Lawmakers call for NRB governor appointment on merit

KATHMANDU, May 8: Lawmakers on Wednesday raised concerns about the delayed appointment of the governor of Nepal Rastra Bank (NRB). They drew the attention of the government to address the ongoing problems in the country’s economic and social sectors.

Speaking at a meeting of the House of Representatives (HoR), the lawmakers said the delayed appointment of the chief of the apex monetary institution has adversely affected the recovery process of the economic activities at a time when the country is reeling under economic slowdown. “The government has been ignoring the major issues of the economy while sticking to the appointment of the NRB governor on political interest,” said Nisha Dangi, a member of parliament from the Rastriya Swatantra Party (RSP).

Dangi criticized the government for delaying the process mainly due to the political power-sharing. “While the NRB governor can be appointed based on meritocracy, the government is wasting its resources that can be allocated to reconstruction of damaged highways which have been putting at risk lives of large numbers of travelers on a daily basis,” said Dangi.

Following the retirement of the then NRB Governor Maha Prasad Adhikari, the country has been without the governor of the central bank for over a month. It has been reported that the appointment process has been delayed as the top leaders of two major ruling political parties failed to reach a consensus over the issue. This has created a void in leadership of the apex body which is liable to regulate the overall monetary affairs of the country.

Prime Minister KP Oli is found to be favoring Deputy Governor Nilam Dhungana, while appointing her acting Governor amid delays in finalizing a permanent appointment. On the other hand, the Nepali Congress leader Sher Bahadur Deuba is on the side of Gunakar Bhatta, who recently resigned as the NRB Executive Director. With his resignation in a limbo, Bhatta has since been a candidate in the race for governor.

Another RSP Lawmaker Chanda Karki said ruling political parties are fighting over who gets to appoint the governor, leaving the central bank without direction. “Their power-sharing struggle has pushed the national economy into uncertainty. The government has recklessly gambled with the country's financial future," said Karki.

Meanwhile, a trade union of the NRB, has expressed its concern over the matter, stating that the regulator of the financial sector is being turned into a political battleground, influenced by intermediaries and vested interests of a few individuals. Issuing a press statement, the Financial Institute Employees Union of the NRB strongly objected to the deliberate delay in such a sensitive matter as the governor's appointment.