Labour in the budget: Only 4% employment achieved, zero progress on employment bank and collateral-free loans

KATHMANDU, JUNE 8 : The government had set an ambitious goal to provide 100 days of employment to 200,000 individuals under the Prime Minister Employment Programme during the current fiscal year. However, in the first nine months of 2024/25, only 7,308 registered unemployed individuals received employment—averaging just 65 days each, according to the Ministry of Labour, Employment and Social Security.

Despite allocating Rs 6 billion to the programme, the ministry has failed to meet its targets. The scheme, which requires beneficiaries to register at local Employment Service Centres, was designed to prioritize employment based on defined criteria. In practice, however, the promised support has fallen short.

The government had also pledged to sign bilateral labour agreements with three additional major destination countries this fiscal year. Yet, as of the third quarter, no such agreements have been concluded. The ministry claims preparatory discussions are ongoing with officials from the respective countries.

Similarly, plans to upskill aspiring migrant workers through free pre-departure orientation training have made no headway, despite the promise made in the annual budget and the passage of nine months.

Employment bank still on paper

Another major commitment—the establishment of an Employment Bank to centralize labour market information—remains unfulfilled. The proposed platform was to integrate job listings and labour supply-demand data into an automated system, but no progress has been made.

In parallel, the government had unveiled a Returnee Entrepreneurship Programme targeting at least 100,000 Nepalis returning from foreign employment. It promised to promote self-employment by leveraging their skills, experience, and capital. Additionally, it had pledged collateral-free loans for outbound workers, contingent upon remittance flows to their bank accounts. Neither of these initiatives has materialized.

A budget of Rs 430 million was also earmarked to provide skill-based training to at least 1,000 youths in each province by upgrading training centres to international standards. But the impact of this commitment remains negligible.

According to the ministry, some progress has been made in finalizing agreements with consulting firms to conduct entrepreneurship training for returnees, and training sessions are now beginning to roll out.

On a more positive note, the ReMi Project, supported by the Swiss government, is being implemented in 20 local governments across Koshi and Madhesh provinces to help reintegrate returnee migrant workers. Additionally, with support from KOICA, a reintegration programme is underway for individuals returning from employment in South Korea.