Nepal’s IT sector hails ordinance passage as boost for digital future

KATHMANDU: The Nepal Association for Software and IT Services Companies (NAS-IT) has lauded the Nepal Government and Federal Parliament for passing a landmark ordinance aimed at strengthening the country’s Information and Communications Technology (ICT) sector. Announced on Friday, the move is being hailed as a pivotal step toward cementing Nepal’s place in the global technology market and fostering a robust digital economy.

The ordinance, cleared by both houses of Parliament, introduces regulatory reforms designed to streamline operations for IT and digital service companies. NAS-IT, the leading voice of Nepal’s software and IT industry, said the changes will ease business processes, attract foreign investment, and position Nepal as an emerging hub for technological innovation. “This is a significant milestone for Nepal’s digital future,” the organization stated, crediting the collaborative efforts of government officials, policymakers, industry leaders, and advocacy groups.

The new rules are expected to cut bureaucratic red tape, a longstanding hurdle for Nepal’s tech firms, while offering incentives to draw global players to the market. Industry insiders see it as a response to years of lobbying for policies that match the sector’s growth potential—Nepal’s IT exports, though modest at $500 million annually, have been climbing steadily, per recent estimates. The ordinance could turbocharge that trajectory, NAS-IT argued, by aligning local regulations with international standards.

In a statement, NAS-IT extended its gratitude to members of Parliament and the upper house, as well as the professionals and advocates who rallied behind the reform. “This achievement reflects a shared vision for a competitive, tech-driven Nepal,” the group said. It singled out no specific lawmakers but praised the collective resolve that pushed the ordinance through—a rare bipartisan win in Nepal’s often fractious political landscape.

The ordinance’s passage comes at a critical juncture. Nepal’s digital economy, while nascent, is gaining traction, with internet penetration hitting 90% and a young, tech-savvy workforce eager to compete globally. Yet, outdated policies have hampered progress, leaving firms grappling with high compliance costs and limited access to capital. The new framework promises to dismantle those barriers, though details on its provisions—such as tax breaks or licensing changes—remain sparse pending official release.

NAS-IT pledged to work closely with stakeholders to ensure the ordinance’s smooth rollout. “This is just the beginning,” the group declared, vowing to push for further reforms to bolster Nepal’s tech ecosystem. As a non-profit championing the sector, NAS-IT aims to drive innovation, expand market reach, and create global opportunities—goals it sees as newly attainable with this regulatory boost.

Founded to grow Nepal’s software and IT industry, NAS-IT has long advocated for policy shifts to match the country’s ambitions. Its efforts—spanning workforce training, industry collaboration, and lobbying—have positioned it as a key player in the quest to make Nepal a tech contender. The ordinance aligns with those aims, offering a foundation for what the group calls “a new era of possibilities.”

Reaction on X was swift and positive. “Finally, Nepal’s IT sector gets a lifeline,” one user posted. Another wrote, “NAS-IT and the government deserve credit—this could be big for jobs and innovation.” Analysts echo that optimism, noting the ordinance could lure investors eyeing South Asia’s untapped markets.

Still, challenges loom. Implementation will test the government’s resolve—past reforms have faltered amid bureaucratic inertia. Nepal’s infrastructure, from unreliable power to patchy broadband in rural areas, also lags behind competitors like India or Bangladesh. NAS-IT acknowledged these hurdles but framed the ordinance as a catalyst for broader change.

For now, the tech community is celebrating a hard-won victory. With NAS-IT at the helm, Nepal’s IT sector stands on the cusp of a transformation—if the promise of this ordinance holds.