FOREIGN EMPLOYMENT AND REMITTANCE IN

NEPAL
A Seminar Paper
By
Alina Gosai
Bachelor of Business Administration(BBA)
Second Semester
Macro Economics for Business
Submitted to
Bachelor of Business Administration

Bhaktapur Multiple Campus

Tribhuvan University
Mangshir 2080
 1. Introduction

1.1 Background
 Foreign Employment refers to the temporary migration of manpower from home
country to foreign country, in hopes to increase their living standard and to earn
foreign currency.
 Developing countries like Nepal is highly dependent on foreign employment and
the remittance from it.
 Remittance refers to the money sent by the person working abroad to their home
country either to family or friends.
 Through foreign employment, Nepal is receiving billions of rupees in form of
remittance by Nepalese workers working in different part of the world.
1.2 Statement of problem

 What are the impacts of foreign employment in Nepalese Economy?

 How remittance is affecting the GDP of Nepal?
 What is the role of remittance in employment generation of an economy?
1.3 Objectives of study

 To review the impacts of foreign employment in Nepalese Economy?

 To analyze the effect of remittance in GDP of Nepal?
 To review the role of remittance in employment generation in an economy?
1.4 Methods

 The main source of data are the secondary data which are obtained from
published and unpublished sources.
 This study comprises descriptive as well as analytical type.
 2. Description and Analysis

2.1 Theoretical Review

 Foreign Employment has given opportunities to the ones in need and it also

plays vital role in an economy.

 Foreign Employment helps in reducing poverty, increasing employment

opportunities, increasing remittance income in a country.

 It has its negative impacts such as brain drain, labor exploitation, and shortage

of labor in home country.

 Government support, skills development programs and awareness on saving

and investments helps in reducing such problems

 Remittances play a significant role in employment generation within an

economy directly or indirectly.

2.2 Empirical Review

 Pant (2011) explored the harnessing remittances for productive use in Nepal.
The remittances sent home by the migrants affect development at both the
household and national levels.
 Aram and Khan (2011) has empirical analyzed the impacts of workers'
remittances on economic growth of Azerbaijan and Armenia's economies.
The study concluded that worker remittances are significant and have
positive impacts on economic growth and development.
 The relevant authorities of both the countries need to formulate appropriate
policies in order to encourage worker remittances and such remittances must
be utilized more efficiently.
2.3 Practice of Foreign Employment and Remittance in Nepal

 Majority of Nepalese go to India, Qatar, Malaysia, United Arab Emirates,

Saudi Arabia and Kuwait for Foreign Employment.

 Over 600000 people have left Nepal for foreign employment in the fiscal year

2022/2023.

 The remittance inflow of Nepal in 2022 is 9.29 billion U.S. dollar.

 According to the World Bank, remittance contributed 22.8 percent of Nepal’s

GDP in the year 2022.

 Nepalese use channels like Licensed Recruiting Agent Channel and

Independent channels to immigrate overseas.

 3. Conclusion

 Remittance income and foreign employment is the life line of Nepalese

economy.
 Remittance generated from foreign employment is the major source of
income for most of the household expenditure for basic goods, education,
healthcare in the country.
 As there is rise of foreign employment, brain drain and labor exploitation is
also gradually increasing.
 Dependency on foreign employment should be reduced.

 Government should focus on providing employment opportunities within the

country to reduce such problems.
 Public awareness programs regarding foreign employment should be done.
 References
Gelal, P.R. (2022). Macroeconomics for Business. Kathmandu: Kriti

Publication Pvt. Ltd.

Adhikari, M.B. (2020). The Foreign Employment, Remittance and its

Impact of Nepalese Economy.

Piore, M. J. (1971). Internal Labor Markets and Manpower Analysis.

Shrestha, B. (2005). Contribution of Foreign Employment and Remittance

to Nepalese Economy.

Stark, O. &. (1985). The New Economics of Labor Migration.

Wallerstein, I. (1974). he Modern World-System I: Capitalist Agriculture

and the Origins of the European World-Economy in the Sixteenth Century.