Migrants pay Rs 18 billion to send remittance home annually
February 8, 2019 08:08 PM NPT
KATHMANDU: Nepali migrant workers are spending around Rs 18 billion to send remittance home annually. According to a report by the Ministry of Employment and Social Security, a migrant worker spends up to 4.5 percent to send US $200 to Nepal.
The report says, “Based on the cost analysis involved in sending remittance to Nepal, it is not less compared to other countries. The cost of sending US $200 to Nepal is put at 4.5 percent while the cost of sending US $ 500 is only 3 percent. The greater the amount, the less cost will be involved. A Nepali migrant youth sends remittance in an average of USD $ 200.
The cost of remittance has gone up as Nepal exports under-skilled labor force that earn minimal and send money accordingly. Since most of the Nepali migrant workers are under-skilled and semi-skilled, the amount of money they could send to Nepal is US $ 200 in an average whose cost is just Rs 4.5 percent.
Sustainable Development 2030 has set a target of bringing the cost of remittance down to 3 percent.
In Nepal, bank and private remit companies have been drawing in remittance through labor importing countries. Of the total remittance, Nepal draws in 48 percent of remittance from Saudi Arabia, 63 percent from United Arab Emirates, 28 percent from Malaysia and 33 percent from Qatar through banking system. Only 40 percent of remittance comes through banking channel.
The report says, “Keeping record of the cost involved in sending remittance could be one of the best ways of minimizing the cost of remittance. This provision is effective in Pakistan.
Based on the total cost involved in sending remittance from the labor destination countries and the total remittance coming from them, the government has to bear cost of over Rs 18.6 billion.