NAS-IT warns social media ban could derail Nepal’s global IT competitiveness

KATHMANDU: The Nepal Association for Software and IT Services Companies (NAS-IT) has voiced sharp concern over the government’s recent decision to shut down several social media platforms, cautioning that the move could inflict severe damage on Nepal’s aspirations to compete in the global digital economy.

The ban, introduced as part of the government’s push for a “safe and responsible digital environment,” has immediately disrupted operations of information technology companies that rely on constant communication with international clients. According to NAS-IT, the shutdown has created delays in project coordination, jeopardized service delivery, and placed ongoing contracts at risk, threatening both jobs and revenue across the industry.

Disruption to Nepal’s IT Services

Nepal’s IT and outsourcing sector has grown rapidly over the last decade, with thousands of professionals providing software development, data analytics, cybersecurity, and digital services to companies worldwide. The sector is widely recognized as one of Nepal’s strongest emerging industries, with the potential to rival traditional sources of foreign exchange such as remittances, hydropower, and tourism.

However, NAS-IT has warned that blanket restrictions on communication tools severely undermine the country’s reliability as an outsourcing destination. “Uninterrupted access to digital communication is not optional—it is the backbone of IT exports. When companies cannot connect with their clients in real time, the credibility of Nepal as a global IT partner is instantly questioned,” NAS-IT said in a statement.

Blow to Global Competitiveness

Industry experts say the decision sends the wrong signal to international investors who are increasingly exploring Nepal as a cost-effective hub for digital services. Global clients expect seamless delivery, round-the-clock support, and stable digital infrastructure. Disruptions caused by policy decisions like social media bans not only delay current projects but also discourage future investments.

“This is more than a temporary inconvenience—it directly hits Nepal’s global competitiveness,” said an industry analyst in Kathmandu. “Multinational firms comparing outsourcing destinations will simply move to India, Bangladesh, or Vietnam if they perceive Nepal as unstable or unpredictable.”

The outsourcing industry is highly competitive, with countries across Asia and Eastern Europe investing heavily in digital infrastructure, regulatory stability, and talent development to attract foreign companies. Even minor disruptions in Nepal can tilt business decisions in favor of rival destinations, leading to lost contracts and reduced foreign direct investment (FDI).

Investor Confidence at Risk

Beyond project delays, NAS-IT warns that the ban could erode investor confidence in Nepal’s overall policy environment. The IT industry requires not only skilled human capital but also trust that regulatory decisions will not abruptly interrupt business continuity. International investors closely watch how governments balance digital regulation with economic growth, and Nepal risks being labeled as an unreliable jurisdiction if such bans persist.

“Countries like India and the Philippines are promoting policies to capture the global outsourcing market, while Nepal is sending mixed signals. If we cannot assure stability, investors will not take us seriously,” NAS-IT stated.

In its appeal, NAS-IT urged the government to immediately lift the ban and engage with stakeholders to design long-term solutions that ensure both security and business continuity. While the association expressed support for the government’s objective of building a safe online space, it emphasized that essential business communication must not be collateral damage.

“We are committed to working with the government to develop frameworks that safeguard digital safety without crippling Nepal’s most promising industry,” the association added.

Future at Stake

Nepal’s IT industry has been hailed as a cornerstone of future economic transformation, with the potential to generate significant foreign exchange, create high-value jobs, and enhance the country’s global standing. However, analysts caution that frequent policy shocks could reverse this progress.

“If the government continues to impose abrupt restrictions without consultation, Nepal risks being sidelined in the global IT supply chain,” said Deepen Chapagain, vice president of NAS-IT. “Global clients demand stability, and once confidence is lost, it takes years to rebuild.”

As Nepal positions itself to diversify beyond remittance dependency, the stakes could not be higher. The country’s IT exports have already begun attracting attention from international markets, but sustaining this growth requires trust, stability, and policy alignment with global best practices.

For now, the social media directive has left Nepal’s IT companies struggling to reassure clients and investors, even as competitors in the region seize the opportunity to highlight their reliability. The decision has reignited debate on whether Nepal’s digital policies are strengthening the nation’s security—or undermining its global competitiveness.