We have entered a decisive election moment. The fruition of the sacrifice made by our young Gen-Z. With the House of Representatives polls set for 5 March 2026 and the election code of conduct now in force, the country has a renewed opportunity to choose integrity, competence, and a clear vision for the future.

This election urges me to reflect on my initiatives so far. With gratitude for the progress made and renewed determination to do more, better, and faster.

Ra Swa Pa: The Unity Nepal Has Been Waiting For

After a long struggle, we have reached a turning point where the old politics must finally come to an end. Consensus is not built easily. It requires an end to ego, personal sacrifice, and a shared hope for the future. This is why Nepal needed Balen Shah. He showed us what leadership looks like when it is free from political baggage, and how new thinking can shake the system for the better.

This unity raises a signal. Nepal is ready for new faces, new energy, and a new political approach.
The real task now is to translate this hope into governance that delivers.

उकालो चढ्दै नयाँ रास्वपा
गहिरा नीतिगत, संस्थागत एवं संरचनात्मक सुधारहरु मार्फत आर्थिक-सामाजिक उन्नयन र सुसंस्कृत राजनीतिक अभ्यासको जगमा अर्को दश वर्षभित्र नेपाललाई सम्मानजनक मध्यम-आय भएको राष्ट्र बनाउने मार्गचित्रको इमान्दार कार्यान्वयनप्रति समर्पित छौं।

Why Tanahun Matters to Me

 I was born in Gorkha, just next door to Tanahun. So this region is not just a constituency on the map, but part of the community that shaped who I am.

Tanahun-1 was the first place I ran for national office, and it was here that the people placed their trust in me, electing me to the House of Representatives with a substantial mandate. That victory was not only a personal milestone but a testament to public confidence in ideas rooted in competence, good governance, and inclusive development, values I carry into every decision.

School Reform Program

Education Reforms has been one of my many initiatives. In partnership with United World Schools (UWS) across 10 schools, an initiative was launched with an aim to create an inviting learning environment through painting and renovation efforts that encourage children to attend school and engage in learning.

Laying the Groundwork for a Connected Tanahun

The long-neglected, dusty, and narrow Tanahun-1 section of the Prithvi Highway was upgraded and completed in 2080. Built with loan support from the Asian Development Bank, this international-standard highway has improved road safety, eased mobility, and reduced travel time and transportation costs. The upgrade has strengthened Tanahun’s connectivity with national economic corridors and everyday livelihoods.

My focus has always been on quality infrastructure that delivers real improvements in people’s daily lives. From safer highways to better connectivity, these investments were made to reduce travel time and costs, improve road safety, and link Tanahun more closely with national economic activity.

1तनहुँमा अन्तर्राष्ट्रिय स्तरको राजमार्ग २०८० मा निर्वाचन लड्दै गर्दा धुलाम्मे र साँघुरो रहेको पृथ्वी राजमार्गको तनहुँ-१ खण्डको स्तरोन्नति सम्पन्न भएको छ। एशियाली विकास बैंकको ऋण सहयोगमा बनेको यस सडकमा दुर्घटना न्यून होस्, आवागमनमा सहजता बढोस्, दूरी र लागत घटोस्। (भिडियो: सेतोपाटी) | Swarnim Waglé

www.facebook.com/reel/2256518724822224

Visited all the 5 municipalities in Tanahun-1, participating in over 20 local events

This matters because I believe leadership must be visible and grounded in people’s everyday realities. By being politically present in schools, municipalities, and community spaces, I ensure that representation translates into real, on-the-ground improvements. These engagements keep me accountable to the people of Tanahun-1 and allow local priorities to directly shape my work.

From Tanahun to Nepal

Tanahun provided a proving ground for a national vision. This is where politics became personal. Not in offices or stages, but in conversations, shared silences, and lived realities. Tanahun gave me trust and with it, humility. These images capture what words often miss: time spent listening, learning, and being accountable.

While a parliamentarian is elected by a constituency, the responsibility extends far beyond it. The trust placed in me carries a broader obligation, that is to contribute to national debates, strengthen institutions, and help shape policies that serve all Nepalis. Representation begins locally, but leadership must think nationally.

Every visit, every conversation, every shared concern deepened my responsibility.

बजेटपछि गाउँ गाउँ पस्दै, गोरखाको आरुघाट बजार

Representing Nepal Internationally

Beyond Parliament, my responsibility extends to how Nepal is represented internationally. Engaging with global policymakers, development partners, and diaspora communities is essential to advance Nepal’s economic interests, credibility, and voice in the world.

These moments reflect an effort to place Nepal confidently in international conversations, on development, climate, governance, and growth while ensuring that global engagement remains grounded in national priorities and public interest.

3C Campaign: Every Nepali Abroad Can Make a Difference

📞 CALL - Reach out to your family and friends back home. Share why this election matters. Explain what alternative politics means for Nepal's future.

🤝 CONTRIBUTE - Support in whatever way you can: financially, through social networks, by amplifying our message. Every contribution, no matter how small, strengthens our movement.

🗳️ CAST - Encourage your loved ones to cast their vote for the right candidate: someone capable, honest, and committed to genuine change.

