TRINITY INTERNATIONAL SECONDARY SCHOOL

Dillibazar Height, Kathmandu

A Project Work Submitted to the Department of Economics

for Partial Fulfillment of the Requirements of the Internal Evaluation of Economics
Prescribed by National Examination Board

Submitted by: Submitted to:

Rakshya Panday Ava Sharma
27948 Krishna Bhattarai
Grade XII

Kathmandu, Nepal
2080
NEPALESE FAMILIES VIEW ON FOREIGN EMPLOYMENT

FOREIGN EMPLOYMENT
The concept of foreign employment, denoting the endeavor of individuals to secure job
opportunities beyond the borders of their homeland, has emerged as a conspicuous trend in
the contemporary global landscape. This phenomenon has gained remarkable traction in
recent years, primarily propelled by a confluence of factors including stark economic
disparities, the dynamic exigencies of the job market, and the relentless pursuit of enhanced
living standards. As individuals venture towards foreign shores, they gravitate towards
nations where there exists a demand for their particular skill sets, effectively filling gaps in
the labor market and fostering tangible contributions to the economic prosperity of the host
country. However, amidst the allure of financial remuneration and the promise of personal
enrichment, the landscape of foreign employment is also fraught with a myriad of challenges.
Chief among these challenges is the intricate process of cultural adaptation, wherein
individuals must acclimatize themselves to unfamiliar societal norms and customs.
Additionally, the labyrinthine complexities of legal frameworks in foreign jurisdictions often
present formidable obstacles, necessitating astute navigation to ensure compliance and
safeguard one's rights. Furthermore, the specter of exploitation looms ominously, with
instances of vulnerable foreign workers being subjected to unfair labor practices and
exploitation. Hence, while foreign employment holds the promise of prosperity and self-
fulfillment, it is imperative for individuals to remain cognizant of the multifaceted challenges
inherent in this pursuit, and to adopt a vigilant stance in safeguarding their interests and well-
being.

IMPACT OF FOREIGN EMPLOYEMENT IN NEPAL

Nepal, grappling with the significant challenge of unemployment due to its underdeveloped
status, witnesses a considerable exodus of its youth towards foreign employment
opportunities. This phenomenon unfolds against the backdrop of stark economic disparities,
where the allure of improved living standards abroad entices many to seek employment
beyond the nation's borders. Concurrently, a substantial segment of Nepali families finds
themselves compelled to rely on the earnings of their loved ones working overseas for basic
survival needs. Consequently, the impact of foreign employment on Nepal's economy is
profound and far-reaching. Remittances sent back home by migrant workers serve as a
critical lifeline for countless households, contributing substantially to the country's overall
economic sustenance. However, this reliance on foreign employment also underscores the
inherent vulnerabilities within Nepal's domestic labor market and underscores the imperative
for comprehensive strategies aimed at fostering sustainable economic growth and
employment generation within the country. Thus, while foreign employment offers a vital
source of income for many Nepali families, it also underscores the pressing need for
concerted efforts to address the root causes of unemployment and foster inclusive economic
development within the nation.

REMITTANCE is a transfer of money by a foreign worker to their family in the home

country. It is typically a non-commercial transaction, meaning it is not made for the purchase
of goods and services. Remittance is an important source of income for many developing
NEPALESE FAMILIES VIEW ON FOREIGN EMPLOYMENT

countries, and they can play a significant role in poverty reduction. As per FY 2023 $9.33
billion dollar remittance has been collected so far in the last 6 months. A survey conducted to
analyze the importance of foreign employment in Nepalese families. A sample of 10 families
is shown below:

S.N. NAMES (ENROLLED IN FOREIGN EMPLOYMENT)

1 Hari Kandel
2 Labim Subedi

3 Manoj Panday
4 Prasun Chapagain
5 Nikhuil Upreti
6 Pooja Cheetri
7 Mannu Babu
8 Arpan Dhakal
9 Shrinkhala Baniya

10 Sima Panday

FAMILY 1: KANDEL FAMILY

Sanjay Kandel works in an industry as a business consultant in the USA. The family
background is not good to do. She earns $5500 monthly, and the family receives Nrs.201500
monthly. Family is happy and satisfied with the level of income.
EXPENDITURE PATTERN:

S.N. EXPENDITURE PERCENTAGE

1 Loan Repayment 40%

2 Food 30%

3 Bank deposit 10% & 20% OTHERS

NEPALESE FAMILIES VIEW ON FOREIGN EMPLOYMENT

FAMILY 2: SUBEDI FAMILY

Subedi family whose elder son is working abroad as a storekeeper in Germany sends nearly
Rs.95000 remittance by using Everest bank. The family said it is not enough for the
livelihood.
EXPENDITURE PATTERN:

S.N. EXPENDITURE PERCENTAGE

1 EDUCATION 24%

2 FOOD 30%

3 DEBT PAYMENT 25%

4 OTHER 21%

FAMILY 3: PANDAY FAMILY

Deepak Panday’s father has been enrolled in foreign employment for the betterment of the
family. He works in Korea as an agriculture expert. The family receives Nrs.106000 as
remittance. The family is satisfied enough with the remittance amount as it’s enough for the
family.

