The Government of Khyber Pakhtunkhwa (KP) has introduced a transformative Fixed Asset Management (FAM) Policy in 2024, targeting improvements in how public assets—particularly within the Health and Elementary & Secondary Education departments—are governed, tracked, and maintained. This policy reflects a growing recognition that effective asset stewardship is critical to efficient public service delivery.
The policy is structured around three core pillars. First, it establishes a Central Asset Management Unit (CAMU) under the Planning & Development Department, with corresponding sectoral committees at both provincial and district levels. Second, it mandates the development of a centralized digital Asset Management Information System (AMIS) that will integrate physical assets with financial data in real time. Third, it promotes professional development and alignment with global standards, such as the International Public Sector Accounting Standards (IPSAS) and ISO 55000.
Key operational measures include standardized asset classification, lifecycle budgeting, and protocols for acquisition, maintenance, disposal, and transfer. The policy also embeds risk management and legal compliance throughout its implementation roadmap.
Among its notable strengths is the integration of governance, digital tools, and capacity building into a unified framework. AMIS is envisioned as a single source of truth for asset data, enabling transparency and informed decision-making. CAMU, with its strategic oversight, enhances accountability, while decentralized responsibilities granted to district-level education and health officers may lead to more responsive local asset management.
By anchoring the policy in global benchmarks like IPSAS and ISO standards, KP positions itself to improve audit readiness and align with international norms. The policy’s sustainability orientation—through environmentally responsible disposal practices and recycling—adds a layer of ethical asset governance.
However, several implementation challenges remain. While rollout timelines for AMIS are defined, funding clarity is lacking. Without earmarked budgets, digital infrastructure investments and training efforts may falter. Furthermore, AMIS requires stable connectivity and cybersecurity safeguards—both of which are unevenly distributed across rural KP.
A significant concern is the policy’s reliance on frontline compliance without embedded incentives or detailed accountability mechanisms for key actors such as school heads or hospital managers. Additionally, the multi-tiered governance model—comprising CAMU, sectoral committees, and district coordinators—risks becoming administratively heavy unless coordination protocols are carefully defined.
Despite these constraints, the policy opens several strategic opportunities. AMIS could catalyze predictive maintenance and data-informed budgeting, particularly when linked with service delivery outcomes such as patient care or student enrollment. Public-private partnerships are encouraged to support both infrastructure upgrades and AMIS development. Local community involvement in asset monitoring presents another path to improving trust and transparency.
The health and education sectors are envisioned as initial test cases for the broader application of the policy. If successful, the FAM model could be adapted to sectors such as transport, irrigation, and agriculture—laying the foundation for a government-wide transformation in asset management.
For the policy to yield long-term benefits, the KP government should consider dedicated budget lines for AMIS and training, pursue donor and private sector co-financing, and pilot the system in selected districts before scaling up. Institutional performance audits, coupled with annual public reporting, would further strengthen accountability. Strengthening capacity at the district level through targeted workshops can reinforce adoption and ensure policy continuity beyond the initial rollout.
The KP FAM Policy 2024 offers a credible framework to institutionalize asset stewardship across the public sector. Realizing its potential will require deliberate investments, adaptive implementation, and cross-sector collaboration.
This Article was published on www.publicfinance.pk.