This newsletter is prepared by the Secretariat of Swarnim Wagle

Dear Friends and Supporters,

Months have passed since the historic Gen-Z revolution that shook the foundations of our nation and gave us an opportunity: to reflect, to learn and to build. As we emerge, I write to you with a heavy heart and renewed purpose. The event has reoriented our nation's trajectory in ways we are only beginning to comprehend, but this change has come at an immeasurable cost.

Recent Developments

Australia's Federal Parliament: Strengthening International Partnerships and Diaspora Engagement

I recently had the privilege to travel to Australia for five days, my first visit in 12 years. With Nepalis now comprising 1% of the continental population, the opportunity to meet, dialogue, and interact with our community there was both necessary and deeply meaningful.The visit was intensive and purposeful: interaction sessions with community members in Sydney, Canberra, and Perth allowed for candid conversations about RSP's vision, Nepal's political transition, and how the diaspora can contribute to national transformation.

Participation in the 2025 Australasian AID Conference

I attended the Australasian Aid Conference at Crawford School, where I spoke at a panel on "Beyond Aid: Public finance, philanthropy and global public investment." I also participated in several sessions, including one chaired by fellow Harvard alumnus and MP from Canberra, Andrew Leigh on "The art and science of scale."

On the sidelines of the conference, I visited the Federal Parliament of Australia and made a courtesy call on another of the capital city's federal MPs, David Smith. We discussed bilateral economic relations, the expanding diaspora and future cooperation.

Please find some of the arguments I made in the Facebook link below:

विकास सहायताकाे संकट** अस्ट्रेलियन राष्ट्रिय विश्वविद्यालयको सौजन्यमा हालै राजधानी क्यानबेरामा विकास सहायता सम्बन्धी अन्तर्राष्ट्रिय सम्मेलनमा डा. स्वर्णिम वाग्लेद्वारा नेपाल र एसियाका उदाहरणसहित परम्परागत सहायताको विगत, वर्तमान र भविष्यबारे राखिएका धारणा।

www.facebook.com/reel/26335395136051179

These engagements reinforce not only on RSP's agenda but also in critical intellectual discourse on development strategy. Both pursuits are equally important.

United in Hope: Building the Alternative Nepal Deserves, Ra Swa Pa and Bibeksheel Together

Ujjwal Thapa was a visionary. He founded Bibeksheel with a dream that politics could be clean, that governance could be competent, that young people didn't have to choose between idealism and effectiveness.

Today, we move forward with his vision: not alone, but united.

The coming together of Bibeksheel and Ra Swa Pa is a historic testament to that vision. It is the convergence of two movements born from the same yearning for a new politics. We have chosen to bridge paths to build a stronger, singular force for change, proving that our shared ideals are far more powerful than any separate identity.

Watch: Paying tribute to Ujjwal Thapa

**विवेकशील र राष्ट्रिय स्वतन्त्र पार्टीको मिलन** वैकल्पिक राजनीतिका युवा प्रणेता एवं प्रिय भाइ स्व. उज्जवल थापा आजको समाचारबाट प्रफुल्लित हुने थिए। Rastriya Swatantra Party - RSP

www.facebook.com/reel/2330229000732044

The 3C Campaign: Every Nepali Abroad Can Make a Difference

As we approach this critical election, I am launching the 3C Campaign for Nepalis living abroad, a simple but powerful way for our diaspora to participate in building the Nepal we all envision:

📞 CALL - Reach out to your family and friends back home. Share why this election matters. Explain what alternative politics means for Nepal's future.

🤝 CONTRIBUTE - Support in whatever way you can: financially, through social networks, by amplifying our message. Every contribution, no matter how small, strengthens our movement.

🗳️ CAST - Encourage your loved ones to cast their vote for the right candidate: someone capable, honest, and committed to genuine change.

This is not just about one party or one election. This is about whether we, as a nation, are ready to break free from decades of the same failed politics. Every call you make, every conversation you have, every vote you help secure adds up to the critical mass needed for real change.

This newsletter is prepared by the Secretariat of Swarnim Wagle

As August comes to an end, I want to pause and recognize the enduring bond between Nepal and those of you living abroad.

This past month, I had the privilege of traveling to Calgary, Canada, as the Chief Guest of the ANA Nepali International Convention. To be among so many Nepalis who have built their lives abroad, yet carry Nepal so deeply in their hearts was profoundly moving. These gatherings are more than social reunions; they are living reminders of how much the diaspora continues to shape Nepal’s present and future.

369K views · 34K reactions | **क्यानडामा डोल्पाको झलक** | Swarnim Waglé

**क्यानडामा डोल्पाको झलक**.

www.facebook.com/reel/3217828408365222

Canadian Parliamentary Exchange: Diplomacy in Action

I had the privilege of participating in an interactive session hosted by the FCNCC in Mississauga. The gathering brought together Canadian and Nepali parliamentarians, business leaders, and members of the diaspora to reflect on how our two countries can deepen cooperation.

It was an honor to engage with Canadian Members of Parliament Kyle Seeback, Dan Muys, and Amarjeet Gill from the Conservative Party, as well as MP Sonia Sidhu from the Liberal Party. Meeting leaders across party lines underscored the broad, bipartisan goodwill that exists toward Nepal within Canada’s political community.

