FNCCI president meets Labour minister, urges local loans for workers seeking foreign employment

KATHMANDU: Federation of Nepalese Chambers of Commerce and Industry (FNCCI) President Chandra Prasad Dhakal has emphasised that workers wishing to go for foreign employment should be provided with simple and accessible loans at the local level.

Dhakal made the call during a meeting with newly appointed Minister for Labour, Employment and Social Security, Rajendra Singh Bhandari, on Monday at the ministry in Singha Durbar. He raised concerns about the current state of Nepal’s labour market, challenges facing the private sector and various issues related to worker welfare.

Pointing out that prospective foreign workers are compelled to pay interest rates of up to 36%, Dhakal said arrangements should be made to provide loans at the local level by coordinating with banks and financial institutions (BFIs), money transfer operators, the Social Security Fund (SSF) and insurance companies.

He said the FNCCI’s clear stance is that although a large amount of contributions has been collected in the SSF, those funds have not been mobilised in productive sectors and should be invested by linking them with industry, agriculture and tourism. “A large amount of workers' contributions has accumulated in the SSF. If this amount can be invested in productive sectors such as industry, agriculture, energy and tourism, it will make a significant contribution to job creation and the expansion of economic activity in the country,” Dhakal said.

FNCCI president also stressed the need to produce skilled manpower for both domestic and foreign markets, saying that preparing workers according to industry needs would improve worker security, raise incomes and support the country’s economic progress.

He warned that risks to industries have increased because of strikes and shutdowns in industrial corridors and called for a special industrial security force to protect industries.

On the occasion, Nepal Association of Foreign Employment Agencies (NAFEA) President Bhuwan Singh Gurung said commissions received by foreign employment entrepreneurs for sending workers to countries that receive most Nepali workers are extremely low compared with those earned by entrepreneurs in other countries. He said agencies are unable to operate at the government‑fixed service fee and urged action to stop workers being cheated through other channels.

Minister Bhandari described the issues raised by FNCCI and NAFEA as constructive and pledged that the Labour Ministry will take necessary initiatives for policy reform, facilitation and implementation. He said the government will make appropriate decisions prioritising worker welfare, job creation and the expansion of economic activity in collaboration with the private sector.

FNCCI Vice President Jyotsna Shrestha and officials from NAFEA were also present at the meeting.