KATHMANDU, May 19: A routine cabinet meeting meant to finalize the appointment of the new Nepal Rastra Bank (NRB) Governor was quietly shelved on Monday, but the silence spoke volumes. Behind the delay lies a growing rift between the ruling coalition partners — the Nepali Congress (NC) and the CPN-UML — that could even threaten the very foundation of their alliance.
Prime Minister KP Sharma Oli, who had earlier assured NC leaders that their nominee would be appointed to the central bank's top post, is now accused of dragging his feet. After the resignation of Dr Gunakar Bhatt was not endorsed by Acting NRB Governor Nilam Dhungana Timilsina, the NC had pitched Dr. Bishwo Paudel — a former Vice Chairman of the National Planning Commission — as its candidate. Confident in the prime minister’s pledge, NC leaders had expected Monday's cabinet meeting to endorse Dr. Paudel without much resistance.
Instead, the scheduled cabinet meeting was abruptly postponed at the eleventh hour. The official explanation: the recommendation committee, headed by Deputy Prime Minister and Finance Minister Bishnu Poudel, had not convened, owing to his preoccupation with budget preparations.
“There was only one item on the agenda — the appointment of the governor,” a senior minister told Republica. “Without the recommendation from the committee, the cabinet couldn’t move forward. It’s likely the meeting will only take place once the committee has met, perhaps after the budget is finalized.”
Yet for NC leaders, the explanation doesn't add up. A source close to NC President Sher Bahadur Deuba revealed growing frustration within the party ranks. “This delay isn’t procedural — it’s political,” the source said. “The understanding was already in place. Now, the prime minister is backtracking.”
Deuba, in a symbolic snub, skipped a meeting at Baluwatar on Monday evening, where he was invited to discuss the governor appointment with PM Oli. “He was invited for talks, but Deuba didn’t show up,” a source at the Prime Minister’s Secretariat confirmed. Sources close to Deuba say the NC chief is weighing his next move, possibly even reconsidering his commitment to the coalition.
The post of NRB Governor has remained vacant since early April, when former governor Maha Prasad Adhikari retired at the end of his term. The absence of a governor has already raised concerns, with opposition parties accusing the government of negligence and incompetence, especially at a time when economic stability is paramount.
Senior NC leaders are increasingly viewing PM Oli’s indecision as a breach of political understanding, one that could test the fate of the current coalition itself. As the budget deadline nears and economic pressures mount, the delay in appointing the central bank’s governor, according to party insiders, now transcends bureaucracy — it touches the nerve of political trust.