Why Nepal Needs Digital Public Infrastructure: A Path to Economic and Social TransformationIntroduction: A Digital Future for Nepal

Imagine a Nepal where farmers in rural villages can receive instant payments for their produce through mobile wallets, where a young entrepreneur in Pokhara can seamlessly access government services online, and where students in remote areas can continue learning through digital platforms. This future is possible with the right Digital Public Infrastructure (DPI)—a backbone of digital services that connects people, businesses, and the government, making everyday life easier and more efficient.DPI includes essential systems like digital identity, digital payments, and data exchange platforms, enabling a more inclusive and transparent society. Across the world, countries have successfully used DPI to drive economic growth and improve public welfare. Nepal, too, stands at the threshold of a digital revolution that can uplift millions and strengthen its economy.Why Nepal Needs Digital Public Infrastructure1. Making Public Services Accessible to AllOne of the biggest challenges in Nepal is ensuring that essential public services—like social security benefits, healthcare, and education—reach everyone, especially those in remote areas. A well-implemented DPI can bridge this gap.Take India’s Aadhaar system, for example. Aadhaar, a biometric-based digital ID, has enabled millions of Indians to directly access government services without bureaucratic delays. With Aadhaar-linked bank accounts, people receive subsidies and welfare payments directly, reducing corruption and inefficiencies.Nepal can build a similar national digital ID system to ensure that citizens can access public services seamlessly, reducing paperwork and making government processes more transparent.2. Empowering Businesses and Strengthening the EconomyIn today’s world, a strong digital economy is essential for growth. Yet, many Nepali businesses, especially small and medium enterprises (SMEs), struggle due to a lack of access to financial services and digital payment options. A robust digital payment infrastructure can change this.A great example is Brazil’s PIX, a real-time digital payment system launched by the central bank. PIX allows businesses and individuals to transfer money instantly at zero or minimal cost, boosting e-commerce, digital entrepreneurship, and financial inclusion. Since its launch, millions of small businesses in Brazil have thrived because they no longer depend on cash transactions.If Nepal builds a secure and interoperable digital payment system, small businesses can grow, online marketplaces can flourish, and financial inclusion can expand beyond urban centers.3. Unlocking Opportunities for Youth and WomenNepal has a young, dynamic population eager to embrace digital tools. However, many still face barriers in accessing financial services, education, and job opportunities. DPI can empower youth and women by providing easy access to digital banking, e-learning platforms, and online marketplaces.Take Estonia, one of the world’s most digitally advanced nations. Estonia’s e-Government system allows citizens to access nearly every public service online, from voting to registering businesses. This digital transformation has saved time and costs for individuals and the government while fostering a tech-driven economy.By following Estonia’s example, Nepal can reduce bureaucratic hurdles for young entrepreneurs, allowing them to register businesses online, access government support, and contribute to economic growth.4. Enhancing Disaster Response and Social ProtectionNepal is prone to natural disasters like earthquakes and floods. In times of crisis, fast and effective relief distribution is crucial. DPI can ensure that financial aid and emergency support reach affected communities without delays or corruption.During the COVID-19 pandemic, countries like Togo used DPI to rapidly distribute financial aid. Togo’s Novissi digital cash transfer program used mobile-based verification to send emergency relief funds directly to citizens in need. This approach ensured transparency and prevented fraud.Nepal can develop a digital social protection system that ensures quick financial aid distribution during disasters, helping affected families rebuild their lives faster.Building a Strong DPI in Nepal: The Road AheadFor Nepal to reap these benefits, the government, private sector, and civil society must work together. Here’s how Nepal can move forward:1. Develop a Digital Identity System – A secure and inclusive national digital ID can improve service delivery and reduce fraud.2. Expand Digital Payment Infrastructure – Creating an affordable and accessible digital payments ecosystem will boost financial inclusion.3. Ensure Digital Literacy and Connectivity – Expanding internet access and digital education is key to ensuring that everyone can benefit.4. Strengthen Data Protection Laws – A robust cybersecurity and privacy framework will build public trust in digital systems.5. Promote Public-Private Partnerships – Collaborations with banks, tech companies, and startups can accelerate digital innovation.Conclusion: A Digital Nepal for AllNepal’s transition to a digital-first nation is not just about technology—it’s about empowering people, creating economic opportunities, and making government services more efficient. The success stories from India, Brazil, Estonia, and Togo prove that DPI can be a game-changer in improving public welfare and economic resilience.By embracing a well-structured DPI, Nepal can unlock a future where financial inclusion, transparency, and innovation drive national progress. The time to act is now—let’s build a digital Nepal that works for everyone!