Nepal’s information technology sector has reached a major milestone, with industry representatives estimating that service exports will have crossed the $1 billion mark in 2025. The figure suggests that IT exports have more than doubled since 2022, when a study by the Institute for Integrated Development Studies placed earnings at around $515 million.
The latest estimate, provided by the Nepal Association for Software and IT Services, is based on industry growth trends of about 20 per cent annually. While a detailed survey is expected later this year, sector leaders say current hiring and business expansion indicate that the billion-dollar threshold has likely been reached.
Nepal’s IT earnings come from software development, outsourcing, artificial intelligence services, US healthcare data analytics and Australian home loan processing. Several companies now employ thousands in these niche segments, with most operations concentrated in Kathmandu.
Employment in the sector is estimated at around 100,000, up from over 70,000 three years ago. If current growth continues, industry leaders believe tech-enabled jobs could reach 500,000 within a decade.
However, challenges remain. There is no clear mechanism to track IT export earnings through the central banking system, as many payments are recorded as remittances. Foreign direct investment in tech is also limited, and policy instability, including frequent tax changes, has raised concerns among businesses.
Researchers say sustaining momentum will require curriculum reform, stronger digital infrastructure and long-term policy clarity. The return of diaspora entrepreneurs has helped drive recent growth, but experts warn that without institutional readiness and investment in skills, Nepal risks missing its opportunity in the fast-changing global digital economy.