Nepal’s Rapid Tech Expansion Yet to Bridge Digital Inequality, Government Report Finds

Kathmandu. Despite the rapid expansion of technology in Nepal, the government has said digital inequality remains a major challenge. The Ministry of Finance, in its report ‘Current Economic Status of Nepal, 2083,’ states that while access to technology has increased, significant gaps persist in productivity and service quality.  

According to government data, Nepal’s internet subscriber density has surpassed 144.23 percent, which the report described as a positive sign. However, around 96 percent of users rely on mobile internet services, indicating that a large share of the population still lacks access to high-speed connectivity and reliable digital services.

The report also highlighted geographical disparities in digital access. High-speed fixed broadband services remain concentrated in urban areas, while internet services available in many rural regions continue to suffer from poor quality and slow speed.

The government noted that the expected economic gains from technology adoption have yet to materialize. Due to low digital literacy, internet usage in Nepal remains more focused on entertainment than on production and income-generating activities.

“With growing access to information technology, there is a need to encourage and raise awareness among people to use it productively,” the report states. It added that the expansion of technology, without being linked to economic transformation, has largely boosted consumption and entertainment.

The report further said Nepal’s innovation system remains at an early stage despite the rising use of modern technology. Citing World Bank data, it noted that investment in research and development (R&D) stands at only 0.3 percent of gross domestic product, reflecting a weak innovation ecosystem. 

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