Page 42 - CMA Journal (May-Jun 2026)

A r t ic les S ec t ion

But technology alone can't achieve transparency. For
Building Human Capital for Digital Financial Governance: Enhancing sustained bene ts, skilled workers, inspirational
leadership and an innovative and accountable
Transparency and Accountability in Pakistan's Public Sector corporate ethos is essential. Furthermore, whether or
not digital governance reforms provide the desired
results depends critically on corporate culture and
leadership. Technology may be used as an enabler of
good governance rather than just an administrative
Digital governance is now a key enabler of public to modernize their tool in an atmosphere created by leaders who support
nance management systems for accountability and nancial and innovation, encourage ongoing learning, and
transparency at the global level. The preparedness of administrative management encourage responsibility. Thus, improving human
the workforce for automation and digital infrastructure systems. capital preparedness is both a governance
is what will make or break the success of these Project to Improve requirement and a challenge for workforce
initiatives, as governments continue to invest in them. Financial Reporting and development. To facilitate transparency, accountability
According to the United Nations E-Government Survey Auditing (PIFRA), and e ciency in the long term in the public nance
2024, more than 190 countries now utilize digital Integrated Financial management system of Pakistan, it is important to employee engagement and continuous learning to
build a digitally capable public sector that is capable of
support the digital transition. It is certainly an
platforms to support public administration and service Management Information adapting to the evolving technology demands. organizational reform project that requires recognition Pakistan's Way Forward However, there are more factors than technology.
delivery, highlighting the growing importance of System e orts, digital by public institutions for the use of technology. Organizational culture, leadership preparedness and
digital governance worldwide. tax administration, and Dr. Syed Faraz Ali Public Financial Management and Pakistan should do the following to improve digital human capital preparedness are key areas that need to
nancial governance:
This article examines the potential bene ts of human e-procurement systems Manager, ORIC Digital Governance The following priorities in HRM for Digital Governance • Develop a national strategy for digital competence be prioritized.
will be discussed:
capital development for enhancing digital nancial are just a few of the Institute of Business Digital governance is de ned as the application of ICTs in public services. Multiple global indicators show that countries that
Management (IoBM)
governance in Pakistan and provides relevant reforms Pakistan has to enhance the performance of public governance and 1. Digital Skills Development invest in strengthening the capabilities of their workers
recommendations for the policy makers and leaders in implemented. service provision. In the public sector, digital systems Employees must also be knowledgeable in digital • Increase government personnel' access to and invest in the digital infrastructure, achieve superior
the public sector. The modi cations are a part of a larger initiative to can be used for budget, accounting, procurement, literacy, cybersecurity awareness, data management certi cation and training options. outcomes in terms of public trust, transparency, and
improve public nancial management and guarantee audit, and reporting. Paper-based systems are prone to and technology-informed decision making. The World • Increase the links between governmental bodies,
Introduction that governance procedures are in line with global ine ciencies, delays and lack of transparency. Digital Economic Forum identi es analytical thinking, professional associations and universities. service delivery. Investment in people and technology
Accountability and transparency continue to be norms for transparency and accountability. Digital systems generate an audit trail, better information technological literacy, AI and big data capabilities • Promote leadership development programs that can enhance the strength of Pakistani institutions,
build public trust and better governances.
essential components of good governance. The public platforms and automation can help to enhance the accessibility, and less opportunities for manipulation. among the fastest-growing skill requirements globally. focus on digital transformation.
expects public institutions to be responsible in the use quality of nancial reporting by public institutions, These also provide decision makers with the data to 2. Readiness for Leadership References
of their resources, e ective in their services, and enable real-time reporting, reduce the risk of fraud and track nances in real time and make better use of Communicating the goal of digital transformation, • Encourage employees to appreciate education, • Organization for Economic Co-operation and Development.
providing timely information. As a result, governments corruption, and promote evidence-based resources. handling opposition, and fostering an accountable teamwork, and responsibility in the workplace. (2023). Digital government index 2023: Results and key ndings.
