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High-Level Panel Recommends Lower Internet Costs and Boost for Nepal’s IT Sector

The report highlights the need for cheaper, high-speed internet—especially in rural areas—to bridge the digital divide.
April 11, 2025
Lower Internet Costs

A high-level economic reform commission has recommended that Nepal reduce internet charges and make digital services more accessible. The commission submitted its report to Finance Minister Bishnu Paudel on Friday, outlining a range of strategies to strengthen the country’s IT sector and promote digital transformation.

The report highlights the need for cheaper, high-speed internet—especially in rural areas—to bridge the digital divide. It also suggests that all government organizations must prioritize purchasing software developed by Nepali IT companies.

Key Proposals

The commission advised the government to allocate at least 10% of the national capital budget over the next five years to IT infrastructure such as workstations and IT parks. To support rural connectivity, it called for the mobilization of the Rural Telecommunications Development Fund to expand broadband services.

Recognizing the potential of the IT sector, the report urged the government to issue a new national IT policy that incorporates emerging technologies like Artificial Intelligence (AI), Robotics, and the Internet of Things (IoT). It also emphasized the importance of improving digital literacy through nationwide campaigns and ensuring strong cybersecurity measures.

“Digital infrastructure should be reliable and secure. Regular electricity supply to data centers must be ensured,” the report states.

Strengthening Government IT Systems

To improve public service delivery, the panel recommended that government IT systems be fast, user-friendly, and based on public needs. It also proposed that similar services across various departments use a unified software platform to boost efficiency and reduce costs. For example, a single integrated system for all 753 local governments was deemed necessary.

Data management and ownership must remain under the respective government bodies, and proper risk analysis and security measures should be adopted in all IT systems.

Education, Accessibility, and Innovation

The report also suggested introducing IT education from the school level and selecting one university as a “Center of Excellence” for IT through competitive bidding. Additionally, it recommended that public digital content and services be available in Nepali and other national languages.

To support IT professionals, the commission proposed:

  • Establishing working centers in major cities
  • Improving the IT Department’s capacity for better regulation
  • Operating night-time public transport for IT workers
  • Building girls’ hostels and housing facilities for women in the IT sector

Towards Digital Nepal 2.0

The report called for the creation of regional IT and innovation centers in partnership with the private sector. It suggested transforming Balaju Industrial Area into the Bagmati IT and Innovation Hub.

Finally, it recommended revising and expanding the existing “Digital Nepal Framework 2076” to include more sectors and formally recognize IT as a key driver of economic growth and job creation. The new framework, titled “Digital Nepal Framework 2.0,” would guide the country’s path toward a digitally empowered future.