US Eyes Expansion in Nepal's ICT Sector

US Assistant Secretary of State for South and Central Asian Affairs, Paul Kapur, held a special meeting with Nepali information and communications technology (ICT) entrepreneurs on Monday, signaling growing American interest in Nepal's digital economy.

The meeting is seen as particularly significant given that the United States is already the primary market for Nepal's ICT industry. Kapur, who is currently on a visit to Nepal, used the official X (formerly Twitter) handle of the South and Central Asia Bureau to share details of the discussion.

"Had a great discussion with leading IT industry figures on expanding US commercial opportunities in Nepal's ICT sector," Kapur wrote. "Conversations also covered strengthening digital infrastructure, the use of artificial intelligence (AI), cybersecurity, and sharing American technology."

According to Nepali entrepreneurs who participated in the meeting, Kapur showed keen interest in the current state of Nepal's ICT sector and the potential role the US could play in its development.

Karveeka Thapa, Co-Chair of the IT Council at the Confederation of Nepalese Industries (CNI) and CEO of Kimbu Tech, said the US side sought to understand the realities of Nepal's IT sector and possible avenues for collaboration with the United States. Thapa added that Kapur also inquired about the role CNI could play in that process.

During the discussions, Nepali entrepreneurs raised concerns about domestic tax policies and the overall business environment. "We informed them that freelancers in Nepal pay 5 percent income tax, but if they register a company, they have to pay 40 percent," Thapa said. "As a result, many people are registering companies abroad and simply employing freelancers here."

The entrepreneurs also requested US assistance in establishing Nepal's ICT identity in the American market through US media or the Chamber of Commerce.

Last year, with the aim of promoting Nepal's ICT sector internationally, CNI organized its first international roadshow, called "Tech Peak Nepal," in Orlando, Florida, in collaboration with the American Chamber of Commerce in Nepal (AmCham). The event, held from March 24 to 27, 2025, played a significant role in introducing Nepali companies to the US market.

"We explained that we can help reduce operational costs for US IT companies by providing quality and committed manpower, and that the US stands to benefit from that," Thapa said.

The meeting was attended by six IT entrepreneurs, including Laxman Basnet, General Manager of Security Pal, and Kailash Vijay Anand, President of AmCham and COO of Leapfrog.