Flag pin exchange ceremony. Presenting Nepali pins to my Canadian counterparts and receiving a Canadian pin in return from MP Dan Muys

I am grateful to FCNCC President Bijay Paudel, the organizing team, and our venue sponsor, OptionTrain College, for curating a space that encouraged both serious policy dialogue and meaningful cultural exchange.

Nepali Diaspora: In Figures and Force

Let’s understand the economic importance of our Diaspora.

• Economic Guardians: In 2024, remittances reached an all-time high of 33% of GDP, cushioning Nepal through crises and covering more than half of the trade deficit in some years.

• From Survival to Stability: Migrant workers are not just laborers abroad—they are the backbone of Nepal’s present economy, often responding faster than official aid when disaster strikes.

• Knowledge & Innovation Bridges: Over 110,000 Nepali students left for higher education in 2023, compared to fewer than 10,000 in 2011. This is not “brain drain” but potential “brain circulation” if we create return pathways.

The Answer: From Guardians to Growth Engines

 Economic Guardians, Not Just Lifelines
The diaspora has shielded Nepal’s economy during crisis after crisis. It has kept households afloat, stabilized foreign reserves, and covered trade deficits. This survival role must be recognized with gratitude.

  But Survival Is Not Enough
Remittances, while vital, are consumption-driven and do not build lasting productivity. They cannot remain the foundation of Nepal’s growth story.

 Capitalizing on the Growing Diaspora
The diaspora is no longer only labor migrants. It now includes engineers, doctors, IT professionals, entrepreneurs, and academics. They embody the transition from economic migrants to global knowledge actors.

Standing with so many Nepalese in Canada reminded me that Nepal is not empty of potential. What it needs is direction, opportunity, and the channeling of this energy. Each of you has carried Nepal in your hearts, even while building lives abroad. Now, I urge you to see yourselves not only as guardians of Nepal’s past, but as architects of its future.

The call before us is clear: let us turn remittances into investments, networks into opportunities, and resilience into renewal. Together, we can build the Nepal our next generation deserves.

Ra Swa Pa believes the next chapter must harness the full strength of our diaspora, not only as remitters of income but as partners in knowledge, investment, and innovation. From remittances to brain circulation, from culture to capital, Nepal’s journey must be one of dignity, opportunity, and national renewal. Together, we can turn survival into prosperity, and possibility into progress.

RSP - Rastriya Swatantra Party

Welcome to National Independent Party

rspnepal.org

कुशे औंसी: गोरखाको भिरबाट शिक्षा, लगन र इमान्दारीको बलमा हाम्रो कुललाई विश्वभर फुल्न सक्ने स्वाभिमानी मध्यमवर्गीय परिवारमा रूपान्तरण गर्न आमाबुवाको मुख्य देन छ। राजनीतिमा आउनाको परोक्ष प्रेरणा पनि। पिता-पुत्रबारे सानोमा सुनेको थिएँ यो श्लोक: पाँच वर्षसम्म मायाले पाल्ने, त्यसपछिको १० वर्ष अनुशासन दिने, १६ नाघेपछि मित्रजस्तै व्यवहार गर्ने। लालयेत् पञ्च वर्षाणि, दश वर्षाणि ताडयेत् । प्राप्ते तु षोडशे वर्षे पुत्रं मित्रवदाचरेत् ॥

As always, I believe in staying connected and transparent about the work we’re doing, whether in Tanahun (my constituency), on the national stage, or in international forums. July was a month of listening, engaging, and pushing for progress across key areas like education, economic reform, and public accountability. Here’s a quick snapshot of the month’s highlights, reflections, and ongoing efforts.

This July, we completed the first annual review of the School Reform Program. Soon after being elected as Member of Parliament, a new pilot program in the education sector was launched in partnership with United World Schools (UWS) across 10 schools. With generous support from Surya Nepal, the initiative aimed to create an inviting learning environment through painting and renovation efforts that encourage children to attend school and engage in learning. The program will gradually be expanded to cover all municipalities within Tanahun-1.

As part of this broader effort, we also launched the “Dignified Teachers for Quality School Education” campaign. The goal is to strengthen student learning by empowering motivated, dedicated, creative, qualified, trained, and well-equipped teachers. To sustain impact, we are committed to mobilizing additional resources to address the critical needs identified by teachers, school management committees, and parents.

I’m grateful for the strong collaboration among teachers, school management committees, parents, and local governments. Classrooms are cleaner, learning environments are improving, and community ownership is growing.

During my recent visit to Biratnagar, I had the opportunity to participate in a dynamic policy dialogue organized by the Chamber of Industries Morang. 

The discussion focused on RSP’s evolving economic vision and its relevance for Nepal’s industrial future. It was heartening to hear directly from local entrepreneurs about the challenges they face and the reforms they hope to see. I was joined by fellow MP Manish Jha, and together we reaffirmed our commitment to fostering a more enabling environment for private sector growth and innovation.

I was recently invited to speak at a regional webinar hosted by the Asia Foundation, “Crisis or Catalyst? Asia’s Take on the Future of Aid and Development Cooperation.” 

It was a timely discussion on how countries like Nepal and others across Asia are reshaping the future of development aid, moving from passive recipients to proactive partners. I shared Nepal’s own development experience, the need for more tailored cooperation, and why reforming the global aid architecture is both urgent and possible.

