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Nepal’s NID System is Not Safe | Why Cyber Security Must Become Nepal's #1 Priority

Featuring Bijay Limbu Senihang, CEO, Vairav Technology

In this conversation, Bijay explains why cybersecurity is no longer just an IT issue, but a national security priority. From AI-generated malware and cyber warfare to Nepal’s outdated policies, data privacy risks, and the future of AI-driven attacks, he explores how technology is evolving faster than governments and organizations can adapt. In this episode of The Doers Podcast, we talk about: -Why cybersecurity is now a national security issue, not just an IT problem -How AI is changing both cyber defense and cyber warfare -Why Nepal still operates on outdated cybersecurity policies from 2012 -Why young Nepali cybersecurity talents are world class but lack direction -Why future wars may begin with cyber attacks, not missiles -What Nepal must do to build a billion dollar cybersecurity industry -Why “secure by design” is becoming mandatory in the AI era

Nepal's Digital Ambition: A Nation Unprepared for the Cyber Threats of Tomorrow

The nature of warfare is changing. While traditional conflicts still dominate headlines, a silent, pervasive battle rages in the digital realm, capable of crippling nations without a single shot fired. For a country like Nepal, ambitious in its pursuit of digitalization, this unseen war poses an existential threat. Bijay Limbu Senihang, a cybersecurity entrepreneur at the forefront of AI and national security, warns that Nepal is dangerously unprepared, its digital future built upon a foundation of vulnerability and outdated foresight.

The Accelerating Threat: When Technology Outpaces Policy

The digital landscape is evolving at an unprecedented pace, driven largely by the rapid advancements in Artificial Intelligence. What was once confined to text generation has exploded into audio, video, and sophisticated AI agents, capable of complex interactions. This innovation, while promising, creates a unique challenge for cybersecurity: data flows are more intricate, attack vectors are harder to identify, and malicious payloads can now be disguised as innocuous text. As Senihang points out, "Before, traditionally, all attack payloads were some sort of malicious intended codes... Now, it's all text." This shift necessitates "secure by design, secure by default" principles for any AI product, a concept often overlooked.

The core problem, globally, is that technology consistently outpaces policy. However, in cybersecurity, this lag is catastrophic. AI-assisted tools can now help anyone create malware or exploit zero-day vulnerabilities, expediting attacks to an unimaginable degree. While governments and regulatory bodies struggle to keep up, often taking months to study and draft legislation, new threats emerge within weeks. Senihang highlights that even a three-month gap in policy can see an entire new generation of AI capabilities emerge, rendering previous regulations obsolete before they are even enacted. This makes cybersecurity not a luxury, but a basic, urgent need.

A Digital Foundation Built on Vulnerability

Nepal’s journey towards digitalization, supported by international loans, is proceeding without a robust cybersecurity framework in place. Senihang identifies this as the most concerning aspect of the nation’s digital future. For over a decade, discussions about a dedicated cybersecurity law have yielded nothing. The existing Electronic Transaction Act, while relevant for digital commerce, completely fails to address modern threats like ransomware, advanced scams, or AI-driven attacks.

The absence of a national cybersecurity authority is another critical void. Should Nepal's critical infrastructure, from government systems to essential services, come under cyberattack, there is no single body with the authority or mandate to respond. The National Cyber Security Center, established by cabinet decision, lacks the power to regulate or intervene across ministries, let alone the private sector. This leaves the nation exposed.

The implications are dire for citizens. Consider the National ID system, now linked to banking and other vital services. If this critical infrastructure were compromised, there's no clear provision for changing a leaked ID number, nor are there publicly available security standards for its protection. Senihang draws a parallel to India's Aadhaar card, which suffered significant data leaks before the government recognized that "Digital India without cybersecurity is incomplete." Nepal, he warns, is on the cusp of repeating this history. Recent incidents, including the alleged hacking and manipulation of Nepal’s government online bidding system, underscore the immediate and tangible risks of cybersecurity vulnerabilities. [Source: Nepal Police Central Investigation Bureau, as reported by Peoples’ Review] With a global cybersecurity index ranking of 109, behind even Sri Lanka, Bhutan, and Bangladesh, Nepal's digital reputation and the trust of potential foreign investors are severely undermined.

The Paradox of Global Talent, Local Gaps

Despite Nepal's alarming lack of preparedness, there’s a compelling paradox: the country produces world-class cybersecurity professionals who excel on the global stage. Nepalis hold top positions at companies like IBM Watson, Mandiant (Google's elite incident response team), and Bank of America.

