The government is moving ahead with a major restructuring of its digital governance system, placing all information technology-related functions under a new central office to be operated by the Prime Minister’s Office (PMO).

Under the plan, a proposed “Information Technology and Electronic Governance Office” will function directly under the Prime Minister’s Office, consolidating responsibilities that were previously spread across multiple agencies.

As part of this restructuring, three key bodies—the Department of Information Technology, the Integrated Data Management Centre, and the National Cyber Security Centre—have been dissolved and brought under the PMO’s control. Officials say the move is intended to create a single coordinating structure for all government digital systems.

According to the PMO, an Organisation and Management (O&M) committee has already been formed to define the structure, staffing pattern and job descriptions of the new office. The committee has completed its report after two months of work and is now in its final phase of review. The detailed framework of the new body is expected to be finalised within a month.

PMO spokesman Hem Raj Aryal said the restructuring is being carried out in line with the government’s 100-point reform agenda approved by the Cabinet on March 27. Point 39 of the agenda calls for the establishment of a central IT and electronic governance office within three months, with all public sector IT functions to be placed under it.

In line with this decision, the government amended the “Government of Nepal (Allocation of Business) Rules, 2026”, formally expanding the PMO’s responsibilities to include information technology and digital governance. The amended bill was published in the Nepal Gazette on May 13. The amendment also removed the term “technology” from the Ministry of Communication and Information Technology, signalling a redistribution of roles between institutions.

Following the restructuring, officials, including Joint Secretary Adesh Khadka from the IT Division of the ministry, have been transferred to the PMO. The Department of IT, the Cyber Security Centre and the Integrated Data Management Centre, which were previously under the ministry, now function under the PMO.

A staff member at the Cyber Security Centre said the transition has created operational uncertainty at the ground level due to overlapping instructions from different authorities.

“We are continuing our routine work from the same office, but we are receiving instructions from both the ministry and the PMO, which is confusing,” the staff member said, requesting anonymity. “We were informed that a new office would be formed within three months, but there has been no clear update so far. At the moment, there is uncertainty about reporting lines and decision-making.”

The restructuring has also had implications for ongoing digital projects, including the Nepal Digital Transformation Project, which aims to modernise public service delivery through integrated digital systems. Officials say implementation has slowed as legal and administrative clarity is yet to be established.

Joint secretary Khadka said the shift in institutional responsibility has led to a temporary pause in several project activities.

“IT-related responsibilities have now moved from the Ministry of Communication and Information Technology to the PMO following changes in the allocation of business rules,” he said. “Because of this structural transition, project implementation has been paused. Further clarity will come after discussions with the Ministry of Finance and development partners, including the World Bank and the Asian Development Bank.”

The changes have also raised questions about how existing agreements with development partners will be managed, particularly in relation to funding, project ownership and implementation mechanisms. Officials familiar with the matter say coordination with donor agencies will be necessary to determine the future course of ongoing projects.

Experts say the government’s move reflects a recognition of the need for stronger coordination in Nepal’s digital governance landscape, but they caution that structural changes alone may not resolve long-standing issues.

At the Kantipur Economic Summit held on May 13, Finance Minister Swarnim Wagle said digital governance would no longer be treated as a narrow technical area, but as a core part of broader governance and economic reform. He said the government plans to establish a powerful IT authority under the PMO and bring all related functions under one umbrella structure.

An official at the PMO said the proposed office is expected to operate with around 200 staff members and will be responsible for coordinating all national-level digital governance initiatives. The goal, according to officials, is to eliminate duplication of work and ensure uniform implementation of IT systems across government agencies.

The PMO maintains that the restructuring is aimed at integration rather than centralisation of power. Officials argue that fragmented IT governance in the past has led to duplication of systems, weak interoperability and inefficiencies in service delivery.

However, former minister for communication and information technology Rekha Sharma said the decision to place IT functions under the PMO may not resolve the underlying coordination challenges in the sector.

“There is clearly a need to improve coordination among agencies working in the IT sector,” she said. “But the Prime Minister’s Office may not be the most effective place to manage that coordination. A specialised and well-resourced institution would likely be more suitable for the job.”

She said previous experiences of placing technical agencies under the PMO had produced mixed results, pointing out that the office already handles a wide range of political and administrative responsibilities.

“Given the scope of responsibilities at the Prime Minister’s Office, it is difficult to ensure consistent attention to rapidly evolving sectors like information technology,” she said. “There is also a risk that manpower and technical capacity may not be sufficient to manage such a broad mandate effectively. Concentrating too many functions in one place is not always the best approach for governance.”

Aryal, however, defended the restructuring, saying the objective is to streamline operations rather than concentrate authority.

He said the absence of a single coordinating authority had long created duplication and fragmentation in the IT sector.

IT expert Manohar Bhattarai said the initiative could help address long-standing fragmentation in digital governance, but its success would depend on how clearly the mandate is defined and implemented.

“There has been a persistent problem of disconnected systems and poor coordination among agencies,” he said. “A central body could help resolve this, but only if it has a clear mandate and the authority to enforce standards.”

He added that Nepal’s digital infrastructure has also become overly dependent on centralised systems based in Kathmandu and this creates risks for service continuity.

“Many public services rely on central systems. When those systems face disruptions, local services are directly affected,” he said. “This is a structural issue that needs to be addressed alongside institutional reforms.”

Bhattarai also stressed the importance of digital literacy alongside infrastructure development, saying service delivery reforms would not be effective without user awareness.

“In several local studies, including work in Sudurpashchim province, online public services remain underused despite availability,” he said. “In some cases, only a handful of people accessed services over several years. Infrastructure alone is not enough. Citizens also need awareness and skills to use digital systems effectively.”

The government’s 100-point reform agenda prioritises digital governance as a key pillar of public sector reform. It aims to make public services faceless, paperless and time-bound through integrated digital platforms. The plan includes the establishment of a National Integrated Digital Governance Platform and a National Data Exchange system within 100 days of implementation.

Although the agenda also called for the creation of an independent regulatory body for IT and digital governance within 60 days, the institution has not yet been established, even after the deadline has passed.

At present, the Electronic Governance Board and the IT Division continue to operate from within the Prime Minister’s Office, focusing on digital service delivery and system integration across government agencies.

Critics say overlapping institutional mandates remain a concern, with multiple bodies still involved in similar functions despite ongoing restructuring.

Former minister Sharma said the sector has long suffered from overlapping responsibilities between different units, including the Digital Nepal Framework unit, the IT Division, the Electronic Governance Board and the communication ministry’s former structures.

“The problem has never been about intent,” she said. “It is about whether the structure being created is practical and capable of delivering results.”

Aryal said discussions are ongoing to redefine the role of the Electronic Governance Board, including the possibility of converting it into a regulatory or analytical body to avoid duplication and ensure clearer institutional boundaries.

He said the government’s objective is to build a unified digital governance system capable of supporting large-scale public service delivery while maintaining coordination across all agencies involved in IT development and implementation.