Since Nepali people are excellent in software development, their work is preferred in other countries. Nepalis are taking jobs from countries like America, Japan, United Arab Emirates and South Korea.
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Nepal's business network has spread to nearly 170 countries in the world. But exports are disappointing compared to imports, trade is profitable with barely three dozen countries. In the fiscal year 2080/81, Nepal exported only 1 trillion 52 billion 38 billion rupees while importing 15 trillion 93 billion rupees.
Thus, the fate of 90 percent trade deficit is regular for Nepal. Therefore, a reliable sector is being sought to increase exports, which can contribute to reducing the widening trade deficit. According to the statistics of recent years, information technology services are becoming a promising sector. Nepal's income through export of which is promising. If the government can encourage this sector, it is sure to flourish.
According to the report of the National Bank, Nepal has earned 3.7 billion rupees worth of foreign currency from the export of goods and services related to information technology in July and August. In the two months of the current financial year, the amount received by Nepal under this heading is 568 million rupees more than the same period last year. In the first two months of the last financial year, Nepal received 2.5 billion 43 million rupees through the export of goods and services related to information technology.
In a study conducted by the Institute for Integrated Development Studies (IIDS), it was seen that in 2022, the information technology sector in Nepal generated an annual income of 67 billion 465 million rupees ($515 million). In that year, information technology service exports contributed 1.4 percent to the country's gross domestic product and 5.5 percent to foreign exchange reserves. Although it is not found in the official statistics of the government, the income from the export of information technology services is higher than the income from other goods and services. Therefore, this sector should be a top priority of the government.
In the report of IIDS, it was mentioned that by 2022, out of 7,637 IT companies in Nepal, 166 will export services and there are 66,509 people working on information technology, including 14,728 freelancers. The number of youth in this group of manpower is significant. In the context of 7.5 lakh young people going abroad for employment annually, the employment created by the information technology sector is another noteworthy topic. The field of information technology itself is a broader subject than the scope of geography. Yet it provides a basis for changing circumstances or the compulsion to go abroad for employment, in some cases for low wages. The share of unskilled and semi-skilled manpower among those who go abroad for employment is significant, but skills are required to work in information technology related fields. Moreover, Nepalis in this area can earn high income even while staying in Nepal. In this age of information technology, the positive signs seen in this area are meaningful for us.
At this time, the government should keep the information technology sector as its priority as it is a sector with increasing participation of Nepali youth and significant income. This is an area in which early adopters can continue to lead. Therefore, incentive programs, legal and policy reforms and coordination facilitation are expected from the government. Youth-friendly policy is also necessary as it is an area where youth involvement is high. Plans should be brought for skill development of Nepalese manpower. Investment in startups should be increased. Since it is a field that is regularly updated, the policies of the government should also be updated accordingly. Because Nepali people are excellent in the development of
software, their work is preferred in other countries. Nepalis are taking jobs from countries like America, Japan, United Arab Emirates and South Korea. Foreign customers are satisfied with the service delivery of Nepali companies and human resources. The reason for this is of course the high quality of service and work style. However, there is an experience that Nepali customers do not give priority or trust in the ability of Nepali human resources.
There is a complaint that Nepali companies are not allowed to apply for large information technology projects due to the tendency to think that any product of any field is foreign. Such trend discourages Nepali companies. Another aspect that needs to be discussed in this context is that most of the money coming into Nepal from the export of information technology services comes from informal sources. It should be incorporated into a formal system.
