PM Balen Denies Rift with Finance Minister Amid Private Sector Meetings

The Office of the Prime Minister and the Ministry of Finance have rejected speculation of differences between Prime Minister Balen Shah and Finance Minister Dr. Swarnim Wagle following the Finance Minister's absence from a series of high-level meetings with private sector representatives. Deepa Dahal, Press and Research Advisor to the Prime Minister, said the Prime Minister has been meeting business leaders and sectoral stakeholders to better understand the country's economic challenges and that ministers are generally not included in such consultations. She stressed that discussions on economic issues, including those related to energy, industry, and the private sector, have been carried out in coordination with the Finance Minister, leaving no basis for claims of disagreement. The Finance Ministry echoed the same position, stating that the Finance Minister had already held separate consultations with the same private sector groups, making his presence at the Prime Minister's meetings unnecessary. Since the second week of Asar, Prime Minister Shah has met more than 10 umbrella organizations, including business, construction, energy, tourism, capital market, insurance, and garment sector representatives, assuring them that their concerns would be addressed. However, the Finance Minister's absence from these meetings has raised questions among business leaders, some of whom expressed concern that policy commitments made by the Prime Minister may face implementation challenges without the ministry responsible for executing them. The debate intensified after Prime Minister Shah announced through Facebook the government's decision to remove the 3 percent parity fee imposed on the education and health sectors—an announcement traditionally expected from the Ministry of Finance. While the move sparked speculation that the Prime Minister had bypassed the Finance Minister, both the Prime Minister's Office and the Finance Ministry insisted that the decision was reached after mutual consultation. According to government sources, the proposal will be formally endorsed by the Cabinet and published in the Nepal Gazette before taking legal effect. Despite official assurances of coordination, the Prime Minister's increasing direct involvement in economic policy and regulatory matters has fueled public debate over the distribution of authority within the government and the long-term implications for policy implementation.