‘Malaysia NPR 400,000. Dubai, Qatar NPR 200,000-250,000.’ These are prevailing under-the-table market rates listed for Nepalis to secure overseas jobs.&nbsp;
Low paid workers pay <a href="https://nepalitimes.com/news/the-theory-and-practice-of-zero-cost-migration">high recruitment fees</a> equivalent to months of wages, while higher paid professionals get relocation and other benefits.&nbsp;
Yet, ongoing research by Migration Lab and International Manpower Recruitment (IMR) with ethically hired workers shows that aspirants and their communities still regard the employer-pays recruitment model with deep skepticism and disbelief.&nbsp;
And why would they believe it? Even when workers pay hefty fees, it is never guaranteed that they will land the promised job, or not be stranded abroad. Jobs that require zero payment are even considered scams, with concerns about the quality of the job, wage deductions or about being duped.&nbsp;
Some workers do not apply for jobs at all, or are dissuaded by their families. The good news is that perceptions change.&nbsp;
And all it takes is one successful migrant worker in a village to change perceptions. One worker who did not have to pay recruitment fees told us: “People from my village do not believe me.” Another said: “Four or five from my village have already migrated for free, so people believe it.”
Some workers passed up job offers requiring fees, waiting instead for ethical employers from whom close friends or family members had benefited.
Because not all aspirants know about workers who did not have to pay recruitment fees, social media <a href="https://www.tiktok.com/@migrationlab/video/7418580695485795617">messaging</a> is critical. Online <a href="https://www.tiktok.com/@migrationlab/video/7421150186598190369">testimonies</a> from workers who got jobs through ethical channels are helpful, but are also met with skepticism because it is widely known that workers are frequently coerced by fraudulent recruiters into speaking on camera about not paying fees despite having paid significant amounts.
<a href="https://nepalitimes.com/opinion/labour-mobility/a-few-good-agents">Ethical recruiters like IMR</a> conduct village campaigns to screen workers. This reduces the reliance on middlemen, and broadens the understanding of how ethical recruitment drives work.
Prior to departure, IMR wins the trust of workers and creates a safe space to admit if they have paid anyone fees. Middlemen can often mislead workers to believe that they have a say in influencing interview outcomes and charge workers.&nbsp;
The biggest obstacle is to assure workers that admitting they have paid will not cost them their job and that the recruiter will work with concerned authorities to ensure the agent returns the money and does not harass them or their families. Although Nepal’s laws consider such subagents illegal, ‘agents’ are often family members, villagers and friends.&nbsp;
These practical home-grown innovations in recruitment are products of testing to address years of exploitation and distrust in the system and the labour mobility industry. They also bring a nuanced understanding of the often complex aspects of the employer-pays principle.
<a href="https://www.ilo.org/sites/default/files/wcmsp5/groups/public/@ed_norm/@ipec/documents/publication/wcms_727143.pdf">Research</a> shows that when workers do not have to pay recruitment fees, it has positive impact on their productivity and well-being. Responsible recruitment also allows innovation to make migration a transformational development tool to uplift the poorest.&nbsp;
Ethical Examples
IMR and Migration Lab recently connected 70 youth from the Musahar community in Mahottari and survivors of the Jajarkot earthquake last year with factory jobs in Malaysia for which they did not have to pay anything.&nbsp;
Accessing overseas jobs, including those with <a href="https://nepalitimes.com/opinion/why-has-zero-cost-migration-not-happened">high fees</a>, is a challenge in these communities. Finding responsible recruitment opportunities is even more difficult. Good migration has the power to push families out of intergenerational poverty and discrimination as seen in the case of many migrant workers in the <a href="https://nepalitimes.com/editorial/50-diaspora-diaries-in-nepali-times">Diaspora Diaries series</a>.&nbsp;
