With the conclusion that 'remote workers' and digital nomads are beneficial for Nepal's economy, the government should make policy arrangements and facilitate them to attract such people, the High Level Economic Reforms Suggestion Commission has suggested.

The Commission has emphasized on the need to create separate policies related to remote work and digital nomads for earning foreign currency, controlling the migration of skilled manpower, promoting tourism and developing a knowledge-based economy.

In order to solve the current economic challenges of the country, the commission formed by the government submitted to Finance Minister Vishnu Paudel on Friday, in the 'Roadmap for Economic Reforms' report, it is mentioned that remote work (work that can be done without being present at the office) should be included in the Labor Act. To attract digital nomads, a policy of granting multiple-entry digital nomad visas with a validity of five years under various conditions has been proposed. 

"A good remote work policy can extend the stay of high-spending tourists, which will help in the growth of the tourism sector, create more quality jobs," the report says, "Because all seasons are suitable for digital nomads, tourism business runs in all seasons." 

Commission has suggested to classify remote work as a new type of employment. Citing the example of India's e-Labour portal, the report calls for provision for 'remote workers' to be able to register online with labor offices. "Nepali citizens and non-resident Nepalis will be allowed to stay in Nepal and work as 'remote workers' of foreign companies," the report says, "imposing a lump sum annual income tax of 5 percent on the salary benefits received by foreign companies as remote workers." 

Commission has suggested that to attract digital nomads, if their monthly income is more than 1,500 US dollars or more than 20,000 US dollars in the bank, multiple-entry visas with a validity of 5 years can be provided at a time. In order to get such a visa, it is proposed to submit proof of health insurance worth 100,000 US dollars to pay for treatment in a hospital in Nepal. 

"Digital visa permit holders will be allowed to open a convertible currency account in a commercial bank of Nepal," the report says, "if the account exceeds 50,000 dollars, the amount will be allowed to be transferred to a foreign bank at any time, and if the visa is not renewed after the 5-year visa period, the entire amount remaining in the bank will be taken." 

If a digital nomad stays in Nepal for 183 days or more, the Commission has suggested that 5 percent income tax should be levied on the income he earns here. The commission concludes that it is appropriate for digital nomads to register their vehicles in their own name in Nepal and to recognize the driver's certificate obtained from their country of permanent residence.  Chapter 194 of the

report proposes investing in remote work and digital nomad-friendly internet services, high-quality workplaces and physical infrastructure development in major cities like Kathmandu, Bharatpur, Pokhara and Lumbini.

Currently, around two dozen countries in the world have started the Digital Nomad visa program. Estonia first started offering such visas in 2019. Indonesia, Thailand, Spain, Portugal, United Arab Emirates (UAE), Malaysia, Georgia and other countries have been providing visas such as 'Digital Nomad Visa', 'E-Residency', and 'My Second Home' to the IT workers who work from anywhere in a mobile style. 

Nepal can also be a suitable destination for digital nomads and remote working due to its beautiful geography and favorable climate, cultural diversity, availability of skilled manpower in English, expansion of electricity and information technology infrastructure and low cost of living. According to a study by the International Labor Organization, around 18 percent of workers worldwide are engaged in such occupations. The report mentions that due to political instability or war in some countries, companies have encouraged skilled manpower to stay and work outside the country, and the countries that have digital nomads visas have benefited from this.

As the Russia-Ukraine war escalated, it was reported that many Ukrainians and Russians in the information technology sector had gone to other countries. Russians moved to Dubai, while some Ukrainians also came to Nepal and worked from Thamel, according to experts in the region. Regular 'remote workers', digital nomads and freelancers who work at home are not covered by the existing Labor Act of Nepal. 

Emphasis on 'Anything for Digital Transformation' strategy

The commission has pointed out that it is the need of the moment to prepare the overall ecosystem and structure, keeping Nepal's digital transformation as a national priority. The report emphasized on the need to adopt the 'Anything for Digital Transformation' strategy to expand information technology in a comprehensive manner. Along with this, the report mentions the need for a new information technology policy that covers the latest technologies such as AI, robotics, Internet of Things (IoT). 

"Strengthening cyber security to ensure the quality of information technology related services," the report states, "In the context of the need for continuous electricity for ICT operation and its maximum use, arrange for regular power supply to government data centers and information technology infrastructure." When building information systems, it is suggested to provide easy and quality service delivery based on citizen needs, maintain interconnection between government information technology systems, and ensure data ownership of government agencies should be followed. 

"Implementation of an integrated software system for the same nature of service delivery and internal office operation used in different entities," the report says, "For example, the Ministry of Federal Affairs and General Administration should implement an integrated office operation and service delivery system for all 753 municipalities."

It has been advised to expand broadband internet and reduce internet service charges by mobilizing the rural telecommunication fund to extend the access of information technology to rural areas. It has been asked to develop information technology education system and content in Nepali language from the educational level. The adoption of government procurement policy targeting IT companies, working centers, night public transport, hostels for women employees and giving priority to Nepali software is also recommended.