizens. Ball presented success story of New Zealand where he spearheaded the efforts for conversion to accrual based accounting and is now ranked first in the world for social and environment progress. He also indicated price for poor governance and financial management that a nation would pay in the shape of violence and destruction. Ball analysed the status in Pakistan and discussed the implications and way forward particularly in public sector. His paper ended with an analysis of international public sector accounting and financial management and its implications on Pakistan. We need to develop clear policies and reflect them in our budgets; expenditure during the year needs to be within the budget lines. Results of spending should be analysed and used for policy formulation. Pakistan is still struggling to link the policy; planning and budgeting mechanism said Hanid Mukhtar, Ex-Senior Economist World Bank. Providing way forward Mukhtar suggested roles and responsibilities under the framework of proposed Public Finance and Administration Act. Rajkumar Adukia, a council member of the Institute of Chartered Accountants of India explained the status of conversion to accrual based accounting by various governments and highlighted the challenges for its implementation to the audience. Muhammad Akram Khan, with extensive working at relevant substantial positions in the government and research on the subject gave a good account of status of a very important aspect of PFM in Pakistan in his paper Cash Management in Government. He also has given various suggestions to Government of Pakistan to improve cash management. Jens Heiling, Advisor International Public Sector Accounting Standard Board (IPSASB - IFAC) emphasised on implementation of public sector accounting standards which helps harmonisation, transparency, reliable information for decision making and trusts by resource providers being investors and donors. Additional Auditor General of Pakistan Taseer Ahmed said that the role of Public Account Committee (APC) is every important and the people and citizen who elected their representatives who are customer of the AGP. He said that PAC and representatives of Parliament determine the way for AGP. He said that PAC is a recommendatory body and there is need to enhance its powers. He said that proceeding of PAC meetings should be telecast live for accountability of the government officials before the public. brecorder/taxation/181:pakistan/1245677:public-sector-entities-6-trillion-a-year-lost-in-corruption-subsidies-ex-fbr-chief/?date=2014-11-26
Posted on: Wed, 26 Nov 2014 01:48:55 +0000
Trending Topics
Recently Viewed Topics
© 2015