For <a href="https://www.youtube.com/watch?app=desktop&amp;v=-mh1uk3fvQc">Jajarkot earthquake survivors</a>, fee-free recruitment can also complement patchy post-disaster recovery efforts by the government. Even without an earthquake, emigration from far-flung areas like Jajarkot is complex because of financial, information and network access issues.&nbsp;
It takes at least two days to travel to Kathmandu, costs are high, and workers may not even pass employer interviews after all the time and money invested.
The earthquake made overseas migration even more difficult in Jajarkot, further affecting access to informal loans, yet increasing the desire to migrate. Many were ready to borrow at 60% interest, while others said they would have migrated to <a href="https://documents1.worldbank.org/curated/en/099439009302442870/pdf/IDU1bade747310f41144991a576183a9a3eb57d4.pdf">India</a>, a cheaper, less-risky alternative with lower returns.
The Musahar community also faced multiple challenges including passport confiscation by middlemen for months without any job placement. Moneylenders also do not trust them to pay back, and are wary of recent restrictions on meter interest lending.
Labour middlemen are strategic about snaring the vulnerable to manipulate and cheat. There are anecdotes about them identifying the most desperate women, including those that are victims of domestic violence or extreme poverty, to send them as domestic workers through irregular channels.&nbsp;
New York University Professor Natasha Iskander’s <a href="https://www.ias.edu/ideas/forging-closed-loop">research</a> documents how companies in Qatar reported targeting candidates from regions experiencing climate breakdown because the educated but newly poor make ideal recruits as they are now willing to accept lower wages.
This narrative can be flipped by good actors through ethical interventions. Sourcing areas can be redefined: not as preying grounds for fraudulent middlemen but where responsible recruiters can reach that last mile with transformative overseas opportunities.
The Musahar and Jajarkot candidates have modest goals: paying for their children’s education, household and medical expenses, buying land, rebuilding houses, and saving to start a small business.&nbsp;
To be sure, migration outcomes are determined by more than just recruitment fees and it will take time to see how they fare. But the likelihood of achieving any goal is certainly higher under debt-free responsible recruitment schemes.&nbsp;
Beyond no costs, workers hired under ethical drives know exactly what jobs they have signed up for and employment terms from the onset, unlike traditional recruitment that is often characterised by false promises and exaggerated benefits.&nbsp;
Workers paying exorbitant fees for jobs will hopefully be an outdated concept one day, but for now the number of ethical recruitment drives is insignificant.&nbsp;
Workers interviewed said their peers paid up to Rs400,000 for comparable jobs, and they too would have been compelled to take the same route if the ethical option was not available. Repeat workers had paid up to $2,259 in fees in earlier migrations.&nbsp;
Highly marginalised communities need even more support to overcome information, finance and networking barriers to connect them with rewarding and safe overseas opportunities.&nbsp;
Systemic disadvantages in education or skills training also limit their ability to secure worthwhile jobs abroad that have wages and better labour protection but higher barriers to entry such as language or skills.&nbsp;
Making ethical migration accessible to the most marginalised Nepalis would have the best impact. Perhaps these issues would come to the fore if we also saw emigration as people chasing their dreams and aspirations, and not just as a compulsion “बाध्यता” that is entrenched in Nepal’s public narrative.
But forced immobility also merits attention. It is an unfulfilled dream for many to also take social media photos at Kathmandu airport with teary-eyed relatives before departing. &nbsp;&nbsp;
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Upasana Khadka heads <a href="https://migration-lab.com/">Migration Lab</a>, a social enterprise aimed at making migration outcomes better for workers and their families. Labour Mobility is her fortnightly column in Nepali Times.

