Government Unveils Vision to Transform Nepal into a Regional Technology Hub
Kathmandu — The Government of Nepal has announced plans to establish a Sovereign Wealth Fund by utilizing a portion of the country's foreign currency reserves as part of a broader strategy to accelerate economic transformation, technological innovation, and financial sector reforms.
Finance Minister Swarnim Waglé made the announcement while presenting the national budget for fiscal year 2083/84 (2026/27) during a joint session of the Federal Parliament.
According to the budget, the government has identified artificial intelligence (AI), clean energy, digital infrastructure, and financial sector reforms as key priorities for the coming years.
Sovereign Wealth Fund to Support Long-Term Economic Growth
The proposed Sovereign Wealth Fund is expected to mobilize foreign currency reserves for strategic investments that can generate long-term economic returns and strengthen Nepal’s financial position.
The government believes the fund could become a powerful instrument for financing future development projects and supporting economic diversification.
Nepal Aims to Become a Regional Technology Hub
Finance Minister Waglé stated that the government has prepared a strategic roadmap to position Nepal as a regional technology and innovation hub.
To support this vision, several new initiatives have been announced, including:
- Establishment of Nepal’s first Sovereign AI Compute Center
- Creation of an AI Factory
- Expansion of digital public infrastructure
- Promotion of technology startups and innovation ecosystems
- Strengthening of AI-related education and research
First-Ever Sovereign AI Compute Center
One of the most notable announcements in the budget is the establishment of Nepal’s first Sovereign AI Compute Center.
The government plans to procure thousands of AI processing units and provide subsidized computing resources to AI startups, researchers, entrepreneurs, and technology companies.
The initiative aims to reduce barriers to advanced computing infrastructure and encourage domestic innovation in artificial intelligence.
Fellowships for Nepali AI Researchers
To strengthen Nepal's AI ecosystem, the government will provide fellowships to at least 15 Nepali researchers currently working at internationally recognized AI companies and institutions.
The program is intended to encourage knowledge transfer, research collaboration, and technological advancement within Nepal.
The budget also emphasizes greater investment in AI-focused education, mathematics, data science, and emerging technologies.
Climate Fund, Diaspora Bonds and Clean Energy Bonds
The government also announced plans to maximize the use of climate finance resources and introduce new funding instruments, including:
- Diaspora Bonds
- Clean Energy Bonds
- Climate Financing Mechanisms
These initiatives are expected to mobilize investment for renewable energy, sustainable infrastructure, and climate-resilient development.
Hedging Service to Reduce Foreign Exchange Risk
To protect businesses and investors from foreign exchange fluctuations, the government will introduce a hedging service starting next fiscal year.
The facility is expected to help reduce exchange-rate risks associated with foreign loans, foreign direct investment, and international business transactions.
Efforts to Exit FATF Grey List and Improve Credit Rating
The government has reaffirmed its commitment to removing Nepal from the international grey list and improving the country's sovereign credit rating.
Officials believe that stronger financial compliance, governance reforms, and improved regulatory standards will help attract greater foreign investment and reduce borrowing costs.
Nepal Airlines to Be Reformed Under Partnership Model
As part of broader public enterprise reforms, the government announced that Nepal Airlines Corporation will be transformed into a company structure and operated under a partnership model to improve efficiency and competitiveness.
The government also plans to strengthen capital investment in Rastriya Banijya Bank as part of ongoing financial sector reforms.
Shares of State-Owned Companies to Be Sold to Public
The budget confirms that shares of:
- Rastriya Jeevan Beema Company Limited
- Bishal Bazar Company Limited
will be offered to the general public.
The government intends to retain a 66 percent ownership stake while selling the remaining shares through public offerings by mid-January next year.
Funds generated from the share sales will be invested in initiatives aimed at transforming Nepal into a technology-driven economy.
Foreign Investment and Remote Work Policies Expanded
The government will open additional opportunities for foreign investment in Nepal’s information technology sector.
It also plans to introduce a clear legal framework allowing Nepali professionals to work remotely for international companies while remaining based in Nepal.
Furthermore, government software procurement policies will be streamlined to improve efficiency and standardization across public institutions.
Fintech Marketplace and Digital Public Infrastructure
Under the supervision of Nepal Rastra Bank, a national fintech marketplace will be established to promote innovation in digital finance.
The government also plans to integrate dozens of additional public services into the Nagarik App platform, expanding access to digital government services.
A Technology-Focused Budget for Nepal’s Future
The FY 2083/84 budget marks one of Nepal’s most ambitious attempts to combine economic reform, digital transformation, artificial intelligence, clean energy, and financial modernization into a single national development strategy.
If successfully implemented, the initiatives could significantly reshape Nepal’s technology ecosystem, investment environment, and long-term economic growth prospects.
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