28K views · 2.2K reactions | **विकास सहायताको भविष्य** एसिया फाउन्डेसनको सौजन्यमा हालै भएको बहसको अंश। पुरा भिडियो: https://tinyurl.com/5n8emknh | Swarnim Waglé

**विकास सहायताको भविष्य** एसिया फाउन्डेसनको सौजन्यमा हालै भएको बहसको अंश। पुरा भिडियो: https://tinyurl.com/5n8emknh.

www.facebook.com/swarnim.wagle/videos/1129939165851017

In recent weeks, the Rastriya Swatantra Party has intensified its national signature campaign. It is an initiative aimed at building grassroots awareness for political accountability and structural reform. RSP volunteers and leaders have been engaging citizens directly, collecting signatures in support of the party’s reform agenda. The strong public response reflects growing disillusionment with the status quo and a collective appetite for change.

110K views · 9.6K reactions | **घण्टी घरमा चहलपहल. संसदीय गतिविधि, प्रवास र गाउँ-शहरमा हस्ताक्षर अभियान, संगठन र वैचारिक प्रशिक्षणको विस्तार -- '८४ को अविरल तयारी। | Swarnim Waglé

**घण्टी घरमा चहलपहल. संसदीय गतिविधि, प्रवास र गाउँ-शहरमा हस्ताक्षर अभियान, संगठन र वैचारिक प्रशिक्षणको विस्तार -- '८४ को अविरल तयारी।.

www.facebook.com/swarnim.wagle/videos/1026798829629918

Special Reading

Electric Mobility in Nepal: A Vision Realized

A recent New York Times article (July 28, 2025) highlighted Nepal's remarkable transformation: approximately 76% of newly imported four-wheeled vehicles are now electric—among the highest rates globally.

When I served as Vice Chair of Nepal’s National Planning Commission, I advocated for a strategic shift toward electric mobility not just as a symbolic gesture, but as a long-term investment in our clean energy future. In 2017, we launched an early procurement of electric vehicles for government use. At the time, it was seen by many as aspirational. But I saw it as a necessary first step toward realigning Nepal’s transport policy with our hydropower advantage and climate commitments.

I am proud that this early policy stance helped lay the foundation for today’s EV ecosystem, one that now supports cleaner technologies with lower import duties, growing infrastructure, and growing consumer confidence. Nepal is showing the world what is possible when policy, market conditions, and environmental priorities align.

As we look ahead, I remain committed to accelerating this transition, especially through policies that expand EV access to public transport, ensure battery safety and recycling, and maintain long-term fiscal and environmental sustainability.

More on this:

Nepal shifts gears as EVs hit 73 percent of 4-wheeler imports

China dominates Nepali EV market as the hydropower-rich country struggles to align energy policies.

kathmandupost.com/money/2025/07/28/nepal-shifts-gears-as-evs-hit-73-percent-of-4-wheeler-imports

• This newsletter is prepared by The Office of Swarnim Wagle, MP.

As Nepal navigates a critical moment for its economy and governance, here’s a quick round-up of my key engagements, reflections, and stances over the past two months, from the national budget to broader institutional reform.

🗓️ On Thursday, May 29, 2025, the Government of Nepal announced a total budget of Rs. 1.96 trillion for the upcoming fiscal year. While the overall size may seem aligned with macroeconomic projections, key concerns remain regarding realism, execution, and accountability.

🔹 Budget Size and Macroeconomic Alignment

• The National Statistics Office projects GDP (at consumer prices) to reach Rs. 61.07 trillion, with real growth rate of 4.61%.

• With projected currency appreciation (5.5%) and inflation, nominal GDP could expand by 11–11.5%, crossing Rs. 66 trillion.

• Given these projections, the budget size of Rs. 1.96 trillion is not inherently overambitious. But credibility hinges on execution and past experiences suggest otherwise.

Lets look at the trends:

🔹 Persistent Gaps in Budget Execution

• Historically, Nepal has only utilized around 80% of its budget on average, even during periods of political stability and a relatively conducive environment for implementation.

• Recent example underscores this pattern: as of May 28, 2025, only Rs. 1.23 trillion had been spent from the previous fiscal year’s Rs. 1.86 trillion allocation.

• Nepal’s record doesn’t indicate an expenditure capacity above an average of Rs. 1.50 trillion.

🔹 Mounting Fiscal Pressure

• Foreign grants (ODA) are declining, reducing Nepal’s concessional financing options.

• Tax revenue remains limited and uneven, failing to keep pace with rising expenditure.

• As a result, to meet the expenditure target, government needs to borrow nearly Rs. 600 billion.

• Heavy reliance on loans without structural reforms risks deepening the debt burden without real development outcomes.

🔹 RSP continues to raise a critical question: Does the state have the capacity to deliver what it promises? It advocates for smarter spending, effective delivery, and strong oversight not just larger budgets financed through borrowing.

Our protest against human trafficking continues. From the Parliamentary House to the Road.

The current deadlock in Parliament is not political theater. It is a matter of principle. It is about confronting a deeper crisis; the erosion of public trust in state institutions.

RSP continues to take a firm stand demanding accountability in the wake of the visit visa scandal.

