Remittances have significantly transformed the life of families in rural areas of Arghakhanchi. With the money sent by family members working overseas, many households have been able to upgrade their homes, get internet access, and buy smartphones to stay in touch with their loved ones.
Another notable change can be seen in the children’s education. Today, many families send their children to private schools.
An estimated 55,000 youths from Arghakhanchi alone have gone abroad for employment. However, there is no data on those who leave without completing formal processes—such as those using tourist or student visas. In fiscal year 2022/23, a total of 9,526 people, including 633 women, went abroad for work from Arghakhanchi. Across Nepal, over 7.8m workers have received official work permits for foreign employment.
“Limited employment opportunities, poverty, and other socio-economic factors are driving people abroad,” said Khimananda Bhusal, chief administrative officer of Sandhikharka Municipality. By the end of the first half of the current fiscal year, 699,699 Nepalis had left the country for employment. Around 93 percent of them went to Malaysia and Gulf countries, while the remaining seven percent went to destinations such as Japan, Bahrain, South Korea, and Croatia.
According to the National Statistics Office, 72 percent of remittances are spent on household expenses, 15.8 percent on loan repayments, 4.6 percent on children’s education, and 1.9 percent on real estate. Only 1.9 percent of the total is being saved. Remittances reach 56 percent of households nationwide and 89.6 percent in Lumbini Province.
An informal survey conducted two years ago by Sathi Savings and Loan Cooperative and Arghakhanchi District Savings and Loan Cooperative revealed that 80 percent of remittances are spent on luxury and non-productive sectors. Despite limited local government efforts to promote business or self-employment, the flow of remittance money continues unabated.
Roughly Rs 7.5bn enters Arghakhanchi annually through remittances. Of this, about 60 percent—or Rs 4.5bn—is spent on daily needs, food, vehicles, fuel, clothing, phones, and communications. The remaining 40 percent, or Rs 3bn, goes into relatively productive areas like home construction and agriculture, according to Prakash Bhusal, President of both the Arghakhanchi District Savings and Loan Cooperative and Sathi Cooperative. Much of this is used to purchase property in places like Kapilvastu, Butwal, Bhairahawa, Dang, Chitwan, and Kathmandu.
However, only 20 percent of remittances are invested in genuinely productive ventures such as agricultural farms, grocery stores, hotels, and transportation services like taxis and buses. Even among those who venture into such businesses, many discontinue midway.
“The earnings of youths working abroad are mostly spent on luxuries and daily needs. To redirect funds into productive use, regulations are necessary,” said Krishna Prasad Shrestha, Mayor of Sandhikharka Municipality.
To address this, the local government is providing technical support and grants to returnee migrants engaged in agriculture and animal husbandry. “We have distributed mini-tillers, grinding mills, and other equipment to help modernize traditional farming,” said Chhabilal Poudel, Mayor of Sitganga Municipality. The municipality is also providing seeds, fertilizers, and other agricultural inputs.
Pradeep Khanal, an official at the Ministry of Industry, Tourism and Transport of the Lumbini Province Government, said that over 500,000 Nepalis go abroad for employment annually, with more than 2,000 people leaving each day with work permits.
As the number of migrant workers grows, remittances continue to rise. In the fiscal year 2023/24, remittance inflow increased by 16.5 percent, reaching Rs 1.445trn—equivalent to 25.3 percent of the national GDP. The primary destinations for Nepali workers include the United Arab Emirates, Saudi Arabia, Qatar, Malaysia, Kuwait, Croatia, Romania, Japan, South Korea, and Bahrain. Nepal has signed agreements allowing legal employment in 111 countries.