This brain drain, however, offers a glimmer of hope. Many of these highly esteemed professionals are now sending work back to Nepal, leveraging their networks and trust in their compatriots' abilities. Senihang recounts a significant project in Australia where his company secured a contract after a Nepali acquaintance vouched for their talent and honesty, overcoming initial skepticism. This demonstrates that the raw talent exists, and there's a growing recognition of Nepali capabilities internationally. Furthermore, a new generation within Nepal is showing keen interest in cybersecurity, with hundreds of young people from diverse academic backgrounds (including medical students) actively engaging in bug bounty hunting. This burgeoning interest, fueled by platforms highlighting their achievements, indicates a silent development of a cybersecurity culture.

Beyond Quick Wins: Cultivating Foundational Expertise

While the enthusiasm of the younger generation is promising, Senihang identifies a critical flaw in their approach: premature specialization. Cybersecurity is a broad field, requiring a foundational understanding of diverse domains: health, finance, IoT, critical infrastructure, governance, risk, and compliance before specializing. He likens it to medical education: one must complete an MBBS before becoming a specialist surgeon. In Nepal, many young professionals are jumping directly into specialized areas like bug bounty hunting, often driven by the allure of quick cash.

This focus on short-term financial gains over long-term career development leads to a lack of aspiration beyond entry-level roles. Bug bounty hunting, while a valuable side hustle, is not a sustainable career path. It can lead to stress and depression when bugs aren't found or are duplicated. More critically, it prevents the development of the holistic understanding required for leadership roles like a Chief Information Security Officer (CISO), who must possess strategic insight across all technological domains.

Beyond misguided aspirations, there’s a deeper issue of foundational skill deficiency. Nepal lacks engineers proficient in low-level programming (C, kernel-level work) or experienced in building complex enterprise applications. This limits the country's ability to take on advanced projects and diversify its technological portfolio. Even in the age of AI, where everyone is an "AI engineer," the underlying need for data engineers and mathematicians is often overlooked. Nepal, where mathematics is often a neglected subject, faces a significant hurdle in developing its own AI algorithms rather than merely utilizing open-source models. The ecosystem for developing such deep expertise is simply not there, leading to lost opportunities, such as a chip manufacturing project that was forced to move to India due to a lack of local talent and government support.

The New Frontier of Warfare: Capital, AI, and National Defense

The recent geopolitical conflicts, particularly the Iran-Israel-US dynamic, have starkly demonstrated the lethal synergy of AI and cyber warfare. As Senihang observes, "All future wars will start with cybersecurity or will be assisted by cyber attacks." These conflicts have revealed how AI models, when stripped of guardrails, can perform offensive simulations with devastating effectiveness, making cyber offensive capabilities a brutal form of national power.

For a country like Nepal, the question becomes: offensive or defensive? Senihang unequivocally states that Nepal must prioritize defense. Offense is inherently more expensive, requiring massive budgets for sophisticated tools and operations. Defense, while demanding significant effort, can be achieved with comparatively less capital, focusing on building resilient systems and developing defensive technologies. Nepal possesses the human capital to build such defense capabilities, but lacks the ecosystem to nurture it.

The development of AI itself is a capital-intensive endeavor. Building even a Minimum Viable Product (MVP) in AI security can cost millions of dollars, primarily due to the exorbitant costs of compute power, specialized GPUs, memory, and reliable data centers. This capital barrier places countries like Nepal at a severe disadvantage against global superpowers like the US and China, who dominate the AI race due to their vast financial resources. Without significant foreign investment, actively invited and assured by the government, Nepal's ability to make a mark in AI, even defensively, remains severely constrained.

The Imperative of Digital Sovereignty

Nepal stands at a critical juncture. Its digital ambitions are commendable, but without a fundamental shift in its approach to cybersecurity, the nation risks building a future that is inherently fragile and vulnerable. The path forward demands urgent, decisive action from the government: enacting comprehensive cybersecurity laws, establishing a powerful national cybersecurity authority, and defining clear security standards for all critical digital infrastructure.

Beyond policy, there must be a concerted effort to cultivate a robust domestic cybersecurity ecosystem. This means investing in foundational education, promoting deep technical skills, and creating clear career pathways that encourage long-term aspiration over short-term financial gains. It also requires actively engaging with the global Nepali diaspora of cybersecurity experts, inviting their collaboration, and creating an environment where their expertise can flourish at home.

The digital realm is the new frontier of national power and economic opportunity. Nepal possesses the raw intelligence and potential to thrive in this era, but it must first secure its digital sovereignty. The choice is clear: either build a resilient, secure digital future through strategic vision and investment, or remain perpetually exposed to the unseen, yet devastating, threats of tomorrow. The future won't wait for institutions, and the cost of inaction will far outweigh the price of preparedness.

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