Kathmandu, June 11 - According to the UNDP’s Human Development Index (HDI) for 2025, which ranks 193 nations, Nepal stands at 145. With a score of 0.622, the nation still falls under the medium human development bracket but shows steady advancement over the past few years.
The latest Human Development Report titled "A Question of Choice: Individuals and Opportunities in an Era Dominated by Artificial Intelligence" cautions that the worldwide advancement measured by the Human Development Index (HDI), which has been hindered due to the impacts of the Covid-19 pandemic, continues to slow down.
The disparity between nations with exceptionally high and those with significantly lower Human Development Index (HDI) scores began to increase once more starting from 2020.
This document examines the decisions nations can take to guarantee fairer growth during the age of artificial intelligence, with an aim to broaden access and chances for everyone, irrespective of their location or financial standing.
At the unveiling event for the report in Kathmandu, Radhika Aryal, who serves as the secretary at the Ministry of Communication and Information Technology, commented that this recent ranking indicates Nepal’s consistent commitment to developing human resources and increasing focus on digital progress.
She stated that even though the improvement in HDI has been slight, it mirrors our steady investments in human capital and the increasing impact of digital innovations in boosting health, education, and the provision of public services.
Aryal stated that internet access in Nepal now stands at almost 98 percent, enabling young people to create a more interconnected, inventive, and opportunity-rich community. Nevertheless, she recognized that the advantages brought about by this digital shift have not been evenly distributed.
Aryal pointed out that access disparities, low levels of digital proficiency, and inadequate presence in decision-making positions continue to be significant obstacles, especially within marginalized groups.
To tackle these inequalities, the government is implementing crucial digital reforms, she mentioned additionally.
We are currently revamping the Digital Nepal Framework, refreshing the National Information and Communication Technology Policy, and updating the Telecommunications Act. Concurrently, we are developing new tools like the Information Technology and Cybersecurity Bill along with the National Artificial Intelligence Policy to ensure safe and progressive digital growth.
Aryal likewise highlighted the significance of basic digital infrastructure.
She stated that the administration is concentrating on developing national data centers, digital identity systems, and a unified e-governance framework. The purpose of these efforts is to improve transparency, bolster service provision, and foster public confidence in digital governance.
Kyoko Yokosuka, who represents the UNDP in Nepal, emphasized the nation's substantial progress in enhancing human development over time.
Currently, Nepal falls into the medium human development category, placing at number 145 among 193 countries and territories.
Between 1990 and 2023, Nepal's Human Development Index (HDI) value saw an increase of 54 percent.
This progress, above the global average, reflects Nepal's efforts to expand access to health and education, implement social protection programmes, and pursue targeted anti-poverty measures.
Even with the accomplishments, Yokosuka noted that Nepal still faces a considerable journey to attain the status of high human development—a target necessitating consistent financial support and innovative approaches.
She similarly recognized Nepal's initial involvement with AI.
Based on the AI Readiness Index 2024 from Oxford Insights, Nepal stands at 150th place among 188 nations concerning its ability to implement AI for public services. However, there are encouraging indications.
"Although Nepal’s exploration of AI is only starting, the government has demonstrated significant enthusiasm for adopting innovations and integrating AI technologies," Yokosuku stated.
Alexandru Oprunenco, who serves as a regional innovation advisor at the UNDP's Bangkok Regional Hub, cautioned that AI won’t inherently enhance human development outcomes—it will mirror the values and systems within which it is deployed.
He mentioned that two-thirds of nations spanning low, middle, and high Human Development Index brackets intend to utilize artificial intelligence in sectors like education, healthcare, and employment.
Nepal could develop an additional economic sector by concentrating on ways AI can assist—not substitute—individuals, be they farmers, pupils, or government employees.
He mentioned that AI has the potential to address persistent development issues like inconsistent service distribution, gender disparity, and educational discrepancies.
Oprunenco suggested that Nepal should focus on developing essential skills such as institutional coordination, digital literacy, and inclusive, citizen-centered design, particularly at the provincial level and for marginalized communities.
The panel discussion entitled "Leveraging AI for Nepal" examined ways in which the nation can guide its path in artificial intelligence, beginning with the creation of a comprehensive national AI strategy.
Adesh Khadka, who serves as the joint-secretary at the Ministry of Communication and Information Technology, stated that the proposed AI policy covers every crucial aspect of artificial intelligence advancement and implementation.
"We are wrapping up the policy and introducing the Digital Nepal Framework 2.0, which incorporates digital public infrastructure and artificial intelligence as key foundations—the first time these elements appear in an official governmental document," he stated.
Khadka also emphasized Nepal’s potential to emerge as a regional information technology center. He stated, “The IT sector here has the capability to cater to an international audience. Enhancing our artificial intelligence skills could place us favorably for offering global AI services.”
Furthermore, Nepal’s plentiful renewable energy sources and eco-conscious data centers position us as an appealing hub for AI activities, which demand significant power.
Parag Shrestha, who leads strategy and serves as the managing director for South Asia at Fusemachines, shared this positive outlook.
He stated that when considering cost and quality, and even more crucially, the overall value and return on investment, international companies are showing greater interest in Nepalese engineering professionals. There is substantial potential for exporting IT and AI products from Nepal, with estimated values reaching into the billions.
Shrestha mentioned that early adopters of AI in Nepal encompass industries like banking, insurance, aviation, and transportation—all heavy users of data—that are employing AI technology for purposes including demand prediction and enhanced customer support.
Nevertheless, he cautioned that extensive uptake of artificial intelligence would necessitate significant expenditures in the country’s infrastructure. “It falls upon the government to construct digital frameworks that facilitate the incorporation of AI throughout various tiers and industries,” he stated. He emphasized that these setups come with considerable costs yet are essential for enduring change.

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