One of the most important messages in the International Monetary Fund's (IMF) Governance and Corruption Diagnostic Assessment on Pakistan has received surprisingly little public attention. The IMF concludes that Pakistan's mechanisms for monitoring and accountability remain weak, particularly in the management of financial and non-financial public assets and State-Owned Enterprises (SOEs). This finding deserves serious attention because it shifts the policy debate from how governments spend public money to how they manage the public wealth already created.

Pakistan's fiscal debate is usually dominated by taxation, budget deficits, public debt and government expenditure. While these issues are undoubtedly important, they represent only one side of the public finance equation. Governments are responsible not only for managing public finances but also for safeguarding the vast public assets created through decades of public investment. Sound fiscal management requires attention to both sides of the public balance sheet—government liabilities as well as the public assets that support economic growth and public services. Yet public assets rarely receive the same attention as taxes, borrowing and expenditure.

Across the country, the federal and provincial governments own vast public assets, including land, public buildings, transport infrastructure, educational institutions, hospitals, irrigation systems and other public facilities. Together, these assets constitute a significant part of Pakistan's national wealth. They support economic activity, deliver essential public services and provide the infrastructure on which development depends. Yet relatively little public information is available on what these assets are worth, how effectively they are being used or whether they are delivering the greatest possible value to citizens.

The IMF argues that governance risks increase when governments lack comprehensive information on their non-financial assets and do not have effective systems for monitoring, accountability and stewardship. Weak asset records, fragmented accounting arrangements, incomplete information systems and inadequate stewardship reduce transparency and make informed decision making more difficult. Without reliable information, governments cannot accurately assess the condition of public assets, determine maintenance priorities or make sound investment decisions.

The IMF also notes the absence of a unified approach to managing non-financial public assets. Until recently, federal ministries and departments-maintained asset records under their own........

© The Friday Times