Nepal has set an ambitious target of achieving Rs 300 billion in annual IT exports as part of a broader plan to generate Rs 3 trillion in IT exports over the next decade. To support this goal, Nepal Rastra Bank (NRB) has introduced regulatory reforms aimed at easing overseas investment and encouraging the global expansion of Nepali IT companies.
With rapid internet expansion and growing technological capabilities, Nepal’s IT sector is entering a new growth phase. NRB Governor Dr. Biswo Nath Poudel announced that Nepali IT exporter companies are now allowed to invest up to USD 1 million abroad, while companies that have not yet exported can invest up to USD 20,000. The move is intended to help firms access global markets and scale their operations internationally.
The central bank has also simplified rules for foreign investors. One of the key changes is the removal of the requirement for prior approval to repatriate profits, a step expected to significantly boost investor confidence. In addition, amendments to the Foreign Investment and Foreign Loan Management Regulation, 2078 BS, now allow authorized commercial banks to directly facilitate foreign exchange services related to investment repatriation and earnings.
These reforms come amid rapid sector growth. Over the past two years, the number of IT companies in Nepal has increased from around 40 to nearly 400. According to the Nepal Chamber of Industries IT Council, Nepal currently exports close to USD 1 billion worth of IT services annually, with exports carried out by both registered companies and individual professionals.
Formal IT exports are estimated at around Rs 68 billion annually, according to a study by the Integrated Development Studies Center, with informal exports pushing the overall figure significantly higher. Exported services include software and hardware development, graphic design, animation, telemedicine, online marketing, and other digital solutions.
Global demand for IT services has surged since the pandemic, enabling many Nepali professionals to work remotely for clients in the US, India, China, Australia, Canada, and Europe while remaining based in Nepal. Minister of Finance Rameshore Khanal highlighted that IT-skilled youth are increasingly earning substantial incomes without migrating abroad.
Under the 2024/25 budget, the government aims to create 1.5 million jobs through IT exports over the next ten years. The strategy includes implementing the Digital Nepal Framework and establishing IT parks in Kathmandu and Butwal, supported by high-speed internet, reliable power supply, and modern infrastructure.
Nepal is steadily positioning itself as a growing digital economy, with more than 100 companies now formally exporting IT services and employing over 80,000 people nationwide, reinforcing the sector’s role as a key driver of economic growth.
