12th January 2024, Kathmandu
The decision by the Government of Nepal to amend laws through an ordinance, enabling Nepali IT companies to invest abroad, has sparked enthusiasm within the information and communication technology (ICT) sector.
CAN Federation Welcomes Legal Reforms
The Computer Association of Nepal Federation (CAN Federation), the umbrella organization for the ICT industry, has hailed this initiative as a groundbreaking step toward unlocking new opportunities for the sector.
During a cabinet meeting held on Friday, the government approved an ordinance to amend several Nepalese laws. The amendment allows Nepali IT companies to invest overseas, establish branches, conduct business, and repatriate earnings to Nepal. This move is expected to empower Nepali IT firms to compete in international markets and boost foreign exchange earnings.
Historic Opportunity for the IT Sector
CAN Federation President Sunaina Ghimire Pandey described the government’s initiative as a transformative reform that would pave the way for the IT industry to thrive. She emphasized that this legal provision opens new doors of possibility for Nepali IT companies. Highlighting CAN Federation’s long-standing advocacy for such reforms, she also urged the government to introduce clear programs addressing the challenges faced by the sector alongside policy improvements.
“There is a pressing need for collaboration between the government and the private sector to foster the growth of Nepal’s IT industry,” President Ghimire stated. “Creating an environment that enables the global expansion of Nepali IT companies while attracting high-quality IT projects to Nepal is essential.” She also stressed the importance of government support to make the Nepali workforce internationally competitive.
Support for Startups and Knowledge-Based Economy
The ordinance also allows startups to issue up to 40% sweat equity, a decision lauded by the CAN Federation. According to CAN Federation General Secretary Chandra Vilas Bhurtel, this reform will steer Nepal toward a knowledge-based economy and facilitate market expansion in the ICT sector.
“This decision marks a crucial step in achieving Nepal’s ambition of becoming an IT hub,” Bhurtel remarked. “However, this goal can only be realized through robust collaboration between the government and the private sector.”
Call for Further Reforms
While commending the government’s proactive step, the CAN Federation emphasized the need for additional policy and structural reforms to sustain the growth momentum in the IT sector. The Federation also expressed gratitude to the government for addressing long-standing demands and urged continued cooperation to overcome remaining challenges.
This landmark decision is expected to catalyze growth in Nepal’s IT sector, fostering global competitiveness and innovation while contributing significantly to the nation’s economy.
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