Nepal PAC issues directives to tighten foreign aid oversight

Nepal’s House of Representatives’ Public Accounts Committee (PAC) has issued a nine-point directive to tighten the management, accounting, and monitoring of foreign aid. The committee aims to ensure external assistance aligns with national priorities and is properly recorded to produce measurable results.

A primary concern is the increasing volume of aid channeled outside the government’s budget and treasury systems. The PAC has directed the government to integrate all forms of assistance—including cash, in-kind support, and technical assistance—into the national budget system and subject them to mandatory auditing. The committee also requested complete details from development partners regarding “off-treasury” aid and called for clear procedures to bring such assistance into the national system.

To improve transparency, the PAC directed the government to maintain an integrated record of aid commitments, receipts, expenditures, and reimbursements through a single system. Additionally, all foreign assistance must be registered in the Development Finance Information Management System (DFIMS) before project approval. The committee also noted that foreign aid should not be included in the national budget until receipt is confirmed, aiming to prevent pressure on government resources caused by reimbursement delays.