The government is struggling with the budget, the bad loans of most of the banks have exceeded the limit, the country is on the FATF's 'grey list', but at the same time, the two ruling parties have made a sensitive position like the governor of Rashtra Bank a subject of political manipulation, the recommendation committee has also become a hostage of the distrust of the two leaders.
On May 15, the government is bringing the budget for the financial year 2082/83. The role of Nepal Rastra Bank and the Governor is important in providing advice regarding the stability of the financial sector and the formulation and implementation of monetary policy. Nepal is on FATF's "grey list". The bad loans of most of the banks have exceeded the prescribed limits, at the same time the two ruling parties have made a sensitive position like the governor of Rashtra Bank a subject of political manipulation.
There is a legal provision that a new governor must be appointed one month before the end of the term. But since the government has not been able to appoint a new governor for a month after the post of governor has become vacant, there has been increased concern and interest everywhere. The appointment of the governor is being delayed because Prime Minister KP Sharma Oli and the alliance's companion Congress President Sher Bahadur Deuba could not be convinced of mutual agreement. The recommendation committee led by Deputy Prime Minister and Finance Minister Bishnu Paudel has also become a hostage due to the distrust of the top two leaders.
After Mahaprasad Adhikari's tenure ended on March 24, Rashtra Bank is under the leadership of Kamu Governor Neelam Dhungana Timsina. Prior to that, Vijayanath Bhattarai, who is also a former governor, has resigned after the meeting of the recommendation committee formed on Chait 11 did not hold for a month. The committee has met only once since the outgoing governor officer was appointed to the vacant post. However, instead of having a decisive discussion, the committee is waiting for the decision of the top leader.
Last Saturday, Sunday and Monday, Prime Minister Oli and Congress President Deuba discussed the governor and next year's budget in Baluwatar. Finance Minister Paudel, Foreign Affairs Minister Arju Rana and Home Minister Ramesh Ukhar were also present at the meeting on Saturday. Congress president Deuba had inquired about the appointment of the governor with Prime Minister Oli. In response, the Prime Minister asked if the Congress was not unanimous, the source said, "The Home Minister said no, we are unanimous." After that, Prime Minister Oli said that the governor will be appointed from the next meeting of the Council of Ministers.'
According to a Baluwatar source, the Prime Minister is trying to be more clear based on the message that there is a difference of opinion between Congress President Deuba and Foreign Minister Rana.
"Foreign Minister Rana was also present in Saturday's meeting, the Prime Minister has made it clear that he has no stand if the Congress is unanimous," said an official in Baluwatar.
However, even on Monday, the decisive meeting of the committee has not been held. Instead, the two top leaders discussed this issue on Monday. Prime Minister's expert advisor Agni Kharel and Home Minister Akbar also participated in the meeting. In the meeting, the appointment of the governor was again discussed along with the budget for the next financial year. Sources say that Prime Minister Oli has indicated that the governor will be appointed by Thursday. Former Finance Minister Barshman Pun said that the appointment of the governor was delayed when the leaders obstructed the work to be done by the committee consisting of experts. It has been more than a month since Rashtra Bank was run by Kamu. This is a sensitive time for the economy," he said. "It is not good for an institution that has to make monetary policy and regulate financial sectors to be without leadership." The governor's help is taken when making the
budget. The direction and consultation of the Ministry of Finance is taken while formulating the monetary policy. He said that it is irresponsible of the government to keep the governor vacant at such a sensitive time. Former Finance Minister Surendra Pandey said that despite knowing that the role of the governor is important in the stability of the financial sector and the formulation and implementation of the monetary policy, the government ignored it and delayed the appointment. "The budget is about to come, soon the monetary policy will come. In such a situation, there will be a problem if there is no governor,' he said.
Experts in the financial sector are dissatisfied with the government delaying the appointment of the governor under various pretexts. They say that this situation has happened because the government is not sensitive. According to a former governor, the government considers the Rashtra Bank as an institution under the Ministry of Finance and the post of governor to be too ordinary. The role of the governor is very important in the economy, this position should not be left empty even for a day. But the government has flouted the law, said the former governor.
Among the regulatory agencies in Nepal, the National Bank is relatively strong. As the government is delaying the appointment of the governor, experts say that there is a suspicion that there will be some kind of manipulation here. The most important role of the governor is to remove Nepal from the "grey-list" of the international organization "FATF" which monitors money laundering and terrorist activities. But they say that it is unfortunate for the country to engage in a tug-of-war over the governorship of the government.
