Nepal's IT Services Sector Surges Past $1 Billion in Exports, Driven by AI and Software Development
Nepal exported over $1 billion in IT services for the first time in 2025, more than double the amount from three years prior, driven by growth in software development, AI services, and data processing. For a country with a $45 billion GDP where tourism and remittances are traditional economic pillars, this represents a significant economic shift. The growth reflects broader trends of tech companies establishing operations in Nepal to access skilled talent and leverage the country's abundant hydroelectric power.
Nepal achieved a milestone in 2025 by exporting more than $1 billion in IT services for the first time, according to The Kathmandu Post, more than doubling exports from three years earlier. The growth is driven by software development, AI services, and data processing work for international companies, particularly Australian firms. While $1 billion is modest by Western standards, it is substantial for Nepal, whose GDP is approximately $45 billion and whose economy traditionally relies on tourism and remittances from expatriates. Tech entrepreneurs like Pukar Hamal, CEO of SecurityPal, are expanding operations in Nepal, with his company opening a Kathmandu office employing nearly 200 people. An initiative called Silicon Peaks aims to attract investment and facilitate Western companies' access to Nepal's talent pool, which benefits from a STEM-focused education system and proximity to major Asian markets. Nepal's abundant hydroelectric power—which provides nearly all electricity at a fraction of U.S. costs—offers additional advantages for tech operations, though the country's data center infrastructure remains nascent with only 10 operational facilities.
What's missing
The article does not provide independent verification of the $1 billion export figure beyond citing The Kathmandu Post, nor does it include perspectives from Nepali government officials, labor economists, or workers in the sector regarding wage impacts or working conditions. The claim about USAID funding cuts appears incomplete in the provided text.
What different sources said
- ReasonRight
The Next AI Success Story Might Be Nepal
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