Nepal has a robust legislative and institutional framework for public financial management, but further reforms are needed to strengthen fiscal and budget outcomes to support green, resilient, and inclusive development, as stated in the third Public Expenditure and Financial Accountability (PEFA) Performance Assessment Reports.
During the launch of the PEFA reports, Honorable Barsha Man Pun, Minister of Finance, emphasized the importance of public financial management, stating, “Public financial management has the power to change people's lives and livelihoods.” Minister Pun expressed Nepal's commitment to establishing a strong and robust public finance system through rigorous reforms and digital governance adoption.
The assessment reports, including the PFM Performance Assessment, Climate Responsive PFM Performance Assessment, and Gender Responsive PFM Performance Assessment, were jointly launched by the Government of Nepal in collaboration with various development partners. Faris Hadad-Zervos, World Bank Country Director for Maldives, Nepal, and Sri Lanka, commended Nepal's commitment to sound financial management practices, stating, “Development partners, including the World Bank, are committed to supporting the next generation of public financial management reforms for Nepal’s green, resilient, and inclusive development.”
The assessment outlined areas for potential PFM reforms, including restoring fiscal credibility, improving public investment efficiency, applying climate and gender considerations to fiscal decision-making, and enhancing fiscal transparency and accountability. Karen Welch, Acting Mission Director of USAID Nepal, highlighted the importance of fiscal discipline for effective service delivery and expressed support from development partners in various sectors to benefit the people of Nepal.
The event, chaired by Finance Secretary Mr. Madhu Kumar Marasini, saw the participation of high-level government officials, accountability institutions, and development partners involved in PFM, climate, and gender agencies. Chief Secretary Dr. Baikuntha Aryal, Revenue Secretary Dr. Ram Prasad Ghimire, and Financial Comptroller General Mr. Hari Prasad Mainali reiterated their commitment to PFM reforms as indicated by the assessment.
The event concluded with a panel discussion on improving capital expenditure to achieve development outcomes, reflecting the collective efforts of the Nepalese government and development partners towards enhancing public financial management for sustainable and inclusive development in the country.