all over the world have embraced digital technologies decision-making. Such initiatives are particularly vital According to the World Bank GovTech Maturity Index culture are all crucial tasks for leaders. Research by the In Pakistan, millions of people are working in public OECD Publishing.
to enhance oversight procedures and update nancial to e ective resource management and public trust in 2024, governments that successfully integrate digital Organization for Economic Co-operation and sector organizations, whether federal, provincial or • Pakistan Revenue Automation Limited. (2024). Project to Improve
management systems. government institutions, which are critical for nancial management systems report improved Development indicates that leadership commitment is local, to work in the digital governance environment, Financial Reporting and Auditing (PIFRA): Overview and
long-term and sustainable economic and social budget monitoring, enhanced transparency, and and therefore, preparedness of workforce is a achievements. Government of Pakistan.
Information and communication technologies (ICTs) development, especially in emerging markets. among the strongest predictors of successful signi cant determinant of the e ectiveness of digital • United Nations. (2024). United Nations e-government survey
have undergone an unprecedented rate of greater citizen trust through real-time access to public-sector digital transformation initiatives governance. 2024: Accelerating digital transformation for sustainable
development in the last few decades, a ecting the way The PIFRA e ort helps the federal government, government nancial information. 3. Management of Change development. United Nations Department of Economic and
governments communicate with the public, manage provincial government and district government to Addressing the Human Capital Investments in technology and human resources are Social A airs.
public budgets and deliver public services. perform the functions of providing computerized Challenge Employees can adapt to new procedures and systems required for Digital Governance as observed in • World Bank. (2024). GovTech maturity index 2024: Advancing
using the support of structured procedures for change
Public-sector businesses have been able to increase accounting and nancial reporting to the number of management. Studies suggest that a signi cant countries such as Estonia, Singapore and the UK. digital transformation in the public sector. World Bank.
operational e ciency, decrease bureaucratic delays, billions of rupees in public expenditure on an annual Organizations undervalue the human aspect of proportion of digital transformation projects Estonia is one of the best digital governments in the • World Economic Forum. (2025). Future of jobs report 2025. World
fortify monitoring systems, and boost public trust basis. change, which presents challenges for many digital encounter implementation di culties due to world, with nearly all public services available online, Economic Forum.
through increased information accessibility and Digital nancial governance isn't solely about transformation initiatives. Workers might not be organizational resistance rather than technological yet the country must not neglect to incorporate the • International Monetary Fund. (2023). Fiscal transparency
digital readiness of its citizens and workforce into its
openness thanks to digital governance initiatives. technology, though. Quali ed human resources to adequately trained, be resistant to new systems, or lack shortcomings. technology infrastructure. They highlight their handbook. International Monetary Fund.
Citizens' awareness and connectivity are driving operate, understand and apply digital information are digital capabilities. At many institutions, workforce organizations' experiences, where worker preparation • Government of Pakistan. (2024). Pakistan economic survey
expectations for accountable, responsive and important factors a ecting the e ectiveness of development is not as emphasized as technology 4. Management of Performance has frequently been shown to be crucial to the success 2023–24. Ministry of Finance, Government of Pakistan.
data-driven governance for governments, which will systems such as PIFRA and IFMIS. Public servants need acquisition. The World Economic Forum's Future of Rewarding innovation and continuous improvement, of transformation initiatives.
require them to modernize their nancial and to be technologically literate, analytical and ethical in Jobs Report 2025 estimates that nearly 39% of workers' and aligning performance with digital governance
administrative management systems. As citizens the ever-digital working environment. Human capital core skills will require updating or transformation by objectives are essential for businesses. Performance Conclusion
2030 due to technological advancement and
become more aware and connected, their development has been a major focus of investment for digitalization. management systems linked to digital governance Pakistan's public nance management systems have
expectations are rising for accountable and responsive governments to bene t from digital transformation objectives can improve employee engagement and the potential to improve e ciency, accountability, and
and data-driven governance, compelling governments projects. As a management perspective, it is essential to have accountability, particularly in public-sector transparency with the help of digital governance.
competency development, leadership commitment, organizations undergoing reform.

40 ICMA’s Chartered Management Accountant, May-Jun 2026