Somalia adopts new finance policy By ABDULKADIR KHALIF in Mogadishu | Friday, May 3  2013 at  15:52

Somalia's Prime Minister Abdi Farah Shirdon Said (left) at a past government function. FILE | NATION MEDIA GROUP 

The Somali government has endorsed a new Public Finance Management Policy (PFMP).

Prime Minister Abdi Farah Shirdon said after a Cabinet meeting on Thursday: “We have endorsed the reform plan as the guiding principle of public financial management and re-establishing Somali institutions.”

He added: “The plan envisages an impressive reform agenda in public finance management.”

It was later explained that PFMP aimed at improving the government's financial sector delivery capability and providing timely, transparent and accurate financial information across the public sector.

A declaration on Thursday stated that the Somali government was committed to ensuring the full implementation of the plan over the next four years.

Indeed Mr Shirdon expressed a sense of urgency in undertaking the financial reforms.

Further explanations of the government policy on PFMP pointed out that the step taken was in support of service delivery to improve transparency and openness in the national budget.

The Cabinet underlined that it aims to enhance fiscal discipline through internal and external control.

“It (PFMP) also enhances efficiency and effectiveness of public expenditure and puts the focus of public expenditure on government priority areas,” stated the government document.

According to Finance and Planning minster Mohamud Hassan Suleiman, the implementation of the reform plan will cost $26 million, over the four years term of his government.

This development comes at a time Somalia was attempting to re-establish links with other governments and financial partners.

In January, the US recognised the new Somali government led by President Hassan Sheikh Mohamoud during his visit to Washington.

Last month, the International Monetary Fund and the World Bank announced closer collaboration with the post-transitional Somali government.

The policy has also come out just days before a major conference on Somalia to be held in London, on May 7.

More than 50 countries and international agencies are expected to discuss the stabilisation and development of Somalia.

The London conference will be co-chaired by British Prime Minister David Cameron and President Mohamoud.