PM Balen Meets Governor Paudel, Focus on Banking Reform, Remittance, and Financial Discipline

Kathmandu — Newly appointed Prime Minister Balendra Shah (Balen) held his first courtesy meeting with Nepal Rastra Bank Governor Dr. Bishwo Paudel, with discussions centered on key economic and financial sector issues. The meeting, which lasted for about an hour, covered topics including the state of the banking sector, remittance inflows, and the stability of the external sector.During the meeting, Prime Minister Shah instructed the Governor to carry out his responsibilities without fear or external influence. He emphasized the need for strict action against those involved in loan misuse and money laundering practices, signaling the government’s intent to strengthen financial discipline and accountability.The government has recently intensified investigations into financial crimes through agencies such as the Department of Money Laundering Investigation and the Central Investigation Bureau. In this context, the role of Nepal Rastra Bank as a key regulatory body has become increasingly important, and discussions also focused on improving coordination among regulatory and investigative institutions.Prime Minister Shah expressed concern over challenges seen in the banking sector, fluctuations in remittance inflows, and instability in the external sector, along with their broader impact on the economy. He also sought updates on operational difficulties faced by the central bank and assured that the government would provide necessary facilitation to address such issues.Governor Paudel, on his part, raised the issue of two vacant Deputy Governor positions at Nepal Rastra Bank. However, sources indicate that the Prime Minister did not show immediate interest in addressing the matter. As per existing provisions, Deputy Governors are appointed from among the 18 Executive Directors within the central bank.The discussion also extended to long-term economic development initiatives, including large infrastructure projects such as the Fast Track, railway expansion, and regional connectivity. The Governor shared perspectives on potential projects like a Kathmandu–Delhi railway, including cost management strategies and ways to accelerate implementation.Prime Minister Shah highlighted the need for visible, result-oriented actions in the short term and urged the central bank to move swiftly on reforms aimed at strengthening the banking sector and supporting economic growth. Governor Paudel expressed confidence that progress in major infrastructure projects would positively impact both fiscal management and overall economic development.Earlier, Finance Minister Dr. Swarnim Wagle had also held discussions with the Governor on matters related to budget preparation, revenue mobilization, and financial management. The recent meeting is expected to set the tone for closer coordination between the new government and the central bank in ensuring financial stability and policy effectiveness.