AI Policy and Investment Push

Nepal and China discussed enhancing cooperation in science, technology, and innovation with focus on innovation centers, biotechnology, Himalayan studies, satellite ecological monitoring, climate research, and artificial intelligence. They planned a joint committee to implement the 2023 cooperation agreement and promote researcher exchanges.

The Nepalese government released NepaConnect, a homegrown messaging app on Google Play Store designed for secure communication among civil servants. The app includes encrypted messaging, AI integration, and workflow tools but is presently in early development with security and transparency concerns.

Nepal was recognized as the world's fastest-growing startup ecosystem in 2026, despite nearly 99% of startups closing within their first year due to funding shortages and bureaucratic hurdles. The government aims to address these challenges through the Startup Fast Track plan.

Nepal Telecommunications Authority announced readiness to auction 5G spectrum, enabling Nepal Telecom and Ncell to launch 5G services in major cities. This development aims to modernize Nepal's digital infrastructure and support smart city initiatives.

Nepal commits 20% of its national budget to education but effectively spends only 10-11%, risking underdevelopment of critical thinking and problem-solving skills necessary for an AI-driven future. Experts emphasize that funding must prioritize teacher support and classroom quality over mere budget increases.

The Nepalese government launched the Startup Fast Track Working Plan 2026 to simplify regulations, ease tax compliance for startups, and expedite access to subsidised loans through legal reforms and agency coordination.

InnoventuresAI introduced Springbase.AI, an AI operating system in Nepal that transforms meetings and documents into structured workflows and reports. The platform is offered at Rs 1,499 per month and distributed locally through Mind Snack Pvt. Ltd.

China announced it will host the World Artificial Intelligence Conference 2026 and a high-level Global AI Governance meeting in Shanghai to strengthen international cooperation on AI.

Creative professional Aneel Neupane began using AI tools such as ChatGPT, Claude, and AI video platforms to enhance work efficiency, content quality, and production in storytelling, video, and music creation despite payment challenges in Nepal.

Rastriya Prajatantra Party Chief Whip Khushbu Oli criticized the government's budget allocation, highlighting inadequate funding for the Ministry of Science, Technology and Innovation and lack of a national AI policy. She also urged for improved project completion and a comprehensive energy security strategy.

Valley Traffic Police Office proposed increasing traffic fines up to Rs 50,000 to reduce violations and advocated for AI-based traffic management systems amid heavy vehicle use in Kathmandu Valley.

The Nepal-India Chamber of Commerce & Industry and the Indian Embassy held discussions to enhance AI and emerging technology cooperation, focusing on local language AI development and attracting technology-centered investments. Key participants promoted partnerships for economic growth and knowledge exchange between the countries.

Experts urged Nepal to prioritize science, technology, and innovation to drive sustainable development, job creation, and economic self-reliance by boosting research, practical education, and digital infrastructure investment. The call includes enhancing skills in robotics, coding, and problem-solving to support the country's transformation.

A three-day AI literacy training started in Lalitpur with local government and Open Knowledge Nepal collaboration, focusing on safe AI usage, practical applications, and developing community action plans for AI adoption and governance.

A three-day AI literacy training program started in Lalitpur to enhance digital skills and promote responsible AI use among community members and local government representatives. The initiative includes training on safe AI tool use, applying AI to livelihoods and governance, and preparing local action plans.

Argentinian President Javier Milei announced legal personhood for AI-run companies, allowing them to own property, hire workers, and participate in economic and political activities independently. This move raises concerns about accountability and potential exploitation of legal systems by AI corporations.

Finance Minister Dr. Swarnim Wagle pledged major reforms to end policy capture and promote good governance and economic restructuring in Nepal, including appointing corruption-free officials to regulatory bodies and promoting digital government services through the Citizen App. The reforms aim to establish a level playing field and healthy competition in governance and the economy.

Former Finance Minister Surendra Pandey warned that rising AI use could trigger a severe global energy and water crisis due to high demands from AI data centers. He stressed the need to balance AI benefits for Nepali agriculture with environmental sustainability.

