Coalition Breakup Rumors Subside with Governor Appointment

After prolonged political wrangling and uncertainty, the government has appointed Dr. Bishwa Poudel as the Governor of Nepal Rastra Bank. This decision, made during Tuesday’s Cabinet meeting, has not only eased tensions within the ruling coalition but also quelled fears of a government collapse.

Disagreements between the CPN (UML) and Nepali Congress over the governor’s appointment had fueled speculation of a crisis in the coalition, potentially threatening the government’s stability. The governor’s post, vacant since March 24, remained unfilled due to a lack of consensus, and the postponement of a scheduled meeting between Prime Minister KP Sharma Oli and Congress President Sher Bahadur Deuba on May 5, along with the cancellation of a Cabinet meeting, further amplified these rumors.

On Tuesday, a roughly one-hour meeting between Oli and Deuba at Baluwatar resulted in an agreement on the governor’s appointment. The discussion included Deputy Prime Minister and Finance Minister Bishnu Poudel and Home Minister Ramesh Lekhak, who emphasized the need for an immediate decision to counter the negative public perception caused by the delay.

Although the Congress initially proposed other candidates, it ultimately agreed on Dr. Bishwa Poudel. Sources indicate that Prime Minister Oli had explored alternative options but accepted Poudel due to Congress’s firm stance and the need to maintain coalition stability.

With this appointment, the vacancy in the governor’s post has been filled, and the negative rumors surrounding the coalition and government have significantly weakened.