ISLAMABAD: The government has outlined an ambitious mandate for the newly established Macro-Fiscal Policy Unit (MFPU), assigning it a central role in strengthening revenue forecasting, fiscal sustainability analysis, budget strategy formulation and fiscal risk management as part of broader public financial management reforms.
Established within the Ministry of Finance, the MFPU is intended to enhance the ministry’s institutional capacity for developing the Medium-Term Fiscal Framework (MTFF) and improving fiscal risk management to support evidence-based fiscal policymaking.
The Division intends to hire the services of dynamic and high caliber professional for MFPU on a contract basis initially for a period of three (03) years.
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According to the Finance Division, the unit will be responsible for preparing and regularly updating revenue projections for the federal and provincial governments as well as the non-financial public sector. It will also evaluate budget execution, recommend corrective revenue measures in coordination with tax authorities, and undertake fiscal sustainability assessments to strengthen public finances.
The MFPU’s responsibilities also include forecasting non-tax revenues, assessing expenditure execution—including cash management, commitments and arrears—in collaboration with the Budget Wing, and preparing the government’s Budget Strategy Paper.
The unit will further provide technical guidance on macro-fiscal issues and undertake additional assignments assigned by the Ministry of Finance.
The ministry said the unit will play a key role in developing and maintaining macroeconomic databases, conducting economic analysis and forecasting, assessing fiscal risks, and monitoring monetary and external sector developments. It will also build professional linkages with think tanks, universities and other research institutions to support informed policy formulation.
The initiative forms part of the government’s public financial management reform agenda aimed at strengthening fiscal planning, improving budget credibility and enhancing the country’s capacity to manage fiscal risks amid persistent economic challenges.
The Finance Division said the institutional framework for the MFPU has been developed under the government’s public financial management reform programme and will operate in accordance with the revised MP Scales framework and the Establishment Division’s MP Scales Policy, 2020.
Copyright Business Recorder, 2026
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