The technical assistance programme will help make the management of public resources and delivery of services more effective, a joint statement announced.

World Bank regional director Saroj Kuma Jha said: “PFM is an essential part of any development process.

“Sound PFM supports aggregate control, prioritisation, accountability and efficiency in the management of public resources and delivery of services, which are critical to the achievement of public policy objectives, as well as to restoring the trust and social contract between Iraqi citizens and the country’s institutions.”

The statement added that an improved PFM system will also ensure more appropriate and effective use of international aid.

The programme will address the key vulnerabilities of Iraq’s PFM and support the objectives for the government’s PFM reform, which is currently under implementation.

It comprises of three ‘pillars’ and nine ‘sub-components’, which each corresponds to a specific government reform objective, the statement added.

Each of these objectives have been assigned to a lead government department, which will act as a World Bank-EU ‘counterpart’. The statement did not add any specific details of the components.