On Overview of PFM in the Pacific

1
On Overview of PFM in the Pacific

• S Joshi
• IMF/PFTAC PFM Advisor
• Suva, Fiji

2
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

3
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 people
• Niue- 1600 people.

4
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,
  regionwide seminars, in PFTAC

5
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

6
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

7
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

8
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

9
But it will

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

10
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

11
THANK YOU

• SUHAS JOSHI
• PFM Advisor,
• Pacific Financial Technical Assistance Center
  (PFTAC)
• Reserve Bank Building, Pratt Street,
• 7th Floor, GPO Box 14877
• Suva, Fiji
• Tel. [phone] (679) 9426115
• Email sjoshi_at_imf.org