In 2081, Nepal navigated a transformative yet turbulent digital landscape, balancing ambitious technological and governance advancements with persistent challenges in digital rights, privacy, and cybercrime. The country strived to cement its place in the global digital arena while grappling with the complexities of regulating an increasingly connected society.
Ambitious digital vision and infrastructure expansion
The government’s commitment to digital progress was evident in its declaration of 2024–2034 as the ‘IT Decade’, a vision backed by Rs 7.25bn allocated for ICT projects in FY 2081/82. This funding fueled broadband expansion, IT park development, and efforts to create a thriving ICT hub aimed at generating jobs and boosting digital payments and e-commerce. Internet penetration soared to 99.38 percent, a remarkable achievement, though rural areas still faced connectivity gaps, highlighting the ongoing digital divide. Initiatives like integrating national databases and automating public services advanced digital governance, with the Nagarik App, formalized under amendments to the Good Governance Act, enabling seamless access to public services via electronic devices.
Policy and legislative developments
Significant policy advancements shaped the year. The Social Media Operation, Usage, and Regulation Bill, 2081 tabled in Parliament aimed to regulate social media platforms and to moderate social media content. Likewise, draft Information Technology and Cybersecurity Bill, 2080, aimed to regulate online spaces and enhance cybersecurity was released for public consultation. However, both the bills drew criticism for potentially restricting free speech and privacy. Similarly, the Media Council Bill, 2081, sought to promote self-regulation in online media but raised concerns about its regulating agency’s independence and alignment with federalism. A concept paper on Artificial Intelligence (AI) and the Draft AI Policy, 2081, outlined plans to leverage AI across sectors, emphasizing clear policies and global standards. Regulatory efforts also targeted virtual currencies to curb money laundering, while amendments to the Industrial Enterprises Act recognized startups as distinct entities to foster innovation. The E-Commerce Act, 2081, was finally made into law to regulate online transactions and ensure transparency for consumers and businesses.
The draft E-Governance Blueprint and Draft Digital Nepal Framework 2.0 laid out bold plans to modernize public services, enhance digital infrastructure, and address past challenges like weak coordination and limited technical capacity through phased implementation and skill development. The Council of Ministers provided conceptual approval for drafting the Electronic Good Governance Commission Bill to combat corruption, and the Supreme Court’s ruling to uphold mandatory national identity cards for public service access, despite legal challenges, reinforced the push for centralized digital systems—though it sparked debates over accessibility.
Digital rights and privacy at stake
Digital rights faced significant hurdles, with freedom of expression under strain. Prosecutions under the Electronic Transactions Act (ETA) targeted individuals for political comments, alleged defamation, or disruption, raising fears of a chilling effect on free speech. Critics argued the ETA is being misused to suppress dissent, a concern echoed in the Press Council Nepal’s expanded scrutiny of YouTube and online media, which sparked debates over regulatory overreach. The judiciary’s actions, such as the Sidhakura contempt case, further intensified scrutiny of media freedom. The lifting of the TikTok ban on 22 Aug 2024, was a victory for digital rights, but the lack of transparency around the decision left questions unanswered. The Ministry of Communication and Information Technology’s Directives on Managing the Use of Social Media, 2080, required platforms like TikTok and Facebook to establish local offices and moderate content, yet only TikTok, Viber, and WeeTok complied. A 30-day ultimatum for social media registration in 2081 marked a shift toward stricter enforcement, with potential bans for non-compliant platforms like Meta and X. Minister for Communications and Information Technology, Prithvi Subba Gurung, warned of shutting down social networks if they failed to register by April 13, 2025, emphasizing the urgency of compliance.
In 2081, Nepal faced significant internet disruption, including a major outage on National ICT Day, May 2, caused by disagreements over RTDF taxation between ISPs and the Ministry of Communications (MoCIT).
Further internet connections were disrupted in various places due to natural calamities, beautification of the city, and floods damaging the power supplies, leading to the shutdown of several base transceiver stations (BTS) and cutting off communication in affected areas.
The Supreme Court’s Sept 2024 ruling against unauthorized data access by Nepal Telecom reaffirmed privacy rights, but international reports like CIVICUS highlighted Nepal’s obstructed civic space, citing media censorship and reprisals against activists.
In a related development, the Department of Transport Management, following an appeal by a law student under the Right to Information Act, rectified its practice of publishing personal data such as citizenship numbers in driving test results. The department admitted this breach of privacy laws and committed to upgrading its software to prevent future violations.
Rise of mis/disinformation and deepfake materials
Social media also became a breeding ground for misinformation, deepfakes, and racially motivated attacks, with manipulated videos, false narratives, and unchecked mis/disinformation spreading widely. As Nepal’s digital ecosystem grows, combating false and misleading information, particularly during critical moments like elections or public protests, remains a significant challenge. These threats underscore the need for comprehensive strategies to enhance media literacy, promote responsible digital practices, and introduce effective policies addressing disinformation and digital manipulation.
Surge in cybercrime and systemic vulnerabilities
The year was marred by a cybercrime surge, with the Nepal Police Cyber Bureau recording 19,730 FIRs in FY 2080/81—a tenfold rise from five years earlier—and 13,426 complaints within nine months of 2081/82. Cases spanned financial fraud, phishing scams, social media impersonation, and hacking, with incidents like the theft of Rs 34.2m from F1 Soft’s bank account and data breaches by Khalti employees exposing systemic vulnerabilities. Fraudulent schemes exploiting trusted brands, fake government grants, and illegal crypto transactions targeted vulnerable groups, particularly youth and students. The NRB pushed for stronger KYC procedures, real-time monitoring, and public awareness, but the volume of cases strained resources.
Major cybersecurity and infrastructure threats
In 2081, Nepal faced significant cybersecurity challenges, marked by high-profile incidents such as DDoS attacks on government servers and recurring cyberattacks on local government websites, disrupting essential services. Notable breaches included the hacking of the National Vigilance Center’s website, resulting in the loss of registration data, and a malware attack on the Passport Department, causing delays in passport services. Other incidents exposed vulnerabilities in the teacher personnel records system and Tribhuvan University’s online exam platform. Additionally, over a dozen ministry websites went offline due to negligence in renewing licenses, and funding shortages threatened the stability of key digital infrastructure, such as the Integrated Data Management Center and Disaster Recovery Centre. A particularly alarming breach involved the hacking of Nepal’s public grievance platform, Hello Sarkar, by the Russian hacker group ‘Ghudra’, which sold sensitive citizen data on the dark web. Despite the adoption of a National Cybersecurity Policy in 2080, Nepal’s cybersecurity ranking fell to 100th globally, highlighting the government’s struggles to improve its digital security infrastructure.
In 2081, Nepal’s digital journey was a paradox of progress and peril. Ambitious ICT and e-governance initiatives laid a foundation for a connected future, but rural connectivity gaps, regulatory overreach, and rampant cybercrime demanded urgent action. The tension between digital advancement and democratic freedoms underscored the need for balanced policies that protect rights while fostering innovation. As Nepal advances toward its ‘IT Decade’ goals, the lessons of 2081 emphasize inclusive access, transparent governance, and robust cybersecurity as critical to shaping a resilient digital future.
