Explore the pros and cons of foreign employment in Nepal, its impact on the economy, families, and the nation's future. A deep dive into risks and rewards.

Every single day, more than 1,700 young Nepalis leave the country for foreign employment.

They say goodbye to their families, take loans they can barely repay, and board flights to places they’ve only heard about in recruitment agency brochures like Qatar, Saudi Arabia, Malaysia, Korea. Why? Because for many, foreign employment is the only shot at a better future. Not necessarily a dream, but often a necessity.

In Nepal, foreign employment isn’t just a personal choice, it’s a national phenomenon. It’s what’s keeping thousands of families fed, children in school, and homes running. It’s also what’s propping up Nepal’s economy, making up more than 25% of our national GDP through remittance alone.

But here’s the thing: while this flow of labor and money has brought undeniable benefits, it also raises serious questions. Is Nepal becoming too dependent on remittance? Are we exporting our youth while importing food and consumer goods? What happens if the flow of jobs abroad stops?

In this article, we’ll take a deep dive into:

• Nepal’s five-year labor permit trends
• Where Nepali workers are going (and why)
• How foreign employment supports the economy
• The risks of depending on it too much
• What needs to change before it’s too late

Let’s start by looking at the numbers.

1. Where Are Nepalis Going for Work?

Foreign employment has become one of the biggest lifelines for Nepal’s economy, and for millions of Nepali families. But where exactly are people going? What kind of jobs are they doing? And which parts of Nepal are sending the most workers abroad?

Let’s break down the data from the past five fiscal years (2076/77 to 2080/81) and see what it tells us about how foreign employment is shaping our society.

1.1 How Many Are Going Abroad Each Year?

From the fiscal year 2076/77 to 2080/81, Nepal issued nearly 2.5 million labour permits for foreign employment. Here's how the numbers have moved over the years:

After a dip during the COVID-19 years (2076 and 2077), foreign employment rebounded massively, with numbers nearly quadrupling by 2078/79. This shows just how crucial working abroad is. Not just for workers, but also for the country’s economy.

1.2 Top Foreign Employment Destinations

The vast majority of Nepalis going for foreign employment are heading to the Gulf countries and Malaysia. These destinations have been consistent over the years, offering jobs mainly in construction, manufacturing, and domestic work.

Top 5 Destination Countries for Nepali Workers in 2080/81

More recently, we’ve also seen a slow rise in interest for European countries like Romania, Croatia, Cyprus, and Malta. These destinations are especially popular for caregiving, domestic work, and hospitality jobs, and attract a larger share of female migrant workers.

1.3 What Kind of Jobs Are People Doing?

Every labour permit is categorized by the skill level of the worker. This tells us what kind of work Nepalis are doing abroad.

Here's the breakdown for the most recent year, FY 2080/81:

What does this tell us?
Most foreign employment from Nepal is still in blue-collar jobs. While skilled workers dominate the numbers, “skilled” here usually means someone trained in trades, not someone working in an office or professional field.

Very few Nepalis are going abroad in high-skill or white-collar roles. This highlights a major gap in how we prepare our workforce, and where we need to invest in education and training if we want to open up better opportunities abroad.

1.4 Which Districts Send the Most Workers?

Foreign employment isn’t evenly spread across Nepal. Some districts are sending far more people abroad than others.

Top Labour-Sending Districts:

• Morang, Jhapa, Sunsari (Koshi Province)
• Rupandehi, Kapilvastu, Nawalparasi (Lumbini Province)
• Siraha, Sarlahi, Dhanusha (Madhesh Province)

These districts regularly top the charts each year. In contrast, mountain districts like Dolpa, Humla, and Manang send very few workers, likely due to low population, difficult access, and fewer manpower agencies.

1.5 What About Female Workers?

For years, foreign employment from Nepal was dominated by men. But in recent years, more and more Nepali women are going abroad for work, especially to countries like Cyprus, Romania, Kuwait, UAE, and Maldives.

Though women still make up less than 10% of total labour migrants, their numbers are increasing steadily. Many are going for domestic, caregiving, and hospitality jobs, often through organized recruitment channels.