Upasana Khadka

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Fee-free migration is possible

Malaysia is slashing foreign worker intake from end-May, conflicts in West Asia <a href="https://nepalitimes.com/opinion/guest-editorial/the-international-order-is-dying-in-gaza">risk engulfing the region</a>, and fortress Europe is building higher walls for migrants. 
All this means that Nepal’s economy, <a href="https://nepalitimes.com/business/remittances-up-and-up">almost completely dependent on money its workers send home</a>, is as fragile as a house built on sand. Proof of that was the Covid pandemic, which impacted overseas jobs and remittance inflows. 
Malaysia has now capped foreign workers to only 15% of its 17 million strong workforce, and this will mean there will be much fewer jobs for Nepalis in its palm and rubber plantations, construction, manufacturing and service sectors.
Malaysia has instructed companies that no work visas will be issued after May. One saving grace is that the restrictions do not apply to foreign security guards, <a href="https://nepalitimes.com/here-now/close-encounter-with-death">most of whom are Nepalis</a>.
Malaysia’s curb on foreign workers appears to be related to domestic unemployment, as well as an EU decision to phase out the import of palm oil as a renewable biofuel because of rainforest destruction. Malaysia is the world’s second-largest producer of palm oil after Indonesia.
There are an estimated 500,000 Nepalis in Malaysia, some of them undocumented workers. Of the 771,000 Nepalis who got labour permits from the Department of Foreign Employment in the last fiscal year, 259,000 went to Malaysia. 
“The fact that a major labour destination country like Malaysia is reducing the number of Nepali workers is not good news,” says labour migration expert Ganesh Gurung. “It will seriously impact on remittance inflows and the economy. It does not seem like the Nepal government has any concrete plans to deal with this issue.”
Rajendra Bhandari, President of the Nepal Association of Foreign Employment Agencies (NAFEA) agrees that Malaysia’s decision is concerning, especially as the demand for foreign workers in Gulf countries is also decreasing. He adds that unless the Nepal government finds alternatives, the number of Nepalis going abroad illegally and ending up doing dangerous work will increase. This is evidenced by the increasing number of Nepalis<a href="https://nepalitimes.com/here-now/nepalis-play-russian-roulette-in-distant-war"> killed in action while fighting for the Russian Army</a> on the Ukrainian front.
Yet even as Foreign Minister Narayan Kaji Shrestha is demanding that Russia send Nepali soldiers home, Labour Minister Dol Prasad Aryal, <a href="https://nepalitimes.com/editorial/skeletons-in-the-cabinet-k5x6py1v">who is alleged to be involved in recruitment and remittance agencies</a>, reopened labour permits for Russia on Wednesday.
The value of Nepal’s exports is only one-tenth of its imports, and the country pays for imports with remittance income. Latest Nepal Rastra Bank figures show that the country earned $6.35 billion in the last six months of this fiscal year, and foreign exchange reserves hit a record $13.9 billion. 
Ganesh Gurung says that even though Malaysia’s decision might have seemed abrupt, such overwhelming dependence on remittances has always been a risky path for Nepal. Money the diaspora transfers to relatives in Nepal makes up an equivalent of 25% of Nepal’s GDP – one of the highest ratios in the world.
There are an estimated 2 million Nepalis in the Persian Gulf region, and a change in foreign labour policy or a regionwide conflict could jeopardise their jobs and in turn, impact the national economy. 
“This overwhelming reliance on foreign employment has meant that Nepal’s rulers have not been able to implement policy and incentives to create jobs domestically,” says Gurung. “It is inevitable that jobs overseas will dwindle eventually.”
With Malaysia closing, and earnings in the Gulf countries being less than what was promised by recruiters, Nepalis are increasingly <a href="https://nepalitimes.com/opinion/europe-now-favoured-destination-for-nepalis" target="_blank">looking to Europe</a> as an alternative. But while Europe needs cheap foreign labour, it is also becoming more restrictive.
Croatia was a favourite springboard for Nepalis seeking to go to Western Europe, but it joined the Schengen area last year. There are now an estimated 15,000 Nepalis in Romania, and more hope to make it there before the country also joins Schengen on 31 March. 
NAFEA’s Rajendra Bhandari says the hurdles are not just from Schengen states in Europe, but also from the Nepal government. Those seeking work in Europe need a work demand letter from a European country that is verified by a Nepal embassy in that country. But most European countries do not have resident embassies. 
“If the demand letters could be verified in Nepal itself, it would open the door for a lot of Nepali workers to go to Europe,” says Bhandari, adding that although the Labour Ministry is open to the idea, the Foreign Ministry does not think so.
Unlike migrant workers who go to other Asian countries to earn money, send remittance back home, and eventually return, Gurung says, most Nepalis who go to Europe more often than not settle there permanently. 
Overseas migration has been seen as a safety valve for Nepalis, but there are many thousands of domestic migrant workers at construction sites all over Kathmandu. 
Ensuring a basic minimum wage and labour protection for them would open up more <a href="https://nepalitimes.com/here-now/few-jobs-created-by-nepal-employment-drive">meaningful employment</a> within Nepal in semi-skilled jobs, many of which are being given to migrants from India.
Says Gurung: “Continuing to depend on other countries to give Nepalis jobs, instead of providing jobs in Nepal for Nepalis, will mean trouble for us down the line.”

