Kathmandu-Information technology service exports in Nepal exceeded Rs 45 billion in the first six months of the current fiscal year.

Nepal Rastra Bank data shows that IT and telecommunications services generated Rs 12.41 billion, while other technology-based business process services brought in Rs 33.81 billion. Audio and video services, including earnings by Nepali content creators, generated Rs 2.04 billion, and cultural and other services earned Rs 7.5 million.

Nepal recorded a net income of Rs 9.14 billion from information and computer service trade, nearly 10 percent higher than the Rs 8.36 billion net income recorded in the same period last year.

The central bank reported a total net income of Rs 16.18 billion from IT service exports in fiscal year 2024-25, with 77 percent earned in the first six months.

IT service exports generated a net surplus of Rs 25 billion in the first six months of the current fiscal year, with exports at Rs 33 billion and imports at Rs 8 billion. The surplus stood at Rs 21 billion in the previous year.

A 2023 study by the Institute for Integrated Development Studies shows that Nepal exports IT services worth over Rs 67 billion annually. Based on this, the government announced in the fiscal year 2024-25 budget a plan to facilitate foreign investment, targeting IT service exports worth Rs 3 trillion over the next 10 years.

The government later amended laws to allow Nepali IT companies to open branches abroad and invest in foreign companies. After the amendment, Nepal Rastra Bank issued directives setting limits on foreign exchange facilities.

Companies that earned foreign currency through IT service exports in at least the last three fiscal years are eligible for foreign exchange facilities for overseas investment under the directive.

Companies can get exchange facilities of up to 50 percent of their average foreign currency earnings from service exports or USD 1 million, whichever is lower. The central bank revised the directive last Poush, allowing unlimited exchange facilities of up to USD 20,000.