Fiscal Nepal
First Business News Portal in English from Nepal
KATHMANDU: In a significant development within Nepal’s monetary leadership, Dr. Bishwo Paudel has officially resigned from the Governor Recommendation Committee, paving the way for his appointment as the next Governor of Nepal Rastra Bank (NRB). The move comes as internal political consensus increasingly leans in his favor.
Sources close to the decision-making process confirmed that Dr. Paudel’s resignation from the committee is directly linked to the final phase of preparations for his appointment as the central bank governor. His exit from the committee clears a major procedural hurdle in line with Nepal’s legal framework.
The vacancy at the helm of the NRB has attracted sharp criticism in recent weeks as the government delayed appointing a new governor. Earlier, Dr. Gunakar Bhatta, who had resigned from his post as Executive Director at NRB, was a contender for the top job.
However, Prime Minister KP Sharma Oli reportedly disagreed with Dr. Bhatta’s candidacy. Following this stalemate, Nepali Congress President Sher Bahadur Deuba proposed Dr. Paudel’s name last Friday, which subsequently gained traction within the ruling coalition.
Despite stepping down from his committee role, Dr. Bhatta’s resignation has yet to be formally accepted by Acting Governor Dr. Neelam Dhungana Timilsina, leading to further procedural delays and drawing criticism from multiple quarters over the government’s indecisiveness on monetary leadership.
Dr. Paudel, a respected academic and economic policy expert, is seen as a pragmatic technocrat with a reputation for detailed planning and grassroots implementation. He previously served as the chief economic advisor to then-Finance Minister Dr. Prakash Sharan Mahat, where he played a pivotal role in the federal budget formulation process.
In the 2022 general elections, Dr. Paudel also contested for a seat in the House of Representatives from Chitwan district, representing the Nepali Congress. He currently teaches at Kathmandu University and maintains a strong presence in economic policy discourse.
With Dr. Paudel’s resignation, the government is now preparing to restructure the Governor Recommendation Committee in the next cabinet meeting. As per legal provisions, the committee is coordinated by the Finance Minister, currently Bishnu Paudel, and previously consisted of two members: Dr. Paudel and former NRB Governor Maha Prasad Adhikari. Following Dr. Paudel’s departure, a new economist will be appointed to the committee.
After the restructuring, the reformed committee is expected to meet promptly and recommend two final candidates, with Dr. Paudel’s name likely at the top of the list. The Council of Ministers is then expected to finalize his appointment as the next Governor of Nepal Rastra Bank.
Dr. Paudel’s appointment is anticipated to bring a technocratic and reform-oriented approach to monetary policy, as Nepal grapples with pressing economic challenges including inflation control, liquidity management, and financial sector reforms.
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