AI Policy and Investment Push

Nepal announced a broad reform agenda targeting 7 percent average annual economic growth over the next decade through anti-corruption measures, digital economic transaction systems, and tax reforms. The plan emphasizes boosting transparency, revenue, and private and foreign investment, despite recent mobilisation challenges.

Nepal's government announced a National Industrial Policy introducing industry classifications and promotional packages, along with an Investment Express policy guaranteeing business registration and construction permits within 30 days. The policy also includes a 'Nepal Investment Visa' to attract significant foreign investment and reinforces information technology as a national strategic industry with plans for digital parks, tax incentives, and infrastructure development.

The government announced plans to promote Nepal as a technology hub by expanding IT exports, digital infrastructure, and emerging technologies including green computing and AI, along with tax incentives and a legal framework for remote work.

President Ram Chandra Paudel declared information technology as a national strategic industry in Nepal's plan to shift to a digital and service-oriented economy, emphasizing software development, cloud computing, cybersecurity, and artificial intelligence.

Bichuten Data Vault announced Nepal's first Tier IV Hyper Scale Data Center project in Kathmandu and Birgunj, starting with 240 kilowatts capacity and expandable to 5 megawatts by 2030. The facility will provide 99.995% uptime, powered by hydropower, and serve key sectors including banking and telecommunications with global technology partnerships.

ICT Foundation Nepal hosted an orientation session in Kathmandu for 12 startup teams, providing mentorship, investment, and policy guidance to strengthen Nepal's startup ecosystem in Bagmati through business development and networking support.

The Federation of Nepali Journalists UK Chapter held a virtual training on responsible AI use in journalism, highlighting transparency in AI-generated content and press freedom challenges in Nepal. The program included wide participation from journalists and media representatives in the UK.

At the Pre-Budget ICT Discourse 2083, stakeholders called for clear ICT policies, higher investment, tax reforms, improved fintech and AI education, and stronger cybersecurity to advance Nepal's digital economy and competitiveness as a digital hub.

Nepal's government set a goal to develop the country as a regional AI hub by leveraging green energy and youth talent. National AI and cybersecurity policies are being developed alongside education reforms to attract foreign investment and produce skilled AI professionals.

Nepal's Ministry of Physical Infrastructure and Transport proposed a bill to legally recognize ride-sharing services such as Pathao and inDrive, mandating vehicle registration, insurance, and prohibiting offline rides, with fines for non-compliance.

Minister Bikram Timilsina stated that building a secure, reliable, inclusive, and sustainable digital ecosystem is a government priority, highlighting efforts under the Digital Nepal framework to promote digital transformation, broadband expansion, data centers, digital literacy, and position Nepal as a regional digital innovation hub.

Nepal Electricity Authority's subsidiary, Nepal Digital Infrastructure Company, became fully operational aiming to transform the IT and telecommunications sector by providing shared infrastructure like optical fibers and ducts to reduce costs and improve internet service quality in Kathmandu Valley and support nationwide digital connectivity.

The first Nepal Discourse convened over 50 speakers and 400 participants at Harvard and MIT, focusing on AI, leadership, and Nepal's development future. The event aims to inform the Strategic Foresight 2035 roadmap and will be held regularly with support from Leadership Academy Nepal and Kantipur Media Group.

The Nepal–EU Tech Forum 2026 convened in Brussels to discuss ICT sector collaboration and investment, emphasizing Nepal's digital transformation readiness, startup ecosystem, talent mobility, and opportunities for green AI infrastructure development.

Chinese Ambassador Zhang Maoming met Nepal's Communications Minister Dr Bikram Timilsina to discuss expanding cooperation in artificial intelligence, IT, and digital infrastructure between Nepal and China. The meeting emphasized bilateral socio-economic development and government support for Chinese firms in Nepal's tech sectors.

Nepal aims to become a global hub for data centres and AI powered by hydroelectric energy but currently lacks clear regulations, facing local opposition over environmental and operational concerns at projects like Ncell’s Lalitpur data centre. Experts call for stable policies and environmental regulations before large-scale investments.

Nepal and the Asian Development Bank signed a loan agreement to implement the Nepal Digital Transformation Project emphasizing digital infrastructure development alongside environmental safeguards, e-waste management, occupational health and safety, and gender-based violence prevention.

Nepal's IT industry urged expansion of double taxation avoidance agreements and proposed targeted tax reforms, including a 1% corporate tax rate for registered IT companies, an 8% export rebate, and legal reforms to attract global investment and promote domestic cloud infrastructure.

Nepal Electricity Authority held a brainstorming session with young engineers focused on modernizing the power grid through digital technology, precise data management, and smart grid transmission to improve service quality and sustainability. The conclusions will inform an action plan to enhance reliability and internal performance.

Nepal introduced the Digital Mobility Service Operation Standards, 2026, establishing a unified regulatory framework for ride-sharing and ride-hailing services, including licensing, fare limits, safety provisions, and centralized monitoring nationwide.

Nepal aims to become a healthcare disruptor in the Global South by integrating digital health and biotechnology, leveraging its biodiversity and diaspora expertise to build a biodigital ecosystem and develop a unique Digital Health ID system.

Nepal's Ministry of Communications and Information Technology introduced a new smart driving licence system conforming to ISO 7810 ID-1 standard with 39 security features and offline authentication capability to enhance document security and verification efficiency.

AI adoption is transforming Nepal's IT workplaces by changing skill demands and hiring patterns, while educational institutions struggle to integrate AI education, causing fresh graduates to require significant training.

ICT Foundation Nepal was selected by the Industrial Enterprise Development Institute to run a startup incubation program supporting more than 50 early-stage startups in Kathmandu Valley and Itahari with mentorship and training from March to June 2026. High-performing startups may receive seed funding and opportunities to join national tech events.

Bhaktapur-based AI startup Segiya launched Sage 2.5 Magnus, a 120 billion parameter language model that scored 83.5 on competitive math benchmarks, surpassing Alibaba's Qwen3. Segiya also developed AI solutions including a KYC infrastructure and a multilingual speech system for Nepalese languages.

A Nepali business delegation promoted Nepal's hydro-to-data vision in Washington, meeting US government agencies to attract investment for AI, blockchain, and data centers powered by hydropower. The delegation highlighted the need for regulatory reforms to support these sectors.

Nepal introduced a National AI Policy aiming to prepare 5,000 AI personnel within five years and enhance AI readiness to harness AI's labor market potential amid global job displacement concerns.