The Khyber Pakhtunkhwa Public Financial Management (PFM) Act 2022 marks a significant milestone in fiscal reforms, aimed at strengthening financial discipline, transparency, and accountability across public sectors. In line with this transformative legislation, the Finance Department, with technical assistance from the UKAID/FCDO-funded Sub-National Governance (SNG) Programme, has embarked on developing integrated budgeting systems that align public spending with strategic development goals.

The Integrated Budgeting Rules (IBR) are a vital component of this reform effort. These rules are designed to promote greater efficiency, transparency, and accountability in budgeting processes by linking them to measurable outcomes. Once finalized, the IBR will enhance resource allocation, particularly in critical sectors such as health and education, ensuring that budget allocations align with broader development objectives.

Recognizing the significance of this initiative, the Finance Department, under the leadership of Mr. Muzzammil Aslam, Advisor to the Chief Minister on Finance, held a deliberation session on September 18, 2024, at Serena Peshawar. This session focused on refining the draft Integrated Budgeting Rules and developing a comprehensive budgeting manual that promotes efficient public service delivery.

This session brought together key officials, including the Additional Secretary Finance, Deputy Secretary Finance, Budget Officers, and representatives from sectors such as local governments, health, education, C&W, and law. Their collective efforts aimed to enhance the province's budgeting systems for improved resource allocation and service delivery.

This reform initiative will help the Finance Department to adopt global best practices, such as the PEFA standards and the Open Budget Index. The collaboration highlights the KP government's commitment to creating a transparent, inclusive, and performance-based financial management system.

As Khyber Pakhtunkhwa moves forward with the implementation of the Integrated Budgeting system, the province is poised to benefit from a streamlined budgeting process, where resources are allocated more effectively and in line with development goals. This strategic approach will ultimately lead to a more robust financial system, ensuring public funds are used responsibly and effectively to improve public service delivery for the citizens of Khyber Pakhtunkhwa.