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OPINION

E-Governance in Nepal: Challenges and Opportunities

In the fast-evolving digital age, technology is reshaping nearly every aspect of governance, including public administration, business operations, and citizen engagement. The traditional governance model - often characterized by excessive paperwork, bureaucracy, and inefficiency—is gradually being replaced by digital solutions that enhance transparency, efficiency, and service delivery.
By Kamal Subedi.

In the fast-evolving digital age, technology is reshaping nearly every aspect of governance, including public administration, business operations, and citizen engagement. The traditional governance model - often characterized by excessive paperwork, bureaucracy, and inefficiency—is gradually being replaced by digital solutions that enhance transparency, efficiency, and service delivery. Countries around the world are integrating digital governance, or e-governance, to improve public administration and citizen engagement. However, Nepal, despite its strides, still faces significant challenges in implementing an effective e-governance system.



This article explores the key issues, challenges, and opportunities related to e-governance in Nepal. It also highlights international best practices and provides recommendations for enhancing Nepal’s digital governance framework to improve public service delivery.


E-Governance: A Global Perspective  


E-governance refers to the use of information and communication technology (ICT) to enhance government operations, public service delivery, and citizen engagement. Countries such as Estonia, South Korea, and Singapore have successfully implemented e-governance, setting global benchmarks for efficiency, security, and accessibility.


According to the United Nations E-Government Development Index (EGDI) 2022, Denmark, Finland, and South Korea rank at the top due to their robust digital infrastructure, comprehensive cybersecurity policies, and citizen-friendly online services. These nations have achieved remarkable success through initiatives such as digital ID systems, open data policies, and AI-driven public service automation. For Nepal, adopting global best practices in e-governance can significantly enhance governance efficiency, reduce corruption, and improve service accessibility for all citizens.


Key Challenges and Opportunities in E-Governance 


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Despite various efforts to digitalize public service delivery, Nepal's e-governance landscape continues to face significant challenges that hinder its full potential. One of the foremost concerns is data privacy and security. With the rapid expansion of technologies such as artificial intelligence, cloud computing, and big data analytics, the protection of personal information has become increasingly critical. However, Nepal currently lacks a comprehensive Personal Data Protection Act, leaving both governmental and private sector data vulnerable to breaches, identity theft, and cybercrimes. The establishment of a dedicated Data Protection Authority is urgently needed to address these risks.


Cybersecurity is another pressing issue, as Nepal remains exposed to growing threats of cyberattacks. Recent breaches in government databases highlight the absence of a robust national cybersecurity policy, making vital infrastructure—such as banking systems and national identification databases—susceptible to exploitation. Additionally, the digital divide poses a major barrier to inclusive e-governance. As reported by the Nepal Telecommunications Authority in 2023, only 41% of the rural population has reliable internet access, limiting their ability to benefit from digital services and further widening the urban-rural gap.


Interoperability among government institutions also remains a major challenge. Ministries and departments often function in silos, leading to data fragmentation and inefficiency. The absence of a centralized Data Exchange Platform and the non-implementation of the "Only Once" policy—which would allow citizens to submit their information a single time across all government services—hampers integrated service delivery. Moreover, a widespread lack of digital literacy, particularly in rural communities, prevents citizens from effectively using available e-services. This calls for a national initiative led by the Ministry of Education, Science, and Technology to introduce ICT and STEM education across all regions.


Compounding these issues are regulatory and institutional shortcomings. The absence of clear legal frameworks, such as a dedicated E-Governance Act, and the lack of a central institution to lead digital transformation efforts, contribute to fragmented and poorly coordinated initiatives across government bodies.


Nonetheless, Nepal has a range of promising opportunities to strengthen its e-governance framework. The adoption of a unified National Digital ID system integrated with blockchain technology can significantly enhance data security, minimize fraud, and streamline public services—drawing inspiration from successful models like Estonia’s e-Residency and India’s Aadhaar program. Strengthening cybersecurity infrastructure through the establishment of a National Cybersecurity Center and a responsive Cybersecurity Framework is equally crucial, with countries like Israel and Singapore offering effective policy examples.


Nepal can also align its e-governance efforts with the United Nations Sustainable Development Goals (SDGs), especially those focusing on transparency, inclusion, and institutional efficiency. Leveraging frameworks from the UN E-Government Survey 2024 can guide the way forward. Investing in cloud-based infrastructure—such as the creation of a Government Cloud (G-Cloud)—would ensure secure, centralized, and cost-effective delivery of digital services, as demonstrated by South Korea and Canada. Furthermore, enhancing international cooperation through mutual recognition of electronic identities, digital payment systems, and cross-border data-sharing can position Nepal to benefit from global advancements in digital governance.


Policy Recommendations 


To ensure effective digital transformation, the Nepalese government must adopt a series of comprehensive policy measures. First, a strong legal framework is needed, including the enactment of an E-Governance Act and a Personal Data Protection Act, alongside the strengthening of Critical Infrastructure Protection (CII) frameworks and the establishment of a National Digital Governance Authority.


Second, the government must develop a Centralized Data Exchange System, which would implement policies to eliminate redundant data entry, create a Registry of Registries for seamless data-sharing, and establish an Open Government Data Portal to promote transparency.


Third, enhancing digital literacy is crucial. This can be achieved by integrating ICT/STEM education into school curricula, incentivizing IT professionals and law students to participate in public sector digital governance initiatives, and implementing e-Governance training programs for government officials.


Additionally, adopting AI and automation can transform public service delivery through AI-driven chatbots, Machine Learning algorithms for policy planning, and the establishment of e-Notary services for secure digital documentation.


Finally, Public-Private Partnerships (PPPs) should be strengthened by collaborating with tech startups, encouraging private sector investment in cybersecurity and cloud computing, and developing PPP models to build digital infrastructure.


Conclusion  


E-governance is not just about technology—it is a transformation in governance. Nepal’s journey towards digital governance requires a multi-pronged approach that focuses on policy reforms, cybersecurity, digital literacy, and inter-agency collaboration. By adopting international best practices and fostering a citizen-centric approach, Nepal can pave the way for a transparent, efficient, and inclusive governance system.


With the right policies, infrastructure, and investments, e-governance can bridge the digital divide, reduce corruption, and transform Nepal into a digital economy, ensuring better public service delivery for all its citizens.


 


 

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