KATHMANDU: After weeks of wrangling between coalition partners, the government of Nepal has appointed Dr Biswo Nath Poudel as the 18th Governor of Nepal Rastra Bank (NRB)—a move that underscores the deeply political nature of economic governance in Kathmandu.
A seasoned economist with academic laurels from University of California, Berkeley (received his PhD in 2010) and a career straddling public institutions and private boardrooms, Dr Poudel’s appointment is not without controversy.
He becomes the first person to head the central bank after losing a direct parliamentary election, marking a new precedent in Nepal’s political economy.
In the 2022 general election, Poudel ran from Chitwan-1 as a Nepali Congress candidate under the five party ruling coalition banner at that time. He came third behind the Rastriya Swatantra Party’s Hari Dhakal, who secured 34,189 votes. Veteran UML politician and former finance minister Surendra Pandey finished second with 26,608, while Poudel trailed with 24,990 votes.
Yet, electoral defeat did little to dim his political capital. With backing from Nepali Congress President Sher Bahadur Deuba and Foreign Minister Dr Arzu Rana Deuba—to whom he is reportedly close—Poudel emerged as the government’s preferred choice. He beat out other contenders including Deputy Governor Neelam Dhungana and Executive Director Gunakar Bhatta, Bhatta resigned from NRB after being led to believe he had secured the nomination.
Adding another layer of intrigue, Poudel was initially part of the Governor Selection Committee itself. After internal lobbying within the Nepali Congress and pressure from party leaders in the Far West region to favour Bhatta, Deuba first floated Bhatta’s name to Prime Minister KP Sharma Oli. But amid resistance from Oli, and after Poudel’s name gained momentum, he resigned from the selection committee—only to be formally recommended days later.
Critics accuse the government of politicizing the central bank. Oli, Prime Minister and Chairman of the UML, reportedly objected to Poudel’s candidacy, pointing to his recent participation in party politics. In response, the Nepali Congress claimed that Poudel had renounced his party affiliation after losing the election, and is now a nonpartisan technocrat.
Despite the political noise, Dr Poudel’s resume is formidable. He previously served as Vice Chairman of the National Planning Commission, Senior Economic Advisor to the Ministry of Finance, and Chairperson of the Board of Governors at ICIMOD. He also advised the ILO, led regional forums under the Colombo Plan and UNESCAP, and has published research in various l international economic journals. At the time of his appointment, he was a visiting associate professor at Kathmandu University School of Management.
His expertise lies in natural resource economics, labour markets, and economic history—topics that align with Nepal’s long-term development needs. But leading the central bank requires more than technical acumen. With inflationary pressures, rising debt, and political interference in monetary policy, the governor must walk a tightrope between independence and loyalty.
The question is whether Dr Poudel can rise above the politics that brought him to Baluwatar, or whether his appointment will reinforce the perception that Nepal’s financial institutions are not just economic bodies—but political battlegrounds in disguise.
