World Bank approves $40 million project to boost Panama’s fiscal health

PANAMA CITY – The World Bank has approved a significant initiative aimed at enhancing Panama’s fiscal sustainability and economic growth. The project, endorsed on Tuesday, involves a $40 million investment designed to fortify the country’s public financial management and administrative procedures.

Key aspects of the project include:

• Consolidation of core public financial management functions.
• Improvement in customs administration and a reduction in transaction costs for the private sector.
• Bolstering of cybersecurity measures and capacity-building across various government institutions.

The initiative, known as the Consolidation of the Panama Public Financial Management Information System, is set to unfold over five years. It promises to modernize Panama’s economic infrastructure by leveraging advanced technological tools for better decision-making and expenditure efficiency.

Michel Kerf and Héctor E. Alexander H., Panama’s Minister of Economy and Finance, highlighted the expected benefits from this investment. They noted that government services would become more accessible and efficient, leading to a more inclusive public service model with robust client orientation. The Minister emphasized the potential for process reengineering within key government bodies, including the Ministry of Economy and Finance, the Office of the Comptroller General of the Republic, and the National Customs Authority.

The project also aims to promote interoperability and enhance coverage and functionality of government operations, which are anticipated to strengthen Panama’s investment climate significantly.

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