Opinion | If AI automates work, how will Nepal fund the state?
Summary
Nepal’s National AI Policy promises productivity gains and better public services, but it is silent on how automation could weaken jobs, tax revenue and the state’s finances. The article argues that Nepal needs worker protections, better data and new AI-linked revenue sources to avoid hollowing out its economy.
Key Points
- Nepal’s National AI Policy (2025) focuses on productivity and public services but largely ignores the impact of automation on employment, the tax base and state finances.
- The article warns that AI could shrink formal wage jobs, weaken tax revenue and shift value creation away from Nepal toward foreign technology owners.
- It calls for an annual automation impact assessment, transition support for displaced workers and new revenue mechanisms such as a tax on AI tokens consumed in Nepal.
- Nepal should design an AI strategy based on its own vulnerabilities, including employment fragility and remittance dependence, rather than copying richer countries.
