Kathmandu, Mar. 23: Recent estimates from the national and international agencies have reckoned that about 4.5 million Nepalis are working abroad. In the last Fiscal Year 2023/24, they sent remittances worth Rs. 1445.32 billion.
This amount was more than the government spent from treasury – including the recurrent and capital expenditure and financing management – which, as reported by the Financial Comptroller General Office, stood at Rs. 1409 billion.
Just to put that in context, this is about Rs. 148 billion less than the country's total imports from the formal channel that year, and almost Rs. 5 billion more than the total trade deficit. Nepal imported goods worth Rs. 1592.98 billion and exported worth of Rs. 152.38 billion, according to the statistics of the Department of Customs.
Likewise, if the remittance data is compared with the national budget, it’s more than the total revenue estimates for the last fiscal. The government targeted to raise revenue of Rs. 1422.54 billion. But actual collection was Rs. 1030.5 billion.
This illustration demonstrates the contribution of Nepali migrant workers spread across the globe to the national economy. Nepal is at the 19th position on the basis of amount received while it stands fourth as per remittance to Gross Domestic Product (GDP) ratio.
Although tourism received high attention in national policies and programmes and economic dialogues in Nepal, total income made from tourism activities is not sufficient to cover Nepali's foreign education investment and trips made for recreation. This makes remittance a backbone of Nepali economy which has so far been reliable.
But labour migrants's contribution is yet to be taken seriously. Foreign employment is the sector where high corruption persists and illegal activities flourish right in front of the authorities. Nepali migrant workers have been continuously deceived by the manpower agencies and middlemen at multiple stages.
Service to facilitate Nepalis
While the state has been extending its arms to the migrant workers abroad only for rescuing and legal assistance, for the last four years, it is reaching out to them with additional services of providing passports and labour approvals at their locations.
The Department of Passport (DoP) has launched the mobile passport camps in various cities across the globe where the number of Nepalis is high. The Department of Foreign Employment (DoFE) has also been extending its services for labour approvals and other labour related activities to the destination cities.
The DoP is organising such camps since 2021/22.
Such camps are organised in collaboration with the Embassy of Nepal in the respective countries, DoP and DoFE. Director General of the DoP, Tirtha Raj Aryal, said that it was the job of the embassy to make the assessment of the situation and coordinate with the respective departments in Nepal and manage the mobile camps in the cities of their jurisdiction.
Although it's a service-oriented programme, the country receives economic benefits as well. For example, while organising a mobile passport camp in Portugal, less than a million rupees were spent but from the same camp, revenue of Rs. 90 million was raised.
A 10-day camp could be organised with about Rs. 500,000 even in the European cities. Considering the number of people it could serve, this cost is nominal.
"This is a win-win situation for both the country and its citizens abroad. Had there not been a mobile passport camp, Nepalis in Portugal were required to come to the Nepali Embassy in Paris of France which would demand more time and expenses," said Aryal while stressing that it's not a programme to raise revenue but to extend service.
Likewise, Director of the DoFE, Updnera Raj Poudel, said that the camps' organisation is not only to facilitate Nepali citizens but also recognizing their contribution to the country and economy. As much as 4,100 individuals have availed the service from a single mobile camp. According to the general rules and understandings, there needs to be at least 1000 enrolments for passports which is a business for 10 days for a mobile service team. The team has to provide passports to at least 100 people.
Two additional staff are sufficient to manage such camps. However, understaffing at the embassies even in the countries where the number of Nepalis is high, creates challenges for the smooth service delivery.
Priority to mobile camps
The DoP has accorded priority to organising such camps this year. So far, 12 camps have been held while additional 39 are in the pipeline. The department has written to the Ministry of Finance for the budget required to manage the mobile camps.
Such camps are helpful in delivering prompt service related to passport as the Nepali embassies in the countries with high Nepali diaspora are struggling to provide the facility.
For example, the Embassy of Nepal in Abu Dhabi in the UAE issued 46,000 passports last year while it has already issued more than 30,000 passports in the first six months of this Fiscal Year 2024/25.
Such achievement was possible due to the organisation of mobile camps. The Non-Resident Nepali Association (NRNA) and Nepalese Society in the UAE are supporting the embassy in the drive.
On 22 February, the mission organised a mobile labour awareness, passport and consular camp in Fujairah which is 300 km away from Abu Dhabi. The camp renewed the passports of 216 Nepali citizens in and around the city while 300 people were sensitised on the labour laws of Nepal and the UAE.
About 600,000 Nepalis are currently working in the UAE.
Similarly, Embassy of Nepal in Ottawa, Canada organised two-day mobile consular camp in Surrey of British Columbia on 15-16 February.
The camp conducted with the support from the Hindu Buddhist Foundation of Canada, Nepal Cultural Society of British Columbia, and the NRNA benefitted Nepali nationals, particularly students in British Columbia, Saskatchewan, Manitoba, and Alberta provinces of Canada. They received passport renewal and other consular services, the embassy had informed in a statement.
DoFE launches labour regularisation abroad
Meanwhile, the foreign labour regularisation permit was launched recently on 31 January this year by the Nepali Embassy in Muscat of Oman.
This first-ever foreign labour regularisation permit was organised in Salalah from 31 January to 1 February. The event also featured direct dialogue with the ambassador, interaction, worker awareness, financial literacy, affiliation with the Social Security Fund, and passport/consular services.
Nepali Ambassador to Oman, Dor Nath Aryal, expressed confidence that the labour regularisation permit service would provide convenience to the Nepali migrant workers in Oman.
According to a statement issued by the embassy then, Nepali workers in Salalah expressed their happiness over the services like passport renewal, labour regularisation permits, and various information services in Salalah, which is about 1100 kilometres away from Muscat.
In FY 2023/24, about 714,297 Nepalis obtained approval to work in foreign land which included 80,172 women and 661,125 men. Of this, only 732 are high-skilled 2,772 are professionals and 60,123 are semi-skilled.
The largest portion of migrant workers (532,123) obtaining first time or renewed labour approval for foreign countries are skilled, according to the statistics of the DoFE. A total of 145,547 are unskilled.
GCC remains top destination
Until some years ago, distribution of Nepali migrant workers was highly concentrated to the Gulf Cooperation Council (GCC) member countries and India. However, the number of Nepalis is steadily growing in the United States of America, Japan, South Korea, Australia, the United Kingdom, Romania and many other European countries.
According to Nepal Labour Migration Report, 2022, the highest number of new and renewed labour approvals were issued for Qatar, the United Aram Emirates, Saudi Arabia, Malaysia, Kuwait, Bahrain, Romania, Oman, Japan and Croatia.
In FY 2022/23, remittance inflow amounted to Rs. 1220.56 billion which increased by 23.2 per cent to touch Rs. 1445.32 billion last year. Remittance inflow, of late, has witnessed a massive increase – it was Rs. 1007.31 billion in 2021/22.
The DoP is planning to take the mobile camps to Romania, Poland, Malaysia and a couple of cities including San Francisco and Texas in the USA.