Remittance Falls With Covid-19 Outbreak

May 27, 2020 | Investopaper

Although remittances from foreign employment reduce poverty and unemployment, the impact of Covid 19, which has spread like a plague around the world, is likely to affect remittances. This is shown in the economic survey report of the current fiscal year released by Finance Minister Dr. Yuvaraj Khatiwada on Tuesday. Public reports have projected that unemployment and poverty will increase in the last months of the current fiscal year due to the Covid 19 outbreak.

According to the report, the number of those who have taken labor permit for foreign employment till last Falgun is 5.04 Million. The remittances they have sent have made a huge contribution to the country’s economy. Due to this, it can be assumed that it has played an important role in reducing poverty in the country. Nepal is on the list of countries sending high remittances in proportion to GDP and the average remittance inflow in the last 10 years has been 25 percent of GDP.

In the report, it has been mentioned that entrepreneurship is achieved by acquiring knowledge, skills and experience as remittances as well as social and human capital through foreign employment. The report also said that the number of workers seeking foreign employment has been declining in the last two years as employment opportunities have been created in the country due to the increase in economic activities and the demand for workers from labor destination countries has been declining.

Among the achievements in the labor sector, it has been mentioned in the report that the employment management information system has been updated at 753 levels to keep the integrated statistics on employment systematic and up-to-date. The report also states that the National Occupational Health and Safety Policy 2069 has been approved and implemented.

According to the report, more than 190,000 people, including 96,706 women and 92,187 men, have received vocational skill development training till Falgun of the current fiscal year. The Youth and Entrepreneurs Self-Employment Fund has made loan agreements with 20 banks and financial institutions and 1,905 cooperatives till Falgun 2076 and has invested Rs. 9.49 billion.


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