KATHMANDU, April 10: Former finance ministers representing CPN-UML in previous governments have condemned the government’s decision to suspend Nepal Rastra Bank (NRB) Governor Maha Prasad Adhikari.
In a joint statement issued on Sunday, former ministers Surendra Pandey, Bishnu Poudel and Yubaraj Khatiwada said the coalition government had suspended NRB Governor Adhikari to cover up the inability and incompetence of Finance Minister Janardan Sharma and the government. current. “At a time when the country is heading towards an economic crisis, the government should have instead coordinated with all stakeholders to safeguard the economy,” the joint statement read.
The trio claimed that the action taken against the NRB governor was premeditated and according to a plan. According to them, Prime Minister Sher Bahadur Deuba also made a wrong decision on the advice of Finance Minister Sharma.
On Friday, the government suspended NRB Governor Adhikari on charges of leaking sensitive policy information from the finance ministry. Minister Sharma also accused NRB officials of negotiating to release millions of US dollars from Achham’s Prithvi Bahadur Shah account.
On the other hand, former finance ministers accused Finance Minister Sharma of taking the decision after he was unable to cater to the vested interests of “certain businessmen who are in close relation with government bodies”. .
Meanwhile, the private sector has also expressed its displeasure over the suspension of NRB Governor Adhikari from his post. “Instead of establishing proper coordination between the NRB and the MoF to resolve the ongoing crisis, the recent decision will likely lead to greater complexity in the working mechanism of the state,” a press release read. published by the Morang Chamber of Industries (CIM).
At present, Nepal is reeling from persistent liquidity shortages, deteriorating balance of payments and depleted foreign exchange reserves. As bank interest rates soared, imports of raw materials and capital goods were hit hard due to mounting pressure from falling foreign exchange reserves, according to the CIM.