EXPENDITURE PATTERN:

S.N. EXPENDITURE PERCENTAGE

1 EDUCATION 30%
2 FOOD 35%
3 INVESTMENT 25%
4 OTHERS 10%

FAMILY 4: CHAPAGAIN FAMILY

Mr. Chapagain who is working in gulf county Malaysia sends nearly around Nrs.107500
remittance from Global Bank. The family is not happy with the remittance money as the
maximum amount goes for the repayment of debt.
EXPENDITURE PATTERN:
NEPALESE FAMILIES VIEW ON FOREIGN EMPLOYMENT

S.N. EXPENDITURE PERCENTAGE

1 LOAN PAYMENT 50%

2 EDUCATION 20%

3 FOOD 20%

4 OTHERS 10%

FAMILY 5: UPRATI FAMILY

Aanchal’s father works in Canada. He sends nearly Nrs.156000 remittance to his family by
using Global Bank. The family is not happy with the foreign employment because the family
is far away and the return they are getting is not enough for the family.
EXPENDITURE PATTERN:

S.N. EXPENDITURE PERCENTAGE

1 HOUSEHOLD 25%
2 DEBT PAYMENT 30%
3 EDUCATION 25%
4 OTHERS 20%

FAMILY 6: CHEETRI FAMILY

Mr. Ramesh Cheetri who is working in Australia sends Nrs.204000 to the family. Despite
getting a decent amount of remittance the family is not happy as one of the members has to
be separated from the family and the amount is not enough to compensate it.
EXPENDITURE PATTERN:

S.N. EXPENDITURE PERCENTAGE

1 HOUSEHOLD 27%

2 EDUCATION 30%

3 HEALTH 13%

4 LOAN AND OTHERS 30%

NEPALESE FAMILIES VIEW ON FOREIGN EMPLOYMENT

FAMILY 7: BABU FAMILY

Mrs. Puja Babu is working as a chef in Denmark and sends nearly 90000 remittances to the
family. The family seems unhappy with the amount as the maximum amount is for the
installment of home loan.
EXPENDITURE PATTERN:

S.N. EXPENDITURE PERCENTAGE

1 DEBT PAYMENT 40%

2 FOOD 20%

3 EDUCATION AND OTHERS 40%

FAMILY 8: DHAKAL FAMILY

Mr. Manju Dhakal, who is working in golf country UAE sends Rs. 105000 remittances in
Nepal. The family is happy as they can pay loan and family has been able to join their hand
and mouth also beneficial country’s economy.

EXPENDITURE PATTERN:

S.N. EXPENDITURE PERCENTAGE

1 DEBT 47%

2 FOOD 20%

3 EDUCATION 15%

4 OTHER EXPENSES 8%
NEPALESE FAMILIES VIEW ON FOREIGN EMPLOYMENT

FAMILY 9: BANIYA FAMILY

Mrs. Bibek Baniya works in America. He works as an agriculture export. He sends
Nrs.205000 remittance in Nepal to his wife. She is not happy with it since she has to live
alone, and amount cannot compensate for the time loss.
EXPENDITURE PATTERN:

S.N. EXPENDITURE PERCENTAGE

1 LOAN REPAYMENT 22%

2 HEALTH 32%

3 EDUCATION AND FOOD 46%

FAMILY 10: PANDAY FAMILY

Mr. Panday earns more than 340000 in UAE and sends around 200000 to the family as
remittance.
EXPENDITURE PATTERN:

S.N. EXPENDITURE PERCENTAGE

1 HOUSEHOLD AND FOOD 45%

2 EDUCATION 25%

3 LOAN AND OTHERS 30%

ANALYSIS OF THE EXPENDITURE PATTERN OF REMITTANCE IN

NEPAL BY THE FAMILY
Through the survey conducted in 10 Nepalese Family regarding the foreign employment and
impact of remittance on their livelihoods. It is seen that the family in general receives a
decent amount of remittance but most part of the remittance is not utilized in productive
sector. Most of the family uses remittances amount for the installment of loans or the money
is used for the household purpose. All the amounts are consumed thus the family don’t have
saving at all which reduce capital formation and just 1 or 2 families uses remittance money
for the investment purpose. So, we can conclude that the remittance is not used I productive
sectors all expenditure is made in unproductive sector which is a big issue and must be
availed.
NEPALESE FAMILIES VIEW ON FOREIGN EMPLOYMENT

NEPALESE FAMILY ON SIGNIFICANCE OF REMITTANCE

Based on a survey conducted within 10 Nepalese families, it's evident that remittance from
foreign employment holds significant importance in their lives. Here are the key findings
regarding the significance of remittance:

a. Loan Repayment: Remittance serves as a crucial source of income for families,

enabling them to meet financial obligations such as loan installments.
b. Household Consumption: Remittance plays a vital role in sustaining the day-to-day
expenses of the household, ensuring access to necessities and improving overall
quality of life.
c. Economic Strengthening: The inflow of remittance contributes to bolstering Nepal's
economy, injecting vital funds into various sectors and fostering economic stability.
d. Education Opportunities: Remittance provides families with the means to invest in
their children's education, paving the way for access to higher studies and better
prospects for the younger generation.
e. Improved Living Standards: By supplementing household incomes, remittance
facilitates the enhancement of living standards within Nepalese families, enabling
them to afford better housing, healthcare, and other essentials.

Overall, the findings underscore the indispensable role that remittance plays in the socio-
economic fabric of Nepalese families, serving as a lifeline for financial stability, educational
advancement, and overall well-being.