Finance Minister Yubaraj Khatiwada has underscored the need for strengthening the country's public financial management system for transparency, accountability and effectiveness in the use of public funds.

Addressing the ‘International Conference on Public-sector Financial Management’ in Kathmandu on Saturday, Minister Khatiwada said the government was committed to improving Nepal’s public financial management system for enhancing its quality and strengthening the public sector accounting through the implementation of international standards.

The conference was organised jointly by the Institute of Chartered Accountants of Nepal (ICAN) and the Public Expenditure and Financial Accountability (PEFA) secretariat in association with the Confederation of Asian and Pacific Accountants (CAPA).

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

Pointing out political instability for ineffective implementation of the medium-term expenditure framework, Khatiwada said the tool is must for making the government and its functionaries accountable and transparent.

The lack of reform and uniformity are major challenges facing the country's public financial management system, Khatiwada noted.

“In order to make the public financial management system more effective, we have to develop and utilise information technology, robust banking system and capable human resource,” he added.

Khatiwada also urged chartered accountants to become accountable and responsible towards their profession. “You must be ethical and financial discipline and transparency should be your priority in your profession,” he said. ICAN President Prakash Jung Thapa emphasised on involving more professionals in the government organisations for strengthening the public sector financial management.

Auditor General Tanka Mani Sharma said effective implementation of the public financial management system would help make 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,” Sharma said, urging professional accountants to undertake their duty with the 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 the federal structure and strengthening audit function in the public sector.

ICAN had earlier hosted directors meeting, governance and audit committee meeting, accounting technician task force meeting and public sector financial management committee meeting of CAPA. The meetings held on Friday discussed on contemporary issues of accounting profession within the Asian Pacific region. CAPA is a regional organisation representing 32 professional accounting bodies operating in 23 jurisdictions in the region.