Support to the Pacific Financial Technical Assistance Centre - Phase V and VI.
Although the nations of the Pacific are diverse with respect to size, income, socio-economic indicators and geographic location, they share significant macroeconomic challenges. Along with the small economic size and remoteness from markets to foster sustainable and inclusive economic growth, they need to cope with volatile income and expending requirements, often associated to natural disasters, and limited access to external borrowing. These factors put a strain on their public finance management and domestic financial systems, and on the government’s capacity to deliver public services.
The Phase V of the programme has contributed to strengthen the resilience of Pacific Island Countries (PICs) economies and public finances to volatility associated with natural disasters and economic shocks; made public finances more sustainable to avoid fiscal crises and promoted inclusive economic growth. Resiliency has proved vital to the region with natural disasters increasing in terms of regularity and ferocity, further amplified by the COVID-19 pandemic. The Phase V has been extended until April 2023 to bridge the gap between the two phases.
Phase VI will include a continuation of previous objectives building on ongoing projects, in addition to emerging priorities particularly around climate change, public investment, debt management, and medium-term macroeconomic models, all within an overarching post-COVID recovery context. Phase VI of the programme will start in May 2023.
PFTAC assistance is provided to sixteen PICs. These comprise 13 members of the IMF, including Federated States of Micronesia (FSM), Fiji, Kiribati, Nauru, Palau, Papua New Guinea (PNG), Republic of the Marshall Islands (RMI), Samoa, Solomon Islands, Timor-Leste, Tonga, Tuvalu and Vanuatu, plus the Cook Islands, Niue and Tokelau.