Kathmandu. Chiranjibi Adhikari, acting president of Federation of Computer Association Nepal (CAN Federation) and cybersecurity expert Chiranjibi Adhikari urged the government to increase trust in the information technology sector.

He said that the multi-stakeholder consultation program on Nepal Budget 2083/84 was organized in Kathmandu on Wednesday.

He was of the view that the government should use the private sector as an implementation partner instead of trying to become a software maker on its own. “The government is a customer of the private sector. The government should trust the private sector. We are ready to partner for good work, but we will not hesitate to take precautions if necessary,” he said.

Adhikari pointed out the need for the government to pay more attention to financial management of information technology products and services and investment facilitation. According to him, collaboration with the private sector is essential for the expansion of digital economy and enhancing the competitiveness of the technology industry.

Shailendra Raj Giri, President of AI Association Nepal and founder of Mero Job, said that the budget for the upcoming fiscal year 2083/84 has prioritized Artificial Intelligence (AI). However, for its effective implementation, the public-private partnership (PPP) model needs to be pursued more clearly, he said.

Speaking at the event, Giri said that the government’s inclusion of the concept of sovereign AI in the budget is welcome. He said that the implementation would be challenging in areas such as AI, data center, computing infrastructure and software management.

He was of the view that it would be more effective if the government could bring a clear implementation modality by taking the private sector in collaboration. “The government seems to understand the importance of AI, but we need to further institutionalize partnerships with the private sector,” he said.

Giri expressed concern that the 5 percent VAT levied on electricity will increase the operating cost of the AI and information technology sector. According to him, electricity plays a big role in AI processing and data center operation, which can affect the cash flow of the business.

He also said that there is no clear provision regarding tax exemptions and grants for the purchase of GPUs (graphics processing units) required for AI infrastructure. “To achieve the goal of sovereign AI, we need maximum flexibility in critical infrastructure such as GPUs,” he said.

Giri commented that although the budget has included the topic of AI literacy, not enough attention has been paid to the immediate re-skilling. He suggested mobilizing researchers, developers, and training institutes in the country to invest in producing manpower to develop AI tools.