<figure><img width="1918" height="884" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221109171152/636bdb499c7e80680e0802b8jpeg.jpg" alt=""/><figcaption>Some of the 43 migrant workers who had been stranded and deprived of proper wages in the UAE collectively filed a complaint with the Department of Foreign Employment when they returned to Nepal. </figcaption></figure>Hari Sharma paid Rs115,000 to Code Manpower in Kathmandu in 2018 for a food-packing job in Malaysia. When he got there, he was not paid the 1200 Ringgit ($290) as per his contract, and has not received any payment for the past four months of the pandemic. Since May, the company has been forcing him to not just carry out his regular duties, but also to clean toilets, collect trash and do some heavy-lifting manual job for another company. The compensation from the other company is being taken by Sharma’s original employer.“It has been five months since I sent any money home to my family. I barely have any money to feed myself twice a day, and have been relying on loans from friends,” says Sharma, who has stopped working for a month.  Besides Sharma, there are five other Nepalis in the same situation in the company. Three returned to Nepal recently, after a bitter confrontation with the boss. The two remaining Nepalis continue to work along with other migrants from Bangladesh and Burma.<a href="https://www.nepalitimes.com/latest/the-theory-and-practice-of-zero-cost-migration/">The theory and practice of zero-cost migration</a>, Upasana KhadkaExamples of wages fully or partially unpaid, or end-of-service benefits contractually owed but denied, were common even before the pandemic. But one of the most inhumane realities of the Covid-19 crisis is that workers at the lowest rungs of the ladder who worked for past months under difficult conditions have been denied compensation. For many migrant workers, a good portion of their two-year contract abroad is spent repaying recruitment costs to intermediaries. A worker in debt-bondage who has to return prematurely incurs a heavy loss. Getting on the plane amidst a messy repatriation process was a priority for many migrants, but the scars of the unpleasant experience abroad and the pressure to repay the high-interest loans to finance it will continue to burden them.Forty-three returnees from the UAE came to Kathmandu from all parts of Nepal this week to file a complaint with the government’s Department of Foreign Employment. Each worker had paid above Rs250,000 to get a job as a driver, which was supposed to pay a basic monthly salary of Rs95,000 each. Nine of the workers Nepali Times spoke to had spent between 7 to 11 months in the UAE, with half of them not working at all or working just for a month. “The costs kept adding up beyond what we paid the recruiter, for the driver’s license, and the wages were considerably lower than what we were originally promised,” said one of the workers. “Not only were we unable to send any money home, we had to ask our family to send us money so we could survive during the lockdown.”<a href="https://www.nepalitimes.com/here-now/in-the-minds-of-nepals-migrant-workers/">In the minds of Nepal's migrant workers</a>, Upasana KhadkaMany of the workers had a choice between sleeping in the park or somehow making it back alive to Nepal. After getting back, they decided to file the complaint jointly given their common recruiters and the employer.  <figure><img width="1634" height="1220" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221109171152/636bdb4c9c7e80680e0802b9jpeg.jpg" alt=""><figcaption>Nepali workers ran out of money waiting for repatriation flights from UAE. “Back then, the priority was to somehow make it alive to Nepal,” said one of them. Some were later supported by the NRNA and the Nepal embassy.</figcaption></figure>The Nepal government has in place provisions to help victims of migration get compensated. The Department of Foreign Employment handles these cases, and there is also a dedicated Foreign Employment Tribunal (FET).   Hefty security deposits required of recruiters are used to compensate victims, who are subject to joint liability with foreign employers. In 2017/18 and 2018/19, there were 2,129 and 2,082 cases registered of which 1,023 and 1,692 were resolved.  Nepali missions <a href="https://dofe.gov.np/cancel.aspx" data-saferedirecturl="https://www.google.com/url?q=https://dofe.gov.np/cancel.aspx&amp;source=gmail&amp;ust=1603277208346000&amp;usg=AFQjCNEHZK4r-4lyop5lI0O1C46zY9oAEA">blacklist employers</a> who are engaged in malpractices including wage theft, and bar them from future hires. These were from ‘normal’ times when cases were more sporadic. With Covid-19, an already overwhelmed bureaucratic machinery is now under further pressure to address these complicated transnational legal issues. Many workers have little idea how to navigate the complicated systems, or may not even know such legal channels exist. Workers need proof of non-payment, and do not know where to go for assistance.  Extending help to migrants is necessary, but recruiters are also struggling to keep their heads above water after a complete halt in migrant deployment. Also, they cannot be held solely liable when employers, including multinational companies, behave irresponsibly towards migrant workers.  Many victims have also been <a style="background-color: #ffffff; letter-spacing: 0.15px;" href="https://www.nepalitimes.com/opinion/labour-mobility/crossborder-virus-and-nepali-migrant-workers/" data-saferedirecturl="https://www.google.com/url?q=https://www.nepalitimes.com/opinion/labour-mobility/crossborder-virus-and-nepali-migrant-workers/&amp;source=gmail&amp;ust=1603277208346000&amp;usg=AFQjCNEx7rOyG8H1F2mgvNVYQeI8mYZbdg">working abroad for many years</a>, in which case it may not be fair to penalise recruiters as in the case of newer migrants who return prematurely. The issue is transnational, and the destination country governments have to hold employers accountable, which requires proactive diplomacy by Nepal’s missions abroad.  <figure><img width="744" height="760" src="https://superdesk-pro-c.s3.amazonaws.com/sd-nepalitimes/20221109171152/636bdb4f9c7e80680e0802bajpeg.jpg" alt=""><figcaption>Hari Sharma's job was to pack food, but his employer forced him to do heavy-lifting of these objects in another company, and pocketed his earnings. </figcaption></figure>Qatar has setup a Workers’ Support Insurance Fund that aims to ensure workers receive their unclaimed wages, but its implementation has remained slow. Nepali missions blacklist employers who are engaged in malpractices including wage theft, and bar them from future hires. Nepal is not alone. Migrant workers from Bangladesh, India, Pakistan or Philippines face similar issues. The Manila-based Migrant Forum in Asia (MFA) has partnered with trade unions and activists in a campaign advocating the establishment of an International Claims Commission, a compensation fund to address wage theft, and for returnees to have access to justice. “When countries started repatriation of their workers, the issue of wage theft was not given due attention,” explains MFA’s Joanna Yu, adding that information on unclaimed wages were not collected, and complaint mechanisms were also absent. After Nepal started repatriating workers, over <a href="https://www.nepalitimes.com/latest/to-many-stranded-nepalis-not-enough-flights/" data-saferedirecturl="https://www.google.com/url?q=https://www.nepalitimes.com/latest/to-many-stranded-nepalis-not-enough-flights/&amp;source=gmail&amp;ust=1603277208346000&amp;usg=AFQjCNEVLUzhRNqqYSrBoNz9PCRXj3vh0Q">111,549 Nepalis have returned</a> from 59 countries, with <a href="https://www.nepalitimes.com/latest/uae-threat-to-send-back-workers-including-nepalis/" data-saferedirecturl="https://www.google.com/url?q=https://www.nepalitimes.com/latest/uae-threat-to-send-back-workers-including-nepalis/&amp;source=gmail&amp;ust=1603277208346000&amp;usg=AFQjCNFmvFgbUEOwQNxLEBnoa1s-ZIyI2w">UAE (31,957),</a><a href="https://www.nepalitimes.com/latest/the-kathmandu-airlift-begins/" data-saferedirecturl="https://www.google.com/url?q=https://www.nepalitimes.com/latest/the-kathmandu-airlift-begins/&amp;source=gmail&amp;ust=1603277208346000&amp;usg=AFQjCNGSteopGqZAeLzJLGaWxm9cSUM9qw">Qatar (18,941),</a> Saudi (16,637), Malaysia (15,910) and Kuwait (9,773) topping the list. There is little information on how many of them did not receive salaries and benefits.There are some good examples: the UAE paid out 261 million Dirhams ($71 million) worth of unpaid wages was delivered to 26,000 workers in Abu Dhabi by a mobile court to hear grievances filed in the first half of 2020. In Australia, Queensland has criminalised wage theft. <a style="outline: 0px;" href="https://www.nepalitimes.com/here-now/nepali-workers-stuck-in-no-mans-land/">Nepali workers stuck in no man's land</a>, Nepali TimesSays Yu: “These good practices are not standardised across countries, but showcase how wage theft cases can be resolved expeditiously.”In Malaysia, thousands of indebted migrant workers are getting back their recruitment costs after the US ban on imports from one of its <a href="https://www.nepalitimes.com/latest/global-glove-makers-compensate-nepali-workers/" data-saferedirecturl="https://www.google.com/url?q=https://www.nepalitimes.com/latest/global-glove-makers-compensate-nepali-workers/&amp;source=gmail&amp;ust=1603277208346000&amp;usg=AFQjCNEtVHROPGA7qgxTT7D6rOXClEWQrw">largest glove-makers, Top Glove</a>. The US Department of Labour recently put Malaysia’s rubber gloves on a list of goods produced by forced labour. Malaysia’s <a href="https://www.nepalitimes.com/latest/nepali-workers-in-malaysia-fear-covid-19-crackdown/" data-saferedirecturl="https://www.google.com/url?q=https://www.nepalitimes.com/latest/nepali-workers-in-malaysia-fear-covid-19-crackdown/&amp;source=gmail&amp;ust=1603277208346000&amp;usg=AFQjCNGATmXYZChJ027rAErtLlLLLuqp1g">Human Resources Ministry</a> says it has been going after errant companies and will continue to monitor and take action against employers failing to comply. The latex glove export sector in Malaysia has created five billionaires after the pandemic, but even as profits have skyrocketed the risk to reputation from inaction for them is high.The <a href="https://archive.nepalitimes.com/regular-columns/As-It-Happens/Nepali-migrants-illegal-Malaysia-,718" data-saferedirecturl="https://www.google.com/url?q=https://archive.nepalitimes.com/regular-columns/As-It-Happens/Nepali-migrants-illegal-Malaysia-,718&amp;source=gmail&amp;ust=1603277208346000&amp;usg=AFQjCNFJHlQtH-ellex1hdUupGzs0diL1g">vulnerability of remittances</a> can be due to job losses of current migrants, or employment that future migrant workers may never get because of the economic fallout of the pandemic. But after the apathy shown towards migrants by the home government throughout these months, activists say, it is difficult to imagine that helping them<a href="https://www.nepalitimes.com/latest/the-theory-and-practice-of-zero-cost-migration/" data-saferedirecturl="https://www.google.com/url?q=https://www.nepalitimes.com/latest/the-theory-and-practice-of-zero-cost-migration/&amp;source=gmail&amp;ust=1603277208346000&amp;usg=AFQjCNFLgD5CKq5RccQzSNF_KvCg_xzE_w"> recoup lost earnings will be a priority.</a>Although money transfers from Nepali workers abroad has not fallen this year as predicted, a true picture of the impact of Covid-19 on remittances will be seen after the festivals.  The World Bank has said the number of people living in extreme poverty around the world will rise by 88 million to 115 million. In Nepal, many of these ‘newly poor’ will be migrant worker families deprived of a steady flow of remittances.Some names have been changed

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Wage theft of migrants during pandemic

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.

migrant-labours

Wage theft of migrants during pandemic

Galaxy A series

Creating a firm future for Nepal

Know your Ministers

Nepal’s new government springs into action