Nepal’s Paradox: A Decade of Internal Employment Promotion Amidst Economic Decline and Mass Exodus

In a move that has sparked both skepticism and debate, the Nepalese government recently announced the "Internal Employment Promotion Decade 2025–35" during a Labor and Employment Conference held this week. The ambitious declaration aims to create jobs within the country, ostensibly reducing Nepal’s heavy reliance on foreign remittances. However, critics argue that this announcement is little more than a hollow promise, given the government’s track record of crippling industries and failing to foster a conducive environment for economic growth.

Over the past seven months, Nepal has raked in nearly NPR 1 trillion (approximately USD 7.5 billion) in remittances, a staggering figure that underscores the nation’s dependence on its diaspora. Yet, this economic lifeline comes at a cost: Nepal has earned a dubious reputation as one of the world’s top remittance-dependent countries. The government’s latest initiative is seen by many as a laughable contradiction, especially when juxtaposed against the stark reality of a nation exporting its workforce while importing basic goods like food grains, despite its fertile lands and abundant natural resources.

A Nation Adrift: Economic Mismanagement and Infrastructure Decay

Nepal’s economic woes are deeply rooted in political shortsightedness and mismanagement. Since the advent of democracy, the country has leaned heavily on foreign employment, with over 1,500 manpower agencies facilitating the daily exodus of thousands of Nepalese workers. According to the Department of Foreign Employment, labor permits for foreign jobs surged by 15% this year compared to the last fiscal year. In the first seven months of the current fiscal year, 465,507 individuals obtained labor permits, up from 396,816 the previous year. This translates to an average of 2,300 people leaving daily—66,000 monthly—seeking opportunities abroad that their homeland cannot provide.

Meanwhile, domestic industries and factories that could employ these workers lie in ruins, a decline many attribute to the current leadership. Private sector partnerships, which could drive job creation, have been overshadowed by a lack of investment and capital expenditure. The government seems more focused on maximizing customs revenue through imports than building a self-reliant economy. Nepal, with its small landmass, boasts one of the highest numbers of government bodies globally, yet its development budget remains woefully underutilized, dwarfed by administrative costs.

The nation’s infrastructure tells a similar story of neglect. Highways like the Thankot, BP Rajmarg, and routes through Dhading, Chitwan, and Butwal are riddled with potholes and unfinished projects. The much-touted Melamchi water supply project, intended to solve Kathmandu’s water woes, has instead unleashed floods in areas like Balaju, Babarmahal, and Thapathali, exposing the fragility of Nepal’s public works. Foreign donors, once eager to invest, are now pulling back. The United States has already halted aid, with the UK and others signaling similar intentions, citing Nepal’s inability to deliver results—a sentiment likened to "pouring water into sand."

Untapped Potential Amid Global Challenges

Ironically, Nepal is endowed with resources that could make it a regional powerhouse: abundant water, mineral-rich mountains, fertile soil, lush forests, and a climate conducive to diverse agriculture and tourism. Experts argue that investments in hydropower, tourism, and sustainable farming could reverse the country’s fortunes. Yet, these sectors remain underdeveloped as political leaders prioritize short-term gains over long-term vision.

Globally, nations are grappling with shortages of food, water, and raw materials, with some imposing export quotas to prioritize self-sufficiency. Nepal, with its natural wealth, could position itself as a leader in this competitive landscape. Instead, it imports staples like rice (NPR 14.51 billion) and maize (NPR 7.4 billion) over the past seven months—rice imports alone up 72% from last year—while its trade deficit balloons. Total foreign trade has risen by 13.3% to NPR 1.15 trillion, with exports growing marginally by 6.21%, leaving a trade deficit of NPR 861.38 billion. Petroleum products top the import list, despite viable hydropower alternatives that remain untapped.

A Society Unraveling

The mass migration has hollowed out Nepal’s social fabric. Villages lack able-bodied men for weddings or funerals, while urban centers swell with unemployed youth, fueling crime rates that strain an overwhelmed police force. Over 90% of Nepalese are reportedly burdened by debt, with banks, cooperatives, and microfinance institutions accused of predatory practices. The real estate market is crumbling, with vacant shops and landlords struggling to collect rent as tenants flee without paying.

Environmental crises compound these woes. As the dry season begins, wildfires have ravaged over 200 locations nationwide, with air quality in Kathmandu Valley reaching hazardous levels (AQI nearing 200). Local governments, despite ample budgets, have failed to act decisively, while provincial administrations are dismissed as bloated bureaucracies serving political cronies rather than the public.

Leadership Vacuum and Glimmers of Hope

Political leaders, fixated on elections and personal enrichment, have been accused of forgetting Nepal’s potential. The government touts export growth—driven by tariff loopholes under the SAFTA agreement and price hikes in commodities like cardamom—as a success, but critics call it a façade masking deeper failures. Meanwhile, figures like Kathmandu Mayor Balendra Shah (Balen) and former Nepal Electricity Authority head Kulman Ghising face resistance from a government wary of their reformist zeal. Ghising, credited with ending load-shedding and boosting power exports, is reportedly targeted for removal despite consistent profits, while Balen clashes with federal authorities over governance issues.

As global geopolitics shift—evidenced by reduced aid to nations like Ukraine—Nepal faces an existential question: How long can it survive on foreign crutches? With youth fleeing (50% of teens reportedly leave for foreign studies), villages turning into ghost towns, and cities choked by pollution and despair, the nation risks losing its identity. The government’s promise of an employment decade rings hollow without concrete action to harness Nepal’s resources, rebuild its infrastructure, and restore faith in its future.

For now, Nepal remains a paradox: a land of immense potential governed by a leadership that exports its people and imports its problems, leaving citizens to wonder when—or if—their country will truly rise.