People's Movement

Samsung Nepal has opened pre-orders for the Galaxy A57 5G and A37 5G. Both phones run Samsung’s One UI 8.5, featuring AI capabilities like voice transcription, Circle to Search, and photo editing. They feature a 50MP triple-camera system, a Super AMOLED display, and six years of OS and security updates.

Galaxy A series

The war in West Asia has exposed the fragility of the economic architecture Nepal has built on over two generations. If the conflict continues, growth across developing Asia will slow and prices will rise. For Nepal, this will be felt through higher living costs, weaker economic activity, and growing uncertainty for the millions of families who depend on remittances.&nbsp; Nepal now needs to structurally transform from exporting labour to investing in domestic job creation. &nbsp; The country's current path toward a knowledge economy has a blind spot. A <a href="https://iids.org.np/wp-content/uploads/2025/02/unleashing.pdf" target="_blank">report</a> by the Institute for Integrated Development Studies (IIDS) in Kathmandu shows that IT export companies alone generated 7,228 jobs and income for 66,509 freelancers.&nbsp; We are building digital labour export, not an economy that accumulates institutional knowledge. The Nepali Upwork developer and a migrant construction worker in the Gulf are engaged in the same economic activity, but with different tools. Nepal’s reliance on a <a href="https://data.worldbank.org/indicator/BX.TRF.PWKR.DT.GD.ZS?locations=NP" target="_blank">remittance-driven economy,</a> means the country has failed to create enough <a href="https://www.worldbank.org/en/country/nepal/publication/unlocking-nepal-s-growth-potential" target="_blank">quality jobs</a> at home. For millions of young people, leaving the country is not a choice but a necessity to survive and support families back home. <a href="https://www.worldbank.org/en/country/nepal/publication/unlocking-nepal-s-growth-potential" target="_blank">Remittances</a> have no doubt helped reduce poverty. Thirty years ago, 55% of Nepal’s population lived on less than $2.15 a day, now it is 20% after the absolute poverty line was revised upwards. This progress has come at a cost — &nbsp;an economy that depends more on exporting workers than creating opportunities at home. This development reflects a deeper political failure to create meaningful jobs within the country. Since the democratic transition in 1991, Nepal’s leadership has largely recycled the same faces, with limited progress on job creation or industrial growth.&nbsp; Nepal cannot build a <a href="https://nipore.org/accelerating-nepals-startups/" target="_blank">knowledge economy</a> while its most ambitious people are outbound to Doha and Tokyo. We are also not just losing ‘labour’. We are losing the entrepreneurial risk tolerance of our youth.&nbsp; If the most ambitious 25-year-olds are abroad, who is left to support innovation and entrepreneurship? The same people who are working tirelessly abroad, are our biggest asset for development. Their work ethic and the know-how inurban renewal could well fit into the new RSP government’s mandate of 7% annual growth.&nbsp; The <a href="https://english.biznessnews.com/posts/-nepal%E2%80%99s-it-exports-cross-1-billion-" target="_blank">$1B milestone</a> of IT exports is a celebratory moment for Nepal. However, that cannot lead to a pathway to a $100 billion economy without innovation ecosystems that go beyond individual labour export. Companies like SecurityPal and industry associations such as NASIT have made significant efforts in building such an environment, recently championed by private sector leaders as a &nbsp;<a href="https://www.securitypalhq.com/blog/silicon-peaks" target="_blank">Silicon Peaks</a> model that emphasises a home growth tech cluster. The need to accelerate this transition is even more urgent with the escalating conflict in West Asia. &nbsp;The recent International Labour Organisation (ILO) <a href="https://www.ilo.org/sites/default/files/2026-03/Nepal%20LDC%20Graduation%20Employment%20Impacts%20Report.pdf" target="_blank">report</a> shows that LDC graduation is expected to adversely impact manufacturing with losses of $1 billion by 2030.