Central Bank Governor Vacancy Poised for Resolution? Recommendation Committee and Cabinet Session Scheduled Today

After weeks of deadlock, the stalled process of appointing a new Governor of Nepal Rastra Bank (NRB) has finally gained renewed momentum. Finance Minister Bishnu Prasad Paudel, who also serves as the coordinator of the Governor Recommendation Committee, has officially convened a meeting of the committee for 4 PM today. This decision follows a high-level meeting between Prime Minister KP Sharma Oli and Nepali Congress President Sher Bahadur Deuba earlier this morning at the Prime Minister’s official residence in Baluwatar.

According to the Finance Minister’s Secretariat, this meeting is expected to mark a decisive step toward resolving the leadership vacuum at the central bank. The Prime Minister has also scheduled a Cabinet meeting later this evening, raising hopes that the appointment of a new governor could be finalized as early as today.

The position has remained vacant since Chaitra 24, 2082, following the conclusion of former Governor Maha Prasad Adhikari’s term. By legal mandate, a new governor should have been appointed at least one month before the incumbent’s departure; however, political disputes and legal complexities have extended the vacancy well beyond the stipulated timeframe.

The three-member recommendation committee—comprising Finance Minister Paudel, economist Dr. Bishwo Paudel, and former Governor Maha Prasad Adhikari—has encountered multiple obstacles, including resignations, legal challenges, and internal disagreements within the ruling coalition. The candidacy of Dr. Gunakar Bhatta, who resigned as Executive Director of the NRB to become eligible for the role, was particularly contentious due to Acting Governor Dr. Neelam Dhungana’s refusal to accept his resignation. This refusal effectively blocked Dr. Bhatta’s eligibility and heightened political tensions.

Further complicating the situation, the Supreme Court issued an interim order suspending a government amendment that removed the upper age limit for the governor’s position. The amendment was widely perceived as tailored to favor specific individuals. The court’s order reinstated the previous age cap, thereby disqualifying certain senior candidates.

In addition to Dr. Bhatta, other names proposed by the Nepali Congress include Dr. Bishwo Paudel, Dr. Ang Raj Timilsina, and Dr. Samir Khatiwada. However, Dr. Bishwo Paudel also faces a Supreme Court petition challenging his eligibility.

The political stalemate, legal ambiguities, and public scrutiny have substantially delayed the appointment at a time when strong leadership at the central bank is critically needed. With today’s meetings signaling a possible breakthrough, expectations are high that the government will finally fulfill its constitutional and institutional responsibility by appointing a qualified and independent Governor.

The ongoing delay in appointing a new governor raises serious concerns about the government’s commitment to institutional integrity and governance. It has been over a month since the central bank’s top position became vacant, yet substantive progress had remained elusive until now. This extended uncertainty—driven chiefly by political discord—comes as the country prepares to present its annual budget and faces intensified international scrutiny after being placed on the FATF grey list. The absence of leadership at such a crucial financial institution not only undermines market confidence but also reflects a troubling lack of urgency and prioritization on the part of the government.