Nepal received remittances totaling Rs. 521.63 billion in the first four months of the current fiscal year 2024/25. According to the NRB, remittance inflows increased by 9.1 percent to Rs. 521.63 billion during this period, compared to a 22.5 percent increase in the same period of the previous year.

However, Nepal is also losing young population who went work in foreign countries. In US dollar terms, remittance inflows reached $3.87 billion in the review period, up from $3.60 billion in the same period of the previous year. In a single month (from mid-October 2024 to mid-November 2024) of the current fiscal year, Nepal received remittances of Rs. 114.32 billion.

Net secondary income (net transfer) amounted to Rs. 568.26 billion in the review period, compared to Rs. 521.43 billion in the same period of the previous year.

The number of Nepali workers seeking first-time approval for foreign employment, both institutional and individual, was 147,478, while those seeking approval for renewal entry stood at 94,105. In the previous year, these numbers were 137,475 and 68,841, respectively.

Nepal's foreign currency reserves have seen a significant increase in the first four months of the current fiscal year, thanks to remittance inflows and controlled imports. The reserves reached a record high of Rs. 2,255.35 billion, covering over 15 months of imports. However, there is a downside to this success, as around 500 Nepali migrant workers die in foreign countries every year. Despite the economic benefits, the human cost of foreign employment is high for many families

The increase in reserves is attributed to strategic fiscal measures, improved remittance inflows, and tourism recovery. The central bank's reserves grew by 10.5% to Rs. 2,255.35 billion, with banks and financial institutions also seeing a significant increase in reserves.

Nepal received remittances totaling Rs. 521.63 billion in the first four months of the current fiscal year 2024/25.

According to NRB, remittance inflows increased by 9.1 percent to Rs. 521.63 billion during this period, compared to a 22.5 percent increase in the same period of the previous year.

In US dollar terms, remittance inflows reached $3.87 billion in the review period, up from $3.60 billion in the same period of the previous year. In a single month (from mid-October 2024 to mid-November 2024) of the current fiscal year, Nepal received remittances of Rs. 114.32 billion.

Net secondary income (net transfer) amounted to Rs. 568.26 billion in the review period, compared to Rs. 521.43 billion in the same period of the previous year.

The number of Nepali workers seeking first-time approval for foreign employment, both institutional and individual, was 147,478, while those seeking approval for renewal entry stood at 94,105. In the previous year, these numbers were 137,475 and 68,841, respectively.

Current account surplus increases

The current account surplus grew to Rs. 143.42 billion in the review period, up from Rs. 97.10 billion in the same period last year.

In US dollar terms, the current account surplus reached 1.06 billion, compared to 730.58 million in the previous year. Net capital transfer in the review period was Rs. 2.47 billion, up from Rs. 1.59 billion in the previous year. Foreign direct investment (Equity only) inflows amounted to Rs. 5.76 billion in the review period, an increase from Rs. 3.65 billion in the same period last year. The balance of payments (BOP) surplus was Rs. 205.83 billion in the review period, up from Rs. 150.24 billion in the previous year.

In US dollar terms, the BOP surplus was 1.53 billion, compared to 1.13 billion in the same period last year.

14,000 Deaths In 15 Years

Over the past 15 years, more than 14,000 individuals who sought foreign employment have passed away. Since the establishment of the Secretariat of the Foreign Employment Board in the fiscal year 2065/66 until now, a total of 14,213 individuals have lost their lives while working abroad.

The Ministry of Labor, Employment, and Social Security shared this data in observance of International Migrant Workers' Day, which is being commemorated in Nepal throughout the week.

To mark this day, which falls on Wednesday, the ministry has planned various events from December 16 to 22.

A week-long program has been organized by the Ministry of Labor, Employment, and Social Security under the leadership of Ministry Secretary Mukunda Prasad Niraula to honor the occasion.

As per the committee's information, only 3,440 workers have returned from serious illness and disability since the board was established.

