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Remittances and foreign employment are vital for economy of Nepal

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Business Development Finance Inst.

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Ime Financial institution

 

News item 16-3-2008

Minister for Foreign Affairs, Sahana Pradhan said the government was putting high emphasis on foreign employment as an alternative source of employment for the Nepalese and with remittance becoming a lifeline of Nepalese economy. Speaking at a seminar on 'Foreign Employment, Remittances and Foreign Policy', organised by the Institute of Foreign Affairs, she said many Nepalese have been going abroad in search of better opportunities, higher education, foreign employment and also as immigrants. Migration and foreign employment have become a worldwide phenomenon in the globalised world," she said. She further said with increasing number of Nepalese seeking jobs outside the country, management of foreign employment had become complex.
Some of the complexities, she cited were lack of awareness, uncertainty of job, inadequate information on the nature of job, alien culture and language and fraudulent activities within and without the country. The foreign minister said the government would like to sign labor agreements with as many countries as possible with a view to safeguarding the interest of Nepali workers in those countries. In line with this policy, Nepal has signed labour agreements with Republic of Korea Qatar and United Arab Emirates (UAE).

Nepal has also become member of International Organisation for Migration, she said. She said foreign employment gives positive impetus not only to national economy but also to the society at large. She further said the volume of remittance in the national context through formal channel had already crossed US$ one billion annually. She said that utilisation of remittance in a rational and for long-term perspective was of utmost importance for sustained economic growth and poverty alleviation. The government would like to urge all stakeholders involved in foreign employment to act responsibly so that cheating and other illegal activities would be eliminated, she added. Inside the country, administrative capacity has to be enhanced to the optimum level to ensure standard regulatory activities and activities of recruiting agencies also have to be transparent and they should be accountable on their dealings, the foreign minister pointed out. Secretary at the Ministry of Finance Rameshwor Khanal said the contribution of remittance to the GDP was increasing significantly and it had become a significant contributor to the national economy. Remittance takes a significant position is reducing poverty. So, we have to improve our foreign policy, system, process, cooperation , co ordination, documentation process," he said.
 

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