Finance Division unveils PFM Strategy 2025–2030 marking shift from systems to outcomes

The Finance Division today (17 December) unveiled the 3rd Public Financial Management (PFM) Reform Strategy 2025–2030, signalling a decisive shift in Bangladesh's fiscal governance by widening the focus toward building institutional strength, clearer outcomes, accountability, and improved service delivery.

Finance Adviser Salehuddin Ahmed formally launched the strategy at a high-profile ceremony attended by secretaries, senior government officials, heads of constitutional bodies, and key development partners.

The new framework provides a comprehensive roadmap to strengthen fiscal discipline, manage rising public risks, and ensure better value for money at a time when Bangladesh faces mounting pressure from climate change, global economic volatility, and expanding public expenditure needs, said a press release.

While launching the PFM Reform Strategy 2025–2030, Salehuddin Ahmed said, "We are accountable to the general public, and this long-awaited PFM Strategy is about ensuring transparency, accountability, and better quality of public services."

He called upon officials of the Finance Division, the National Board of Revenue (NBR), the Office of the Comptroller and Auditor General (OCAG), and other relevant actors to accelerate implementation of the strategy, stressing that coordinated action is essential to establish a stronger system of governance and a more transparent public financial system that delivers real benefits to citizens.

The launching ceremony was organised under the Strengthening Public Financial Management Program to Enable Service Delivery (SPFMS) at the multipurpose hall of the Finance Division.

Finance Secretary Md Khairuzzaman Mozumder presided over the event, while Comptroller and Auditor General of Bangladesh Md Nurul Islam and World Bank Division Director for Bangladesh and Bhutan Jean Pesme attended as special guests.

Ziaul Abedin, additional secretary (budget-1) and national program director of SPFMS, delivered the welcome address, and Suraiya Zannath, Lead Governance Specialist at the World Bank, also spoke on the occasion.

In his remarks, Finance Secretary Khairuzzaman Mozumder said the PFM Reform Strategy 2025–2030 is the result of sustained and collaborative efforts by many dedicated stakeholders over a long period.

"I sincerely acknowledge the contributions of officials of the Finance Division, line ministries, constitutional bodies, development partners, and technical experts who worked relentlessly to shape this comprehensive and forward-looking strategy," he added.

Highlighting the role of accountability, Comptroller and Auditor General Md Nurul Islam said the PFM reform journey is fundamentally about attaining fiscal discipline, modernising financial processes, and strengthening financial governance to deliver more efficient, transparent, and citizen-focused public financial services.

He believes that a strong PFM system, supported by a strong and independent audit mechanism, is essential to ensuring the success of the reform agenda.

World Bank Division Director Jean Pesme said Bangladesh has made notable progress through reforms such as iBAS++ and the digitalisation of pension systems, which have strengthened credibility, oversight, and transparency in the use of public resources.

When important gains have been achieved, Bangladesh continues to face challenges related to institutional capacity, fiscal management, and public debt, he added.

Addressing these issues alongside strengthening regulatory quality, governance, and corruption control will be essential to sustaining credible projects, effective oversight, and long-term fiscal stability, he said.

The 2025–2030 framework is structured around 15 reform pillars covering fiscal sustainability, revenue mobilisation, public investment management, treasury and debt management, procurement, internal and external oversight, digital transformation, and capacity building, the press release said.

For the first time, the strategy fully mainstreams climate-smart PFM, gender-responsive budgeting, and sector-specific financial management reforms for health, education, and social protection.

Resilience is a central theme of the strategy. With Bangladesh's tax-to-GDP ratio among the lowest in the region and fiscal exposure increasing through SOE liabilities and contingent risks, the document places strong emphasis on improved macro-fiscal forecasting, integrated debt management, and transparent reporting of fiscal risks, according to the release.

The strategy also emphasises institutionalisation and implementation, noting that the success of the next reform phase will depend on sustained political commitment, stronger coordination across agencies, and continued investment in public sector capacity.

As Bangladesh moves toward upper-middle-income status, the new PFM Reform Strategy positions public finance not merely as a technical function, but as a cornerstone of economic governance, equity, and public trust, the release added.