Kathmandu: IT professionals in Nepal are generating more than Rs 125 billion annually through service exports, stakeholders said during an interaction programme held on February 11.
Speaking at the programme themed “Nepal’s IT Industry: Status, Opportunities and Challenges,” organized by the Society of Economic Journalists-Nepal (SEJON), participants unanimously agreed that Nepal has significant potential to leverage its IT industry for economic growth.
Gaurav Raj Pandey, President of NAS-IT, cited a study showing that Nepal exported IT services worth Rs 67 billion in 2022. Presenting on the prospects of digital services and Artificial Intelligence (AI), Pandey said strengthening IT services could substantially boost the national economy.
He added that since 2022, Nepal’s IT sector has been generating more than USD 1 billion annually through service exports. Referring to developed countries’ heavy investment in IT, he urged Nepal not to miss the ongoing IT-driven revolution, as it had missed earlier industrial revolutions. He also stressed the need for an investment-friendly environment to attract both domestic and foreign investors.
Similarly, Alisha Shrestha, General Secretary of NAS-IT, noted that both IT companies and skilled professionals have been steadily increasing in recent years. She informed that 80 companies are currently affiliated with NAS-IT (Nepal Association for Software and IT Services Companies), a non-profit organization that promotes innovation and entrepreneurship to empower Nepal’s software and IT industry.
NAS-IT Treasurer Abhay Paudel said the IT sector has now established itself as a service-based industry in Nepal and called for greater attention to its development and promotion.
Setting an ambitious target of increasing IT service export earnings from the current USD 1 billion to USD 30 billion and creating 500,000 jobs within the next decade, Paudel emphasized the need for strong policy support from the government.
He proposed significant tax incentives, including reducing income tax to below five percent for at least 10 years, to encourage IT professionals to fully harness their potential and increase foreign currency inflow. He cited countries such as Vietnam and the Philippines as examples of achieving remarkable growth in the IT sector through similar tax benefits.
Paudel also suggested prioritizing Nepali IT companies in government software procurement projects worth up to Rs 100 million. For large foreign contracts, he recommended that at least 30 to 40 percent of the work be carried out in partnership with Nepali companies to facilitate technology transfer and skill development.
Furthermore, he emphasized incorporating IT and AI education into the school curriculum from Grade 5. Noting that many university graduates still require industry-specific training, he called for bridging the gap between academia and industry.
He also proposed establishing a dedicated IT Promotion Board, similar to the Tourism Board, to address sectoral challenges and promote Nepal’s IT industry globally.
Paudel argued that if the government signs double taxation avoidance agreements with major international markets such as the United States, the United Kingdom, and Australia, Nepal could attract more foreign investment in the IT sector.
(RSS)
