NRB Governor Meets Finance Minister: Economic Policy Coordination, Inflation, Financial Stability
21st May 2025, Kathmandu
Newly appointed Governor of Nepal Rastra Bank (NRB), Dr. Biswo Paudel, met Deputy Prime Minister and Finance Minister Bishnu Prasad Paudel this morning at the Ministry of Finance.
NRB Governor Meets Finance Minister
Courtesy Visit After Appointment
Dr. Paudel reached the Finance Ministry early today. The visit marked his first official interaction with the Finance Minister after taking charge as the central bank’s governor.
Finance Minister Paudel welcomed him warmly. He offered congratulations and best wishes for a productive and impactful term.
Coordination Between Fiscal and Monetary Policies
Finance Minister Paudel stressed the need for strong cooperation between fiscal and monetary policy. He noted that clear coordination helps stabilize the economy.
According to him, policy alignment is vital in addressing inflation, liquidity, and investment issues. The minister said he believes the new governor will take timely and effective actions to resolve challenges in the financial system.
He added that Nepal’s economy needs bold steps to recover. Fiscal prudence, combined with smart monetary tools, can guide the country forward.
Governor’s Response and Commitments
Governor Dr. Paudel thanked the Finance Minister for the kind words. He shared his commitment to working closely with the Ministry of Finance.
He said the central bank plays a key role in executing fiscal policy through monetary mechanisms. The NRB will ensure support for national economic goals.
Dr. Paudel emphasized strengthening the central bank’s supervisory capacity. He stated that effective oversight helps maintain trust in the financial system.
He also pointed to the need for reforms in the banking sector. Modern supervision and clear regulations will ensure a stronger financial base.
Key Priorities Outlined
Dr. Paudel identified financial sector stability as a top priority. He said NRB would continue efforts to ensure liquidity management, control inflation, and maintain foreign reserves.
He also mentioned the importance of digital finance. The central bank plans to support innovations while keeping risks in check.
Another focus area is access to finance. Dr. Paudel said NRB will work to expand banking services across the country. Small businesses, rural communities, and entrepreneurs will be given more financial support.
High-Level Presence at the Meeting
Several high-ranking officials attended the meeting. Minister for Industry, Commerce, and Supplies Damodar Bhandari was present.
Finance Secretary Ghanshyam Upadhyay and Revenue Secretary Dinesh Kumar Ghimire also joined the meeting. They congratulated the new governor and offered best wishes for a successful term.
The gathering was a show of unity between top government agencies and the central bank. It reflected shared responsibility for Nepal’s financial health.
Challenges Ahead for the Central Bank
Dr. Paudel steps in during a crucial period. Nepal’s economy faces inflationary pressure, rising trade deficits, and slow credit growth.
The banking sector is recovering from liquidity stress. Credit flow to the private sector remains low. Non-performing loans are rising in some areas.
Public confidence in banks needs rebuilding. NRB must tighten supervision and ensure banks follow guidelines.
Forex reserves remain under pressure. The central bank has to manage currency outflows carefully while promoting exports and remittances.
Dr. Paudel acknowledged these challenges. He said that immediate steps will be taken to stabilize key financial indicators.
National Interest Comes First
Finance Minister Paudel reminded everyone that national interest is the top priority. Economic policies should serve the people and the country.
He said the government expects strong institutional leadership from NRB. This will help create jobs, attract investment, and reduce poverty.
Minister Paudel also hinted at upcoming reforms in fiscal planning. A coordinated approach with the central bank is essential for implementation.
Governor’s Track Record and Vision
Dr. Biswo Paudel brings academic and professional expertise. He has held key roles in public finance and economic research.
His experience includes working on fiscal planning, budget management, and macroeconomic policies. He is known for his data-driven approach and focus on results.
Dr. Paudel has also been a part of financial sector reforms in previous roles. As governor, he plans to bring clarity, accountability, and digital transformation to NRB operations.
He aims to build an inclusive financial ecosystem where all citizens can access credit and services.
Conclusion
The meeting between Finance Minister Paudel and Governor Dr. Paudel signals a strong start to a critical partnership. With fiscal and monetary leaders on the same page, Nepal hopes for more effective policies and smoother economic recovery.
All eyes will now be on how NRB addresses current challenges and implements its commitments. The government, the private sector, and the people will be watching closely.
Governor Paudel’s actions in the coming months will shape public trust in the central bank and influence Nepal’s financial direction.
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