On most days, the international departure hall at Tribhuvan International Airport moves with a familiar urgency. Young men and women line up with document folders in hand. Families huddle around trolleys, saying quiet goodbyes. Flights to Doha, Dubai Riyadh—names that have, over decades, become extensions of Nepal’s economic geography—depart in quick succession.
But in recent weeks, that rhythm has broken. Flight information screens are showing cancellations, passengers are waiting for flight updates. Some have returned to nearby hotels. Others simply went back home, uncertain when, or if, they would leave.
Beneath this disruption is a troubling reality. Nepal depends heavily on the Gulf region. However, the region that once offered opportunity is increasingly turning unstable. Rising tensions involving the United States, Israel and Iran have put Nepal’s foreign employment system under pressure again. This has raised questions about the safety of Nepali migrant workers in West Asia, and sustainability of foreign employment in the region. For a country where remittances support both households and the wider economy, the stakes of the ongoing conflict are immense.
A Sudden Pause in Motion
In early March, the government suspended labor approvals for West Asian countries. In a letter dated March 1, the Ministry of Labor, Employment and Social Security instructed the Department of Foreign Employment to stop issuing both individual and institutional labor permits until further notice. The suspension covered Saudi Arabia, the UAE, Qatar, Kuwait, Bahrain, Oman, Iraq, Yemen, Jordan, Lebanon, Turkey, and Israel.
The move came in response to rising conflict in the region. After US–Israel strikes on Iran on February 28 triggered a wider regional conflict, Iran retaliated with missile attacks targeting US assets. For Nepal, the impacts were immediate. Around 2,000 Nepalis per day could no longer leave for foreign jobs. Even those, who had already received visas, were stopped. The suspension affected new applicants as well as workers returning abroad after leave. Many of these workers had taken loans to pay recruitment fees. Now, everything is on hold.
On March 18, the government partially lifted the suspension, resuming labor approvals for Saudi Arabia, the UAE, Qatar, Oman, Yemen, Jordan, and Türkiye. But restrictions remain for other countries. Uncertainty continues as the conflict goes, leaving migrant workers vulnerable.
Lives in Limbo
This crisis is not just about numbers. It is about lives caught in between. At the airport, travellers spoke of confusion and frustration. Some had been waiting for days as flights were cancelled due to airspace closures in parts of West Asia. With airlines unable to provide accommodation, many had to manage on their own. For those already abroad, the anxiety is different.
Rameshwar Nepal, South Asia Director of Equidem, a global human rights organization, says there is a growing unease among Nepali workers in the region. “The unrest in West Asia has created anxiety among workers,” he said. “The state must prioritize the safety of its citizens.”
That fear became real with the death of 29-year-old Dibas Shrestha from Gorkha. Shrestha, who worked as a security guard in Abu Dhabi, was killed in an incident involving intercepted drone debris at Zayed International Airport. The tragedy underscored what many had feared: even those far from conflict zones are not fully safe.
A Concentrated Risk
Nepal’s foreign employment system relies heavily on a few regions. Around 65-70% of Nepali migrant workers are concentrated in the Gulf and West Asia. Out of about three million Nepalis working abroad, nearly 1.8 to 2 million are in this region.
This concentration has long been seen as a risk. Yet it continues, driven by demand abroad and lack of jobs at home. Rajendra Bhandari, former president of the Nepal Association of Foreign Employment Agencies (NAFEA), says the main concern now is worker safety. “With the conflict continuing, the outflow of workers has almost stopped,” he said. “Even if jobs are available, workers cannot be sent until the situation stabilizes. If the conflict escalates, a rescue operation may be needed.”
The effects go beyond individuals. “If the security situation does not improve, numbers will fall sharply,” Bhandari said. “This will ultimately reduce labor migration and remittance inflows.”
According to the Nepal Rastra Bank (NRB), remittances grew by 39.8% to Rs 1,261.01 billion in the first seven months of the current fiscal year, ending mid-February. This is much higher than the 7.5% growth recorded in the same period last year. In just one month between mid-January and mid-February, inflows reached Rs 198.08 billion, up significantly from Rs 137.50 billion a year earlier.
A large share of this comes from West Asia. Around 40% of total remittances are estimated to originate from the region, especially from workers in Saudi Arabia, Qatar, the UAE and Kuwait.