Question persists: Why hasn’t RSP given into the agreement between Maoists and the ruling party.

🔹 RSP’s stand is clear:

• RSP and I have taken a principled stand: we will not allow Parliament to proceed as usual while such serious allegations remain unaddressed.

• We demand the formation of a high-level independent or judicial investigation committee to uncover the full extent of this scandal.

• We refuse to let Parliament operate under a cloud of suspicion and denial.

• Until the government shows a willingness to come clean, resuming business-as-usual would be a betrayal of public expectation.

Whether in Kathmandu or abroad, the message is clear: Nepalis are ready for change and they are watching closely. These engagements are not just symbolic; they are strategic. By broadening the dialogue and deepening our connections, we lay the groundwork for long-term collaboration, strengthening our shared vision and keeping the spirit of national unity alive.

1. I traveled to Leicester from London to attend the inaugural convention of the RSP Foreign Nepali Liaison Department. Grateful for the opportunity to engage with our well-wishers and supporters in the area.

📍 Leicester, UK | RSP Abroad

2. I had the pleasure to engage in the program of Nepali Contact Forum India held in Miraroad, Mumbai, India.

For more on my interaction:

भारत प्रवासमा बसेका नेपालीहरूको समस्या बारेमा विशेष कुराकानी Dr Swarnim wagle | भारत प्रवासमा बसेका नेपालीहरूको समस्या बारेमा राष्ट्रिय स्वतंत्र पार्टी का उपसभापति ' प्रतिनिधि सभा सदस्य एवम् सांसद माननिय.डा स्वर्णिम वाग्ले संगको कुराकानी | By Lalita Malati Singh | Facebook

भारत प्रवासमा बसेका नेपालीहरूको समस्या बारेमा राष्ट्रिय स्वतंत्र पार्टी का उपसभापति ' प्रतिनिधि सभा सदस्य एवम् सांसद माननिय.डा स्वर्णिम वाग्ले संगको कुराकानी

www.facebook.com/lalitamalati015/videos/4096041627327476

Nepal Rastra Bank’s recent amendment to the Foreign Investment and Foreign Loan Management Regulations (2078), allowing IT companies to invest up to USD 1 million abroad is more than a technical update. It marks a long-overdue action for the broader reform agenda that I have championed for decades: opening Nepal’s economy to the world, enabling global competitiveness, and empowering emerging sectors like IT to scale beyond borders.

@swarnimwagle_official

नेपालमा डिजिटल उद्योगहरुको सम्भावना.

For years, I have emphasized that digitization and IT are central to Nepal’s growth strategy. (More on this on my previous newsletter: New Source of Growth: Modern Tradeable Services)

Restrictive capital account policies are misaligned with the demands of a modern, export-oriented economy. I have advocated for a pragmatic and risk-calibrated approach to liberalizing outward investment for knowledge-based sectors like IT.

Under my chairmanship at IIDS, our research on the digitization of Nepal highlighted the urgency of enabling our tech ecosystem to connect with global markets.

I’m encouraged to see policy a movement in that direction and confident that this is only the beginning of bigger opportunities for Nepal’s innovators.

• This newsletter is prepared by The Office of Swarnim Wagle, MP.

In Memory of Ujwal Thapa (7 January 1977 – 1 June 2021)

This past month also marked another year without Ujwal Thapa. I remember him not just as a political pioneer, but as someone whose honesty, humility, and hopefulness left a lasting impression on all of us who knew him.

His absence is still deeply felt.

It is hard to ignore the quiet frustration in the capital air. The recent strikes, marked by clashes, traffic paralysis, and tragically, the loss of lives, is sorrowfully unsettling. Yet, even amidst this turbulence, we cannot pause the work of rebuilding, tracing the quiet signals beyond the noise, and highlighting the spaces where hope still lives. Because progress, even when fragile, must be made visible. 

Let’s start with the bigger questions.

For most of human history, economic growth remained stagnant, with annual expansion hovering around zero percent (in one decimal place). That changed in 1820, when the First Industrial Revolution (IR) triggered a wave of mechanized production leading to sustained income growth. Since then, each industrial revolution has reshaped economies:

So, historically, yes—more output meant more energy, materials, and labor. Yet, the Fourth Industrial Revolution challenges this link, offering a path where growth is beginning to be decoupled from carbon emissions.

Does Nepal have to follow the typical development model?

Many economies have relied on industrialization—starting with labor-intensive manufacturing, moving up the value chain, and eventually transitioning to a service-led economy.

But Nepal’s geographic constraints, lack of industrial infrastructure, and growing digital capabilities suggest that it may not need to follow the traditional manufacturing-led growth trajectory. Instead, Nepal could leapfrog directly into a knowledge- and service-driven economy, leveraging digital transformation, fintech, and eco-tourism to drive growth without excessive resource consumption.

Why Digital Growth Matters for Nepal?

 📊 A Growing Contributor to GDP and Foreign Exchange Reserves

Source: Institute for Integrated Development Studies

In just three years, Nepal’s digital economy has made a quiet leap from the margins to the mainstream. In 2022, the contribution of IT companies and freelancers combined accounted for 1.4% of Nepal’s GDP—up from just 1.0% in 2020. But the real story lies in foreign exchange: digital service exports brought in a striking 5.5% of total forex earnings, nearly doubling since 2020.

