However‚ remittance through banking channel decreases due to rising informal channel

Nepali migrants working across the world are earning over Rs 400 billion annually but their real contribution to the country is still unknown due to strong prevalence of unofficial channels.

The government believes that about 30-35 per cent remittance from unofficial channels like Hundi, friends and other means flow into the country that has no records, but experts contradict the opinion.

“Two third of two million Nepali worker abroad are unskilled and they are not sending money through banks and other financial institution,” said Dr Chiranjivi Nepal, an independent labour economist. “Hardly 15 per cent of the total 71 per cent unskilled workers are using official channels,” he said, adding that official remittance channel can not be over 50 per cent.

An average earning of about two million Nepali migrant workers revealed that they are earning around Rs 438.38 billion annually. Nepalis working in Gulf countries – Qatar, Saudi Arabia and the United Arab Emirates – are earning around Rs 319.5 billion followed by Malaysia (Rs 76.20 billion), South Korea (Rs 7.24 billion) and Kuwait (Rs 6.27 billion).

Average monthly earnings of a Nepali worker in the major destination of Gulf, Malaysia, South Korea and Kuwait comes to around Rs 17,750; Rs 12,700; Rs 71,000 and 14,000.

About 1.5 million Nepalis are working in Qatar, Saudi Arabia and the United Arab Emirates while 5,00,000 are in Malaysia, followed by 8,500 in South Korea and 40,000 in Kuwait.

Nepalis working in other destinations are earning Rs 6.38 billion annually. However, the remittance entering into the country is around 50 per cent of their total earnings. “It is difficult to calculate real income of Nepali migrant workers because we do not have acurate data of migrant workers,” Nepal said, adding that it has also created hazy picture of channelised remittances. “At least, the government should have acurate data of migrant workers to calculate their average earnings scientifically,” he added.

Nepali entrepreneurs in remittance business are depending on Nepal Rastra Bank for remittance data. “We are dependent on Nepal Rastra Bank to develop our business plan,” said chairman of IME Group Chandra Prasad Dhakal, said.

“Now, the banks and money transfer agencies have market plan to reach 30 per cent to 35 per cent migrant, who are out of official channels,” he said.

According to Nepal Rastra Bank, Nepalis are sending around Rs 250 billion remittance from abroad. The central bank statistics revealed that total remittance entered into the country in the fiscal year stood at Rs 231.72 billion, while the country received Rs 206.66 billion in remittance in the first ten months of this fiscal year.

Published on: 01 July 2011 | The Himalayan Times