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Renewed Conflict in the Middle East Sparks Concern Over Nepal’s Dependence on Remittances

Nepali passengers at Tribhuvan Airport

Following the resumption of hostilities between the United States and Iran in the Middle East, concerns have emerged in Nepal regarding foreign employment, as key remittance destinations face instability.

According to the Department of Foreign Employment, the number of new Nepali workers obtaining labor permits to Kuwait, one of the countries most impacted by the Iran conflict, has decreased by two-thirds in the months of Baisakh and Jestha (April-May) compared to the same period last year.

Last year in Baisakh, 3,453 individuals secured labor permits to work in Kuwait, whereas this year only 1,041 new permits were issued. Similarly, in Jestha, the previous year saw over 3,000 workers obtaining permits for Kuwait, while this year only 1,100 permits have been granted.

Up until last Magh (January-February), 3,853 labor permits had been issued for Kuwait. However, following the outbreak of war involving Iran on Magh 16 (January 30), fewer than 2,000 new labor permits have been granted since then.

Not only Kuwait, but also other key labor destinations experiencing Iranian missile and drone attacks—including the UAE, Qatar, Saudi Arabia, and Bahrain—have seen a decline in the number of Nepali workers traveling there since Falgun (February-March).