Nepal's economy is in a bad shape. Virtually, all economic indicators tell us that much. The capital expenditure is religiously low every year. We create too few jobs and export muscular youths who repatriate money back home so the remittance can keep the economy afloat.The agriculture produce falls far short of the domestic demand which is met through imports, the country's most reliable revenue source over the past several decades and certainly over the course of decades to come. The deposit collection is so high that the banking system cannot absorb the liquid cash and the central bank comes to their rescue and mops up billions of rupees almost every fortnight. It is high time things started moving in the right direction. No wonder, all eyes are set on a key appointment – the 18th Governor of Nepal Rastra Bank – to be made by Nepal's strongest-ever government composed of the largest and the second largest parties. The incoming governor will succeed Governor Maha Prasad Adhikary, retiring on April 6, upon completion of his full tenure marked by a lackluster performance – to say the least.
In principle, Nepal has to name a new central bank chief executive – the country's 18th – latest by April 6. The government has mandated a three-member task force headed by Finance Minister Bishnu Prasad Paudel to recommend three likely contenders for the position of governor. The task force comprises a former central bank governor Bijaya Nath Bhattarai and renowned economist Biswo Paudel whose nuanced knowledge of everything economy – both domestic and global – is well-respected across the board. The Prime Minister, currently in Thailand heading Nepal's first official delegation to that country and, later this week, to attend a high profile sub-regional summit kicking off on Friday (April 4), is expected to return home the following day (Saturday, April 5). By the look of things, the task force appears competent to find a well-deserving candidate to head the central bank, who also serves as the government's economic adviser. The task force – the former NRB governor and the competent economist, in particular – should be cautious about the fact that the government recently removed the longstanding age bar for the position of governor, expressly to favor a certain individual, keeping in mind a certain individual in the race alongside a handful of others. One hopes that is not the case. The change has sent every wrong message. Any failure on part of the task force to recommend names of competent and most deserving candidates with high integrity will cost the country already bearing the brunt of economic slowdown a lot more. Nepal does not deserve that. Also, the recommendation panel members – former governor Bhattarai and economist Poudel – have a lot at stake. Therefore, the two must ensure that they refuse to be party to any trade-off – whatsoever. The public perception, sadly, is that high profile and executive positions are for sale in Nepal; with the highest bidder often getting the job.
NRB employees raises questions over competence of acting govern...
The economy must bounce back and the Nepalis deserve a governor with a strong spine so s/he can resist any undue pressure from the government. All we want and demand is simple: A competent expert with solid knowledge of the country's economy and high integrity as the NRB Governor. We understand that no one person can lift the national economy out of its current mess alone, but s/he can certainly lift the spirit and send that positive message and inspire potential borrowers to take loans and invest in the productive sector. There is no dearth of cash in banks. We now need someone with nuance to link people with the liquid cash piling up in banks by advising the government to create a pro-investment environment.