This rise in female migration is also changing how families back home are structured. Sometimes women become the breadwinners while men stay behind.

1.6 What Does All This Mean?

Foreign employment isn’t just a job, it's a survival strategy, a family investment, and a national income source. The five-year data shows us that:

• Foreign employment is growing fast again after COVID-19.
• Gulf and Malaysia still dominate, but Europe is emerging.
• Most migrants are doing blue-collar jobs, not white-collar or high-skilled work.
• A few districts send most of the workers, while others lag behind.
• More women are going abroad, and we need stronger protection policies for them.

Understanding these trends helps us ask the right questions:

• Are we doing enough to train our workers?
• Are we too dependent on a few countries?
• What can we do to support returning migrants?
• How can we make foreign employment safer, fairer, and more productive?

2. The Remittance Flood: Where the Money Goes

Nepalis aren’t just going abroad for foreign employment, they’re sending back billions of dollars every year. These remittances have quietly become the backbone of Nepal’s economy, filling kitchen shelves, paying school fees, building houses, and even propping up our national foreign currency reserves.

But where exactly does all that money go? And what does it mean for Nepal in the long run?

2.1 A Closer Look at the Numbers

Foreign employment has fueled an incredible rise in remittance inflows. Back in 2005, Nepal received just over $1.2 billion. Fast forward to 2023, and that number has jumped past $11 billion. That’s nearly a tenfold increase in less than two decades.

Here’s the year-wise growth:

2.2 Where Does the Money Go?

You’d think with billions flowing in, we’d be seeing booming businesses, factories, and farmland. But the reality is, most of it goes toward survival.

Here’s the breakdown:

• About 75% of all remittance money is spent on:
  • Daily consumption (food, rent, education)
  • Healthcare
  • Loan repayments
• Only a small fraction goes toward:
  • Agriculture
  • Starting a business
  • Long-term savings or insurance

So instead of being invested, most remittance money gets consumed. That’s not necessarily bad as it lifts people out of poverty. But it’s also a missed opportunity for long-term growth.

2.3 How Has Remittance Impacted Us?

Foreign employment may take people far from home, but the remittance they send back creates ripple effects across Nepal’s economy and society.

Here’s what the data tells us:

2.4 Should We Be Concerned?

While remittances are a blessing, over-dependence is a growing concern:

• Nepal’s economy is becoming consumption-heavy, not production-driven.
• Very little investment goes into sectors like manufacturing or agriculture.
• A lot of remittance still comes via informal channels (like hundi), which is hard to track and regulate.
• Financial products for migrants are still underdeveloped, though a few banks now offer insurance and savings plans tied to remittance.

The bottom line?

Remittance has transformed lives, but it hasn’t yet transformed the economy. We’re getting richer as individuals, but not necessarily as a country.

3. Is Foreign Employment Weakening Nepal?

Nepal’s economy runs on foreign employment, there’s no doubt about it. The billions in remittance we receive every year have helped millions of families live better, send kids to school, and survive tough times.

But are we becoming too dependent on it?

Let’s look at the other side of the remittance story, the part where the blessings of foreign employment start turning into a burden if we’re not careful.

3.1 The Great Demographic Drain

Every day, around 1,700 young Nepalis, mostly men between the ages of 16 and 40 leave the country in search of work abroad.

That’s over 600,000 people every year.

Let that sink in.

• As per the data from 2080/81, approximately 90% of migrant workers are male, leading to social imbalance and family disruptions.
• A significant portion of them are unskilled, which means they’re limited to low-paying, physically demanding jobs abroad.

Foreign employment has become the default career path for youth in many districts, not because they want to leave, but because there’s nothing for them at home.

3.2 From Production to Consumption

Thanks to foreign employment, money is flowing into Nepali households like never before. But most of it gets spent just to get by, not to get ahead.

Let’s break it down:

What does this mean?

