Kathmandu: The Government of Nepal has positioned the Information Technology sector as the new cornerstone of the national economy in its budget for the fiscal year 2083/84.
Presented by Finance Minister Dr Swarnim Waglé, the ambitious fiscal roadmap introduces a series of transformative measures, ranging from the establishment of the country’s first dedicated Artificial Intelligence infrastructure to significant tax incentives for the burgeoning digital economy. By making IT a central pillar of growth, the administration aims to modernize the state’s financial architecture and provide a high-tech platform for future development.
At the heart of this technological push is the plan to build a state-of-the-art AI Compute Center in Syuchatar, Kathmandu. This facility will be equipped with thousands of specialized processing units, providing high-capacity computational power to local startups at subsidized rates. By lowering the barrier to entry for complex data science and AI development, the government expects to catalyze a new wave of home-grown tech industries, ultimately fostering an ecosystem where artificial intelligence and data-driven businesses can thrive within Nepal.
To further bridge the gap between local potential and global expertise, the government will provide prestigious fellowships to fifteen internationally recognized Nepali AI specialists. This initiative seeks to bring world-class talent back into the fold of national development. Complementing this human capital investment is a bold commitment to dedicate one percent of the nation’s total capital expenditure specifically to science, technology, and the startup ecosystem. These funds are earmarked for research, development, and empowering young entrepreneurs with innovative business concepts.
In a major move to foster a transparent and cashless economy, consumers will now receive an immediate ten percent rebate on Value Added Tax (VAT) for purchases made through digital platforms, including QR codes, digital wallets, and mobile banking. Beyond consumer incentives, the government has also announced a major restructuring of Nepal Telecom’s ownership. The state plans to reduce its current 92 percent stake to 66 percent, offering the remaining equity to the general public. This divestment is intended to encourage direct citizen participation and investment in the country’s premier telecommunications provider.
These strategic investments are designed to integrate Nepal into the global technology marketplace and create high-value employment opportunities for the youth within the country. Industry experts have lauded the proposed AI center and the broader digital roadmap as a pivotal milestone that could redefine Nepal’s development trajectory. By aligning fiscal policy with technological innovation, the government hopes to ensure that the next generation of Nepali workers can lead the nation toward a digitally-driven and prosperous future.
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