Banking News — President of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI), Chandra Prasad Dhakal, has stressed the need to provide simple and accessible loans at the local level for workers seeking foreign employment.

During a meeting with newly appointed Minister for Labour, Employment and Social Security Rajendra Singh Bhandari at the Ministry of Labour on Monday, FNCCI President Dhakal drew attention to the current state of Nepal’s labour market, challenges faced by the private sector, and a range of issues related to workers’ welfare.

Highlighting the financial burden on migrant workers, Dhakal noted that many are compelled to pay interest rates as high as 36 percent to secure loans for foreign employment. He emphasized the need for coordinated efforts among banks, financial institutions, money transfer companies, the Social Security Fund, and insurance providers to ensure affordable loans are made available locally to aspiring migrant workers.

Dhakal also pointed out that despite the large volume of funds accumulated in the Social Security Fund, these resources have not been effectively mobilized in productive sectors. He reiterated FNCCI’s position that the fund should be invested in industries, agriculture, energy, tourism, and other productive sectors to generate employment and stimulate economic activity.
“Workers’ contributions have accumulated in large amounts in the Social Security Fund. If this money is invested in productive sectors such as industry, agriculture, energy, and tourism, it can significantly contribute to job creation and economic expansion,” Dhakal said.

Emphasizing human capital development, Dhakal said FNCCI has been advocating for the production of skilled manpower for both domestic and international markets. He noted that aligning skill development with industry needs would ensure worker security, better income opportunities, and overall economic growth.

He further raised concerns over increasing risks to industries due to frequent shutdowns and strikes in industrial corridors, calling for the establishment of a special industrial security force to protect industrial operations.

On the same occasion, Foreign Employment Agencies Association President Bhuwan Singh Gurung said that service fees received by Nepali manpower agencies for sending workers abroad are significantly lower than those received by agencies in other countries. He noted that agencies are struggling to send workers under the government-prescribed service fee structure, which has indirectly exposed workers to greater risks of fraud. Gurung urged the government to find practical solutions to ensure workers are not exploited.

Responding to the concerns, Labour Minister Rajendra Singh Bhandari described the issues raised by FNCCI and the Foreign Employment Agencies Association as positive and constructive. He assured that the Ministry of Labour would take necessary initiatives for policy reform, facilitation, and effective implementation, adding that the government would work in close coordination with the private sector while prioritizing workers’ welfare, job creation, and the expansion of economic activities.

The meeting was also attended by FNCCI Vice President Jyotsna Shrestha and office bearers of the Foreign Employment Agencies Association.