This paper highlights the capacityenhancement support provided under the World Bank-financedPakistan Improvement of Financial Reporting and Auditing(PIFRA) project and six lessons learned to be considered indesigning similar projects: (a) address capacity constraintsat every level, that is, individual, organizational, andinstitutional, (b) avoid addressing an entire large countryin one project, (c) avoid introducing state-of-the arttechnology in an environment of largely unskilledprofessionals, (d) avoid too many project components, (e)ensure ownership and commitment by the project agency, and(f) ensure collaboration among donors.