Nepali leader Surendra Pandey warned that increasing AI use globally, particularly in data centers, could cause severe energy and water shortages and exacerbate environmental crises. He emphasized the environmental risks alongside AI's agricultural modernization benefits.

Six Nepali teams won prizes at the international Codeavour 7.0 AI, coding, and robotics competition held in Jakarta, Indonesia, and were honored by Nima Foundation and SkillsUp Global in Kathmandu. Their projects addressed challenges like unsafe drinking water, air pollution, agriculture, and medication management.

Experts proposed reforms in Nepal's schooling system to shift from rote memorization towards independent thinking, promoting project-based learning, community libraries, and inquiry-driven teaching methods to enhance analytical skills.

Nepali developer Apil Karki launched three mobile games aimed at fostering innovation, creativity, and research among diverse user groups including students and professionals. The games are designed to encourage creative problem-solving and innovation culture in Nepal.

Nepal's budget allocates funds to build a Sovereign AI Compute Centre in Syuchatar using hydropower and to attract AI experts via fellowships. Experts expressed concerns about the sustainability and cost-effectiveness of investing heavily in AI model training with hardware that quickly becomes obsolete.

Campion College in Lalitpur hosted Nepal's first national conference on digital transformation with over 100 participants discussing digital strategy, governance, leadership, and innovation in higher education and public service sectors.

Over 700 Nepali young entrepreneurs from 20 countries will gather in Sydney, Australia, focusing on AI, innovation, and global networking. The event features prominent government and private sector speakers, including Finance Minister Dr. Swarnim Wagle.

Mid Valley International College and WiseAdmit signed a memorandum of understanding with China's Nanjing University of Aeronautics and Astronautics to offer specialized AI, robotics, drone technology, and innovation programs, including summer immersion for Nepali students.

Sunway College launched a BSc (Hons) Business Information Technology program emphasizing artificial intelligence, business intelligence, data analytics, and digital business systems, combining IT and management education.

US President Donald Trump signed an executive order requiring AI companies to voluntarily share advanced AI models with the government 30 days before public release to assess cybersecurity risks and protect critical infrastructure.

The Ministry of Information and Communications initiated a review to amend outdated IT laws and enhance coordination across federal, provincial, and local governments. Measures include establishing integrated media regulation, transforming postal services, and promoting digital content industries to improve public service and governance.

Sanima GIC Insurance and Wise Yak Solutions signed an agreement to promote AI-driven insurance awareness in agriculture, livestock, and microinsurance sectors across four districts in Nepal. The program targets communities with limited access to insurance services.

Nepal consolidated its IT and digital governance under a new Information Technology and Electronic Governance Office within the Prime Minister's Office. This move brought the Department of Information Technology, Integrated Data Management Centre, and National Cyber Security Centre under PMO control to reduce duplication and improve government system interoperability.

Malaysia, Singapore, and Thailand are investing in AI infrastructure to become regional hubs, raising hopes for economic growth but also concerns about job displacement, inequality, and environmental impacts in the region.

Nepali students won multiple international awards at Codeavour 7.0 in Jakarta for AI, robotics, and IoT projects addressing health, pollution, and agriculture challenges. Six teams developed innovative solutions including AI-based ADHD support and smart medication dispensers.

The Computer Association Nepal Federation and Nepal Mobile Distributors Association formed a strategic alliance to develop Nepal's mobile industry by addressing policy ambiguities and combating illegal imports impacting the economy and legitimate businesses.

Nepal announced plans to build its first Sovereign AI Compute Center in Syuchatar, Kathmandu, equipped with thousands of AI Processing Units to foster AI development and startups. The government aims to establish a knowledge-based economy within the next decade, including initiatives to attract Nepali AI researchers abroad through prestigious fellowships.

Nepal plans to establish a sovereign wealth fund using foreign currency reserves to support AI, clean energy, and digital infrastructure development in the 2026/27 budget. The initiative aims to develop Nepal as a regional technical hub with projects including an AI factory, fintech marketplace, and support for AI researchers.

