Private Sector Participation in Labour Migration Management in Nepal

Approximately 1700 workers are recorded to leave Nepal everyday in search of foreign employment with estimated 2 million working and residing overseas in Malaysia, Qatar, Saudi Arabia, United Arab Emirates, Kuwait, South Korea, Japan and European countries. The increase in labor migration trend is accompanied by a corresponding by corresponding rise in the remittances from Nepali overseas workers including from the Diasporas.
Accorning to the report of the World Bank in 2011, economic remittances earned from Nepali migrants amount to an equivalent of 21.2 percent to the Gross Domestic Products of Nepal. However, the large portion of remittances has been used for household and consumer goods. Remittance recipient households, including labor migrants lack basic financial literacy and have limited knowledge about potential areas of remittance investment and find it difficult to break free from poverty and the vicious cycle of migration despite being employed for considerable periods of time and investing significant costs.
Given this backdrop, IOM is implementing the project titled 'Private Sector Participation in Labour Migration Management' jointly with the Ministry of Labour and Employment to generate employment opportunities and an enabling environment for safer migration through public private partnerships in migration management.
The project engages closely with the private sector for mobilization of resources to conduct agro/livestock business promotion training in the training centers operated by the government of Nepal and to enhance the knowledge and skills of farmers focusing on returnee migrants and remittance receiving households (RRHHs) on agro/livestock processing which will seek to improve the quality and productivity of agro/livestock products and create opportunities of income generation activities for farmers.
Furthermore, the project aims to impart financial literacy such as saving, investment, household budgeting and financial management skills to RRHHs in places where labour migration is high. The beneficiaries, who complete the financial literacy training, will further be linked upwith financial institutions and be encouraged to participate in the agro/livestock business promotion training which will be conducted as part of this project.
This project is funded by IOM Development Fund (IDF).
Reference for Proposal for the Project Evaluation:
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