Foreign employment and remittances play a crucial role in the Nepalese economy, providing millions of Nepalese with employment opportunities and significantly contributing to the country’s GDP. The Nepalese government, recognizing the significance of foreign employment and remittances, has formulated policies and programs to promote safe and secure migration and protect Nepalese workers abroad.
Nepal’s Foreign Employment and Remittance Policy is one such policy that outlines the government’s vision and management strategies for foreign employment and remittance.
Foreign Employment and Remittance Policy of Nepal:
Nepal’s Foreign Employment and Remittance Policy was started in 2007 and changed in 2012 and 2019. The policy’s goal is to encourage safe and secure migration, look out for the welfare of Nepalese workers abroad, and get the most out of remittances for development. Nepal’s Foreign Employment and Remittance Policy has the following major objectives:
- To promote safe and secure migration and protect the rights and welfare of Nepalese workers abroad.
- To promote ethical recruitment practices and discourage exploitation of Nepalese workers by foreign employers and recruitment agencies.
- Maximize the benefits of remittance for the country’s development by promoting investment in productive sectors and creating employment opportunities.
- To promote skill and human resource development for better employment prospects and higher earnings.
- To establish a strong institutional framework for managing foreign employment and remittance.
Foreign Employment and Remittance Policy of Nepal:
- Safe and Secure Migration: The policy aims to promote safe and secure migration through better regulation of recruitment agencies and foreign employers, pre-departure orientation and training, and monitoring of working conditions and welfare of Nepalese workers abroad.
- Ethical Recruitment Practices: The policy aims to promote ethical recruitment practices by discouraging the charging of recruitment fees to workers, ensuring the recruitment process is clear, and taking legal action against fraudulent recruitment agencies.
- Maximize the benefits of remittances: The policy aims to get the most out of remittances for the country’s development by encouraging investment in productive areas like agriculture, tourism, and building infrastructure. The policy also aims to create employment opportunities by promoting entrepreneurship and SME development.
- Skill Development and Human Resource Development: The policy promotes skill and human resource development through training and capacity-building programs. This can help Nepalese workers abroad to secure better-paying jobs and contribute to the country’s development upon their return.
- Institutional Framework: The policy aims to establish a strong institutional framework for managing foreign employment and money sent home by people working abroad. This includes making the Foreign Employment Board, which oversees hiring Nepalese workers abroad and ensures they are cared for. The policy also wants to strengthen organizations like the Department of Foreign Employment and the Foreign Employment Promotion Board.
Related: Current Policies and Acts of Nepal
Achievements and Challenges:
Nepal’s economy has been greatly helped by people who work abroad and send money back home. According to Nepal Rastra Bank, the number of Nepali workers seeking employment abroad has increased significantly, with approvals increasing by 57.3 percent during the review period (2022-23) to 314,767. In addition, renewal approvals rose 10 percent to 167,708.
In the first seven months of the current fiscal year, this has led to 482,475 Nepalis leaving the country for jobs abroad, resulting in a 13.8 percent increase in gross foreign exchange reserves of Rs 1,383.33 billion. The reserves increased by 10.2 percent to $10.50 billion in US dollars. Nepal Rastra Bank’s holdings increased by 16.2 percent to Rs 1228.05 billion, while banks’ and financial institutions’ holdings decreased by 2.6 percent to Rs 155.28 billion. These trends indicate that foreign employment and remittances substantially affect the economy (TKP).
This shows how hardworking Nepalese workers are and how important the money they send home is to the economy. However, several obstacles must be overcome. Many Nepalese workers abroad are exploited and abused, and the government must protect their rights and welfare. The COVID-19 pandemic has also highlighted the need for improved crisis preparation and management for Nepalese workers abroad.
The government has taken numerous measures to address these difficulties. The government established the Foreign Employment Board in 2019 to regulate the recruitment of Nepalese workers abroad and to ensure their welfare. In addition, the government has launched many programs to promote skill development and human resource development, which can result in higher wages for Nepalese workers abroad.
Nepal’s Foreign Employment and Remittance Policy provides a framework for managing foreign employment and remittances. Despite the need to address several obstacles, the government’s efforts and the perseverance of Nepalese workers abroad have led to significant progress in recent years. Nepal can realize its vision of a prosperous and inclusive society by promoting safe and secure migration, protecting the rights and welfare of Nepalese workers abroad, and maximizing the benefits of remittance for the country’s development.