PM Oli’s non-cooperation puts Paudel in difficult situation

Himal Press 20 Aug 2024
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PM Oli’s non-cooperation puts Paudel in difficult situation

KATHMANDU: Deputy Prime Minister and Minister for Finance Bishnu Paudel, who is serving his eighth ministerial stint, is facing difficulty in his current term due to a lack of cooperation from his party.

Paudel, whose acceptance and influence within the CPN-UML was on the rise, is now facing non-cooperation from Prime Minister KP Oli himself, say leaders close to him. They added that Paudel is in a difficult position as he is not getting cooperation from the Prime Minister.

Oli, who is also the chairperson of UML, seemed reluctant to include Paudel in the cabinet this time. Leaders close to Paudel told Himal Press that Oli did not intend to induct Paudel into his cabinet this time because Secretary Shankar Pokharel was instrumental in forming the new coalition. Oli had to include Paudel in the cabinet due to pressure from former President Bidya Devi Bhandari who has been gradually increasing her involvement in the party.

Paudel and Pokharel are considered political rivals in UML and both are vying to be the most influential leader in UML after Oli.

Senior officials at the finance ministry say the influence of Bishnu Rimal, the political advisor to PM Oli, and Dr Yubaraj Khatiwada, the development advisor to the PM, can be seen in most decisions of the ministry. This has put Minister Paudel in a difficult position.

According to highly-placed UML sources, Oli had planned to appoint Khatiwada as an adviser and give the responsibility of the finance ministry to a new person, effectively running the ministry through Khatiwada. There were also discussions about making Rishikesh Pokharel, the current chairperson of the Public Accounts Committee, the finance minister. However, Oli had to give Paudel the responsibility due to pressure from former President Bhandari.

Since the formation of the Oli-led government, the Prime Minister’s secretariat has had a dominant say in political appointments. Sources say the Vice-Chairperson of the National Planning Commission and the CEO of Nepal Infrastructure Bank were appointed by bypassing Paudel. The finance minister’s opinion usually carries weight in such appointments.

After Dr Khatiwada’s entry as the Prime Minister’s development advisor, the Monetary Policy for the Fiscal Year 2024/25, which Finance Minister Paudel had already approved for release, was delayed by a week. “The Prime Minister is addressing the parliament in the process of taking a vote of confidence in two days, why are you in a hurry to issue the monetary policy?” Oli’s secretariat reportedly told the central bank governor.

The conflict between Finance Minister Paudel and General Secretary Pokharel has surfaced at various times. The dispute between the two leaders escalated recently when Chetnath Acharya from Pokharel’s faction was made the Chief Minister of Lumbini, instead of parliamentary party leader Leela Giri who is close to Paudel. There was a heated exchange between Pokharel and Paudel in front of the Prime Minister a few days ago when Pokharel accused Paudel of non-cooperation by withholding equalization grants, a member of Paudel’s secretariat said.

“The Prime Minister’s secretariat and leaders of the establishment faction are trying to prevent Paudel from expanding his influence in the party. Paudel is in an uncomfortable situation in his fifth stint in the finance ministry as the Prime Minister’s secretariat has started to bypass him by working directly with the secretary,” a leader close to Paudel said.

Published On: 20 Aug 2024

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