Pakistan’s public sector is undergoing a comprehensive restructuring.  Budgetary reform is an essential aspect of this wider reform agenda. 

While sound macroeconomic and fiscal policies in recent years have yielded positive results the current budgeting system in Pakistan makes it difficult to align budgetary resources with strategic priorities. The aim of the MTBF is to make the budget system better.  Poverty and social service delivery in Pakistan are only partly due to inadequate resources; inefficiency in the allocation and use of available funds is also a concern.  The existing budgetary system is annual, incremental and largely focused on inputs (resources) rather than outputs (services) and outcomes (impact).  The Poverty Reduction Strategy Paper issued by the Government recognizes the importance of budget reform for improving governance.

The MTBF will help channel resources to the Government’s key strategic priorities.  It will make more transparent the link between resources allocated through the federal budget and the results to be achieved in terms of service delivery (outputs) and impact (outcomes)

The MTBF will facilitate the scrutiny of the existing allocation of resources through the federal budget in terms of economy, efficiency and effectiveness - by the relevant line ministry itself, by the Ministry of Finance, by the Planning Commission, by Cabinet, by the National Assembly, and by other stakeholders including the general public. 

In this way, the MTBF aims to support and strengthen the delivery of public services by the Federal Government.