Global recession to enter Nepal through reduction of remittance

Special Report:Global Financial Crisis

KATHMANDU, Feb. 9 (Chinese media) -- Nepali experts on Monday draw attention of

the government about the global recession which is likely to enter the Himalayan

nation through the reduction of labor export and thus the foreign remittance.

"Country like Nepal whose economy is highly contingent on foreign

employment will be affected by recession through the door of Malaysia and Gulf,"

said socialist Ganesh Gurung on Monday.

Nepal exports its large number of labor mainly to Gulf countries including

the United Arab Emirates, Qatar and Malaysia. Malaysia alone has got more than

300,000 Nepalese migrant workers and is under risk, Gurung said.

Malaysia had already sent back 84 Nepalese laborers some two weeks ago.

Similarly, the government of United Arab Emirates (UAE) has decided to cut

the number of foreign workers by 45 percent. In this instance, Nepalese workers

were expected to be worst-hit by the decision, as hundreds of thousands of them

had been working in the major cities of UAE.

Experts addressing an interaction program on "labor discussion", organized

by Labor Journalist Group in Nepali capital Kathmandu on Monday have outlined

serious scenario of unemployment in the country.

"Large number of unskilled manpower will tempt to commit anti-social

activities in society as they will not have any work to engage," said Lekhraj

Bhatta, Nepali Minister for Labor and Transportation.

Only 2 percent of Nepalese laborers working abroad are skilled whereas 71

percent unskilled.

The Labor Ministry has initiated diplomatic discussion to look after this

issue, according to Minister Bhatta. "We have called on our envoys from four

countries including Malaysia for high level diplomatic talk and we will trace

out the possible decision within a week," he added.

Besides of unemployment, foreign employment was holding Nepal's economy

through foreign remittance which is likely to fall soon by 2010.

Shanker Sharma, former president of National Planning Commission of Nepal

stressed the possible problematic situation the country may face during the

quarter of 2009-2010.

Nepal's economy is highly dependent on foreign remittance. If foreign

remittance falls down, there is no doubt that Nepal's economy will be badly

affected, said Sharma.

The government of Nepal has issued permission to send workers to 107

countries. More than 1.3 million people have gone abroad (except India) for jobs

through registered manpower companies alone by mid-January, according to

Minister Bhatta.

Nepal Rastra Bank, the central bank of the country, has received 1.42

billion Nepali rupees (some 18.2 million U.S. dollars) remittance from countries

other than India during the last five months.