Digital Governance in Nepal: Progress, Challenges, and the Road Ahead

In the digital age, governments worldwide are turning to technology to enhance service delivery, ensure transparency, and bring citizens closer to the state. Nepal, despite being a developing country with infrastructure limitations, is making bold strides in this direction. From e-passports to the Nagarik App, digital transformation is slowly reshaping how Nepali citizens interact with the state. However, the journey of digital governance in Nepal is still a work in progress.

According to the United Nations E-Government Development Index (EGDI) 2022, Nepal ranks 125th out of 193 countries, with a score of 0.5117. This moderate score reflects both the efforts and the challenges faced by the country in strengthening its digital governance infrastructure.

Understanding Digital Governance in Nepal

Digital governance, often interchangeably used with e-governance, refers to the application of information and communication technology (ICT) by the government to enhance service delivery, streamline administrative processes, and foster citizen engagement. While e-government focuses on digitizing internal operations, digital governance is broader—it encompasses policies, citizen interfaces, transparency tools, and digital inclusion.

Nepal's journey toward digital governance began with the Information Technology Policy 2000, followed by several initiatives such as the Digital Nepal Framework (2019), e-Governance Master Plan, and the Information and Communication Policy 2015. These frameworks laid the foundation for digital service delivery, integration of IT systems, and citizen participation.

Key Milestones in Nepal’s Digital Governance

1. Digital Nepal Framework (DNF)

Launched in 2019, the DNF is Nepal’s flagship digital transformation initiative. It focuses on eight sectors: digital foundation, agriculture, health, education, energy, tourism, finance, and urban development. The framework emphasizes building digital infrastructure, capacity development, public-private partnerships, and legal reforms.

2. E-Governance Master Plan and Policy Initiatives

Nepal’s earlier e-Governance Master Plan (eGMP) 2007, and its successor eGMP II 2015, aimed to digitalize government operations and introduce integrated services. Policies such as the Electronic Transactions Act 2008 and the Cybersecurity Policy added legal backing for online transactions, digital signatures, and data protection.

Digital Governance in Practice

1. Government Applications and Platforms

Nepal has developed several government apps and online platforms:

• Nagarik App – A centralized platform to access citizenship, passport, PAN, and license services.

• Hello Sarkar – A public grievance redressal mechanism.

• National ID Portal – For biometric registration and identity verification.

• NEA App and Khanepani App – For electricity and water bill payments.

• Mero Driving License – For applying and checking the status of smart driving licenses.

These apps demonstrate the government's intent to make services more accessible. However, the gap between availability and usability remains significant.

2. Digital Public Services

Digital transformation has been observed in:

• Online birth, marriage, and death registration

• Land and tax registration systems

• E-passport and biometric national ID systems

• Online tax filing through the Inland Revenue Department (IRD)

While these initiatives are commendable, many services are still semi-digital or lack backend integration.

Challenges in Nepal’s Digital Governance

1. Infrastructure Gaps and Digital Divide

Though 1.97 million households in Nepal have internet subscriptions, rural and mountainous regions continue to suffer from poor connectivity, power cuts, and lack of access to digital devices. The digital divide is deep, particularly for women, the elderly, and marginalized communities.

Moreover, over 29% of Nepal’s population remains digitally excluded, making equitable access to e-services a major concern.

2. Cybersecurity and Data Protection

Cybersecurity is a growing concern. In March 2023, several government servers at the National Information Technology Centre (NITC) experienced data breaches, raising alarm over the safety of citizens’ data, especially with the growing use of biometric IDs.

Although a Cyber Security Bill has been proposed to establish a national cybersecurity center, digital forensics, and data governance mechanisms, its implementation has been slow, and it remains surrounded by controversy.

3. Low Digital Literacy and Human Resource Capacity

As of 2021, Nepal's literacy rate stands at 71%. However, digital literacy remains far lower. Many government officials, especially in rural municipalities, lack the technical skills to manage digital tools. Brain drain in the IT sector further contributes to the shortage of skilled workforce in public service.

Legal and Institutional Landscape

1. Policies and Acts

Nepal has introduced several policies:

• IT Policy 2015

• Electronic Transactions Act 2008

• Cybersecurity Policy

• Digital Nepal Framework 2019

Additionally, the Right to Information Act, 2007 and Constitutional Article 27 enshrine access to public data as a fundamental right.

2. Institutional Setup

Key institutions include:

• Ministry of Communication and Information Technology (MoCIT)

• E-Governance Commission

• Department of IT (DoIT)

• National Information Technology Centre (NITC)

Despite this structure, lack of coordination, unclear mandates, and overlapping responsibilities hinder effective implementation.

Citizen Engagement and Awareness

Despite having social media pages and websites for all 753 local governments, engagement remains low. Citizens, especially in rural areas, are unaware of available digital services. Even in urban areas, many people still rely on middlemen due to lack of awareness or trust in digital platforms.

Recommendations:

• Simplify user interfaces

• Provide multilingual support

• Organize digital literacy campaigns

• Establish local digital help desks

Inclusive Digital Governance

Nepal’s digital governance must ensure inclusivity by addressing barriers faced by:

• Rural citizens

• Elderly population

• People with disabilities

• Women and marginalized communities

Initiatives like mobile kiosks, offline support centers, and rural ICT infrastructure development must be prioritized.

Public-Private Partnerships and International Collaboration

Partnerships with organizations like UNDP, KOICA, and World Bank have contributed to broadband expansion, local ICT centers, and app development.

However, aligning donor initiatives with national priorities remains essential. Additionally, private sector partnerships (e.g., through RTDF) can help expand ICT infrastructure to underserved areas.

South Korea’s e-Governance model is often cited as an ideal roadmap for Nepal, offering knowledge transfer, innovation, and digital transformation at scale.

Moving Forward: Strategic Recommendations

1. Invest in Infrastructure and Connectivity

• Expand broadband to all municipalities

• Integrate renewable energy sources to power digital hubs

• Prioritize connectivity in schools, health centers, and local units

2. Enhance Capacity and Human Resources

• Provide digital training for government employees

• Partner with universities and IT firms for skill development

• Offer incentives to retain skilled personnel in the public sector

3. Secure Citizen Data

• Finalize and implement the Cybersecurity Bill

• Set up a National Data Protection Authority

• Invest in secure cloud storage and digital forensics

4. Promote Digital Inclusion

• Launch a national digital literacy program

• Promote women in tech

• Offer subsidies for internet access and digital devices in remote areas

5. Streamline Governance

• Implement the National Single Window for trade and customs

• Fully integrate land, tax, and citizen ID databases

• Adopt open data standards and APIs for system interoperability

Conclusion: Building a Digitally Empowered Nepal

Digital governance is not merely a tool; it is a transformative force that can democratize access, improve transparency, and empower citizens. Nepal has made commendable progress, from online tax systems to national identity cards and Nagarik App.

However, to fully realize the benefits of digital governance, the government must bridge infrastructure gaps, enhance cybersecurity, and ensure inclusive access. Strong leadership, political will, inter-agency coordination, and citizen engagement are essential.

Nepal stands at a digital crossroads. With the right investments and partnerships, it can leapfrog into a future where public services are not only digital but equitable, efficient, and people-centered.