Nepal Aims for Knowledge-Based Economy, AI Focus

Kathmandu, May 11 (PTI) Nepal's President Ramchandra Paudel on Monday presented the policy document on the government's priorities for fiscal year 2026-27 before a joint meeting of the federal parliament, aiming to convert the country into a knowledge-based economy.

Announcing the Government's programmes and policies, President Paudel said that the government plans to promote artificial intelligence exports, digital services, cloud services, green computing and cybersecurity.

In an important move to boost employment growth in the country, the government also plans to introduce a legal framework for remote work that would allow Nepalis to work from within the country for foreign employers.

Paudel said that the Balendra Shah administration plans to turn Nepal into a tech hub by boosting high-value service exports. 

From the next fiscal year, starting mid-July, the government will develop digital material and an AI-based learning system.

High-speed Internet will be provided for 10,000 community schools, and digital learning material, as well as an AI-based learning system, will be developed, announced the president.

The government plans to develop the country's capital market into a secure, competitive and internationally aligned financial system in the upcoming fiscal year 2026-27.


According to the president, the government will seek to restructure securities regulations and the securities clearing system, and expand the participation of institutional investors, pension funds, insurance companies, mutual funds and Non-Resident Nepalis (NRNs) in the country's capital market.

The document also says that Nepal plans to generate 10,000 MW of electricity within a decade. It also mentions encouraging the private sector's participation in power generation, distribution, transmission and trading.

 
"International energy trade agreements will be signed to attract long-term investment in the energy sector," reads the policy document.

The President said that to identify common areas for constitutional amendment, the government shall prepare a discussion paper based on dialogue in collaboration with political parties to ensure ownership from people of all classes, regions and communities.

"The government will brand Nepali Himalayan water as Himalayan origin certified water," he said.

"The government will ensure farmers' access to land by establishing a land bank," he said, adding that the government will also take steps to link agriculture with the green economy.

Similarly, the government plans to reduce the tax rate for entrepreneurs and the middle class.

The government plans to construct Kerung-Kathmandu and Raxual-Kathmandu railways by finalising the funding modality of the projects, the President said.