Finance Minister Khatiwada calls for strengthening PFSM

KATHMANDU, Minister for Finance Yubaraj Khatiwada has called for strengthening the public financial management system of the country for transparency, accountability and effectiveness in the use of public funds.  

Addressing the ‘International Conference on Public-sector Financial Management’ held in capital on Saturday, Finance Minister Khatiwada said that that the government was committed for the improvement of Nepal’s public financial management system to enhance its quality and strengthening public sector accounting through the implementation of international standards. The conference was organized jointly by the Institute of Chartered Accountants of Nepal (ICAN) and Public Expenditure and Financial Accountability (PEFA) secretariat in association with Confederation of Asian and Pacific Accountants (CAPA).

Over 250 accounting professionals including 60 international delegates participated in the conference that was held with a theme of ‘Public Sector Financial Management:
Enhanced Accountability and Transparency’ and discuss the ways to strengthening transparency, accountability and audit function in public sector.

Stating that the effective implementation of the medium term expenditure framework was affected by political instability, he said that the tool was must for making the government and its functions accountable and transparent. He pointed out the lack of reform and uniformity as key challenges in the public financial management system of the country. “In order to make the public financial management system more effective, we have to develop and utilize information technology, robust banking system and capable human resource,” he added. During his speech, Finance Minister Khatiwada also urged chartered accountants to become accountable and responsible toward their profession. “You must be ethical and financial discipline and transparency should be your priority in your profession,” said.

Prakash Jung Thapa, the ICAN President, emphasized for more involvement of professionals in government organizations for strengthening public sector financial management.

Similarly, speaking at the conference, Auditor General of Nepal, Tanka Mani Sharma said that the effective implementation of public financial management system will help in making the federalism a success in Nepal. “The current challenge is to make the federal system successful, and the public financial management system should be effective for the successful implementation of federalism,” he added. He also urged professional accountants to undertake their duty with highest professional standards.

During the technical sessions of the conference, experts and stakeholders presented thematic papers on issues like integrated financial management system, public financial management governance and practices and country experiences, PSFM challenges and way forward in federal structure and strengthening audit function in public sector.

Meanwhile, the ICAN has hosted directors meeting, governance and audit committee meeting, accounting technician task force meeting and public sector financial management committee meeting of CAPA. The meeting held on Friday discussed on contemporary issues of accounting profession within the Asian Pacific region. CAPA is a regional organization representing thirty-two professional accounting bodies operating in twenty-three jurisdictions in Asian and Pacific region. Similarly, 52nd Board Meeting of the South Asian Federation of Accountants (SAFA), an apex body of SAARC, was also held on Friday, according to the ICAN’s statement.