Concerns grow over foreign employment as Nepali agencies halt process

The Nepal Association of Foreign Employment Agencies has suspended all labor migration processes, initiating an indefinite halt starting Friday. The association is pressing the government to address a 15-point charter of demands, which includes withdrawing disciplinary actions against 771 manpower companies and establishing a scientific service fee structure.

This decision follows the expiration of a 15-day ultimatum issued to the Ministry of Youth, Labour and Employment, which ended without the government addressing the agencies' concerns. The Department of Foreign Employment had previously taken action against numerous recruitment agencies for alleged violations, including charging excessive fees, facilitating unauthorized travel through Indian airports, and failing to ensure workers were employed according to contracts.

The suspension of worker deployment is expected to impact hundreds of thousands of Nepali youths who depend on job opportunities in Gulf countries, Malaysia, and parts of Europe. It also poses a threat to Nepal's economy, as remittances, equivalent to about a third of the country's GDP, are a major source of foreign currency and economic stability.

Dik Bahadur Khatri (Kumar), president of the association, described the foreign employment sector as a pillar of Nepal's economy but currently facing a crisis due to policy inconsistencies and impractical regulations. He noted a significant decline in new labor approvals last fiscal year, down by 19.7 percent. The agencies are advocating for amendments to the Foreign Employment Act, 2007, to introduce a transparent service fee structure based on actual recruitment costs, arguing that the current "free visa, free ticket" policy is unworkable and fosters informal transactions.

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Since 1993-94, the foreign employment sector has brought in large amounts of remittances, helping keep the economy afloat. It has boosted foreign currency reserves and contributed to reducing the trade deficit. Around 64 percent of Nepali households are directly or indirectly linked to this sector. However, practical policies have never been introduced to properly manage it.