This Public Expenditure and FinancialAccountability (PEFA) Assessment applies the PEFA frameworkand methodology to provide a snapshot of the current statusof the federal government's public financial management(PFM) system. The report makes no recommendations on policymatters it is specifically concerned with the status of thePFM system and issues relating to financial managementprocesses. It does suggest weaknesses and strengths as wellas possible priority areas to take advantage of strengths orto address higher-risk weaknesses. It makes norecommendations, however, on specific measures or actionplans. The report provides a basis for these matters to betaken up subsequently, but, consistently with the PEFAframework, they should be subject to a separate discussionduring the formulation of a government-led PFM reformagenda. The structure of the PFM performance report is asfollows: chapter two gives background information and thecountry economic, fiscal, and institutional context. Chapterthree provides details on each performance indicator (PI)score. Chapter four summarizes the government's ongoingPFM reform programs. Annex one gives a summary of the PEFAassessment; annex two provides sources of information,including a list of documents reviewed and officialsconsulted; and annex three shows key organizational elementsof Pakistan's PFM structure.