Nepal - Public Financial Management Multi-donor Trust Fund Progress Report : July - December 2025

Overview & Synopsis

Strengthening Public Financial Management (PFM) is a critical aspect of the Government of Nepal’s (GoN) strategy to improve governance, optimize the utilization of public resources, and promote inclusive development. There has been increasing interest from civil society organizations, media, the public, and development partners (DPs) in strengthening PFM to enhance the use of public resources and achieve value for money. To this end, the GoN has been working closely with DPs to design and implement PFM reform initiatives at the country and sector levels. In response to the GoN’s and DPs’ call for a coordinated approach to address PFM challenges; the Nepal PFM Multi-Donor Trust Fund (MDTF) was established to harmonize DPs’ support for PFM reforms. The overall Program Development Objective (PDO) of the MDTF is to strengthen the performance, transparency, and accountability in PFM in Nepal. The key results expected with the MDTF support are: (i) improved resource management as a result of strengthened PFM systems and processes; (ii) increased awareness and oversight of government PFM processes by diverse constituencies; and (iii) better knowledge of value for money challenges and PFM governance gaps, contributing to improved design of PFM interventions at the country and sector level.