&nbsp; If manufacturing takes such a large hit from losing trade preferences, then Nepal’s services and IT sectors need to structurally transform and shift from exporting individual talent to building firms. &nbsp; A generation’s frustration has finally forced a shift in Nepal’s political structure, handing the new government a clear mandate to fix failures. But the question still persists: what prevents Nepal from achieving sustained, productivity-driven growth? &nbsp;&nbsp; RSP is in the right place at the right time to put Nepal's economy on a firm footing. At the heart of Nepal’s economic underperformance lies a major development binding constraint: low returns to investment on projects.&nbsp; The government invests like a high-growth economy, with gross capital formation at around <a href="https://data.worldbank.org/indicator/NE.GDI.FTOT.ZS?locations=NP" target="_blank">25–30 percent of GDP</a>. Yet economic growth remains modest. The problem is not how much the country invests, but how little it gets in return. One way to see this is by looking at how much investment is required to generate growth.&nbsp; Nepal needs large amounts of capital to produce relatively small gains in output (graph, below). For instance, in 2024, the ICOR was 8.29, this suggests that Nepal had to invest more than 8 units of capital to produce a one unit of additional economic output.&nbsp;  <figure> <img src="https://publisher-publish.s3.eu-central-1.amazonaws.com/pb-nepalitimes/swp/asv65r/media/20260406040412_605dc527641d2ff2dc5723ed8bbec946898331d5538a55b9941e32a0725bf811.jpg" data-media-id="editor_9" data-image-id="20260406040412_605dc527641d2ff2dc5723ed8bbec946898331d5538a55b9941e32a0725bf811" data-rendition-name="original" width="1827" height="925" loading="lazy" alt="Economy graph"> <figcaption>Source: Author's calculation based on a Growth Diagnostic simulation</figcaption> </figure>  This reflects a deeper issue in how investment is allocated and executed. Capital is often locked in low-productivity sectors or diluted by delays, inefficiencies, and policy uncertainty.&nbsp; As a result, even high levels of investment fail to translate into sustained growth. Until investment shifts toward productive, firm-building activities, higher spending alone will not deliver results. &nbsp; To reverse this, the government must focus on raising the returns to investment by enabling firms to grow and compete. This requires a shift from managing scarcity to creating an environment where capital can generate consistent and predictable returns. A central priority should be given to attracting and retaining both domestic and foreign private investment. Investors do not just respond to direct incentives, but also to policy stability in the country. Nepal’s economy cannot sustain high growth if its human capital continues to leave the country.&nbsp; The goal should not simply be to create jobs, but to build companies that scale, innovate, and compete beyond Nepal. This requires supporting sectors with strong productivity potential and ensuring that firms can expand without being constrained by infrastructure gaps or regulatory friction. Finally, the state must improve the quality of its own investment. Public spending should focus on lowering the cost of doing business through reliable electricity, efficient logistics, and digital infrastructure.&nbsp; The GenZ movement took two days to bring change. The economic transformation of Nepal might take a generation. The RSP can accelerate this transition, but only if it focuses on building a better investment climate for business and not just feeding the global labour pool. Kailash Raj Pandey is an MPA/ID and MBA candidate at Harvard Kennedy School and MIT Sloan School of Management and a fellow at MIT Kuo Sharper Center for Innovation and Prosperity.&nbsp; Siddhartha Raymajhí is a policy researcher based in Kathmandu.

