Why people work other countries

– Lilesh Kumar Yadav

In recent years, a significant number of Nepalese youth have been leaving the country for work and study opportunities abroad. This trend, which has surged drastically since 2008, poses a serious threat to Nepal’s future. Currently, the nation relies heavily on remittances, contributing approximately 23% to its GDP (World Bank, 2023). However, this economic lifeline comes at a steep human cost: 1,500 Nepalese migrant workers died abroad in FY 2022/23 (Non-Resident Nepali Association [NRNA], 2023), and 70% of remittance income is spent on daily consumption goods, leaving minimal investment in productive sectors.

While remittances provide temporary economic relief, this dependency is unsustainable and detrimental in the long term. Ideally, a country should earn foreign currency through exports, but Nepal is effectively "exporting" its young workforce to fund imports via remittances. This trend is alarming not only because it depletes Nepal’s human capital but also risks transforming the nation into a society dominated by an aging population. Many youths spend their prime working years abroad, returning only in old age, which could destabilize Nepal’s social and economic fabric. This raises critical questions: Why are so many Nepalese youth leaving the country for labor work and studies? How can we address this challenge and create opportunities within Nepal? Today, I will discuss the major causes behind this trend and explore potential solutions.

Major Causes of Nepalese Youth Migrating Abroad

Environmental Influence

Since 2008, the government has been issuing work permits for foreign employment. According to the Department of Foreign Employment, over 4.5 million Nepalese youth have migrated abroad for work as of 2023. This has created a negative mindset among the younger generation. When you ask children aged 5 to 10 about their future plans, many express a desire to work or study abroad rather than in Nepal. This mindset stems from the influence of their parents or relatives who work overseas and send remittances to support their families. Many children grow up seeing that working abroad allows people to afford luxuries like big-screen TVs, motorcycles, and even small houses without much effort. As a result, they focus on obtaining certificates solely for the purpose of securing work permits, rather than building careers within Nepal.

Outdated Education System

Nepal’s education system has remained heavily theoretical for decades, lacking practical skills training. For instance, a student who completes the School Leaving Certificate (SLC), now known as the Secondary Education Examination (SEE) since 2016, often lacks the skills needed to earn a living. In contrast, students in countries like China or Japan acquire practical skills and technical knowledge as early as primary school. Even postgraduate students in Nepal struggle to find jobs outside of teaching, as their education does not prepare them for roles in production, innovation, or entrepreneurship. According to a 2022 report by the University Grants Commission (UGC), only 15% of Nepalese graduates find jobs in their field of study, while the rest either remain unemployed or seek opportunities abroad.

Political Instability and Lack of Vision

The political environment in Nepal has been unstable for years, with frequent changes in government and policies. Many of our leaders lack advanced education and fail to prioritize the needs of educated individuals. While local governments claim to focus on job creation since the federal system was implemented in 2015, most leaders are more concerned with budget allocation rather than implementing effective policies. Some leaders even encourage migration by promoting free visas and tickets for foreign employment, rather than investing in domestic job creation. For example, former Prime Minister Madhav Kumar Nepal, during his tenure in 2009-2011, publicly encouraged people in Rautahat to seek work abroad instead of focusing on local development.

Geographical Challenges as a Landlocked Country

Nepal’s landlocked geography has always made it difficult to import raw materials and export goods. For instance, if Nepal produces goods at a low cost, India often imposes tariffs, making it hard to compete in international markets. According to a 2021 report by the Trade and Export Promotion Centre (TEPC), Nepal’s export-to-import ratio stands at 1:10, meaning the country imports ten times more than it exports. This challenge could be mitigated by promoting tourism and creating industries that leverage Nepal’s unique strengths, but such initiatives have been lacking since the tourism sector was prioritized in the 1970s.

Lack of Entrepreneurial Training Institutions

Many organizations in Nepal have been training youth for foreign employment since the early 2000s, but few focus on developing entrepreneurial skills or fostering industrial growth. While language training and job placement services are common, there is a lack of institutions that teach innovation or how to compete in international markets with Nepali products. According to a 2020 report by the Ministry of Education, Science, and Technology, only 5% of vocational training programs in Nepal focus on entrepreneurship, while the majority prepare youth for low-skilled jobs abroad.

Unfavorable Government Tax Policies

The government’s tax policies have long discouraged local production. For example, the import tax on machinery is 25-30%, while the tax on finished goods is only 10-15%. This makes it cheaper to import products rather than produce them locally. Additionally, high taxes on transportation equipment further hinder industrial growth, as the government indirectly supports imports over domestic production. These policies have remained largely unchanged since the 1990s.

Limited Access to Loans for Startups

Although banks have advertised loan facilities for new businesses since the early 2010s, they often impose strict conditions, making it difficult for startups to secure funding. According to the Nepal Rastra Bank’s 2022 report, only 12% of total loans are allocated to small and medium enterprises (SMEs), while the majority are directed toward large-scale industries and hydropower projects. On the other hand, banks readily provide loans to individuals seeking to work or study abroad. Most banks invest in sectors like hydropower but neglect industries such as textiles, electronics, and other manufacturing sectors that could create jobs and boost the economy.

Low Salaries in Nepal

Many Nepalese workers resign from their jobs and seek opportunities abroad due to low salaries. For instance, a postgraduate professional in Nepal may earn around NPR 50,000 per month, while an SLC-passed individual working in Malaysia, Qatar, or Dubai can earn NPR 100,000 or more monthly. This wage disparity has been a persistent issue since the 2000s, making it difficult to retain skilled workers in Nepal, as local organizations cannot compete with international salaries. According to a 2023 survey by the Central Bureau of Statistics (CBS), the average monthly income in Nepal is NPR 35,000, which is insufficient to meet the rising cost of living.

Conclusion and Recommendations

The migration of Nepalese youth for work and study abroad has both positive and negative impacts. While remittances provide short-term economic benefits, the long-term consequences such as brain drain and an aging population are detrimental to the nation’s development. To address this issue, the government must take serious steps to create job opportunities within the country. This includes:

Reforming the education system to focus on practical skills and entrepreneurship.

Implementing policies that encourage local production and reduce dependency on imports.

Providing accessible loans and incentives for startups and industries.

Revising tax policies to support domestic industries.

Increasing salaries to match the cost of living and retain skilled professionals.

If these challenges are not addressed, Nepal risks losing its most talented individuals doctors, engineers, PhD holders, and other experts goes to other countries. It is crucial for the government to prioritize youth retention and create an environment where young people can thrive and contribute to the nation’s development. Only then can Nepal hope to build a sustainable and prosperous future.