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DOCKING NEPAL’S ECONOMIC ANALYSIS
REMITTANCE REMITTANCE The review period depicts a positive picture of remittance sector in Nepal where remittance inflow has increased in comparison to the review period of the previous year. Moreover, many new initiatives are being undertaken considering how critical remittance is to Nepal’s economy. Hence, the need for labor migrants to be well-trained for the jobs for them to undertake in their destination countries. Remittance increment by 12.6%:
In the first three months of the current fiscal year, Nepal’s remittance increased by 12.6%, amounting to NPR 258.86 billion (USD 2.19 billion). The country had witnessed a decrease of 5.1% in remittance during the corresponding period last fiscal year. Use of formal channels for sending money by the migrant
workers, has been cited as the reason behind this increment. However, in the review period, while there was an increment in remittances, the number of people applying for permission of foreign employment for the first time decreased by 96.8%, while it had decreased by 3.7% in the same period last year. Likewise, the number of Nepali workers renewing their entry
for foreign employment also dropped by 78.6%.72 A snapshot of the country-wise labor approval from 16 November, 2020 to 13 January, 2021 has been given below. The data has been extracted from the Department of Foreign Employment.73
Table 2. Country-wise Labor Approval from 16 November 2020 to 13 January 2021
Particulars
Male
Female
Total
Recruiting Agency
8006
1437
9443
Individual (New)
926
285
1211
Individual (Legalization)
852
80
932
Individual (Re-entry)
14934
664
16048
Total with re-entry
24718
2466
27184
9784
1802
11586
Total without re-entry
Source: Department of Foreign Employment
Decrease in the national poverty line due to increase in remittances: The
progress report released by the National Planning Commission (NPC) titled ‘Sustainable Development Goals: Progress Assessment Report 20162019’ stated that the proportion of people living under the national poverty line decreased to 16.7. The target for 2019 was 17.1. One of the major reasons behind this has been the increase in remittance and the expansion of local level services
as part of the government’s poverty alleviation policies. Remittance to households has been one of the key contributors of economic growth and transformation of less well-off households.74 Workers allowed to renew labor permits in destination countries:
From time immemorial, Nepali migrant workers have been employed overseas. However, this is the first time that they will be able to renew
their work permits in the country where they work, meaning they will not have to visit the government offices in Nepal for the renewal of their work permits. This saves them time, money and effort. Besides, there are numerous cases where Nepali migrant workers continue to work for their same employer even after the expiration of their work permit and initial contract period. Due to which, those workers who overstay as well as their families are considered