• Agriculture is suffering: As people leave, we’ve seen a drop in arable land cultivation. Fields are empty. Entire villages are aging.
• Food imports are rising: According to a research article published on Nepal Public Policy Review, Nepal’s agricultural imports increased by 65% between 2015 and 2020. We’re buying rice and vegetables from abroad while our own land sits unused.

Our economy is becoming consumption-oriented, not production-driven. We’re spending what we earn from abroad, but we’re not building anything that lasts.

3.3 Fragility Exposed

The COVID-19 pandemic was a wake-up call.

• In 2020, remittance dropped by 12%, a shock that exposed just how vulnerable our economy really is.
• Most of our migrant workers are concentrated in just two countries: Qatar and Saudi Arabia. That’s risky. If either of those countries tightens immigration policies, thousands of Nepalis could be stranded overnight.
• And  income inequality is rising between households that receive remittance and those that don’t.

In other words, the foreign employment system is creating two Nepals:
One that benefits from money sent from abroad, and one that’s getting left behind.

4. The Hard Truth: We’re in a Remittance Trap

Here’s what we know:

Remittance keeps the country running

• Makes up over 25% of GDP
• Funds household consumption expenses in migrant-sending areas
• Helps reduce poverty and improve access to health and education

But it’s also distorting the economy

• Over-reliance makes us fragile
• Local industries are shrinking instead of growing
• Youth are choosing foreign jobs over building anything at home

Without remittance, Nepal’s GDP take a serious blow. That’s how central it has become.

5. Policy at a Crossroads: Can We Fix This?

So here we are, caught in a system where foreign employment is both a lifeline and a liability.

The question is: Can we fix this?

The short answer? Yes. But only if we stop treating foreign employment as a permanent solution and start building real alternatives at home.

Nepal doesn’t lack talent. What we lack is opportunity. And unless we start creating those opportunities within our own borders, we’ll continue to send our youth away, not because they want to leave, but because they have no other choice.

5.1 We Need Jobs; Real, Local Jobs

For foreign employment to become a choice, not a compulsion, Nepal needs a serious investment in domestic job creation. That means:

• Supporting small businesses and startups
• Modernizing agriculture and turning it into a viable career path
• Investing in manufacturing, tourism, and digital industries that can absorb young talent

Creating jobs at home isn’t just an economic necessity, it’s a social one. It keeps families together, communities rooted, and skills within the country.

5.2 We Need to Diversify Our Options

Let’s be honest. Too many eggs are in one basket. When most of our foreign employment is concentrated in just a few Gulf countries, we’re walking a tightrope. One policy shift abroad could send shockwaves through our economy.

Nepal needs to build stronger, more diverse partnerships with countries that offer better wages, safer work environments, and long-term growth opportunities. Japan, South Korea, and various parts of Europe are already opening their doors. We just need to step in with better training and bilateral agreements.

5.3 We Need Smarter Systems

A lot of the struggles foreign workers face (long waits, bad recruitment, lack of legal support) could be avoided with better systems.

We need:

• Transparent recruitment processes
• Pre-departure orientation that actually prepares workers
• Support networks for migrants abroad and when they return
• Digital tools that simplify everything from remittance to reintegration

Technology can play a big role here, but only if it’s backed by policies that put the worker, not the middleman at the center.

5.4 We Need to Rethink the Narrative

Most importantly, we need to shift how we think about foreign employment. It's not just a source of income. It’s a deeply human story of sacrifice, resilience, and lost potential.

Instead of glorifying how much remittance comes in, we should be asking:

Why did that person have to leave in the first place? What could they have built if they had the chance to stay?

Final Thoughts

Foreign employment has saved Nepal time and again, from natural disasters, political instability, and economic downturns.

But it was never meant to be a permanent fix.

If we keep depending on it without building something at home, we risk getting stuck in a cycle that leaves the next generation with fewer options.

Nepal is projected to have 17 million working-age people by 2030. If we don’t act now by investing in agriculture, entrepreneurship, and local industry, we’ll turn our biggest strength (our youth) into a missed opportunity.

Foreign employment doesn’t have to be a trap. With the right policies, it can be a launchpad, from survival to sustainable prosperity.

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