Creating a firm future for Nepal

Know your Ministers

Prime Minister Balendra Shah on Wednesday broke tradition and met with 17 foreign envoys collectively, a move that was a notable departure from how his predecessors operated.&nbsp;
Shah had already set himself apart by talking less, listening more, and delegating to trusted friends. But by meeting all ambassadors at one go in the presence of the Foreign Ministry, he signalled a paradigm shift in how he wants Nepal to be seen: no longer just balancing India and China, but as a country confident about its <a href="https://nepalitimes.com/opinion/guest-editorial/tripolar-contestation-over-nepal">strategic importance and place in the world</a>.
In just two weeks, the <a href="https://nepalitimes.com/news/rsp-dos-and-don-ts">RSP has sprung into action </a>on multiple fronts to implement its ambitious 100-point, 100-days action plan. It has taken short-term measures to mitigate the impact of the Gulf war, as well as medium- and long- term measures to streamline the bureaucracy. A few high-profile figures have been made examples of to drive the message home.
Earlier this week, the government recalled six politically appointed ambassadors, the most notable being long-serving Shankar Sharma from New Delhi. The Kathmandu District Court issued arrest warrants against former prime minister Sher Bahadur Deuba and his former foreign minister wife Arzu Rana on charges of money laundering and corruption.
Each ministry has been trying to clean up the accumulated rot from the past three decades: regulatory overhaul of microfinance, education, health and service delivery.&nbsp;
These actions widely disseminated campaign-style on YouTube and TikTok have made most Nepalis hopeful that the party they installed in power means business.
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BACKLASH
But such attempts to overhaul a long-entrenched political culture were bound to face backlash. In their impatience and enthusiasm to get things done, some of Prime Minister Shah’s ministers have over-reached.
It was common knowledge that government-paid advertising in the mainstream press was kickback-driven, but the PMO’s directive that official notices be published or broadcast only on state-run media has been denounced — especially as the media industry struggles to stay afloat.
More serious are some recent appointments by ministers of relatives and figures closely associated with the RSP to key positions. This has rankled because this party built its political plank on ending nepotism and graft.&nbsp;
News that Home Minister Sudan Gurung allegedly had not paid rent on leased land, which illegally encroached on the lake in Pokhara did not help. &nbsp;
Prime Minister Shah himself has come under scrutiny for appointing a kitchen cabinet full of male buddies from his time as Kathmandu mayor. To douse criticism he brought in as adviser investigative journalist Deepa Dahal, who has exposed corruption in high places of the previous coalitions.&nbsp;
Shah’s appointment of another political adviser Asim Shah to the head Constitution Amendment Task Force, is also seen as problematic. He is a filmmaker and former lawmaker, but does not have a background in constitutional law.&nbsp;
Even more controversial is the Cabinet’s decision to appoint RSP Chair Rabi Lamichhane’s legal counsel, Narayan Kandel, as Attorney General. Kandel used to be a UK permanent resident, and does not have as much experience practicing law in Nepal.&nbsp;
Kandel’s appointment drew flak and raised eyebrows, and with the pending legal cases against Lamichhane this appointment represents a flagrant conflict of interest.
Health Minister Nisha Mehta was also accused of favouritism after reappointing Junu Shrestha, wife of Labour Minister Dipak Kumar Shah, as member of the Health Insurance Board which had earlier suspended her. The Labour Minister’s rambling rant at the Board’s meeting on Tuesday has not helped the RSP’s image.&nbsp;
(UPDATE: On Thursday, Prime Minister Shah sacked the Labour Minister after the RSP found him in breach of the party's code of conduct and discipline. He served 14 days in the Cabinet, one of the shortest tenures for a minister in Nepal )
It is hard to know what <a href="https://nepalitimes.com/news/ball-in-balen-s-court">Balendra Shah is thinking</a>, and how Rabi Lamichhane is going to justify some of these moves. After all, making politics, governance, and bureaucracy a meritocracy has been the core tenet of the RSP, and it risks alienating its mainly youth base if these missteps persist.
But at least for now, most RSP supporters seem to be giving the party the benefit of doubt.

labour-migrants-in-malaysia

Fee-free migration is possible

People's Movement

Galaxy A series

Creating a firm future for Nepal

Know your Ministers

Nepal’s new government springs into action