Secretary Niraula stated that these workers received financial assistance from the Foreign Employment Board after migrating to 111 different countries from Nepal.

The International Organization for Migration's 2024 Migration Report estimates that there are 28.1 million migrants worldwide, with 16.9 million being migrant workers.

In response to potential discrimination against immigrants, the United Nations adopted the Convention on the Protection of the Rights of Migrant Workers and Members of Their Families in 1990, which came into effect on July 1, 2003.

International Migrants Day is observed annually on December 18 to raise awareness about migration challenges and opportunities, as well as to acknowledge the contributions of migrants globally.

Hence, this day is commemorated annually through a collaborative effort involving various stakeholders such as government entities, non-governmental organizations, private sector, trade unions, civil society, migrant workers and their families, and the media.

The role of foreign employment in driving Nepal's economy forward has been significant. The Ministry of Labor emphasizes the government's strategy to leverage the capital, technology, skills, and expertise acquired through foreign employment to enhance the productivity and competitiveness of the labor force, which forms the foundation of the economy.

In the government of Nepal's policies and programs for the fiscal year 2081/82, there are provisions aimed at ensuring the safety and dignity of foreign employment. These include amendments to laws related to foreign employment, provision of free orientation training for skilled employment, revision of labor contracts, as well as the establishment of labor agreements and understandings with destination countries.

Furthermore, initiatives such as encouraging individuals seeking work abroad to open a free bank account for remittance transfers and implementing the Returnee Entrepreneurship Program are part of the government's efforts.

According to data from the National Bank, Nepal received remittances totaling 14 trillion 45 billion 32 million rupees in the year 2080/81, marking a 16.5 percent increase from the previous financial year.

In the fiscal year 2080/81, a total of 741,297 individuals, including 80,172 women, obtained labor approval (including resumption approval) from the Foreign Employment Department. The committee noted that the remittances sent by these workers have had a positive impact on their households, improved the human assets index, reduced economic risks for families in poverty, and significantly contributed to Nepal's economy.

According to the October 2024 World Bank report, remittances account for more than a quarter of Nepal's gross domestic product. Toraise awareness about safe and dignified foreign employment among stakeholders, the ministry has decided to celebrate Immigrant Day with a week-long series of programs, as done in previous years.

Local and district-level agencies such as the district administration office, district police office, municipality, and rural municipality play a crucial role in preparing necessary documents like passports, skill training, and orientation for foreign employment. Secretary Niraula emphasized the importance of International Migrant Workers' Day, highlighting its significance at the local level.

Minister Bhandari

Minister for Labor, Employment, and Social Security, Sharat Singh Bhandari emphasized the importance of utilizing the skills and capital acquired during foreign employment for the development of the nation. Speaking at an event organized by Tribhuvan University, Central Department of Population Studies, and the International Organization for Migration (IOM) on International Migrants Day, Minister Bhandari highlighted the significance of investing these resources in the self-employment sector to contribute to the country's economic growth.

He acknowledged the significant number of Nepali youths working abroad and emphasized the potential benefits of bringing back the skills and capital they have acquired to support Nepal's development. Minister Bhandari mentioned that the government is working on providing collateral-free loans to individuals planning to seek foreign employment, aiming to reduce their reliance on high-interest loans.Stating that the government is serious regarding the safety of migrant workers, the Labor, Employment and Social Security Minister urged the youths to go on foreign employment only through the authorized agencies and after acquiring the required skills.

He mentioned that the government is working to address the issues faced by Nepalis who have gone abroad without proper work permits and encountered difficulties. Mukunda Prasad Niraula, the Secretary at the Ministry of Labour, Employment, and Social Security, stated that the Ministry is conducting a study on the National Migration Policy with the help of an expert committee. He emphasized the government's commitment to ensuring the well-being of Nepali citizens working abroad. Despite the lack of job opportunities in Nepal, the government cannot completely prevent people from seeking employment abroad. The focus is on sending individuals for foreign employment while ensuring their safety and protection.