Public Debt Management Office(PDMO) is the main government agency responsible for public debt management. The PDMO is under the Ministry of Finance and is headed by gazetted first class officer of Government of Nepal. To make more effective and systematic public debt management function, the Government of Nepal has decided to establish a separate office on Ashad 20,2075 (June 20, 2018). It has been formally inaugurated on Poush 11, 2075 (December 26,2018) and started to perform the preliminary functions.
Front office functions, middle office functions and back office functions are the main responsibilities of the PDMO. As per prevailing act and regulations, currently Nepal Rastra Bank (NRB) is responsible for the front office function (managing internal borrowing for the government), Financial Comptroller General Office (FCGO) for back office function (debt servicing) and Ministry of Finance for middle and back office function as well as over all public debt management.
Now, separate Public Debt Management Act is under the drafting phase, It will provide legal backup to the PDMO to perform given responsibilities. As well as functional clarity will be enhance between the concern entities for the public debt management functions.