Economic Ripples
The effects of the conflict extend beyond migration. Jeevan Baniya, “If the security situation does not improve, numbers will fall sharply. This will ultimately reduce labor migration and remittance inflows.” RAJENDRA BHANDARI Former President NAFEA “A prolonged conflict could disrupt supply chains and slow economic activity in destination countries. If economies slow down, jobs will shrink. That directly affects Nepali workers.” JEEVAN BANIYA Deputy Director Social Science Baha “Wages offered in Europe can be nearly double than those in the Gulf. Depending on skills and experience, some Nepalis are earning over Rs 100,000 per month.” BHUWAN SINGH GURUNG President NAFEA Around 40% of total remittances are estimated to originate from the region, especially from workers in Saudi Arabia, Qatar, the UAE and Kuwait. NEW BUSINESS AGE APRIL / 2026 | 73 deputy director at Social Science Baha, warns of broader economic risks. “A prolonged conflict could disrupt supply chains and slow economic activity in destination countries,” he said. “If economies slow down, jobs will shrink. That directly affects Nepali workers.” The consequences would be felt at home too. An analysis of the remittance-to-GDP ratio shows remittances have grown sharply over the past 25 years. They made up 10.7% of GDP in 2000/01. The ratio surpassed 11% in 2001/02, crossed 20% in 2008/09, and reached 25.3% in 2023/24, according to the Nepal Labor Migration Report 2024.
The European Turn
Even as traditional destinations face uncertainty, new opportunities are emerging in foreign employment. In recent years, Europe has begun to attract more Nepali workers. Countries like Romania and Cyprus are seeing a steady growth of Nepali workers, driven by labor shortages and relatively higher wages.
Data from the Department of Foreign Employment shows a sharp rise in labor approvals issued for these destinations. Romania, in particular, has seen rapid growth. According to Bhuwan Singh Gurung, president of the Nepal Association of Foreign Employment Agencies, wages offered in Europe can be nearly double than those in the Gulf. “Depending on skills and experience, some Nepalis are earning over Rs 100,000 per month,” he says.
But this shift comes with risks. Nepal lacks formal labor agreements with most European countries. Because of this, many workers are traveling through informal channels which leaves them vulnerable to exploitation. “In the lack of institutional mechanisms, companies are sending workers individually. This has led to widespread fraud,” Gurung added.
Policy Paralysis
Efforts to address this gap have been slow. More than a year ago, the Ministry of Labor, Employment and Social Security sent proposals for labor agreements to 16 European countries.
However, none has responded to Nepal’s proposal so far. Officials cite bureaucratic hurdles, limited diplomatic capacity, and the complexity of negotiating with countries that operate under stricter labor and migration systems.
Experts, however, say the issue goes deeper. The Rastriya Swatantra Party (RSP), which emerged as the largest party in the federal parliament by winning 182 of 275 seats in the House of Representatives, has pledged in its manifesto to reduce Nepal’s heavy reliance on remittances and steer the country towards a production, and export-driven economy within five years.
“Through the Nepal Production Fund (NPF) and the Remittance Investment Fund, 30% of the capital earned from foreign employment will be invested in national pride projects and industrial infrastructure, establishing a strong foundation to reduce forced foreign employment by 20%,” the party pledged in its election manifesto. However, experts say the plan lacks clear details.
Poudel adds that political parties have a conceptual dilemma when it comes to foreign employment. “That is why there is no coherent national policy framework,” she said.
Short-term Priorities
In the immediate term, the focus must be on managing the crisis. Experts stress the need for clear communication. Many workers lack reliable information, which, they say, fuels confusion and panic. “The government should ensure timely dissemination of accurate information,” said Nepal. “State mechanisms must be strong and functional.”
Emergency preparedness is equally important. This includes evacuation plans, coordination with embassies, and the establishment of emergency funds. Logistical challenges, such as rising airfare and limited flight availability, must also be addressed. Support for affected workers should also be a priority.
Similarly, mechanisms to address financial losses and resolve disputes with recruitment agencies could help ease the burden for migrant workers.
Long-Term Imperatives
While immediate responses are necessary, the deeper challenge lies in structural reform. The need to reduce overdependence on the Gulf is widely acknowledged. Europe and East Asia offer viable alternatives, but accessing these markets requires sustained diplomatic engagement.
Experts say migration must be treated as a core component of foreign policy. This means strengthening embassies, negotiating agreements, and safeguarding workers’ rights. Since higher-paying markets also demand higher skills, investment in training, certification, and language programs are also critical. Similarly, informal migration must be curbed. Strengthening institutional recruitment and improving transparency can also reduce exploitation of workers.
Ultimately, the long-term solution lies at home. Youth unemployment reached nearly 22.7% in 2022/23, one of the highest levels in South Asia, according to the World Bank’s Macro Poverty Outlook published in October 2025. “As a result, labor migration has become the dominant livelihood strategy,” the global lender said in the report.
In its election manifesto, the RSP has pledged to create 1.2 million jobs over the next five years. Experts, however, are skeptical. Poudel says creating even 200,000 to 300,000 jobs annually would be a positive step. “But it cannot fully address Nepal’s employment challenges,” she added.
Baniya, however, says change will take time. “Creating sufficient jobs will take years, even decades. Attracting foreign investment is not easy,” he said. “But targeted policies, support for small enterprises, access to finance, efficient public services, and incentives for the private sector, can gradually build resilience.”
