A Constituency Without Rights: The Paradox of Nepali Diaspora Contribution

Over the past two decades, international migration has become a defining reality for Nepal. Today, more than 8 million Nepalis live abroad, seeking better opportunities, education, and livelihoods. Every day, over 2,000 Nepalis leave from Tribhuvan International Airport alone for work or study overseas. This continuous outflow is not just about economics; it reflects a deeper challenge—Nepal is steadily losing its youth, talent, and future leaders, weakening both its workforce and national identity.

Despite this massive migration, the Nepali diaspora remains the backbone of the country’s economy. Millions of Nepalis working abroad send money home to support their families, pay for education and health care, and sustain daily household needs. In FY 2024/25, Nepal received a record NPR 1.72 trillion (USD 12.64 billion) in remittances—a 19.2% increase over the previous year. On average, this translates to USD 34.63 million per day and NPR 197 million per hour. In just one month (Ashar 2082), remittances reached NPR 189 billion. Today, remittances contribute more than one-quarter of Nepal’s GDP, making the country one of the most remittance-dependent economies in the world.

Yet, this heavy reliance has created what economists call the “remittance paradox.” While the diaspora sustains Nepal financially, it receives little recognition, minimal rights, and almost no structured engagement in decision-making or national development. Nepal depends on its diaspora for survival but does not treat them as equal partners in shaping the country’s future.

Traditionally, the diaspora’s role has been narrowly viewed as financial. However, Nepalis abroad bring far more than money—they carry skills, knowledge, innovation, and global experience. Across the world, they have gained expertise in sectors such as technology, healthcare, education, entrepreneurship, and governance. These talents could be leveraged to build a more innovative, knowledge-driven, and inclusive Nepal, yet remain largely untapped.

To move forward, Nepal needs to see its diaspora as strategic partners, not just remittance senders. Their global networks, professional expertise, and entrepreneurial energy could play a key role in policymaking, investment, innovation, cultural diplomacy, and sustainable development.

Challenges to Engagement

Despite this potential, several barriers limit meaningful engagement. Policy gaps remain significant. Existing regulations do not fully support dual citizenship, overseas voting, property ownership, or diaspora investment. Legal frameworks are fragmented and inconsistent, discouraging participation.

Institutionally, ministries, departments, boards, embassies, and diaspora organizations often operate in isolation, with minimal coordination. This fragmentation reduces efficiency, creates overlap, and leaves diaspora communities feeling disconnected from the country they are trying to support.

Coordination failures deepen the divide. Governments may expect investment or technical contributions, while diaspora members remain unaware of opportunities or excluded from decision-making. Without clear communication channels, updated databases, and long-term planning, engagement remains transactional—focused on money rather than true partnership.

Reciprocity: What Nepal Owes Its Diaspora

At the heart of a sustainable relationship is reciprocity. Nepalis abroad contribute time, money, and expertise, often at great personal cost. In return, Nepal has a moral and practical responsibility to provide recognition, protection, and opportunities for meaningful participation.

This could include stronger consular services, better migrant protection, investment-friendly policies, simplified procedures, and legal guarantees. Political inclusion, such as overseas voting rights or dual citizenship, would strengthen the diaspora’s connection to Nepal. Structured programs that recognize and engage the diaspora foster mutual respect and shared responsibility, ensuring both the country and its citizens benefit.

Mr. Som Prasad Sapkota

Nepal is Losing Its Youth

The past four years highlight the urgency of action. Average annual outmigration has reached 566,000 people, with a net depopulation of 294,000 per year. Every day, more than 2,350 Nepalis leave the country. Student outmigration alone reached 449,000 in four years. Nepal is exporting not only its labor but also its future skilled workforce. This exodus is creating demographic hollowing, weakening social cohesion, and reducing the potential for future innovation and leadership.

Adding to this, remittances have surpassed traditional foreign aid. In FY 2024/25, just one month of remittance inflows exceeded the entire annual foreign aid of USD 1.417 billion. While this shows the diaspora’s incredible economic contribution, it also exposes Nepal’s structural vulnerability—remittances are replacing domestic industrial policy, employment strategy, and social protection systems.

Despite their vital role, millions of Nepalis abroad remain excluded from political participation. This creates a constitutional contradiction: the diaspora finances the state but lacks a voice in governance. Even a modest allocation of remittances could fund secure digital or overseas voting infrastructure, allowing political inclusion without straining the national budget.

Towards Long-Term Partnership

Nepal must move from a remittance-dependent model to a reciprocal co-development partnership. A clear long-term strategy should include policies enabling investment, entrepreneurship, and knowledge exchange; institutional coordination among ministries, diaspora organizations, and embassies; sector-specific engagement in tourism, technology, education, and health; platforms for skill transfer and innovation-led collaboration; sustainable funding mechanisms like diaspora bonds and development grants; and reintegration programs for returning migrants to use their skills locally.

A successful strategy depends on shared ownership. Government, private sector, and diaspora communities must contribute together. Institutionalizing engagement beyond political cycles ensures continuity and maximizes impact.

Nepal’s diaspora is more than a source of remittances—they are a global asset, a bridge to international expertise, and a potential partner in nation-building. Yet the remittance paradox shows a fundamental imbalance: immense contributions with insufficient rights, recognition, or engagement.

By addressing policy gaps, strengthening institutions, embracing reciprocity, and building a long-term partnership strategy, Nepal can create a truly inclusive, participatory, and sustainable development model. The diaspora should be valued not only for what they send home but for what they can contribute to shaping a better, stronger Nepal.

-By Som Prasad Sapkota