Kathmandu-Nepal has claimed it is earning more than Rs 125 billion annually in foreign currency through IT service exports. Officials of NAST IT said Nepal’s IT sector has made rapid progress, speaking at an interaction programme titled “Status, Opportunities and Challenges of the Nepali IT Industry”, organised by the Nepal Economic Journalists Society.

NAST IT President Gaurav Pandey said Nepal exported IT services worth 515 million US dollars, about Rs 67 billion, in 2022. According to recent data, exports have now exceeded 1 billion US dollars, around Rs 133 billion. Pandey said the global artificial intelligence revolution marks a major turning point in human history and warned that Nepal must not miss this opportunity.

He noted that Nepal had missed earlier industrial revolutions and could fall behind other countries if it fails to capitalise on the fourth industrial revolution. Countries such as the United States, China and the United Kingdom are investing a significant share of their gross domestic product in artificial intelligence, creating both opportunities and challenges for Nepal, he said.

Pandey added that Nepal, as a landlocked country, faces high logistics costs while exporting physical goods. However, IT services can be delivered globally through the internet, offering Nepal a major advantage.

NAST IT General Secretary Alisha Shrestha said the number of companies in the sector is growing. The organisation, which began with 32 companies, now represents more than 80 firms. She said companies are focusing on collaboration rather than competition and are committed to positioning Nepal as a technology hub.

Treasurer Abhay Poudel urged the government to recognise IT not only as a service sector but also as an industry. He said policy stability and tax incentives for ten years would help achieve sectoral targets. He expressed confidence that IT exports could rise from over 1 billion US dollars to 22 billion US dollars within the next decade, creating 500,000 jobs.

Poudel highlighted key measures needed from stakeholders. These include long term tax exemptions, priority for local companies, partnerships in large contracts, mandatory IT and AI education from Grade 5, industry focused training for undergraduate students, the establishment of an IT promotion board, and double taxation avoidance agreements with major markets.

Pandey and other NAST IT officials stressed that collaboration, policy stability and skilled human resources are essential to make Nepal competitive in the global digital market.