Political Instability & the Migration Surge

Migration is characterised as a common global phenomenon. However, the harsh realities are rarely scrutinised. To conceal ongoing mass outbound migration from Nepal, policymakers often insist on comparing arrival and departure data, however, the evidence tells a different story. A large number of people migrate for opportunities, including work, study, a better life and career goals.

According to the Department of Immigration, a total of 1.67 million people left the country in 2025. A total of 66,835 people migrated seeking permanent residency abroad, including the United States of America, United Kingdom, Hong Kong, Australia, Japan, Canada, Portugal, Germany, New Zealand and the UAE, among others.

Migration chains are activated along with the increasing number of Nepali diasporas globally. In the last decade, numbers have surprisingly risen in many Asian countries, including Japan, according to the IIDS (Institute of Integrated Development Studies). There are around 200,000 Nepali student-workers in Japan.

Based on the no objection certificates issued by the No Objection Certificate (NOC) Office under the Ministry of Education, Science and Technology, the outflow of students for higher studies has exceeded one lakh every year for the last four years, signalling an alarming situation of talent drain. Students are not just choosing developed countries as destinations for higher studies. Last year, students obtained NOCs for 66 countries, including Eastern European nations popular among Nepali migrant workers, such as Poland, Romania, and Croatia. 

Additionally, Cyprus, Montenegro, Azerbaijan, Lithuania and Slovenia are also among the preferred destinations for Nepali students. This trend of student emigration, based on NOCs, shows a strong positive correlation with the job market as a major driving force.

“Those with talent and wealth are reluctant to stay in Nepal,” says Surendra Pandey, Former Finance Minister and senior leader of the CPN (UML). “There are push and pull factors behind this mass outmigration, involving both voluntary reasons, which are less significant, and compulsion, which is dominant.”

Insurgency and political instability led migration 

Passport reform stimulated outmigration due to the lack of domestic employment opportunities. The Nepali government adopted a policy to encourage youth to explore foreign employment and migrate during the insurgency, facilitating smooth passport distribution through District Administration Offices nationwide starting February 13, 1998. The country was preoccupied with managing armed conflict and unable to provide sufficient jobs for its youth. While approximately 400,000 young people entered the labour market annually, Nepal’s job market hired only a negligible number of them.

The motive for making passports easily accessible was to help youth seek foreign jobs while the country struggled with the insurgency which ended in 2006 with a comprehensive peace accord between the former government and the Communist Party of Nepal (Maoist). However, the prolonged political transition and unstable governments failed to generate hope among the youth.

Consequently, underemployment and unemployment became the country’s greatest challenges. This scenario remains similar today as the country stays underdeveloped. The economy is fuelled by imports, while poor governance and corruption deter investment, explains economist Nara Bahadur Thapa.

“The country has been missing opportunities to transform its production sector, attract investment in niche areas and develop mega-projects as drivers of economic growth and domestic employment,” he adds.

Emigration: A political agenda 

Currently, around 4.5 million Nepalis are in the foreign job market, including neighbouring India, illustrating the grossly inadequate job availability in the domestic market. Gradually, migration and foreign employment have become key political agendas as the Nepali diaspora pushes these issues to the centre of the policy ecosystem. The diaspora community has gained strength through expansion to more than 90 countries, including the Middle East, Malaysia and Africa.

Political parties have been emphasising the plight and social fabric of migration to gain attention and attract voters during recent elections.

Emigrant Nepali workers, through their networks, have been pushing agendas for good governance and the control of corruption in Nepal, which they believe are the primary reasons for the country’s underdevelopment and forced migration. “Unless corruption is controlled and good governance prevails, the country cannot progress and migration becomes a compulsion for youth,” states Ganesh Gurung, a labour migration expert. 

“We do not have to be worried about voluntary migration where individuals normally navigate the process easily. However, in cases of compulsion, unskilled and semi-skilled labourers still face numerous issues related to work safety, benefits, language and culture,” mentions Gurung, adding, “Such a labour force is still compelled to work in 3D (dirty, dangerous and difficult) conditions for bare minimum salary and benefits.”

Making foreign employment safer by fixing anomalies and human-trafficking-like situations and ending the compulsion to migrate for job opportunities are the major agendas manifested by political parties. Simultaneously, political parties are criticised for making false promises in their election manifestos about bringing youth in foreign employment back to the country by creating domestic opportunities.

Governments of different political parties have expressed their commitment to ending the compulsion of Nepalis to migrate for jobs, however, these promises have remained unfulfilled for years, leaving people with no viable employment options and forcing them to emigrate.

Moreover, the information gaps between labour demand and supply within the country have been highlighted as a challenge. Efforts to resolve this through information collection centres and job portals accessible to employees, government and employers have been made. However, these initiatives have been unable to address their intended objectives.

Remittances: Lubricating the economy

Remittances have been the major source of foreign exchange consistently for several years, supporting overall economic stability. In fact, remittances have been lubricating the economy, strengthening the country’s capacity for importing goods and household consumption. Every second household in the country receives remittances. 

Along with the surge in individuals in foreign employment and exchange rate effects, remittance inflows increased 39.1% (32.3% in USD terms) to Rs 1,062.93 billion in the first six months of Fiscal Year 2025/26. In the last month, remittance inflows stood at Rs 192.62 billion. 

Nepal ranks among the top remittance-recipient countries in the world. On the flip side, outward remittance is substantially high, particularly to India. Indian workers have been taking away a significant chunk of remittances from Nepal. A World Bank study showed $3 billion in outward remittances from Nepal to India almost a decade ago, which likely increased alongside deepening economic relations between the two countries.

Labour shortages

It is quite contrasting that the country faces labour shortages due to mass migration while the demand for semi-skilled workers, including those in plumbing, welding, construction, vehicle repair, salons and industrial sectors, is filled by workers from India across both formal and informal sectors. Dr Biswas Gauchan, Executive Director of IIDS, notes that Nepal ranks among the top ten remittance source countries for India, citing that even the volume of remittances from Indian workers in the informal sector has not been properly captured.

In recent years, industries have increasingly hired Indian labourers, a trend clearly witnessed in the Bara-Parsa Industrial Corridor and other industrial zones. This preference stems from the lack of trade union hassles, geographical proximity and the ease of travel without restrictions.

A lack of proper job opportunities, an unfavourable investment climate, and poor public service delivery have led youth toward despair. Conversely, the demand in Nepal’s semi-skilled and low-skilled domains is being met by workers from India. Furthermore, a prevailing psychology among Nepali youth suggests there are no opportunities at home, barring them from exploring domestic prospects.

Many individuals perform the same types of labour in foreign countries that they refuse to do in Nepal, as migration has become a symbol of prestige within society. This mentality continues to push them to emigrate in search of job opportunities abroad.