Gagan Thapa unveils four-point plan to turn Nepal into digital hub within five years

KATHMANDU: President of the Nepali Congress, Gagan Thapa, has proposed an ambitious four-point reform agenda aimed at transforming Nepal into a digital hub within five years, placing the information technology sector at the center of economic growth and job creation.

In a video message released Monday, Thapa said Nepal can rapidly expand its digital economy if policy stability, human capital development, legal reform, and energy utilization are addressed in a coordinated manner. He reiterated his earlier claim that Nepalis can earn Rs 300,000 to Rs 400,000 per month through digital work, arguing that the statement—once widely mocked—was grounded in practical planning rather than rhetoric.

“Some time ago in a political gathering in Kirtipur, I said people could earn that amount working from laptops. It became a subject of jokes and trolling. But it was not unrealistic; it was based on clear plans,” Thapa said.

IT decade vision and export targets

Thapa recalled that previous policy discussions had envisioned the period from 2024 to 2034 as Nepal’s IT decade, targeting Rs 3 trillion in IT exports, creation of 500,000 direct jobs, and substantial indirect employment.

He said that with consistent implementation, Nepal could still achieve major gains within five years, including:

Rs 400 billion in IT and digital service exports

More than 200,000 direct jobs

Expansion of over 200 Nepali IT companies abroad

Listing of at least three to five IT firms in Nepal’s stock market

According to Thapa, some legal improvements introduced earlier—particularly through ordinances—have already produced results, though they remain insufficient.

He noted that reforms initiated by the party helped ease restrictions on outward investment, replacing a nearly 60-year-old legal prohibition. Following the change, several Nepali IT companies have begun investing overseas.

Similarly, the removal of the Rs 20 million cap on foreign investment in the IT sector and the introduction of automatic approval mechanisms reportedly helped expand foreign investment from 16 companies to nearly 384 firms within a year, demonstrating how small policy adjustments can generate large sectoral responses.

Four priority reforms

Thapa outlined four core areas that he believes can deliver measurable results within five years.

1. Stable taxation policy

He stressed that a predictable tax regime is critical for IT sector expansion.
“If policy stability is ensured, the sector will grow naturally,” he said.

2. Human capital development

Thapa highlighted a structural mismatch in Nepal’s IT labour market. While the country claims to produce about 15,000 IT graduates annually, only around 7,000 have secured employment over six years.

He described this as a paradox where students complain about lack of opportunities while companies report shortages of skilled manpower. Drawing from international experience, he said successful countries first invested in talent through public-private cooperation, after which companies followed.

“In IT, talent comes first; industry follows,” he said, emphasizing the need for strong investment in STEM education, upskilling programs, and research incentives. He proposed a 10 percent tax rebate for R&D investment to encourage innovation.

3. Moving beyond freelancing and BPO

Thapa warned that Nepal should not remain confined to freelancing and business process outsourcing.

“We must move toward digital products and climb the value pyramid,” he said, adding that sectors such as agriculture, health, education, and services could serve as starting points.

He argued that Nepal must first adopt its own digital solutions domestically before attempting to compete globally.

He also stressed that ecosystem-based development matters more than physical infrastructure alone. Referring to underutilized IT infrastructure projects, he said Nepal needs an integrated digital ecosystem similar to India’s Software Technology Parks of India model, involving coordination among federal, provincial, and local governments, along with mentorship, seed funding, tools, and single-window service systems.

Legal reform is also necessary, he said, noting that more than 200,000 gig workers require clear legal recognition and social protection through amendments to labour laws.

4. Leveraging green energy for digital services

Thapa’s final priority involves harnessing Nepal’s hydropower capacity to build green data centers and compete in energy-intensive digital sectors such as artificial intelligence, cloud computing, and blockchain services.

He said incentive policies and legal frameworks are needed to attract investment into such energy-driven digital infrastructure.

Political commitment

Thapa said the party is committed to pursuing systematic reforms with the explicit objective of turning Nepal into a digital hub within five years. He stressed that progress depends less on new vision statements and more on consistent execution of already identified reforms.

The proposal comes amid increasing political debate over Nepal’s digital economy potential, youth employment challenges, and the role of technology exports in reducing the country’s dependence on remittance-driven growth.