KATHMANDU, Dec 31: With rapid internet expansion and technological advancements, Nepal’s IT sector is entering a new growth phase—one that is opening doors for companies to invest abroad and generate billions in revenue. Recognizing this potential, Nepal Rastra Bank (NRB) has eased regulations to facilitate both foreign investment into Nepal and Nepali companies’ investments overseas.
The government has set an ambitious target of Rs 3 trillion in IT exports over the next decade—equivalent to Rs 300 billion annually—prompting key policy reforms to attract domestic and foreign investment. NRB Governor Dr. Biswo Nath Poudel said Nepali IT exporter companies can now invest up to USD 1 million (around Rs 140 million) abroad. “Even companies that have not yet exported are allowed to invest up to USD 20,000,” he added, praising the sector’s recent hard work.
Foreign investors are also set to benefit from simpler processes. The NRB has removed the requirement for prior approval to repatriate profits, a move expected to boost investor confidence and attract more foreign funds. Over the past two years, the number of IT companies in Nepal has jumped nearly tenfold—from around 40 to nearly 400—reflecting the sector’s rapid expansion.
Revised interest rate corridor system introduced
To further support investment, NRB amended the Foreign Investment and Foreign Loan Management Regulation, 2078 BS, removing the need for prior approval to transfer foreign currency abroad due to share ownership changes. Now, authorized commercial banks can directly provide foreign exchange services for repatriating investment and earnings, making the sector more attractive for both domestic and foreign investors.
“Now, we urge young entrepreneurs to confidently launch new products,” Governor Poudel said. “Look at the global market. Spread your wings.” He added that the banking sector will also back these initiatives.
With digitalization sweeping across sectors, Nepalese IT services are no longer just for domestic use—they are increasingly being exported worldwide. According to the Nepal Chamber of Industries IT Council, Nepal now exports around USD 1 billion worth of IT services annually.
IT exports are carried out both by companies and individual professionals. A study by the Integrated Development Studies Center (IIDS) found that approximately Rs 68 billion in IT services were formally exported in a year, with informal exports pushing the total even higher. These services include software and hardware development, graphic design, animation, telemedicine, online marketing, and other IT solutions.
The global demand for IT has surged, especially after the pandemic, which boosted online work. Many Nepali IT professionals now provide remote services to companies in the US, India, China, Australia, Canada, and Europe—earning substantial income while staying in Nepal.
Minister of Finance Rameshore Khanal highlighted that IT-skilled youth in Nepal can now earn millions without leaving the country. Speaking at a discussion organized by the Former Planner Forum Nepal, he said, “Many young people in Kathmandu are working as remote IT professionals for foreign companies. Some may underestimate them, but they are generating real income while staying in Nepal.”
The government’s 2024/25 budget aims to achieve Rs 3 trillion in IT exports over ten years and create employment for 1.5 million people, implying an annual target of Rs 300 billion. Plans also include implementing the Digital Nepal Framework and establishing IT parks in Kathmandu and Butwal, equipped with high-speed internet, reliable electricity, security, and other infrastructure.
Nepal is steadily building a digital economy, fostering innovation, creating jobs, and promoting digital governance. Over 100 companies now formally export IT services, employing more than 80,000 people across the country, signaling a bright future for the nation’s IT sector.
