KATHMANDU: The Government of Nepal has paved the way for Nepali IT companies to expand their operations internationally, marking a significant milestone for the nation’s technology sector. Late Friday night, the Council of Ministers meeting at Baluwatar approved an ordinance that amends several existing acts, granting IT companies the legal framework to establish branch offices abroad and compete in global markets.
The newly approved ordinance allows Nepali IT companies to invest overseas, a long-standing demand from stakeholders in the country’s technology sector. This move is expected to enable Nepal’s IT firms to compete in foreign markets while generating substantial revenue for the nation. For years, the IT industry has pushed for reforms that would facilitate international expansion, and the government’s decision is seen as a crucial step in addressing these demands.
With the ordinance’s implementation, Nepali IT companies will be able to set up branch offices in foreign countries, operate their businesses, and expand their client base internationally. This development is expected to create new opportunities for local IT firms to showcase their expertise, improve their global competitiveness, and attract foreign investment into Nepal’s technology industry.
In addition to the provisions for IT companies, the ordinance introduces several other reforms aimed at improving the country’s business environment. One notable change is the expansion of the scope of Special Economic Zones (SEZs). Previously limited to manufacturing industries, SEZs will now accommodate service-oriented industries, including IT and technology services. This amendment is expected to encourage more businesses to operate within SEZs, benefiting from the incentives and infrastructure provided in these zones.
The ordinance also addresses inefficiencies in government operations. A new provision mandates that no file in government offices can remain pending for more than seven days. If tasks are not completed within this timeframe, the responsible officials will face disciplinary action. Furthermore, the ordinance promotes the use of the Citizen App to streamline service delivery, enhancing efficiency and transparency in public administration.
In a bid to improve the management of social security benefits, the ordinance gradually makes it mandatory to link social security allowances with the national identity card. This measure is expected to simplify the distribution process and ensure greater accountability. Additionally, the ordinance simplifies procedures for company registration and deregistration, making it easier for businesses to enter and exit the market.
These reforms come at a time when the Nepali government is under pressure to create a more favorable environment for businesses and attract foreign investment. By enabling IT companies to expand internationally and introducing measures to enhance efficiency in public administration, the government aims to strengthen Nepal’s position in the global technology industry and foster economic growth.
The ordinance will be implemented once it receives certification from President Ram Chandra Paudel. Stakeholders believe this decision will significantly contribute to the growth and global recognition of Nepal’s IT sector, positioning the country as a competitive player in the international tech market.