Final evaluation PFM II - Pakistan

PFM-II (€13m; Mar 2020–Sept 2024) provided technical assistance to strengthen Pakistan’s public financial management at federal level and in Sindh and Balochistan.

Implemented by OPM with Ecorys and Abacus, it addressed budgeting, investment planning, execution, reporting, reform strategy and macro-fiscal forecasting. Outputs included improved budgeting tools, draft/enacted PFM laws and regulations, TSA and pensions support, and enhanced macro-fiscal modelling in the Economic Advisor’s Wing. Training through provincial academies improved staff skills and was well received. However, outcome-level change and service-delivery impact were limited. 

Integrated sector planning and medium-term budgeting were not institutionalised, due to finance–planning rivalries and weak engagement of planning institutions, especially federally. COVID-19 and the 2022 floods caused delays, and frequent changes to activities and indicators reduced coherence. Many manuals, strategies and sector plans remain unapproved drafts, limiting uptake. Sustainability is stronger for incremental, legally anchored reforms and provincial PFM units, but weaker for complex reforms without sustained change-management. EU added value lies in continuity from PFM-SPP and provincial partnerships. 

Recommendations: define reform pre-conditions, realign the results chain, embed M&E and change management early, improve coordination, finalise approvals, and prioritise reforms tied to inclusive service delivery.