Banking News – The government has appointed economist Dr. Bishwanath Paudel as the 18th Governor of Nepal Rastra Bank. The decision came from Tuesday’s cabinet meeting held at Baluwatar. Dr. Paudel was among the candidates recommended earlier the same day by the Governor Recommendation Committee, along with acting Governor Dr. Neelam Dhungana and former secretary Dinesh Bhattarai. An earlier agreement between Nepali Congress President Sher Bahadur Deuba and Prime Minister/CPN-UML Chairman KP Sharma Oli had paved the way for Paudel’s appointment.
An Expert Steps In
Dr. Paudel is a seasoned economist and a well-regarded expert in the economic field. However, after losing in the last general election, he faded from the public eye. Since the election, he has been increasingly seen as a Nepali Congress figure and is considered a trusted confidant of party leader Sher Bahadur Deuba.
During Deuba’s previous tenure as Prime Minister, Paudel was appointed Vice Chairman of the National Planning Commission on July 27, 2021. He is also reported to have a close personal relationship with Deuba’s wife, Arzu Rana Deuba. In Lalitpur, Arzu Rana operates an expensive private school, Ullens School.
From 2019 to 2021, Dr. Paudel served on the Board of Trustees at Ullens School. He is known for his in-depth economic research and publications in various journals and media. Paudel is regarded as a knowledgeable figure in Nepal’s economic history.
He holds a PhD in Economics from the prestigious University of California, Berkeley. Prior to that, he completed his master’s degree in economics in the U.S. and earned a bachelor’s degree in engineering from a university in Shanghai, China. Paudel is a scholar of the economies, societies, and histories of both China and the U.S.
His writings on economics and history have been published in several newspapers and magazines. Between 2012 and 2013, he served as a director at Sanima Bank. He later worked as an economist for the World Bank, the International Labour Organization’s Nepal office, and the Millennium Challenge Corporation’s Nepal office. He is both an economist and a historian.
After resigning as Vice Chairman of the National Planning Commission, Dr. Paudel ran as the Nepali Congress candidate for the House of Representatives from Chitwan Constituency No. 3 in 2022. He lost to Hari Dhakal of the Rastriya Swatantra Party. Though his appointment as governor was challenged in court on grounds of political affiliation, the Supreme Court dismissed the case.
A Complicated Race to the Governorship
The process of appointing the new governor saw five candidates resign within a month. As the position became vacant, potential contenders began stepping down from their posts. The first to resign was Executive Director of the Central Bank, Dr. Prakash Kumar Shrestha, on March 1.
Though Shrestha, also a member of the National Planning Commission, resigned in early March, his resignation only surfaced in public discussions in the third week of April. Then, CEO of Nabil Bank, Gyanendra Dhungana, resigned on March 23, effective from March 31, just before the governor’s position officially became vacant.
Next, Dr. Gunakar Bhatta submitted his resignation as Executive Director on April 17, though acting Governor Dr. Dhungana refused to accept it, complicating matters further.
Soon after, Governor Recommendation Committee member Vijayanath Bhattarai resigned from the committee on April 21, citing delays in convening meetings. When Dr. Bhatta’s resignation remained unapproved, the Nepali Congress proposed Dr. Paudel’s name for governor and lobbied strongly with the Prime Minister. The party even threatened to quit the government if its demand was not met. Ultimately, this pressure led to Dr. Paudel’s appointment as the new Governor.
