Hon’ble Prithvi Subba Gurung, Minister for Communication, Information and Technology (MOCIT) , Ms. Radhika Aryal, Secretary, MOCIT, Excellency Rob Fenn, British Ambassador to Nepal, Representatives of government ministries and departments, development partners, Private sector, CSO, think tank, media persons, ladies and gentlemen, a very good morning and warm welcome to the launch of the 2025 Human Development Report, UNDP’s flagship knowledge product. 

Before getting into 2025 human development report, let me begin by highlighting the concept of Human development that UNDP introduced in 1990 with the objective to shift the focus of development from purely economic growth to people-centered progress. 

As defined by Amartya Sen, one of the architects of this concept, human development is the process of enlarging people's freedom and opportunities and improving their well-being. 

To measure the progress in human development comparable between countries, UNDP also introduced Human Development Index, famously known as HDI. HDI covers three key dimensions of human development – long and healthy life, knowledge and standard of living.  

Since 1990, UNDP has been publishing Human Development Report every year focusing on the topic relevant of that year. Human Development Reports also include HDI value with country ranking.

Nepal’s human development journey has been encouraging. Between 1990 and 2023, Nepal's HDI value changed from 0.404 to 0.622, a change of 54.0 percent, which is higher than global average. 

Nepal is now in the Medium human development category, positioning it at 145 out of 193 countries and territories. As compared to the 2022, Nepal’s HDI value has increased from 0.605 to 0.622, up by 0.017. 

Between 1990 and 2023, Nepal's life expectancy at birth changed by 15.6 years, expected years of schooling changed by 6.5 years and Nepal's GNI per capita changed by about 168.2 percent.

Despite low economic growth for last three decades, these remarkable gains in all dimensions of human development displays Nepal’s strong commitment to human development.  Thanks to government policies in particular expansions of basic health and education services and social protection programs as well as targeted anti-poverty programs. Nepal however has a long journey to upgrade itself to high human development category.  

Now allow me to briefly highlight 2025 Human Development Report, my colleague Alex will make a detailed presentation. The 2025 Human Development Report, titled “A Matter of Choice: People and Possibilities in the Age of AI,” explores one of the defining questions of our time: how can we harness technological progress—particularly artificial intelligence—to expand human freedom, reduce inequality, and foster human development?

The report reveals two messages – unexpectedly slow progress in human development across countries and increasing inequality between rich and poor countries. 

Despite the context of slowing progress in human development, the report argues that people find hope in AI. Global survey shows that AI use is already common - nearly 1 in 5 people use it today. Across countries at all development levels, around two-thirds of people expect to use AI in education, healthcare, and are confident that AI will make them more productive at work.

AI therefore offers a powerful opportunity to reshape economies. Realizing this potential, the 2025 HDR offers four suggestions. 

First, building an economy where people collaborate with AI rather than compete against it. Rather than try to predict the future, policymakers should shape it, breaking away from trying to guess how humans will be replaced by AI, to see the potential of what humans can do with AI.

Second, moving from technology-driven to people-centred approaches for AI development. Instead of accepting a supply-side approach where AI replaces human capabilities, we should prioritize a demand-side perspective that shapes AI to meet real human needs and development goals.

Third,  AI should be harnessed to accelerate science and innovation—not by automating creative processes but by augmenting them. AI has the potential to empower people in new ways to fulfil their aspirations to understand, create and drive progress.

Forth, Modernizing education and health systems to meet 21st-century demands so people have the capabilities to make the most of AI in their lives and to thrive in a world with AI. 

In Nepal, the use of AI for human development is at early stage. In 2024, Oxford Insights released its Government AI Readiness Index, which assesses how well countries are prepared to leverage AI for public service delivery. Nepal was ranked 150th globally in this index out of 188 countries. 

Despite low ranking in the index, it is however encouraging to note that, the Government of Nepal (GoN) has shown keen interest in exploring, adopting and creating an enabling environment to promote innovation and uses of AI based technologies in Nepal. Concept paper on use and practices of AI followed by the draft AI policy drafted by the Ministry of Communication and Information Technology shows positive signs. 

Most importantly, government through its recent budget announced to establish AI center in partnership with the private sector for the use and promotion of AI is an important step in creating enabling environment. 

Equally important is to note the efforts made by Nepal’s private sector. Companies like Fusemachine, Leapfrog technologies, Paila Technology NAAMII are actively engaging on AI innovation and research. 

To provide a unified stance and facilitate AI based innovation and lobby for policy frameworks, AI association has recently been registered and started its operation. 

Finally, let me reiterate that UNDP remains firmly committed to supporting use and expansion of AI and its contribution to accelerate human development. Human development is not a destination—it is a shared commitment. This report reminds us that the choices we make today will shape our future.