COVID-19 is forcing an unprecedented level of reverse migration of Nepali migrant workers from around the world. The underlining problems related to the dependence on temporary labor migration and remittances is being revealed as the government grapples with immense short and long-term challenges.
Nepali migrant workers have played a vital role in keeping the national economy afloat during times of political instability and conflict as the remittances they send become an essential source of income. Nepal is the fifth-most remittance-dependent economy (in terms of equivalence to GDP) in the world with remittances accounting for 28% of the GDP in 2018 and this pandemic will directly hit this source.
A remittance-based economy has its pitfalls as it is dependent on various local and global issues such as xenophobia, the economy, price of oil, geopolitical tensions and now a global pandemic. COVID-19 is likely to induce a long and pervasive global economic crisis, which will have disastrous consequences for low-paid migrant workers and the welfare of their families, as their source of income dries up.
