IT sector welcomes decision to amend laws through ordinance

Kathmandu, Jan. 12

Nepal’s IT sector has welcomed the government’s recent decision to amend laws through an ordinance to enable Nepali IT companies to invest overseas.

The Computer Association of Nepal Federation (CAN Federation), hailed the move as historic, stating that it opened new avenues for growth and opportunity in the sector.

The ordinance, approved by the Cabinet meeting on Friday, incorporates provisions that allow Nepali IT companies to establish branches, conduct business, and repatriate earnings from abroad. The CAN Federation said in a statement on Sunday that this step will empower Nepali companies to compete in the global market and contribute to foreign currency earnings as well.

President of the CAN Federation, Sunaina Ghimire Pandey, described the government’s initiative as a significant milestone that is likely to pave the way for transformative reforms in the IT sector. She said that the federation had long advocated for such legal amendments and urged the government to accompany this policy shift with clear programmes in order to address existing challenges in the Nepali IT sector.

“For the growth of Nepal’s IT sector, collaboration between the government and private sector is crucial. Likewise, creating an environment to expand Nepali IT companies abroad and attract quality IT projects to Nepal is essential,” Ghimire said.

She also called for government support to enhance the competitiveness of the Nepali workforce on the global stage.

Likewise, the government’s decision to allow startups to issue up to 40 per cent sweat equity shares has drawn praise from the CAN Federation. It's General Secretary, Chandra Bilas Bhurtel, stated that this measure will help steer Nepal toward a knowledge-based economy and aid in expanding the IT market. He expressed confidence that the goal of making Nepal an IT hub can only be achieved through concerted efforts by the government and private sector.

While thanking the government for its bold step, the CAN Federation stressed the need for further policy and structural reforms if the country has to sustain and accelerate the development of the IT sector.

 Published in The Rising Nepal daily on 13 January 2025.