As Nepal continues to face a high trade deficit in goods exports, professional consultancy services have emerged as a new source of foreign exchange earnings.
Exports of consultancy services in information technology (IT), engineering, management, environmental assessment, accounting and other sectors have recorded notable growth, contributing to rising foreign currency inflows.
According to Nepal Rastra Bank (NRB) data, Nepal earned foreign exchange worth Rs 21.9 billion from professional and management consultancy service exports in the first six months of Fiscal Year 2025/26. The amount represents a 24.50 percent increase compared to the same period of the previous fiscal year.
During the review period, Nepal imported consultancy services worth Rs 2.82 billion, resulting in net earnings of Rs 19.08 billion from the sector. The net income is 18.58 percent higher than in the corresponding period last year.
Stakeholders said exports of IT services, infrastructure design, environmental studies, project management and training services have been steadily increasing.
Ram Sharan Kharel, executive director of the Research Department at Nepal Rastra Bank, said policy facilitation by the government has helped boost foreign exchange earnings from IT, engineering, accounting and other consultancy services.
“The government has been promoting service exports through legal and policy reforms,” Kharel said. “This has had a positive impact on foreign exchange earnings.”
With income from service exports rising, NRB began collecting separate data on service exports from last fiscal year.
Improvement in service exports at a time when goods exports remain weak has opened up new possibilities for the economy.
In the first six months of the current fiscal year, Nepal exported goods worth Rs 142 billion while importing goods worth Rs 939 billion. The country’s total merchandise trade deficit stood at Rs 797 billion during the period, according to NRB data.
Citing the potential to retain skilled human resources in the country and create alternatives to foreign employment, the Institute of Chartered Accountants of Nepal (ICAN) has launched the Global Accounting Initiative in Nepal (GAIN) project.
ICAN President Nil Bahadur Saru Magar said Nepal has significant potential to earn foreign currency by exporting engineering, IT, management, accounting and auditing services. He said the institute has started institutional initiatives to promote such exports.
“Until now, Nepal has been known as a country that exports its youth workforce and earns remittances,” Magar said. “We see strong potential to provide employment to skilled professionals within the country and earn dollars by exporting consultancy services to foreign companies.”
Magar added that Nepal has been producing a growing number of skilled professionals in IT, engineering, accounting and management. The relatively lower labor costs in Nepal have also encouraged foreign companies to outsource services from the country.
To promote accounting and auditing service exports, ICAN has developed a dedicated website named ‘Outsourcing Hub’ and started promotional campaigns through digital platforms.
To encourage service exports, the government announced in the budget for Fiscal Year 2024/25 a target of exporting IT services worth Rs 30 trillion over the next 10 years. It also pledged to facilitate outward investment. Subsequently, the government amended relevant laws to allow Nepali companies to open branches abroad and invest in shares of foreign companies.
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