KATHMANDU, April 18: The ruling coalition partners, Nepali Congress and CPN-UML have reached an informal agreement on the appointment of the Governor of Nepal Rastra Bank. The position remained vacant after Governor Maha Prasad Adhikari completed his term.
Amid increased pressure from the Nepali Congress, Prime Minister KP Sharma Oli has agreed to appoint a qualified candidate according to the Nepal Rastra Bank Act. A senior NC official confirmed that the Prime Minister Oi agreed to appoint the Governor based on NC's recommendation.
During a meeting with party officials, NC President Sher Bahadur Deuba informed them that Prime Minister Oli had agreed to appoint the Governor as per the NC's recommendations.
The NC official confirmed that they have reached an agreement to promote Dr. Gunakar Bhatta, the Executive Director of Nepal Rastra Bank, to the position of Governor. "Unless any major incident occurs, we have agreed to appoint Bhatt as the Governor," the official said.
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Bhatta, who has maintained a clean image and avoided controversy, is a trusted cadre of Nepal Rastra Bank. The official stated that they are preparing to appoint Bhatta as Governor after completing the necessary procedures.
Dr. Rabindra Pandey, a director at Nepal Rastra Bank with ties to the Nepali Congress, Executive Director Dr. Bhatta, and outgoing Nabil Bank CEO Gyanendra Dhungana competed for the position of Governor. Also in the running were Dr Nilam Dhungana, Deputy Governor of Nepal Rastra Bank with ties to the CPN-UML, former National Planning Commission member Dr Prakash Kumar Shrestha, another Deputy Governor of Nepal Rastra Bank, Bam Bahadur Mishra and Ashok Sherchan, CEO of Prabhu Bank. A group of intermediaries supported the candidacy of former Chief Secretary Rajendra Kishor Chhetri.
Prime Minister Oli expressed his preference for Deputy Governor Nilam Dhungana as the next Governor. After delays in appointing a Governor, the government appointed Nilam as acting Governor. Sources claimed that, anticipating potential discord within the ruling coalition, Prime Minister Oli agreed to appoint a candidate recommended by the NC--a clean, controversy-free candidate from Nepal Rastra Bank.
Finance Minister Bishnu Paudel has formed a committee to appoint the new Governor. The selection committee includes Finance Minister Poudel, former Governor Bijayanath Bhattarai and former Vice Chairman of the National Planning Commission Dr Bishwo Paudel as members.
According to the Nepal Rastra Bank Act, the committee will recommend three names, including one Deputy Governor of Nepal Rastra Bank (NRB), and the government will appoint one of them. With both parties reaching an agreement, the process will now move forward and the Governor's appointment will proceed.
Government Spokesperson Prithvi Subba Gurung confirmed that the government will appoint the governor soon. The position is considered crucial, as the monetary policy set by NRB determines the direction of the country's economy. NRB also serves as the economic advisor to the government.
The Governor must drive economic growth and maintain a balance between fiscal and monetary policies. NRB is responsible for controlling economic challenges, understanding the sentiments of the private sector, and adopting policies based on market needs. To effectively address these issues, the Governor, who oversees such a crucial institution, must be an expert in banking and the financial sector.
The Governor must make informed decisions based on both domestic and international economic conditions while earning the trust of the private sector. This is a vital responsibility. The leadership of NRB must also ensure the success of the government's economic policies. Private sector umbrella organizations stress the need for a Governor with financial sector expertise who can maintain a balanced role, as even a minor mistake influenced by vested interests could cause significant harm to the economy.