Freelancers alone contributed 3.4% of total forex in 2022—outpacing several traditional export sectors. Meanwhile, IT companies saw their forex contribution grow nearly threefold (from 0.8% to 2.2%) over the same period.

💻 A Scalable, Talent-Driven Growth Engine

The IT sector is one of the few industries in Nepal with the potential to stem brain drain by offering global opportunities at home. Believed to be a gross under-estimate at the time of the survey, there are over 66,500 freelancers and 106 IT export companies already delivering digital services worldwide. The foundation is set.

Meanwhile, the country's 137% mobile phone penetration and rising mobile broadband access (46%) offer scalable channels to connect talent with markets—despite low fixed broadband adoption. With the right digital infrastructure and support systems, Nepal can position itself as a hub for remote-first innovation, keeping its skilled youth engaged, employed, and empowered.

🌐 Reducing trade dependency on neighbors

Nepal’s economy has long leaned on its neighbors—India and China—for merchandise trade and transit. But this dependence comes with risk: geopolitical tensions, border delays, and fragile supply chains regularly disrupt the flow of traditional exports like textiles, agricultural goods, and even electricity. Geography, in many ways, has dictated Nepal’s economic fate.

But digital exports break that boundary.

Whether it’s a line of code, a machine learning model, or a fintech solution, IT services don’t need a highway or a seaport—they travel at the speed of the internet. This makes Nepal’s digital economy not just a growth sector, but a geostrategic advantage. By investing in cloud-powered, borderless exports, Nepal can diversify its trade portfolio, reduce external vulnerabilities, and reimagine its role in the global economy—not as a landlocked nation, but a digitally connected one.

 🌍 Window of Opportunity in a Booming Global Market

The global digital economy is growing at an exponential pace. Worldwide IT spending is projected to reach USD 5.04 trillion by 2024, growing at 8.6% annually. Countries like India, Bangladesh, and Vietnam have successfully leveraged IT exports to accelerate economic growth. By investing in digital infrastructure, upskilling the workforce, and fostering innovation, Nepal can position itself as a rising player in the global digital marketplace.

How Nepal Can Accelerate Digital Growth?

Strengthening Digital Infrastructure: Closing the Connectivity Gap

Let’s look at where we rank, globally:

• Expand Fiber Optic & 5G Infrastructure: Nepal ranks 120th in global broadband speed. Expanding high-speed broadband to rural areas could unlock remote work and digital entrepreneurship. 5G adoption is imperative.

• Enhance Cybersecurity & Data Protection: Nepal is ranked 109^th in the National Cyber Security Index , 140^th in the ICT Development Index and 115^th in Networked Readiness Index. These rankings reflect weak cyber defense mechanisms and limited digital infrastructure and accessibility. Strengthening cybersecurity policies, expanding ICT access, and integrating digital solutions into key sectors are essential to improving Nepal’s digital readiness.

• Establish IT Parks & Special Economic Zones (SEZs): Bangladesh’s Hi-Tech Park initiative has created 40,000+ IT jobs and attracted over USD 600 million in foreign investment. Nepal could implement a similar Digital SEZ strategy to attract global IT firms.

Investing in Human Capital: Retaining Nepal’s IT Talent

Tackling Brain Drain: Nepalese companies must scale up investments, enhance salary competitiveness, and create an innovation-driven ecosystem to retain and utilize local talent effectively.

Up-skilling Workforce for High-Demand IT Sectors: AI-driven automation is reshaping jobs globally, with rising demand for AI specialists, data analysts, and cybersecurity experts across South Asia. Yet, skill gaps remain. To stay competitive, companies must invest in upskilling, and Nepal must expand digital training programs to meet global IT demands and retain its talent.

 Leveraging Remote Work & Digital Entrepreneurship: With 66,500+ freelancers, Nepal ranks among South Asia’s leading gig economies. Yet, payment restrictions continue to block international earnings. Integrating platforms like PayPal and Stripe could boost remittance inflows and formalize IT exports. Paired with tax incentives and startup support, Nepal has the potential to become a regional hub for remote work and digital entrepreneurship.

Policy & Regulatory Reforms: Making Nepal IT-Ready

📌 Simplify Startup Rules:
Nepal ranks 94th in the World Bank’s Ease of Doing Business index, signaling hurdles for startups. A streamlined Startup Act, inspired by India’s model, could ease registration, taxation, and help attract VC funding into Nepal’s emerging tech space.

💸 Enable Global Payments:
Integrating PayPal, Stripe, and other global gateways would formalize earnings, boost forex inflows, and empower the gig economy.

🌐 Boost FDI in IT:
IT now accounts for 6.7% of Nepal’s total FDI stock (a 55% jump from 2022). With $515M in IT exports, it’s Nepal’s top export sector. Clearer rules, stronger infrastructure, and pro-innovation policy can position Nepal as a serious digital investment destination.

Nepal’s Digital Momentum Is Picking Up

Nepal is making quiet but meaningful strides toward a digital economy. The High-Level Economic Reform Commission, chaired by Rameshwor Prasad Khanal, has recognized the growing role of youth-led, tech-based services and remote work.

