The government has, for the first time, proposed creating a counter-intelligence mechanism in a new draft Bill on the National Intelligence Act, which is currently under consideration at the Bills Committee of the Cabinet.

At present, the National or Investigation Department (NID) does not have a dedicated mechanism or wing for counter-intelligence, but has carried out similar functions since its inception in 1952.

The purpose of a counter-intelligence wing is to protect the agency’s intelligence programme from infiltration or surveillance by foreign intelligence services.

Once established, the new wing will gather intelligence and conduct activities to prevent espionage, sabotage, assassinations or other intelligence operations conducted by, for, or on behalf of foreign powers, organisations, or persons.

Several attempts have been made in the past to set up a dedicated counter-intelligence wing, but they failed due to internal and external pressures. Among other provisions, the new bill empowers the NID to collect intelligence against activities such as espionage, sabotage, and subversion—provisions which are entirely new to Nepal’s legal framework.

The draft of the new bill, which aims to replace the current Nepal Special Service Act 2042 BS, under which the existing NID was formed, proposes the formal establishment of a counter-intelligence wing.

Article 14 of the draft bill says a special office will be set up to carry out counter-intelligence work, in ‘defensive, offensive, and counter defensive’ ways.

“We already have such arrangements. This time, the idea of counter-intelligence has come in a more explicit way,” said a former chief of the NID who wished to remain anonymous. “In many countries, they do have separate offices for domestic and external intelligence gathering.”

“But we have been doing these under the NID’s umbrella for a long time. Now, for the first time, the bill has proposed a legal framework,” the former chief added. “We won’t have separate agencies like in other countries, but a dedicated counter-intelligence wing under the NID will be set up, and it will work in a more professional manner than in the past.”

Officials believe such formalisation is overdue, especially given the growing involvement of foreign intelligence agencies in Nepal. They said several countries have been working both overtly and covertly on Nepali soil to advance their interests. “The new law will be more effective and give us more resources and legal authority,” a senior intelligence department official told the Post.

The bill lays out legal provisions for surveillance, secret missions, handling informants, evidence collection, interrogation, and verification — all of which are professional counter-intelligence activities. Alongside these, provisions related to liability and punishment have also been updated.

“As per the Constitution of Nepal and the spirit of federalism, intelligence services should be expanded, and a mechanism for counter-intelligence shall be set up, although this will definitely add to the country’s economic burden,” says the objective section of the draft bill seen by the Post.

“As safeguarding national security and interests is the country’s primary responsibility, it cannot be seen as an economic burden. Although the intelligence gathering will be conducted by the current workforce, the new set up will also focus on technical intelligence. In the short term, this may incur some financial burden, but emphasis will be placed on making the most of available resources,” reads the bill.

According to the draft, the scope of intelligence gathering will be expanded, and legal grounds for such activities strengthened.

“The new provision will pave the legal way for the use of technology, launch of secret campaigns, mobilisation of informants, evidence collection and interrogation, and their effective implementation. It will also aim to control unlawful activities involving geopolitics, strategic interests, terrorism, cybercrime, organised crime, and drug trafficking.”

“Legal provisions, organizational structures, and operational mechanisms will be formulated by staying within the boundaries set by the constitution on national security, and prioritizing the challenges of national security. This is expected to have a positive impact on the area of fundamental rights and human rights.”

“Effective control and minimisation of activities that pose threats to geopolitics and strategic importance—such as terrorism, cybercrime, organised crime, drug trafficking, and all forms of criminal and illegal activities—will contribute positively to the establishment of good governance,” said the proposed Bill.

The bill also envisions a separate service—National Intelligence Service—for recruitment into different intelligence wings. Currently, the NID calls for open vacancies, and the Public Service Commission conducts examinations. Under the new arrangement, there will be ordinary, technical, and special security groups during recruitment, and inclusiveness must be ensured.

The NID will stay under the supervision of the Prime Minister’s Office. When KP Sharma Oli first became the prime minister in 2018, he had shifted the NID’s oversight from the Home Ministry to the PMO.

The NID will gather, analyze and investigate information related to transboundary issues, border encroachment, geopolitical and geostrategic condition of Nepali borders, encroachment on Nepali land, water and airspace, and cross-border criminal activities.

If passed, the bill will empower the NID to collect intelligence related to activities that threaten the security of any country, international organisation, or diplomatic mission(s) based in Nepal.

Similarly, it will collect information on unlawful activities of national and international organisations, activities related to serious criminal activities involving regional and international networks, terrorism, organised crime, illegal immigration, cybercrime, and verification of documents of both foreign and Nepali nationals.

The NID will also be able to gather intelligence related to corruption, financial irregularities, money laundering and financial crimes.

The bill empowers the department to mobilise agents inside and outside the country to carry out secret missions. These agents can be temporary or permanent, and their identity will be confidential. The government will provide necessary funds for such operations.

A six-member national directive and central coordination committee headed by the prime minister will be formed, with secretaries of home, defence, and foreign ministries, the chief secretary, and the head of NID as its members. The bill also includes provisions related to workforce management like promotion, salary, and benefits.