The Ministry of Communications and Information Technology has revealed that the government is preparing to launch Digital Nepal Framework 2.0, aimed at expanding Nepal's capacity for information technology (IT) exports.
Through the budget for the current fiscal year (FY) 2024/25, the government has set a target to export IT-related services worth Rs 30 billion over the next 10 years, while also creating 500,000 direct jobs and 1 million indirect jobs. To achieve this goal and propel Nepal into the digital era, the government has revised the previous framework to strategically harness digital technology.
The framework focuses on enhancing Nepal's IT export capacity and unlocking new opportunities in the digital industry. It also emphasizes the development of a skilled workforce in the IT sector, improving Nepal's global competitiveness in the digital market, and fostering overall growth in the digital economy.
On Monday, the World Bank reported that while Nepal's digital economy is still small compared to its South Asian neighbors, it holds significant potential for job creation and economic growth.
According to the WB report entitled Unlocking Nepal’s Growth Potential: Nepal Country Economic Memorandum 2025, exports of digitally provided services grew at an annual rate of 12.3% from 2005 to 2023, positioning Nepal favorably within South Asia. Digital Nepal Framework 2.0 proposes using Artificial Intelligence (AI) as a transformative tool in sectors such as healthcare, financial services, agriculture, tourism, education, and disaster management.
To ensure successful implementation, the framework prioritizes key areas such as expanding high-quality internet services, including 5G, establishing data hosting and cloud infrastructure, strengthening digital identity systems, and enhancing digital literacy.
Cybersecurity, data security, AI readiness, e-signatures, and authentication are identified as critical pillars for building a secure, transparent, and accountable digital ecosystem. One of the central objectives of Digital Nepal Framework 2.0 is to develop the country’s digital economy by fostering a skilled IT workforce and improving the digital proficiency of government employees.
The first version of the framework, introduced to enhance Nepal's global digital competitiveness and support economic transformation, has now been revised to focus on infrastructure development, modern technologies, workforce training policies, and effective implementation mechanisms.
The draft includes several initiatives under digital infrastructure, such as developing and upgrading digital public infrastructure, ensuring universal high-speed internet access, providing secure and scalable data hosting solutions, creating a transparent and accountable digital environment, and fostering a competitive, investment-friendly, and consumer-centric digital market.
The World Bank report highlights that Nepal remains dependent on India and China for international bandwidth, leading to higher costs due to taxes, fees, and currency fluctuations. In 2023 alone, Nepali companies spent Rs 4.7 billion on importing bandwidth.
The new draft also includes provisions for improving digital service delivery under the Access to Digital Services section. It outlines plans to enhance digital skills and literacy through IT professional training, improving the digital competency of government employees, strengthening educational institutions, and raising digital awareness among the general public.
To support Nepal’s transition to a digital economy, the framework proposes policies that foster innovation and entrepreneurship in the digital sector, accelerate the digital economy's growth, implement e-waste management practices, and support small and medium enterprises (SMEs) by improving market access and providing digital tools.
The first version of the Digital Nepal Framework was launched by Prime Minister KP Sharma Oli in November 2019. While it introduced 80 digital projects across eight key sectors with a target completion by FY 2023/24, its implementation faced challenges.
The latest draft acknowledges several obstacles, including a lack of ownership, poor inter-agency coordination, limited resources, financial constraints, and insufficient technical capacity, which have hindered progress.
