Nepal government, acting through the Department of Foreign Employment in the Ministry of Labor, Employment and Social Security, has decided to resume the issuance of labor approval for several major destination countries within the Gulf Cooperation Council (GCC) and other West Asian states such as Saudi Arabia, the United Arab Emirates (UAE), Qatar, Kuwait, Bahrain, and Oman.

In terms of Human Resource Management (HRM) and international labor migration dynamics, this represents an important restoration of the international labor pipeline between Nepal, as a labor-exporting nation, and the GCC, as a labor-importing region. This decision signifies a resumption of normalcy in the overseas labor recruitment process.

The suspension of labor permits disrupted not only the labor migration process to other countries but also the overall ecosystem of foreign employment services. The pause in the issuance of such documents stopped the chain of recruitment processes, from verifying the demand, recruiting the candidates, selecting suitable individuals, sending them to host countries, and processing onboarding in their countries.

This disruption has had two-fold consequences for employment:

• Internationally speaking, many Nepalis looking forward to becoming migrant labor have been deprived of their chances, and thus the opportunity to improve their income status.
• Domestically speaking, the suspension of issuing such documents has practically paralysed the business operations of the country’s recruitment agencies. There are over 1,000 recruitment agencies functioning as intermediaries for international labor hiring; hence, such measures affected their business activities and incomes. This meant that the people working for these organisations (such as HR specialists and others) could not perform their regular duties.

As such, the suspension not only affected foreign employment but also caused a reduction in domestic employment associated with the migration industry, thereby demonstrating its multiplier effect on Nepal’s labor force.

The approval of labor flows will enable Nepal to resume its place in the global workforce supply chain. From the perspective of Nepali nationals, this means an ability to gain entry into the global market and benefit from regulated international employment, especially in labor-intensive industries like construction, hospitality, manufacturing, facilities management, and domestic service.

On the part of the host economy, the availability of manpower will enable the employer in GCC to plan his operations according to manpower needs and production schedules, which will help in avoiding labor shortage and maintaining efficiency in business operations.

As far as Human Resource Management is concerned, this step would ensure a balance between supply and demand for labor in Nepal and GCC economies.

Foreign employment is an important aspect of Nepal’s macroeconomic policy regime. Remittances are a major component of the nation’s GDP and are one of the largest sources of foreign currency earnings. The suspension of the system created disruptions in the economic cycle, since migration and remittances have been delayed. This had impacts at the household level in terms of lowering disposable incomes, restricting consumption, and increasing the level of economic vulnerability for families residing in rural and remittance-oriented areas.

Now that the labor permits have resumed, the remittance flow should start returning to normal levels, thus stabilising household incomes and fostering domestic consumption. Furthermore, the resumption of activities of the recruitment agencies creates economic activity through various commissions and taxes as well as job creation.

With regard to the resumption of mobility, there is a need for governance of the overseas recruitment process. A regulated system of migration is needed to address the issue of unregulated recruitment that poses threats such as overpricing, contract switching, and informal recruitment.

Since recruitment agencies are key intermediaries in human resource management, there is a need to observe ethical standards such as transparency in pricing, employment contracts, and bilateral labor agreements. There is also a need to strengthen pre-departure orientation and skills assessment programs.

Nepal’s GCC economies have always relied on expatriate workers to ensure development and economic diversification. Nepali nationals, with their flexibility and dedication, continue to be a popular choice in various industries. With the relaxation of the ban, GCC-based companies can again have access to a steady supply of talent, allowing them to fulfil their manpower needs with ease. This move will further strengthen the established labor ties between Nepal and GCC economies.

Role of institutions and coordination among stakeholders

The activation of the sector of foreign employment involves the following:

• The government institutions should work toward providing stability, efficiency, and supervision of policies.
• The recruitment agencies should be responsible for their actions, ensuring professionalism and financial soundness.
• The training institutions should focus their programs on meeting international labor market needs.
• The employers in the destination countries should respect workers’ rights and provide a safe working environment.
• Coordination among the above stakeholders will help in developing a strong migration regime.

Toward a sustainable and skill-based approach for migration

In addition, there is another positive move toward shifting away from a quantitative approach to migration toward a more sustainable skill-based approach to migration. This will enable Nepali workers to develop their skills through technical and language learning programs in order to improve their competitiveness at work. From an HRM standpoint, it is important to note that this strategy reflects the changing world trend in which talent mobility becomes a priority. The cancellation of the suspension on labor permits is a fresh start for the international recruitment sector in Nepal. It restores the functioning of the international recruitment market, opens up opportunities for migrant workers and recruitment firms who had their activities hampered due to the suspension.

Most significantly, this policy decision recognises that foreign employment is not a standalone activity but a complete economic system involving the workers, their family members, recruitment agencies, and employers globally. The previous suspension had affected various components of the economic system involving labor migration and employment in the recruitment industry. It is essential to pay attention to the improvement of the management, increase ethical recruitment policies, and train Nepali workers to be more successful in the foreign job market. Taking an all-round perspective will allow Nepal to optimise the benefits associated with migration and support its population. Overall, this policy decision marks a new chapter in foreign labor migration and the operation of the Nepali recruitment industry.