ADB grant to strengthen financial management projects

A technical assistance (TA) grant of US $150,000 is to be awarded to the Pakistan government by the Asian Development Bank (ADB) to help it strengthen the financial management capacity of project management units at the federal and provincial levels, according to an official. "Most development projects need quite substantial input in terms of efficient management of accounts, so that projects can be delivered more efficiently and help us achieve our goal of poverty alleviation and social development," Marshuk Ali Shah, the ADB country representative, told IRIN in the capital, Islamabad, on Tuesday. The TA had three major components - financial management, audit and training - with each implemented by a team of experienced domestic experts who would work closely with staff from key Pakistani government departments, such as that of the auditor-general and that of the controller-general of accounts, in conjunction with ADB resident mission staff, an ADB press release said. This was part of a targeted assistance programme for unit management, Shah explained. "It also goes a long way towards improving governance. For example, sometimes accounts are not kept properly and can create problems in the implementation of a particular project, or projects," he added. The TA's main output will be in the form of an accounting manual and revised auditing guidelines, and training manuals for accounts and audits. The government intended to use the manuals and guidelines developed under the TA as the basis for the financial management and audit of all foreign-assisted projects in Pakistan, the media release said. "The management and control of accounts in development projects will be extended to cover other projects as well. The basic intent is to improve the implementation of development projects, all of which are targeted towards poverty alleviation," Shah said. "The overall objectives of any programme cannot be met unless it is ensured that projects are delivered in an effective, efficient and timely manner," he added. Once the management and control of an accounting system was improved, the performance of the project would automatically come up to par, Shah maintained. The department of the auditor-general would be the executing agency for the TA, which would be implemented over 12 months from January 2004, the press release said.