KATHMANDU, April 19: The appointment of a new governor at Nepal Rastra Bank (NRB) has taken an unexpected turn, with a supplementary writ petition filed at the Supreme Court (SC) challenging the move to appoint Dr. Gunakar Bhatta as the central bank’s Governor.
The petition was filed after the ruling parties agreed to nominate Dr. Bhatta, who resigned from his position as Executive Director at NRB earlier on Friday, for the top post. Previously, a writ petition had already been filed to the apex court, contesting the government’s March 11 amendment to the criteria for appointing the NRB Governor. Acting on that petition, the Supreme Court issued an interim order halting the implementation of the amended criteria, which sought to pave the way for candidates above 65 years of age for this crucial appointment.
Following reports that the ruling parties had reached a consensus to appoint Dr. Bhatta, petitioners Pratibha Upreti and Bishal Thapa filed a supplementary petition later on Friday, demanding that the proposed appointment of Dr Bhatta be blocked. The petition claims the appointment process has become a matter of political bargaining, citing rumors that the posts of Inspector General of Police (IGP) and NRB Governor were being divided between the Nepali Congress (NC) and the CPN-UML.
The SC has scheduled a hearing for Sunday to decide whether to extend the interim order, during which the supplementary petition will also be discussed. Earlier on Tuesday, a single bench of Justice Nityananda Pandey had issued a short-term interim order against the amended standards.
Supplementary petition files at SC challenging Gunakar Bhatta’s...
The post of NRB Governor has remained vacant following the completion of Governor Maha Prasad Adhikari completed his term. Amid mounting pressure from the NC, Prime Minister KP Sharma Oli agreed to appoint a candidate in line with the NRB Act. A senior NC leader confirmed that Oli consented to an NC-recommended candidate during his recent meeting with top NC leaders.
During a meeting with party officials on Thursday, NC President Sher Bahadur Deuba informed members that the Prime Minister Oli had agreed to their recommendation. The NC had then decided to propose Dr. Bhatta, known for his clean image and long-standing service at the central bank.
Several candidates were in the fray for the position, including Dr. Rabindra Pandey, an NRB Director with NC ties; outgoing Nabil Bank CEO Gyanendra Dhungana; NRB Deputy Governor Dr. Nilam Dhungana (considered close to CPN-UML); former National Planning Commission member Dr. Prakash Kumar Shrestha; another NRB Deputy Governor, Bam Bahadur Mishra; and Prabhu Bank CEO Ashok Sherchan. A separate group of intermediaries reportedly backed former Chief Secretary Rajendra Kishor Chhetri.
Prime Minister Oli had earlier favored Deputy Governor Nilam Dhungana, appointing her acting Governor amid delays in finalizing a permanent appointment. However, to avoid friction within the coalition partner, Prime Minister Oli ultimately agreed to an NC recommendation for a "clean, controversy-free" candidate from within NRB.
Finance Minister Bishnu Paudel has formed a committee to oversee the appointment, comprising himself, former NRB Governor Bijayanath Bhattarai and former Vice Chairman of the National Planning Commission Dr. Bishwo Paudel. Under the NRB Act, the committee will recommend three candidates, including one NRB Deputy Governor, from whom the government will select the new Governor.
With the ruling parties reaching an informal agreement, the appointment process is expected to move forward unless the SC intervenes. Government Spokesperson Prithvi Subba Gurung confirmed that the appointment will be finalized soon.
The NRB Governor plays a crucial role in steering monetary policy, balancing fiscal and monetary priorities, managing economic challenges, and maintaining the confidence of the private sector—all critical for ensuring sustained economic growth.