Finance Minister Swarnim Wagle presented the 2026-27 budget emphasizing reforms to support Nepal's graduation from least developed country status, major health insurance expansion aiming to cover 90% of citizens in three years, and infrastructure projects including road and bridge construction and fast-track development.

The government announced tax reliefs and incentives including a 10% value-added tax discount for digital payments and a focus on AI education in the 2026-27 fiscal budget to support digital economy growth.

Bagmati Province Government shifted focus to implementing existing policies and projects, including promoting artificial intelligence and digital transformation, merging ministries to eight, and reducing administrative expenses for fiscal year 2083/084.

Nepal government drafted a bill to amend the 1988 Technical Education and Vocational Training Act, decentralizing governance to provincial and local levels and introducing an eight-level National Qualifications Framework to improve quality and accessibility.

eSewa announced a national hackathon in Chitwan from May 28–30 to promote innovation in fintech, cybersecurity, and environmental sustainability with 20 teams and 63 participants nationwide.

Nepal's government under Premier Balen Shah established a Ministry of Science, Technology, and Innovation to advance technology development and address climate-related challenges. The move aims to improve Nepal's competitiveness in science and innovation, overcoming historical underfunding and neglect.

Forty-eight teachers from Madhi Rural Municipality in Kaski participated in a five-day communication and IT training covering PowerPoint, Excel, AI, Microsoft Word, Google applications, and internet use to enhance digital literacy.

An opinion piece advocated for Nepal to build a sovereign AI compute center leveraging its abundant hydropower resources to enhance technological sovereignty and stimulate economic growth in AI-driven sectors. This reflects ongoing discourse about harnessing Nepal's clean energy for AI infrastructure development.

Nepal secured a $90 million loan from the World Bank and Asian Development Bank for the Nepal Digital Transformation Project aimed at enhancing digital infrastructure and public service delivery for 7 million citizens over five years. The initiative responds to challenges faced by previous digital programs marked by structural issues and disputes.

NAS-IT is developing Nepal's first industry-led bachelor-level IT curriculum focusing on practical skills, AI, data literacy, blockchain, and cybersecurity with financial and technical support from Swiss agencies to meet industry demands.

NAS-IT is developing a new bachelor-level IT curriculum with Nepal Open University to produce graduates skilled in AI, data science, blockchain, cloud computing, and cybersecurity, addressing the skills gap between academia and industry.

Nepal announced plans to reform higher education by prioritizing a research-led framework focused on applied research aligned with national priorities, strategic funding, transparency, and international collaboration. The reforms aim to increase the socioeconomic impact of research for public benefit.

The increased use of generative AI by legal professionals in Nepal's judiciary has raised concerns about legal accuracy, data privacy, and ethical responsibilities under current laws. These issues highlight potential risks of fabrications, privacy violations, and the need for regulatory clarity in AI applications for legal drafting.

The Government of Nepal unveiled the Policies and Programs for 2083 targeting a 7% economic growth to reach middle-income status via reforms including tax automation and green tax introduction. IT remains a national strategic industry with plans for digital parks, AI integration, and a borderless economy, alongside energy expansion and climate action goals.

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.

President Ram Chandra Paudel presented the Government of Nepal's Policy and Program for fiscal year 2026/27, including a 100-point agenda covering governance, economic reform, infrastructure, agriculture, education, healthcare, and anti-corruption initiatives.

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.

Kathmandu Model College conducted a three-day workshop on advanced data analysis, research methods, and ethical AI use in academia, attended by 60 participants from over 15 educational institutions with support from the University Grants Commission.

The Ministry of Communication and Information Technology opened applications for leadership roles at the Nepal Telecommunications Authority and Security Printing Center, including Chairperson, Members, and Executive Director positions, with a deadline of May 19. This move aims to strengthen governance in telecommunications and security printing sectors.

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.

Nepali Congress Vice-President Bishwaprakash Sharma announced plans to develop the party's Policy Research Institute as an intellectual hub focusing on contemporary issues and election strategies, including training programs across all seven provinces.

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.