A small but impactful policy—allowing access to prepaid cards up to $500—has already helped many freelancers cover essential costs and tap into global markets.

With smoother forex access and better digital payments, this sector could become a major source of jobs and foreign exchange. The shift is real—and just getting started.

Acknowledgment

The data and insights presented in this newsletter are drawn from a study conducted by the Institute for Integrated Development Studies (IIDS), which I chair. The study revealed the significant, yet largely untapped potential of Nepal’s IT sector, and was undertaken with the goal of informing policy, investment, and public dialogue around digital transformation.

• This newsletter is prepared by The Office of Swarnim Wagle, MP.

Earlier in 2024, my office started a newsletter hoping to connect with well-wishers across the world. This was expected to be issued every few months, but the exigencies of a peripatetic political life intervened, and we could not. I am pleased that we are now resuming this endeavor with a pledge to be more regular.  This issue focuses on the climate crisis, drawing on thoughts I gathered to present at multiple sideline forums during the 29^th Conference of the Parties (COP29) to the United Nations Framework Convention on Climate Change (UNFCCC) held in Baku, Azerbaijan in November 2024. 

Peaks of Peril, Plains of Promise: Nepal’s Climate Challenges

As we close the eventful year of 2024, I extend my warm wishes for health and happiness to you and your loved ones. The turning of the calendar invites us to take a moment to reflect and renew—an opportunity to reconnect with our roots and reaffirm our collective commitment to the future well-being of Nepal. 

This year, Nepal stands at a crossroad, grappling with the escalating impacts of climate change while holding onto the hope for a sustainable and resilient future. As we face the pressing realities of climate change, the story of Nepal unfolds as one of both immense challenge and inspiring resilience. In recent months, devastating floods across the country, exacerbated by climate change, serve as a stark reminder of the fragility of our environment and the urgency of collective action. In this newsletter, I focus on climate change—an existential issue that transcends borders and generations. Nepal’s unique ecology not only positions us at the frontline of the climate crisis, but also gives us the opportunity to lead.

2025 must be a year we step up—COP30 (UN’s climate conference) will take place in Brazil where in 1992 the landmark UN Conference on Environment and Development (UNCED), also known as the Earth Summit resulted in the United Nations Framework Convention on Climate Change (UNFCCC).

Nepal’s Recent Climate Shocks: Lessons from the Mountains

In 2024, Nepal faced some of its most devastating climate-related disasters, underscoring the vulnerability of its ecosystems and communities. On August 16, a Glacial Lake Outburst Flood (GLOF) in the Everest region swept through the village of Thame, displacing 135 people and destroying 25 homes, a health post, a hydroelectric plant, and a vital bridge. The floodwaters traveled over 85 kilometers downstream along the Dudhkoshi River, wreaking havoc along its path far beyond the point of origin. This tragedy stemmed from a glacial lake no larger than an Olympic swimming pool—one not even considered high risk. Alarming still, only five of the 200 potentially dangerous glacial lakes in the Hindu Kush Himalayas (HKH) are currently monitored.

Source: The Kathmandu Post

https://kathmandupost.com/national/2024/08/16/flood-in-solukhumbu-destroys-12-houses

A month later, In September, Nepal faced its heaviest post-monsoon rainfall in 54 years, with 323 millimeters recorded in just 24 hours. The flood claimed 250 lives, displaced thousands, and caused $346 million in economic losses. World Weather Attribution (WWA) links this intensified rainfall to climate change, which has made such events 10% stronger and 70% more likely. Poor urban planning and a lack of preparedness continues to further exacerbate the devastation.

Between 2017 and 2021, Nepal lost over 2% of its GDP (national output) annually due to climate-induced disasters. By 2030, this figure could rise to 5%. 

Source: The World Bank Climate Change Knowledge Portal

https://climateknowledgeportal.worldbank.org/country/nepal/vulnerability

The chart above highlights the impact of various natural hazards affecting Nepal from 1980 to 2020, demonstrating the increasing frequency and intensity of disasters such as floods, landslides, and earthquakes.

The Himalayas, warming faster than global averages, are at the forefront of climate change. Elevation-Dependent Warming and regional pollutants like black carbon are accelerating glacial melting, threatening water supplies for billions. Even if global warming is limited to the 1.5°C target, the Hindu Kush Himalaya (HKH) region is projected to experience disproportionate warming, with temperature increases of 0.3°C in the HKH and 0.7°C in the northwest Himalayas. 

These events are not just wake-up calls but a rallying cry for immediate action—stronger monitoring, better planning, and greater investments in climate resilience.

From Policy to Action: Empowering Communities

Nepal’s ability to confront escalating climate challenges lies in harmonizing modern governance frameworks with its deeply rooted community-based resilience.  The National Climate Change Policy (2019), which has committed 80% of climate finance to the local level, exemplifies how governance can empower grassroots solutions. This decentralization not only empowers local level decision-making but also integrates modern climate strategies with indigenous knowledge systems that have sustained communities for centuries. 

Nepal’s community forestry program is an outstanding example of this amalgamation. Once plagued by deforestation, community-led initiatives have transformed local forests into thriving ecosystems. Covering 45% of Nepal’s territory, community forests are a global success story, providing livelihoods, sequestering carbon, and serving as natural buffers against floods and landslides. These efforts are further supported by the Local Adaptation Plans of Action (LAPA), which empower 753 local governments to craft climate strategies, blending local expertise with broader national policies.

