7 August 2024, Kathmandu
The current financial year 2081/82 budget has earmarked special priority for the IT sector, aiming to transform Nepal into an ‘IT hub.’
Can Nepal’s IT Park Dream
Declaring this year as the starting point of the ‘Information Technology Decade,’ the budget outlines ambitious goals, including the export of services worth 30 trillion NPR from the IT sector over the next decade. This initiative is expected to generate 500,000 direct jobs and 100,000 indirect jobs.
On May 28, then-Finance Minister Barshman Pun emphasized the vast potential within Nepal’s IT sector. To achieve the export target, the budget includes plans to promote the operation of Information Technology Parks using available government and private buildings in Kathmandu Valley and Butwal. These parks will feature essential infrastructure like high-speed internet, electricity, and security, with free workspace provided for three years.
Following the budget announcement, the Ministry of Communication and Information Technology began searching for suitable locations for the IT Park.
An apartment complex in Ichangu Narayan was initially chosen for its potential. However, a Supreme Court decision mandated that these apartments be reserved exclusively for squatters, nullifying plans to use the building for the IT Park.
Chiranjibi Adhikari, General Secretary of the Computer Association Nepal (CAN) Federation, stresses that the IT Park should remain a governmental priority. He criticizes the tendency of successive governments to disregard projects initiated by their predecessors, arguing that the IT Park is a national agenda that transcends political power.
The original purpose of the IT Park included software development, technology provision, IT services, and support for tech companies. However, stakeholders argue that an outdated IT Park model is inadequate in today’s rapidly evolving tech landscape. Adhikari emphasizes the need for modern infrastructure and policies that align with current industry standards.
While the government has announced plans to develop an IT Park, questions remain about the necessary components and infrastructure. Adhikari points out that no Nepalese company has yet built a facility capable of housing 2,000 to 3,000 employees, nor does the country possess the infrastructure to support large-scale operations.
Adhikari advocates for a policy review to address these issues, suggesting that multinational companies be invited under conditions that benefit the local economy and workforce. He also highlights the importance of supporting companies and adapting startup policies to include virtual placements and jobs.
Deepen Chapagain, General Secretary of the Nepal Association for Software and IT Services Companies (NAS-IT), suggests potential IT Park locations outside the Kathmandu Valley, such as Lalitpur, Naya Baneshwor, and Kalopul. These areas offer better access to necessary infrastructure and equipment.
Nepal’s first IT Park, established in Kavrepalanchok in 2061 at a cost of around 27 million NPR, faced numerous operational challenges and eventually shut down due to issues like internet, electricity, and road access. Learning from past failures, stakeholders urge the government to adopt a forward-thinking approach to the new IT Park initiative.
Will the new government prioritize the ‘IT Park’ dream, ensuring it becomes a reality? Stay tuned for further updates on this crucial development in Nepal’s IT sector.