ABSTRACT

Public Finance Management is the system through which a country manages its finances and as a major Economic concept elucidates, resources are always scarce, and we have to take advantage of those resources for maximum utility. Pakistan’s Economic system has been marred with low tax to GDP ratio, abysmal per capita income and the menace of debt and deficit plagues the Economy immensely. To control and manage the deterioration in Economy, the federal government has been trying to improve the archaic financial systems but the lack of political kept on hampering the progress. Nonetheless, in the year 2017 the present Reform process was initiated that was taken over aggressively by the government of PTI and since then with the promulgation of the PFM Act 2019 -the present regime is working towards bringing about a radical change in the system of Public Finance Management but the institutional weaknesses and politics within the system and vested interests of those who are part of the system are hampering the progress so far. Cash management and TSA Policy 2020 and Cash Management and TSA Rules 2021 have been analysed in detail in the present study. What transpires is the fact that a heads on approach to the Reforms by the Bureaucracy is the only thing that can bring about a radical change or else this Reform Process would prove to be counterproductive.