The government’s decision to stop issuing permits to migrant workers will have significant consequences for the country, where economic activities are driven by remittances, experts say.
Nepal, where remittance contribution to GDP in 2019 was equivalent to 27.3 percent, according to the World Bank, has lost nearly 50 percent of remittances in the past two months compared to the same period last year.
Since the economic slowdown resulting from the COVID-19 pandemic, work for many of them has dried up. The UN is supporting efforts to manage the large-scale influx of returnee workers.
The collaboration enables UNFCU members to transfer money to mobile wallets in select countries in local currencies.
Nepali missions abroad are verifying applicants’ status before recommending their names to the government to provide them airfare from Migrant Workers Welfare Fund.
In response to COVID-19, the new SCBF product upscaling project supports a local insurtech company to implement a first-of-its-kind e-health value added service product with two core features: e-health tele-consultation bundled with COVID-19 insurance.
Despite dire predictions about a drastic drop in remittances that Nepal gets from its workers abroad due to the COVID-19 induced economic downturn, money transfers have remained steady.
All the government repatriation schemes had excluded undocumented migrant workers, leaving them to languish in COVID-19 hit labor destination countries.
Survey Reveals Extent of the Fallout From the Pandemic on Micro, Small and Medium Enterprises in Nepal
Based on a sample of more than 540 representatives from MSMEs across all provinces, the survey revealed that over 80 percent of businesses have suffered from a slump in sales.
As per revised unified directives, banks and financial institutions can also contribute the fund to protect and treat their employees.