KATHMANDU, May 21: After months of political meddling, the government has appointed Biswo Nath Poudel as the 18th Governor of Nepal Rastra Bank (NRB). Backed by the Nepali Congress, Poudel’s appointment comes at a critical time, as he shoulders a host of challenges facing the country’s financial sector.
With the future of the coalition government at stake, the Cabinet meeting held on Tuesday evening appointed Poudel to the coveted post after the ruling parties reached an understanding to continue their cooperation.
The government handpicked Poudel from among three candidates — NRB Acting Governor Neelam Dhungana Timilsina and former Government Secretary Dinesh Bhattarai being the other two — recommended by a selection committee led by Deputy Prime Minister and Finance Minister Bishnu Prasad Paudel.
The decision followed a Supreme Court ruling that paved the way for Poudel’s appointment. A single bench of Justice Sapana Pradhan Malla upheld the dismissal of a writ petition filed against him.
Dr Biswo Nath Poudel appointed as NRB governor
Poudel holds a PhD in Agricultural and Resource Economics from the University of California, USA. In 2021, he was appointed Vice-Chairman of the National Planning Commission at the proposal of the Nepali Congress.
He previously worked as a consultant to the World Bank from 2012 to 2015 and served as a consulting economist at the International Labour Organization for two years from 2018. In recent years, Poudel has been associated with Kathmandu University.
Economists and analysts believe that despite an impressive portfolio, Poudel will face a tough task addressing the country’s deepening economic challenges. They argue that the new governor’s policy direction will significantly impact economic stability, industrial growth, and overall economic expansion.
Dipendra Bahadur Chhetri, former NRB Governor, said the new governor is expected to play a crucial role in crafting policies to tackle key financial sector issues and help remove Nepal from the Financial Action Task Force (FATF)’s grey list.
Deepak Shrestha, Vice-President of the Nepal Chamber of Commerce, noted that the new governor must introduce policies to address persistent problems in both the banking sector and private businesses. “As the private sector is also suffering due to the economic slowdown, it cannot be overlooked by the central bank,” Shrestha said, stressing the need for predictable and stable monetary policy.
In his farewell remarks, outgoing NRB Governor Maha Prasad Adhikari stated that his successor would face several key challenges — including ensuring financial sector stability, promoting lending to productive sectors, and addressing shadow banking. Expanding access to financial services and encouraging digital transactions via QR codes were also cited as urgent priorities.
‘My priority will be to remove Nepal from the grey list’
The newly appointed Governor Poudel told Republica that his first priority would be to initiate steps to remove Nepal from the FATF grey list.
“While strengthening supervision of the financial sector, efforts will also be made to address emerging problems by conducting a detailed review of banks and financial institutions,” said Poudel.
He added that he aims to boost confidence in the capital market. “It is the responsibility of the central bank to raise the morale of the country’s capital market,” said Poudel, adding that he will fully commit to safeguarding the public’s money.
