Prioritize foreign employment: Report
KATHMANDU, May 30: A report prepared by International Organization for Migration (IOM) has suggested the government to allocate at least 5 percent of the total budget to promote foreign employment sector, which is the base of the nation´s remittance earning that accounts for over 21 percent of Gross Domestic Product (GDP).
The report prepared for the Ministry of Labor and Transport Management (MoLTM) also suggested the government to bring the foreign employment sector in to the mainstream of national development.
The nation had received remittance worth Rs 209.6 billion in fiscal year. Remittance receipt in the first nine months of current fiscal year has touched Rs 160 billion.
The report suggests the government to increase investment in the sector for initiating programs to lessen suffering of Nepali overseas workers, raising awareness about foreign employment at village level, increasing trainings to jobseekers and diversifying labor destinations.
Taking note of high cost for getting foreign jobs, the report has emphasized on the need to explore ways for reducing the cost and developing vocational skills among the jobseekers to increase existing remuneration level.
- Bring foreign employment to development mainstream
- Increase trainings to enhance skills of jobseekers
- Implement friendly policy for female workers
- Make productive use of remittance income
- Diversify labor destinations
- Encourage use of legal channel to remit money
- Over 75 percent of the total Nepali overseas workers are unskilled and 25 percent are semi-skilled.
Presenting the report on Sunday, Dr Jagannath Adhikari, a member of the study team, underlined the need to use remittance income in productive sectors to generate more employment within the country.
“Remittance receipt can play a significant role in generating employment opportunities in the country if it is used in productive sectors. The government has to explore potential sectors for the maximum utilization of remittance income that is being used significantly in unproductive sectors,” said Adhikari, highlighting the report on ´Remittance Flow and Its Impact on the Economy of Nepal´.
At a time when a huge chunk of remittance income is entering the country through informal channels, including hundi, the report has suggested the government to encourage convenience and uniformity in remitting money from abroad.
A total of 175 institutions - 26 commercial banks, two financial institutions and 45 money transfer companies - are providing remittance facility, according to Nepal Rastra Bank.
Taking note of a host of problems being faced by female workers abroad, the report has emphasized on the need to make a policy decision to ensure protection of female workers, especially those working as domestic helps, in overseas job destinations.