Every year, thousands of young Nepali pack their bags and go abroad, dreaming of better education and higher pay. They work in the Gulf, Malaysia, Korea, Australia, and farther. Back home, families depend on the rupees they send. But beneath this surface, a deeper crisis is unfolding that threatens our nation’s long-term future.
Nepal has become one of the most remittance-dependent countries. In 2023, migrant Nepali workers sent approximately US $11 billion, which accounted for 26.6% of the country’s GDP. In fiscal year 2023/24, remittances reached around US $10.86 billion, or 25–26% of GDP. From July 2024 to May 2025, Nepal received NPR 1,532.9 billion, a 15.5% rise over the previous year.
Dearth of human resource
This money helps households pay for food, education, health care, and daily needs. Yet more than 90% of remittances are spent on consumption rather than used to build industries or create jobs domestically. As remittance inflows surge, our import bills swell too, increasing the trade deficit.
In just the first ten months of fiscal 2024/25, over 700,000 young Nepali left the country for work. Reports suggest that over 65,000 youth depart every month, totaling around 780,000 annually. Nearly 300 students leave Nepal for studies every day, spending a reported NPR 56.83 billion in just six months.
As our youth leave, Nepal struggles with “brain drain.” Many villages now lack doctors, teachers, and engineers. Farms remain uncultivated, factories struggle to hire, and schools and hospitals suffer. Overall unemployment hit 12.6% in 2022, with youth joblessness surpassing 22%.
This crisis is magnified by political instability. Nepal’s governments change nearly every few months. Plans start but stall before they finish. Investors hesitate. Corruption drains public services. When young people see this chaos, broken roads, delayed schools, graft they lose faith. They think, “Why stay?”, and leave.
As a result of these problems, Nepal’s economy grows slowly around 4.2% per year while nearby countries like India and Bangladesh grow much faster. We cannot depend on remittances forever. What will happen when migrant workers retire or lose jobs abroad? Who will support our elderly? Who will build roads and run farms back home?
Powering sustainable growth
Nepal urgently needs political stability and good governance. When governments change frequently, development plans collapse. Leaders must prioritise long-term projects, roads, power, education and stay in office long enough to complete them. Fighting corruption is just as vital. If youth see that leaders care, they’ll have more hope for coming home or never leaving.
Nepal must expand into high-potential sectors like technology, tourism, agriculture, and renewable energy. These industries can create good, long-term jobs. For instance, Nepal’s hydropower could attract investment; eco-tourism in the Himalayas can bring both income and respect for our environment. Governments and the private sector must work together through tax incentives and infrastructure support to make these industries real.
Our education system must change. Schools and colleges need practical courses in computer programming, engineering, hotel management, organic farming, and vocational skills. Technical training centers should teach what businesses and industries truly need. When young people graduate with real skills, they can earn well at home instead of seeking work abroad.
Remittances should be seen as investment capital not just family support. The government could introduce matching grants, remittance-linked savings bonds, or small-business startup support. These tools would help families turn remittance cash into farms, workshops, or local factories. Several studies suggest that pairing remittance with financial support can multiply its economic benefits.
Building home opportunities
Nepalis returning from overseas should find it easy to start businesses at home. The government can offer low-interest loans, tax holidays, and simplified business licenses. When returnees see they can succeed here, more will come back and stay.
Remittances have been a lifeline for many Nepali families. But overdependence on foreign income and the continuing loss of youth leaves our economy weak. Paired with unstable politics and poor investment in local growth, we risk a future where Nepal has more old people than working youth.
If we act now by creating a stable government, nurturing home-grown industries, improving education, using remittances wisely, and welcoming back migrants Nepal can regain its vitality. We can build an economy led by Nepali youth in Nepal, not abroad.
