Nepal Bets on AI and IT as the Fastest Route to Jobs and Economic Growth
Rajendra Malla says Nepal must turn artificial intelligence and information technology into core economic engines to create jobs, strengthen the national economy, and slow youth migration.
Nepal’s next big growth story could come from code, data, and digital services. Speaking at the inauguration of Tech Paila in Pokhara, former Nepal Chamber of Commerce president Rajendra Malla said artificial intelligence and information technology are essential for economic prosperity and job creation, especially if Nepal wants to reduce the pressure of youth migration.
Malla’s message was direct: Nepal cannot rely on traditional sectors alone if it wants to keep young talent at home. He argued that the government needs clear policies and meaningful investment to make IT a true pillar of the national economy, not just a side industry.
Why AI and IT matter now
Malla’s remarks reflect a wider policy direction already taking shape in Nepal. The country’s 2025 National Artificial Intelligence Policy sets an ambition to increase the IT sector’s contribution to GDP, expand AI use across public services, and build thousands of skilled AI workers. It also calls for stronger investment, public-private partnerships, and support for AI startups.
That broader national strategy aligns with the view that AI can strengthen sectors such as agriculture, education, health, finance, public services, and security. Research on Nepal’s AI landscape also points to the technology’s potential to improve productivity, create new businesses, and open up work in IT and business process outsourcing.
A warning about youth migration
At the heart of Malla’s comments is a familiar challenge for Nepal: many young people leave the country in search of better-paying jobs abroad. By building a stronger digital economy, he said, Nepal could create more opportunities domestically and make staying in the country a more attractive option.
That argument is echoed by other analyses of Nepal’s AI future, which describe the sector as a source of new roles in areas like data analysis, model training, digital strategy, and software services. In other words, AI is not just about automation - it is also about new kinds of work.
Pokhara’s signal to the broader tech ecosystem
The launch of Tech Paila in Pokhara adds another sign that Nepal’s tech scene is expanding beyond Kathmandu. Regional tech growth matters because it can spread opportunity more evenly, encourage local entrepreneurship, and create digital jobs outside the capital.
If local startups, investors, and policymakers can work together, the result could be a stronger pipeline from training to employment. That is especially important in a country where digital skills can connect young people to both domestic jobs and global remote work opportunities.
What Nepal needs to do next
Malla called for proper policy and investment, and the current policy framework suggests several practical priorities. Nepal will need better digital infrastructure, stronger AI and ICT education, support for startups, and incentives for private sector investment if it wants to turn ambition into measurable growth.
The opportunity is clear: AI and IT could help Nepal build a more productive economy, expand skilled employment, and reduce the brain drain that has shaped the country’s labor market for years. The harder task is execution, and that will depend on whether government and industry move fast enough to match the scale of the opportunity.