2nd August 2023, Kathmandu
Nepal aims to shift from labor exports to service exports under the leadership of Minister Rekha Sharma, focusing on information technology and innovation to boost economic growth and global recognition.
Communication and Information Technology Minister Rekha Sharma is championing a transformative agenda for Nepal – a shift from a labor-exporting nation to a services-exporting powerhouse.
Minister Sharma’s commitment to this vision was underscored during her address at the National Dissemination Conference on information technology growth, organized by the Institute for Integrated Development Studies. With a keen focus on technology-driven services, Nepal is poised to harness its youthful demographic dividend and catapult its economy to new heights.
Nepal’s Service Export Landscape:
Minister Sharma cited a pivotal report on Nepal’s information technology and service export scenario at the conference.
The report unveiled that as of 2022, 106 companies and an impressive cohort of 66,509 freelancers had collectively exported information technology services.
This burgeoning sector has contributed a substantial $515 million to Nepal’s GDP, amounting to 1.4 percent, while bolstering the foreign exchange reserves by five and a half percent.
Youthful Workforce and Development:
Of particular note is the involvement of young talent in the service export domain, as highlighted by Minister Sharma. A remarkable 83.5 percent of those contributing to Nepal’s information technology service exports fall within the age bracket of 20 to 29 years.
This not only signifies strides in overall development but also underscores the active participation of Nepal’s youth in shaping the country’s economic trajectory.
Government’s Strategic Thrust:
Underpinning this paradigm shift is the Nepalese government’s robust strategy. Minister Sharma affirmed that information technology has become a national priority, ushering in new programs and overhauling existing ones based on expert recommendations.
The government has earmarked at least one percent of the total capital budget of the ongoing fiscal year for research, innovation, and invention.
The creation of a startup ecosystem is pivotal to fostering innovation and entrepreneurship. Operating an incubation center to catalyze entrepreneurial thinking into tangible businesses, enabling free registration of new companies, and facilitating capital increase, along with streamlined online processes for company registration and cancellation, are key components of this strategy.
Moreover, Nepal is embracing a flexible labor policy tailored to information technology and innovation-based sectors. These progressive steps were initiated in the current year, aligning with the nation’s commitment to fostering a conducive environment for service exports.
Foreign Investment and Exchange Facilities:
To amplify the impact of these initiatives, Minister Sharma shared groundbreaking news. As of this year, the limits on foreign investment in the information technology industry have been abolished.
Additionally, the minister has unveiled a provision offering foreign exchange facilities of up to 10 percent of industry earnings.
This boost will facilitate the establishment of contact offices in third countries and cater to industries procuring software, programs, and equipment.
Conclusion:
Minister Rekha Sharma’s resolute ambition to establish Nepal as a service-exporting beacon reflects the nation’s unwavering dedication to economic progress.
By harnessing technology, empowering youth, and embracing innovation, Nepal is carving a dynamic niche in the global service market – a journey that holds immense promise for the country’s future growth and recognition on the global stage.