KP govt develops Cash Management Policy and Framework

Based on the bold agenda of financial reforms, the Khyber Pakhtunkhwa government has recently developed a Cash Management Policy and Framework with technical assistance from the UK Department for International Development (DFID) funded Sub-National Governance Programme (SNG-II). A draft of the policy is currently under final review and approval process.

The Cash Management Policy and Framework will help Khyber Pakhtunkhwa government in ensuring timely availability of cash to meet obligations, economising on cash within the government to reduce costs and mitigating risks, and management of the government's short-term cash flows efficiently.

The proposed policy will empower provincial cabinet to open and close bank accounts and Finance Department to inquire about the purpose, cash balance, data of bank statement of autonomous bodies.

The post-COVID budget 2020, was one of the most challenging in recent times and involved an extensive exercise based on the Budget Strategy Paper which was developed and published ahead of the budget with SNG support. To include the voices of marginalised communities in the budget, the SNG facilitatedand organizsed a pre-budget consultation of Finance Department and leading Civil Society Organizations of KP. Majority of the recommendations of the CSOs were included in the budget, making it an inclusive budget.

Launched in 2019, SNG-II is a four-year programme funded by the UK Department for International Development (DFID) to strengthen Pakistan's public financial management and planning systems, assist the government in raising more revenue, allocate money to improve basic services for the poor and excluded and strengthen the local government system through policy reforms.

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