As part of its policies and programmes for fiscal year 2026/27, the government has unveiled an ambitious vision to develop Nepal into a regional technology hub by promoting IT exports, strengthening digital infrastructure and creating technology-based employment opportunities.
Presenting the policy document before the federal parliament, President Ramchandra Paudel announced that the government led by Balendra Shah plans to introduce a legal framework for “remote work”, allowing Nepali professionals to work for foreign employers while remaining in Nepal.
The government has prioritized sectors such as software development, digital services, cloud computing, cybersecurity, green computing and artificial intelligence-related exports as part of its broader strategy to transform Nepal into a knowledge-based economy.
To support this transition, the policies and programmes propose the establishment of high-capacity data centres, expansion of public digital infrastructure and government incentives for innovation in the IT sector. The government has also announced co-investment in IT research and development initiatives.
Nepal aims to gradually reduce its dependence on labour migration and remittance-based income by promoting digital trade and high-value knowledge-based service exports, with the long-term goal of establishing the country as a regional “tech hub”.
As part of the broader digital transformation agenda, the government plans to integrate economic transactions into digital platforms in order to promote a more cashless, transparent and efficient economy.
The action plan also includes the establishment of a remittance investment matching fund to channel remittance income into productive sectors. Institutional investors will be encouraged to expand participation in the capital and bond markets.
To strengthen employment generation, the government announced a new national employment policy that seeks to integrate education, skills development, labour market information, social security and employment services.
A national apprenticeship programme based on a “learn while you earn” model will also be launched, alongside a digital skills passport system aimed at certifying and documenting the skills of returnee migrant workers.
To support startups and entrepreneurship, services under the “Startup Nepal” platform will be streamlined to simplify company registration, tax facilitation and access to seed funding.
In the agricultural sector, the government stated that it would encourage returnee migrant workers to engage in farming activities while promoting reduced pesticide use in agricultural production. Access to concessional loans and farmer identity card services will also be expanded. According to the policy document, it is stated that vaccination campaigns against livestock diseases, including foot-and-mouth disease, will be intensified.
The government has also pledged to reform the tax structure to make it more business-friendly for entrepreneurs and middle-income households. Further, government plans to automate VAT and tax refund systems to improve efficiency.
President Paudel further stated that foreign aid, private investment and international borrowing would be directed toward high-return infrastructure and development projects. Public enterprises are also expected to undergo restructuring, expenditure reduction as well as possible mergers to improve operational efficiency.
The other major commitments in the policies and programs include providing investment visas to foreign investors, separating the regulatory and service-provider roles of the Civil Aviation Authority of Nepal. In addition to this, the document has a provision of tightening controls against the illegal extraction of stone and gravel.
At last, the government reiterated its commitment to maintaining zero tolerance against corruption and improving public service delivery.
