Public financial management (PFM) serves as the cornerstone of economic ascendency, safeguarding resources are mobilised, allocated and utilised with effectiveness to support social priorities. For Bangladesh, as it navigates the path toward middle-income status and sustainable development goals (SDGs), a comprehensive, transparent and answerable PFM system is essential. The coming 3rd PFM Reform Strategy (2025-2030) signifies a critical opportunity to address systemic inefficiencies, modernise practices and ensure fair resource allocation for sustainable growth.
At a workshop organised by the Finance Division with World Bank support on Friday, Finance Adviser Dr Salehuddin Ahmed emphasised the need for a triangular approach to PFM reform. Cooperation among citizens, public sector and private sector is important for generating a financial management system that is comprehensive and robust. Although Bangladesh boasts ambitious plans, the recurring challenge lies in aligning them with institutional capacity and ensuring stable implementation.
Promising progress in particular areas of financial management underlines the potential for transformative reform. Finance Secretary Dr Md Khairuzzaman Mozumder underscored successful initiatives in salary disbursement and pension management. Management’s employees now receive salaries on the first day of the month and pensioners benefit from automated systems that eliminate delays and the necessity for life substantiation. The adoption of the Government-to-Person (G2P) payment system further demonstrates how technology may curb corruption and improve efficiency in social safety net programmes.
PFM reform is not merely regarding economic discipline; it is
a moral imperative to uphold fairness and good governance. A
transparent and well-organised system reassures people that
community resources are managed responsibly, fostering trust
in institutions and encouraging greater community participation.
Despite these achievements, substantial gaps persist. An uneven institutional framework, nonoperational system and not enough capacity continue to impede wider reform efforts. Addressing these issues needs a strategic, well-sequenced approach across three core areas—firstly, streamlining workflow, adopting digital solutions and enhancing efficiency in resource allocation. Secondly, renovating legacy systems and integrating global best practices tailored to Bangladesh’s inimitable framework. Thirdly, strengthening control structure, building capacity and adopting a culture of transparency and answerability.
To succeed, the 3rd PRM reform strategy must be actionable and prioritised. It necessitates clear objectives, measurable standards and a strong commitment from policymakers and stakeholders. Rights of the reform process across all levels of management is critical, as is improving people’s engagement to ensure transparency and trust.
PFM reform is not merely regarding economic discipline; it is a moral imperative to uphold fairness and good governance. A transparent and well-organised system reassures people that community resources are managed responsibly, fostering trust in institutions and encouraging greater community participation.
Seeing ahead, a robust PFM system will allow strategic investment in agriculture, industry and services—critical factors of inclusive growth. It will also enhance economic stability, paving the path for the country’s sustainable development.
The time for decisive action is now. Bangladesh may build a PFM system that reflects its development aspirations and serves all citizens fairly with unity, collaboration and a forward-thinking approach. The 3rd PFM reform strategy must be more than a paper; it should be a blueprint for a prosperous, inclusive and resilient country.