Confronting Costs

This synthesis is not without challenges. The cost of climate adaptation by 2030 is estimated at $47 billion—far exceeding the country’s average annual GDP. The funding gap for Nepal’s adaptation needs at the national and the local level stands at 85%, Even if funds are available, institutional challenges limit Nepal’s ability to utilize them effectively. Fragmented policies (NDCs, NAPs, NBSAPS, INFFs and sector plans), and the absence of system-wide economic thinking approaches also hinder the development of bankable climate projects.

Despite the establishment of a Loss and Damage Fund at COP28, Nepal and other vulnerable nations face significant challenges in scaling, accessing and utilizing these resources. At the recent COP29 in Baku, I emphasized that 97% of Nepal’s climate funding needs rely on external sources. This dependence highlights a deeper issue: the need for regional collaboration and stronger global partnerships to support countries like Nepal.

Strategizing for Climate Preparedness: Bridging Gaps

Amid escalating climate shocks, a proactive approach is vital to mitigate risks and safe’uard Nepal's future. An emerging consensus highlights the critical need for pre-agreed, pre-financed, and rules-based mechanisms to enhance preparedness.

1. Bridging the Action Gap: The first foundational step is to strengthen institutional frameworks and integrate climate priorities into development planning. Agencies such as the National Disaster Risk Reduction and Management Authority (NDRRMA) must align efforts across forestry, finance, agriculture, and energy to enhance disaster preparedness and response. Local capacity development is critical, as they are the first responders. This necessitates investments in multi-hazard early warning systems and a focus on operational excellence to ensure effective implementation at all levels.

2. Closing the Knowledge Gap: The second step is to address climate risks through a comprehensive understanding of systemic, non-linear, and transboundary challenges. Effectively balancing ex-ante (preventative) and ex-post (reactive) risk management strategies relies strongly on robust data collection and analysis. Disaster risk reduction should be integrated into national curricula, urban planning frameworks, and infrastructure standards. Leveraging advanced digital tools and fostering public-private partnerships can enhance disaster preparedness, ensuring gender-sensitive and multi-sectoral strategies are at the core.

3. Tackling the Governance Gap: The third step is reforms in international financial and investment architectures that are critical in meeting the scale of climate challenges. Outdated aid systems with rigid cycles and inefficiencies must be replaced by agile, direct funding mechanisms like the Loss and Damage Fund. These mechanisms can seamlessly integrate climate adaptation into national development strategies, fostering more responsive and effective solutions. Sustainable financing must be bolstered through innovative mechanisms like blended finance, carbon taxes, and international tax reforms to close the significant funding gap. 

Uniting Beyond Borders: Global Synergies for Nepal’s Climate Fortitude

The Himalayas, often referred to as the “Third Pole,” store the largest amount of frozen water outside the Arctic and Antarctic. They feed ten major river systems, including the Ganges, Brahmaputra, and Mekong, providing sustenance to nearly 2 billion people across South and Southeast ’sia.

Nepal's unique position in the Himalayan region places it at the center of ecological and hydrological systems that cross national boundaries. Therefore, the challenges Nepal faces—melting glaciers, black carbon pollution, and erratic monsoons—cannot be solved in isolation. Climate risks do not respect the man-made borders. Solutions are therefore inherently transboundary, demanding collective solutions.

The ecological interconnectedness of the region demands collaborative management of shared resources. Regional agreements on water sharing, disaster preparedness, and air quality management could mitigate risks while fostering trust and cooperation. For example, shared protocols for monitoring glacial lakes and managing river basins can prevent catastrophic floods while securing livelihoods downstream.

Achieving Nepal’s climate goals, one of them being net zero by 2045, requires innovative financing mechanisms. Blended finance—combining public and private investments—can fund large-scale adaptation projects, while policies like carbon taxes, financial transaction taxes, and wealth taxes can generate sustainable revenue streams.

Real progress requires collective action. With varied power dynamics, shared data protocols, regional climate funds, and derisked decarbonization efforts can balance these power asymmetries. The responsibility of protecting the Himalayas is beyond Nepal’s: it is a global imperative.

The need to address climate change in Nepal cannot be overstated. Escalating disasters, fragile ecosystems, and resource challenges pose significant threats, but they also present opportunities for innovation, collaboration, and leadership.

Nepal's resilience and tradition of community-led initiatives offer a foundation for progress. Together, we can turn challenges into opportunities, transforming peaks of peril into plains of promise.

Memories from Baku

In Azerbaijan, I engaged in a series of high-level events and bilateral meetings on Nepal’s critical challenges, including the operationalization of the Loss and Damage Fund and transboundary climate risks. A notable highlight was an informal session where Prof. Jeffrey D. Sachs, the globally renowned Columbia  academic, who made a personal connection to his student. Do watch:

https://www.facebook.com/31526/videos/pcb.10115986562472451/974828694661567

Additional resources

https://www.facebook.com/swarnim.wagle

https://www.linkedin.com/in/swarnimwagle/

https://x.com/SwarnimWagle

• This newsletter is prepared by The Office of Swarnim Wagle, MP.