KATHMANDU, June 8: Foreign employment agencies have demanded comprehensive policy reforms in the foreign employment sector from the government, arguing that the current “Free Visa, Free Ticket” policy is impractical. The manpower entrepreneurs have requested the Ministry of Labour, Employment and Social Security to formulate a clear policy based on facts and data, stating that foreign employment is still indispensable for a developing country like Nepal.
Manpower entrepreneurs have raised serious questions over the government’s current service fee arrangement. “It costs Rs 20,000 to Rs 30,000 just to come to Kathmandu from districts in Sudurpaschim and Karnali,” says former First Vice-President of the Nepal Foreign Employment Entrepreneurs Association, Dika Bahadur Khattri. “If it costs around Rs 30,000 to come to Kathmandu from Jumla, how is it possible to send a worker to a country across seven seas for only Rs 10,000?”
According to him, the “Free Visa, Free Ticket” policy implemented by the then government in 2072 BS is far from reality. Manpower entrepreneurs recall that in 2060 BS, the service fee was fixed at Rs 70,000 for Gulf countries and Rs 80,000 for Malaysia, and say that reducing it to Rs 10,000 after 12 years is an impractical decision.
The Government of Nepal itself charges around Rs 120,000 for workers going to Korea and around Rs 165,000 for those going to Israel, but restricting the private sector to only Rs 10,000 is discriminatory, manpower entrepreneurs have alleged.
Citing examples of countries like India, Sri Lanka, Pakistan, Bangladesh, and Indonesia, manpower entrepreneurs say that agents in those countries are allowed to charge higher service fees than in Nepal. According to them, although Nepali manpower companies have to compete with agents from those countries to obtain demand letters, the “Free Visa, Free Ticket” policy in Nepal has created a situation where competition is not possible.
Entrepreneurs have demanded a provision allowing workers to be sent free of cost if the company provides visa, ticket, and service fees, but in other cases, at least a service fee equivalent to two months’ salary should be allowed. They claim that this would protect workers from exploitation, eliminate middlemen, and increase state revenue.
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Manpower entrepreneurs mention that the history of foreign employment in Nepal is around 210 years old, stating that Nepalis started going abroad for employment after the agreement with the East India Company in 1816. They also present the fact that nearly 30 percent of Nepal’s total Gross Domestic Product comes from remittance, and about 56 percent of households are directly linked to foreign employment.
Around 1,200 foreign employment companies, 1,800 operators, and about 18,000 employees are directly involved in this sector in Nepal. The entrepreneurs say that health testing institutions, orientation centers, travel agencies, hotels, and transportation businesses also benefit from this sector.
Manpower entrepreneurs raised concerns regarding the need to improve verification of demand letters, determination of minimum wages, final labor approval based on employment contracts, interest arrangements on deposit amounts, expansion of new labor destinations including Europe, worker accountability, and departmental monitoring processes.
They say that the trend of now allowing demand letter verification, especially for European countries, has made it difficult to send workers legally, and unauthorized individuals are taking advantage of this situation. Manpower entrepreneurs have also demanded a long-term foreign employment policy from the government. “In a country with a 2 trillion budget, an almost equal amount comes from remittances, but there is still no clear foreign employment policy,” they said.
Based on Nepal’s unemployment situation, labor market potential, and population structure, entrepreneurs suggest that a detailed study should be conducted on the need for foreign employment in coming years and a clear policy should be published.
Entrepreneurs cried foul against unilateral decisions taken against them by the concerned department in case someone filed a complaint. They allege that without verifying evidence or reality of claims made by workers, manpower companies are immediately pressured to pay money.
Chairman of Nepal Foreign Employment Entrepreneurs Unity Committee, Hari Bahadur Pandey, says he has no objection to regular monitoring but calls interference from the ministerial level and unofficial individuals unacceptable.
“The department has the authority to conduct regular monitoring, we have no objection to that,” he said. “But the practice of secretaries, PAs of ministers, and YouTubers conducting raids, seizing passports, and controlling money is not state monitoring—it is a raid-style operation.”
Pandey warned that if service fees are not revised, entrepreneurs will be forced to shut down manpower businesses. “We have been saying since 2072 BS that working with a service fee of Rs 10,000 is not feasible. If there are only raids without fixing service fees, we cannot sustain business operations,” he said.
They believe that unless the provision of individual labor permits is revised, fraud in foreign employment cannot be controlled.
Former president of the Nepal Foreign Employment Entrepreneurs Association, Rajendra Singh Bhandari, also says the problem is policy-related. According to him, most fraud is occurring through individuals going abroad on personal labor permits. “Fraud cases are increasing among those going through individual labor permits. It is estimated that more than Rs 30 billion has been embezzled through this channel,” he said. “Instead of raids, policy reform is needed first.”
Meanwhile, the Ministry of Labour claims that recent actions are legal procedures. Ministry spokesperson Pitambar Ghimire clarified that the government is not engaging in any crackdown. “Licensed companies must comply with acts, rules, and directives,” he said. “If illegal activities occur, bringing them under legal framework is the responsibility of the concerned authority. This should not be understood as a crackdown.”
Labour and migration expert Rameshwar Nepal said that while state policy must be implemented, dialogue is needed in the process. He said that arresting those who exploit workers in the name of Free Visa Free Ticket is not wrong from a legal and policy perspective.
