काठमाडौं ।
Following the government’s announcement of the historic NPR 2.124 trillion Fiscal Year 2083/84 budget, the Computer Association Nepal (CAN) Federation successfully hosted a high-level interactive session titled “Multi-Stakeholder Dialogue on Budget 2083/84” at the CAN Secretariat in Khusibu.
The forum brought together an unprecedented coalition of technology industry leaders, tech entrepreneurs, policy advocates, and ecosystem builders. The objective was clear: to conduct a candid, deep-dive analysis of the new budget’s impact on IT export incentives, startup support, and digital infrastructure expansion in Nepal.
While stakeholders widely acknowledged the promising foundations laid within the new provisions, the collective consensus strongly highlighted that precise implementation guidelines and a robust government-private sector bridge are critical. Without them, Nepal risks missing a generational window for digital development.
Moving Toward “Sovereign AI”: A Commendable but Challenging Leap
The tech community welcomed the government’s explicit prioritization of Information and Communication Technology (ICT) and Artificial Intelligence (AI) as core pillars for economic transformation. In particular, the landmark announcement to establish the nation’s first “Sovereign AI Compute Center” in Syuchatar, Kathmandu—equipped with thousands of advanced processing units—was heavily praised.
However, speaking at the consultation program, Shailendra Raj Giri, President of the AI Association Nepal and Founder of MeroJob, warned that execution across AI, data centers, computing infrastructure, and software management will be highly challenging without structural public-private integration.
“The government clearly understands the structural importance of AI, but partnership with the private sector needs to be deeply institutionalized,” Giri stated. “If the government introduces a clear implementation modality that actively takes the private sector on board via a Public-Private Partnership (PPP) model, the execution will be far more effective.”
3 Critical Industry Bottlenecks Identified by Tech Leaders
Despite the optimistic policy direction, domain experts outlined several pressing fiscal and structural challenges that could stall the digital economy’s momentum:
1. The Operational Strain of the 5% Electricity VAT
Giri expressed deep concern over the newly introduced 5% VAT on electricity, warning that it will drastically drive up operational costs for high-power tech operations. Because AI processing, large-scale computing, and modern data centers consume vast amounts of electricity, this tax hike threatens to negatively impact business cash flows and diminish Nepal’s competitiveness as a regional tech hub.
2. Lack of Clarity on GPU Incentives and Subsidies
While the budget mentions offering subsidized compute capacity to tech startups, it remains vague regarding direct customs exemptions and financial subsidies for purchasing Graphics Processing Units (GPUs). Tech leaders stressed that since GPUs form the core physical architecture needed to run localized AI models, providing maximum concessions on this hardware is vital to achieving true “Sovereign AI.”
3. Missing Focus on Technical ‘Re-skilling’
While the budget addresses general “AI Literacy,” industry experts noted it falls short on immediate, aggressive “re-skilling” and up-skilling programs. The delegation suggested that instead of generic training, the government must explicitly mobilize and fund domestic researchers, software developers, and training institutions to build a high-skill workforce capable of engineering local AI tools.
“Government Should Be a Buyer, Not a Software Builder” Chiranjibi Adhikari, Acting President of the CAN Federation and a prominent cybersecurity expert, echoed these concerns, emphasizing that the state must build a higher level of trust with local private enterprises to genuinely boost the IT ecosystem.
Adhikari argued that the government should refrain from trying to act as an in-house software developer and instead position itself as an anchor customer, leveraging local tech companies as execution partners.
“The government is a consumer of the private sector, and it must trust us,” Adhikari remarked. “We are entirely ready to partner for progressive, nation-building tech initiatives, but we will not hesitate to hold the government accountable and raise concerns when policies miss the mark.”
Adhikari concluded by urging policymakers to focus heavily on financial management, investment facilitation for IT services, and easing international payment bottlenecks. Collaboration, he noted, is indispensable for expanding Nepal’s digital economy and boosting the competitive capacity of its tech products on the global stage.
A United Front for a Digitally Empowered Nepal
The multi-stakeholder dialogue concluded with a joint commitment to continue collective advocacy for a resilient, secure, and technologically advanced nation. The session drew diverse representation from across the digital ecosystem, including:
Chambers & Alliances: Nepal Chamber of Commerce IT Committee, FinTech Alliance Nepal, and the Nepal Mobile Distributors Association.
Security & Research: Center for Cybersecurity Research and Innovation (CSRI Nepal) and the Information Security Response Team Nepal (npCERT).
Infrastructure & Academics: Internet Service Providers’ Association of Nepal (ISPAN), Data Center Experts, Cloud Service Providers, Nepal Research Education Network (NREN), CSIT Association of Nepal, alongside academic experts, hardware/software industries, and IT students.
As the fiscal year approaches, the tech sector’s message to the state remains uniform: The policy foundation is set, but clear guidelines, financial concessions, and genuine private-sector partnerships will dictate whether Nepal successfully transitions into the AI era.
प्रकाशित: २१ जेष्ठ २०८३, बिहीबार
